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Archive for the ‘Offshore Energy – General’ Category

COSCO and Inocean are partnering to build a more compact and cost-effective deepwater drillship.

INO-80 is a compact dynamically positioned drillship with large free deck areas, designed for year-around operations in ultra deep waters. The vessel has well planned utility arrangement with safe and reliable material handling. The hull is shaped for cost efficient and easy fabrication, as well as for challenging conditions during station keeping and transit. INO-80 features for exploration, appraisal and development drilling. 

Design video

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The HSE has told Shell to submit a revised safety case for the Brent Charlie platform after gas was detected on its topsides following leaks on 12 January this year and 27 September 2010, Upstream can reveal.

Shell, which took the decision itself to close the platform after the January incident, has been battling for some time to resolve technically complex issues related to the venting of gas from inside one the platform’s huge concrete legs — Column 1 (C1) — and dispersing it effectively away from the platform.

The operator now expects the ageing Brent field to remain shut down for several more months.

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In a report into the future of energy, the influential Committee on Climate Change calls on the Government to scale back plans to build thousands of turbines off the coast of Britain.

Instead, the report calls for hundreds more wind turbines to be built onshore at a lower cost over the next eight years.Daily Mail UK

On the other hand, offshore locations have stronger, more consistent winds, and minimal aesthetic and noise impacts. Is the public going to accept massive onshore wind development?

I continue to be intrigued by the concept of offshore energy units which integrate natural gas and wind projects to ensure consistent power supply. (See slide below from a presentation by George Hagerman, Virginia Tech Advanced Research Institute)

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The federal and provincial governments both say they have no plans for offshore oil and gas exploration on B.C.’s coast any time soon. CBS News

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….. and oil prices fall by more that $10.  See how easy this is 🙂

Even if the legislation is passed by the Senate and enacted (unlikely), the only mandated sale outside of the Gulf of Mexico would be a small wedge in the Atlantic. This wedge would likely be reduced to a sliver by Defense Department concerns.

See our previous comments on this and the two companion House bills.

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…but the only Atlantic area included in the present 5-year oil and gas leasing program  is the cross-hatched wedge in the map below.  This area was to have been considered for leasing  in Sale 220, but the sale was cancelled following the blowout. The House Natural Resources Committee has passed legislation that would require that sale to be held.

No matter what happens, Sale 220 isn’t much to get excited about, especially if the Department of Defense has its way. In light of world events and the fuel demands of our military, one would assume that DOD would be a leading advocate for offshore energy exploration and development. However, rightly or wrongly, preventing disruptions to military training and operations has always been a higher DOD priority than domestic energy production.

With regard to Sale 220, DOD wants 72% of this already small area (magenta) removed from consideration. So even if this lease sale is held, the maximum offering would likely be the cross-hatched blue micro-sliver. That would be the extent of Atlantic leasing for the foreseeable future.

Oil is where you find it, not where you wish it was, where it is most convenient, or where you legislate it to be. Ditto for natural gas. We need an offshore oil and gas program that identifies the most prospective targets, provides for exploratory drilling to evaluate these targets, facilitates production, and effectively manages the safety and environmental risks. We can’t just explore the small slivers that remain after political and administrative reviews have eliminated the rest.

Like it or not, our Outer Continental Shelf lands belong to the entire nation. We need to manage these lands and the associated resources in a manner that is in the best interest of all Americans.

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click on image to enlarge

from the Bahamas Tribune:

“We hope that in the second quarter of next year we will be able to be in a position where we can go forward and drill a well. We’ve just raised $75 million on the London market last month to apply towards our exploration purposes,” Dr Crevello said during a meeting of the Rotary Club of Nassau yesterday.

It is doubtful that this timeline will be met as Government has said it will not lift its moratorium on drilling any time soon.

“Well it’s nigh impossible for this (the passing of legislation relating to oil drilling) to be accommodated within this Parliament,” Environment Minister Earl Deveaux told The Tribune last month.

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CNN Poll

A CNN/Opinion Research Corporation survey released Tuesday indicates that 69 percent of Americans favor increased offshore drilling, with just over three in ten opposed. That 69 percent is up 20 points from last June, while the oil spill was still in progress, and is back to the level of support seen in the summer of 2008.

Confidence in government has shown a less significant increase.

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International Guests

  • The conference was nicely organized by the folks in the Department of the Interior and BOEMRE
  • Angola, Australia, Brazil, Canada, India, Mexico, Netherlands, Norway, the United Kingdom, Russia, and the US were represented. The European Union also participated.
  • Brazil was represented by two Petrobras managers, rather than governmental officials. This raised some eyebrows.
  • Australia formally announced yet another offshore regulators’ conference, the International Offshore Petroleum Regulators and Operators Summit in Perth (10-11 August). Do we need better coordination of the coordination conferences? Isn’t the International Regulators’ Forum (IRF) the best means of managing all of this?
  • The need for expanded offshore oil and gas operations was recognized by all participants.
  • Malcolm Webb of Oil and Gas UK, announced that UK operators would have a capping capability for subsea wells by the end of the summer. However,  no well containment system is planned. This omission, which was attributed to North Sea weather and sea conditions, is surprising. Capping is not an option if well integrity concerns prevent a well from being shut-in, either with the BOP or a cap (if the BOP failed). The absence of a well containment option would seem to be a significant gap in their response capability.
  • A working group was formed to consider a new or strengthened international organization for offshore safety and pollution prevention. In my view, the best option would be to enhance existing cooperation mechanisms, most notably the IRF. International cooperation on safety is not a new concept. The IRF, which was mentioned positively by many of the speakers at the Ministerial Forum, has existed since 1994 and has an ongoing international standards effort. A related group, ICRARD, has been coordinating offshore safety research for more than 15 years. Various industry organizations have international programs. ISO has a good system for developing and managing standards. The International Maritime Organization has official committees that address certain offshore safety and pollution issues. Making better use of existing committees and forums would seem to make more sense than starting new ones.

With BOEMRE dynamos - (Kona) Kevin Kunkel and July (Ms. COOL) McQuilliams

link to videos

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John Milne Book Launch

John C Milne

“Dubs” is a term used in Aberdeen and northeast Scotland to describe all varieties of mud. That is the first thing I learned in reading John Milne’s excellent book “DUBS, How the Oil Came North.”  John’s first job in the offshore industry was with a drilling mud supplier back in 1969 when he was still a college student.  John presents a series of amusing and informative anecdotes about hie work experiences between 1969 and 1973 during the early years of North Sea offshore exploration. The book is available through the publisher, PlashMill Press. Good read!

I also recommend Bjørn Vidar Lerøen’s excellent book “Drops of Black Gold,” which

Drops of Black Gold - Statoil

chronicles the history of Statoil and Norwegian offshore oil and gas development. The book includes a now famous 1962 letter from Phillips Petroleum to the Norwegian government. In the letter, Phillips seeks exclusive rights to the entire Norwegian continental shelf in return for conducting a seismic survey program. Hey, nothing wrong with asking! 🙂

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