Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, oil, tagged Gulf of Mexico, Hurricane Ida, oil production, shut-in on September 2, 2021| Leave a Comment »
In a bit of a surprise, the volume of shut-in GoM oil production rebounded to more than 1.7 million BOPD (see BSEE’s 9/2 update). Because several deepwater platforms had reportedly resumed production, the sharp increase in shut-in volumes could have something to do with downstream facility damage or bottlenecks. The daily Ida shut-in volumes are plotted below.
Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, oil, tagged BSEE, EIA, Hurricane Ida on September 1, 2021| Leave a Comment »
Presumably, most of the restored GoM production is from platforms like Exxon Hoover that were not subjected to hurricane conditions. Per BSEE, the total oil production shut-in as of 9/1 is 1,455,279.
The latest EIA production report for June 2021 has just been released and GoM oil production averaged 1.825 million BOPD.
Posted in gas, Gulf of Mexico, Offshore Energy - General, oil, Regulation, tagged BOEM, DOI, Gulf of Mexico, Record of Decision, Sale 257 on September 1, 2021| Leave a Comment »
In light of the ongoing litigation regarding the Department of the Interior’s “leasing pause,” DOI’s Record of Decision for Sale 257 is most encouraging. The viewpoints expressed in the two quotes below are fundamental to the future of the OCS Oil and Gas Program. Hopefully, all parties can put aside their differences and build upon these consensus views.
While offshore exploration and development cannot be made risk free, OCS oil- and gas-related activities can be conducted safely and responsibly with strong regulatory oversight and appropriate measures to protect human safety and the environment.
ROD, p. 5
The decision to hold Lease Sale 257 recognizes the role that GOM oil and gas resources play in addressing the Nation’s demand for domestic energy sources and fosters economic benefits, including employment, labor income, and tax revenues, which are highest in Gulf Coast States and also distributed widely across the United States. Revenues from offshore oil and gas lease sales support national conservation programs and coastal resiliency for applicable coastal states and political subdivisions under the Gulf of Mexico Energy Security Act of 2006.
ROD, p. 7
Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, tagged Exxon Hoover, Hurricane Ida on August 31, 2021| Leave a Comment »
Consistent with expectations, more than 1.7 million BOPD remains shut-in. Exxon announced that crews are resuming operations at their deepwater Hoover platform. Hoover is west of the Ida storm track and incurred no damage.
Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, tagged Globetrotter II, Hurricane Ida, production on August 30, 2021| Leave a Comment »
As expected, BSEE’s 8/30 update indicates that the shut-in production volumes remain about the same. The process of inspecting facilities, returning workers (some of whom may be dealing with damage and other challenges at home), and restoring production will take some time.
Other than the sketchy reports about the Globetrotter II, there is no information on Ida-related offshore incidents at this time. .
Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, tagged Hurricane Ida, Port Fourchon on August 30, 2021| Leave a Comment »
Port Fourchon, the service hub for the deepwater Gulf, took a direct hit from Ida. This is why you evacuate (including offshore platforms).
Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, oil, tagged Hurricane Ida, oil production on August 28, 2021| Leave a Comment »
Per BSEE’s 8/28 update, 90.84% of GoM oil production is reported to be shut-in. Given that there is some uncertainty in both the numerator (production shut-in) and the denominator (base production), there is a margin of error (~5%?) in that figure. The large discrepancy in the % of manned facilities evacuated (only 50) and % of oil production shut-in (90+) illustrates the dominance of deepwater facilities, mostly shut-in, in GoM oil production.
Posted in offshore, Offshore Energy - General, oil, tagged Hurricane Ida, oil production on August 27, 2021| Leave a Comment »
In light of the projected storm track for Ida, forecasting uncertainty, and the need to err on the side of caution in making evacuation and shut-in decisions, particularly for deepwater facilities, look for at least 75% of Gulf of Mexico oil production (approximately 1.3 million BOPD) to be shut-in temporarily.
Posted in accidents, Mexico, Offshore Energy - General, tagged Pemex fire on August 25, 2021| Leave a Comment »
This graphic update gives a better sense of the horrific tragedy that unfolded:
MEXICO CITY (AP) — Mexico’s state-owned oil company said Tuesday the possible remains of two missing subcontractors had been found on one of its oil platforms in the Gulf of Mexico following a weekend fire.
Pemex Director Octavio Romero said the apparent remains were found in a control room on the platform where temperatures reached around 1,800 degrees (1,000 degrees Celsius). Such heat would have burned the bodies beyond recognition.
Given the magnitude of the event, the restart schedule seems pretty aggressive. Hopefully, the risks have been fully assessed and the resumption of production is not being rushed.
Pemex said that by Aug. 30 it hoped to restore all of the 421,000 barrels per day in production knocked out by the blaze.
AP News
Posted in accidents, Mexico, Offshore Energy - General, tagged macondo, Mexico, Pemex fire, safety, Talos, Zama on August 24, 2021| Leave a Comment »
the Mexican government’s recent decision to anoint Pemex operator of the billion barrel Zama field would seem to merit further scrutiny. Houston-based Talos Energy discovered the Zama field in 2017. The field underlies both Pemex and Zama acreage, and there are common reservoirs. Per Bloomberg:
Mexico’s energy ministry has designated Petroleos Mexicanos as the operator of the country’s largest oil discovery by private companies, in the latest sign of the government’s nationalist approach to the energy industry.
Talos said it was “very disappointed” with the decision and will explore “legal and strategic options” regarding Zama. The company added that the energy ministry had informed Talos of its “sudden” decision only three days after the driller received a letter directly from Pemex arguing for operatorship.
Bloomberg, 7/5/2021
The Mexican government’s decision is indicative of the Lopez Obrador administration’s commitment to rolling back the reforms that had encouraged private sector participation in Mexican offshore exploration and development.
Questions had already been raised about Pemex’s ability to fund Zama development and operate the field safely. This week’s deadly incident and a July pipeline fire add to those concerns. In light of the background political and financial issues, will it be possible to for Pemex and the Mexican regulators to conduct a fully independent investigation of the tragic fire that just occurred?
Bud's Offshore Energy (BOE) 