Posted in Offshore Energy - General, UK, Uncategorized, tagged hydrokinetic energy, Orkney Islands on November 11, 2021| Leave a Comment »
Conceptually, these projects have great promise. To date, the main challenges have been durability, mooring system integrity, and space preemption. As noted in the Post article:
The idea is simple; execution less so. As these devices — and their computers, turbines and hydraulics — must survive in some of the harshest conditions on Earth.
Posted in drilling, energy policy, Gulf of Mexico, Offshore Energy - General, tagged drilling, Gulf of Mexico, Lease Sale 257, rig counts on November 10, 2021| Leave a Comment »
More certainty regarding lease sales would help. Prospective participants need assurances that they will have opportunities to apply findings and test exploration and development strategies. Will Lease Sale 257 be held on schedule next week?
Posted in Gulf of Mexico, Offshore Energy - General, tagged Gulf of Mexico, offshore platform, SpaceX Dragon on November 10, 2021| Leave a Comment »
Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, tagged Gulf of Mexico, Hurricane Ida, Mars, production, Shell, Ursa on November 9, 2021| Leave a Comment »
Per Shell, production at Mars and Ursa has restarted. Olympus was restarted on 10/1. The December production figures should give us a pretty good indication of stabilized GoM production post Ida.
Posted in Offshore Energy - General, tagged DOI, Lease Sale 257 on November 8, 2021| Leave a Comment »
Opponents have filed suit in DC Federal Court to block the sale. Given that DOI seems to side with the parties that are suing them (no irony there, this is Washington), how vigorous will their defense be? Meanwhile, OPEC continues to reject White House appeals for increased production.
Per Forbes:
“If we prematurely discourage investment in fossil fuels — and then our dependence doesn’t decline as rapidly as the Biden Administration envisions — that is a recipe for shortages, higher prices, and greater dependence on foreign nations for our energy.”
Forbes
Posted in Offshore Energy - General, Regulation, tagged emergency temporary standard, offshore industry, OSHA, vaccination on November 5, 2021| Leave a Comment »
The legal challenges are already in motion, and the arguments are compelling:
“The order is unconscionable. OSHA does not know how to run our companies. We do,” said Steve Fettig, Secretary and Treasurer of Tankcraft and Plasticraft. “OSHA does not know how to keep our employees safe. We do. And we have done so successfully since the start of the pandemic without the interference of a federal bureaucracy. We respect our employees’ fundamental right to make their own private, difficult medical choices.”
Milwaukee Journal
Posted in energy policy, Gulf of Mexico, natural gas, Offshore Energy - General, Regulation, tagged Argonne, BSEE, EPA, flaring, methane, venting on November 4, 2021| Leave a Comment »
Among other provisions, EPA’s proposed rule, issued on 11/2/2021, specifies that associated gas be handled as follows:
Route associated gas to a sales line. If access to a sales line is not available, the gas can be used as an onsite fuel source, used for another useful purpose that a purchased fuel or raw material would serve, or routed to a flare or other control device that achieves at least 95 percent reduction in methane and VOC emissions.
Because the Dept. of the Interior has jurisdiction over air emissions on most of the Gulf of Mexico OCS, I assume this proposed rule does not apply to those facilities. However, the EPA proposal is not entirely clear in that regard. If the EPA proposal does not apply, will BOEM/BSEE be proposing similar restrictions in their regulations?
MMS/DOI considered prohibiting venting, but determined that adding flaring capability was not feasible for many shelf platforms, and for some platforms there would have been a net increase in emissions. That said, venting is not insignificant. A 2017 Argonne study indicated (table 2) that, for shelf platforms from 2011 through 2015, more than 3 times as much gas was vented as was flared. More recent data should be reviewed to get a better sense of the costs, benefits, and safety considerations associated with achieving further reductions in venting.
Current flaring/venting regulations for OCS facilities are here.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged offshore oil, OPEC, US oil production on November 3, 2021| Leave a Comment »
But here’s the thing. Whether you think it was the right thing to do, the reality is that passing legislation that is hostile to the U.S. oil and gas industry makes it even more difficult for domestic production to bounce back. So, instead of asking Russia and OPEC to pump more oil, we could look internally to what we could do in the U.S. to pump more oil.
Forbes
From a US offshore perspective, there should be serious dialogue about how we can increase exploration and production. The risks associated with over reliance on imports have been repeatedly demonstrated over the past 5 decades. The horizontal drilling/well stimulation revolution has been a blessing, but given the sharp decline rates for fracked wells, we cannot solely rely on onshore production from tight reservoirs.
Posted in California, decommissioning, energy policy, Offshore Energy - General, rigs-to-reefs, tagged California, decommissioning, Jerry Schubel, rigs-to-reefs on November 2, 2021| Leave a Comment »
Veteran marine science advocate Jerry Schubel, former president of Long Beach’s Aquarium of the Pacific, is among those pushing for offshore oil platforms to be transformed for new ocean uses. He points out that the underwater portion of the structures already are a boon to marine life.
“They have enormous value as ecosystems because of the life that has grown on and around them,” he said.
He points out that other states have rigs-to-reefs programs — and California does as well, though it needs funding before it can function. Once the ball gets rolling, oil companies could be tapped to cover costs with fees drawn from the money they would save by not having to haul dismantled rigs ashore. Schubel estimated that turning platforms into reefs could cut decommissioning costs in half.
But Schubel says artificial reefs should be just the beginning. How about fish farms? Research labs? Windmills? Hotels for divers?
“The uses,” he said, “are limited only by our imagination.”
Orange County Register
Well said Dr. Schubel! For a full list of alternative uses for offshore platforms see the official Rigs-to-Reefs+++ page.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged negative oil price, oil production on November 1, 2021| Leave a Comment »
U.S. oil production plummeted and is unlikely to recover to pre-pandemic levels. The Gulf of Mexico will not be picking up the slack. GoM production peaked in August 2019 at 2.044 million BOPD. Absent increased exploration, that peak will never be exceeded.
Bud's Offshore Energy (BOE) 