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Archive for the ‘Gulf of Mexico’ Category

Shell’s damage assessment of the West Delta 143 (WD 143) platforms revealed significant structural damage. Shell estimates that that the WD-143 “A” platform facilities will be off line for repairs until the end of 2021, and that the facilities on our WD-143 “C” platform will be operational in Q4 2021. Shell expects to resume production from their Olympus platform, which flows across the WD-143 “C” platform, in Q4 2021, and from their Mars and Ursa facilities, which flow across the WD-143 “A” platform, in Q1 2022.

Mars, Olympus, and Ursa account for most of the GoM production that remains shut-in as a result of Hurricane Ida.

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BSEE data

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BSEE Data

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BOEM just released their update of Gulf of Mexico OCS oil and gas reserves as of 12/31/2019. Oil reserves increased by 35.2% as a result of 6 new fields being added.

The reserve additions are necessary and welcome given the high depletion rates from 2002 to 2018 when reserves (plotted above) declined steeply while production rates held steady or increased. The concerns about the sustainability of current GoM production rates, as expressed in our 7/26/2021 post, remain given the historically low levels of exploratory drilling. For the reasons presented in that post, our view is that the importance of GoM production will increase, not decrease, over the next decade.

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BSEE data

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As expected given the magnitude and track of Ida, the necessary inspections, and the onshore damage, most GoM production remains shut-in. (BSEE data)

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Noble’s Aug. 29 statementNoble’s Sept. 2 statement
Each rig successfully secured its respective well in progress and took evasive actions to avoid the storm’s path.” (No mention of the delay in relocating the Globetrotter II or the rig, riser, and LMRP damage already reported on social media.)“several riser joints and the lower marine riser package separated from the rig during the storm and sank to the seabed.” (Confirms social media reports.)
“All personnel are safe and accounted for.” (No mention of the injuries alluded to in social media reports.)A small number of crew members were treated for minor injuries.” (The actual number was 9, i.e. not a small number, 4 of whom had to be transported to shore for further evaluation.)
“One of the ship’s cofferdams in the moonpool area sustained damage.” (Update: The storm broke part of the hull, which allowed water into some compartments. Per the ship’s master, the vessel was not in distress and not actively taking on water.)

In a proper safety culture, you don’t downplay serious incidents and you never declare victory. Spin control is for politicians, not safety leaders. The Globetrotter II, with 140 workers aboard, was slammed by a major hurricane, perhaps unnecessarily. After the frightening social media reports, Noble released an “all is well” statement that minimized the significance and potential consequences of the delayed rig relocation. Noble continued to downplay the incident when they update their statement 5 days later.

The Coast Guard and BSEE will be investigating the Globetrotter II relocation, and their findings will be of great interest. Noble has historically been a very good drilling contractor with a strong commitment to safe operations. Hopefully, they and others will learn and apply lessons from this and similar events that have occurred in the Gulf and elsewhere. Companies may also want to assess the compatibility of their messaging practices with their commitment to a robust safety culture and continuous improvement.

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Divers identify broken pipeline as source of Gulf oil spill
satellite image provided by Maxar Techologies shows Port Fourchon and slicks on 9/2/2021
  • 12″ pipeline displaced by Ida
  • Approximately 2 miles south of Port Fourchon which took a direct hit from Ida. (Appears that the pipeline is in Louisiana State waters).
  • Water depth = 34′
  • Talos funding spill response, although the company said it was not their pipeline
  • Leak has slowed significantly; apparently production is not entering the line and the spill is limited to pipeline inventory
  • This type of incident is not surprising given the magnitude and track of Ida and the pipeline infrastructure that was exposed to major hurricane conditions

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1,698,557 BOPD per BSEE. Updated recovery chart:

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Shell Offshore Inc. (Shell), a subsidiary of Royal Dutch Shell plc, conducted an initial flyover of our assets in the path of Hurricane Ida. During this initial flight, we observed damage to our West Delta-143 (WD-143) offshore facilities. When it is safe to do so, we will send personnel offshore to provide a closer inspection of these facilities to understand the full extent of the damage and the degree to which our production in the Gulf of Mexico will likely be impacted.

Shell news release

This is a very significant report given the importance of the WD 143 platform in transferring all production from Shell facilities in the “Mars corridor.” These facilities include the Mars, Olympus, and Ursa platforms.

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