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Archive for the ‘Offshore Energy – General’ Category

BW Pioneer

The US Coast Guard has issued the first ever Certificate of Compliance for a Floating Production Storage and Offloading (FPSO) facility in the Gulf of Mexico.

The BW Pioneer, under lease to Petrobras, will operate in the Cascade and Chinook fields.

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“The Honda Civic GX (the only NGV available to U.S. consumers and repeat winner of the ACEEE Green List) has been so successful Honda predicts it will double GX sales in the U.S. this year after doubling them in 2009. Utah, Oklahoma and California have been very successful in building out natural gas infrastructure and deploying NGVs that are refueling with natural gas.” SeekingAlpha.com

While I don’t agree with everything in this article, the numbered points are right on target. Increased use of natural gas for transportation is the best near- and intermediate-term option for reducing oil consumption and imports, air emissions, and transportation costs.

Supply does not appear to be an issue in light of the numerous domestic options including shale gas, Alaskan gas, coalbed methane, and conventional onshore and offshore gas.  Given the proximity of enormous shale gas resources to major markets, shale gas is the featured attraction. However, this is an offshore blog, and from a strictly environmental perspective, offshore gas is the preferred option.  Why?

  • No freshwater contamination issues
  • Small environmental footprint – limited facilities needs and minimal space preemption
  • No production in or near residential areas
  • Potential production near major natural gas markets. For example, there is a natural gas discovery in the Atlantic approximately 100 miles southeast of the New York City area. (Before my geologist friends get upset, I will point out that the productive reservoirs are highly complex and further exploration is necessary to determine whether this field – the former Hudson Canyon Unit – and other Atlantic prospects are commercially viable.)
  • Potential for combining offshore gas and wind projects into offshore energy units that can ensure consistent power supply. (See slide below from a presentation by George Hagerman, Virginia Tech Advanced Research Institute)

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Rep. Tim Murphy’s (R-Pa.) bill states that companies with drilling permits approved before early May 2010 can proceed with exploration or production “without further review” by the Interior Department, and “without further review or delay” under various environmental laws. The Hill.com

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From Platts Oilgram News:

The well had previously been drilled to a depth of 13,585 feet at the time of the moratorium, Noble said. Drilling is expected to resume in late March, targeting total drilling depth of about 19,000 feet, Noble said. Results are expected by the end of May. Noble said it will use the Ensco 8501 rig for the project.

Ensco 8501

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Secretary Salazar will appear before the Senate Energy and Natural Resources Committee on Wednesday (2 March) at 10:00 am ET and the House Natural Resources on Thursday (3 March) at 10:00 am ET. Expect deepwater drilling and other offshore energy questions.  Both hearings will be streamed live at the respective websites.

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Few Cabinet Secretaries are scientists or engineers, and none has been a Nobel Prize winner. We expect Secretary Chu to be different and yesterday’s meeting with DOE’s Ultra-Deepwater Advisory Committee was not your typical Washington “hit and run” performance. Rather than making a quick speech and running along to his next appointment, Secretary Chu engaged in technical dialogue with our committee for a full hour, offering insights and responding to questions. Among the topics discussed were BOP instrumentation and monitoring, well integrity, ROV/AUV issues, and Macondo findings.

Kudos to Secretary Chu for his commitment to offshore safety.

Gary Gentile published this report on the meeting in Platts Oilgram News. (click on the story to enlarge)

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Magne Ognedal

It’s impossible to inspect quality into the petroleum industry.  The latter must itself ensure quality. Magne Ognedal, Director General, Petroleum Safety Authority Norway

More thoughts from Magne:

Understanding risk is central here. We must all recognise first and foremost that the petroleum industry involves risk – just like any other activity.

However, accepting risk does not mean accepting accidents, he emphasises. “Quite the contrary. But we must constantly remind ourselves that accidents have happened – and can happen again.

“The risk of a major accident is present, in Norway and in all other nations with an oil and gas industry. This means that incidents will occur.

“Risk must accordingly be managed, with clear management responsibility, at every level and in every company which participates in the industry.”

Preventive measures can be a challenge, Mr Ognedal concedes, because they require that action is taken – often at a cost – without a disaster or other accident having occurred.

“However, history offers many examples where extensive measures are adopted after disasters. Companies in the petroleum business should consciously ask whether it would not be far better to have an established system which means that preventive measures based on learning, new technology and so forth are implemented, in order to be able to prevent accidents and disasters.

PSA Announcement

Safety – Status and Signals: This is a great publication – highly creative,  easy to read and understand, very current, and loaded with good information. Check it out!

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On 9 November 2010, the Petroleum Safety Authority Norway (PSA) conducted an audit of BP Norge’s follow-up of new work processes within drilling and well activities using information and communication technology (ICT)

summary of the audit

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Brazil and Angola share more than a common language. Both aspire to be presalt production leaders.  According to Platts Oilgram News (not available online):

BP, Total, Eni and other international majors have been awarded concessions to explore in Angola’s ultra deepwater presalt blocks, a ministry of energy official told Platts January 26, as companies hope to replicate in the southwest African country the successof the pre-salt plays offshore Brazil.

Per a separate Platts article:

According to the US Energy Information Administration website as of January 2010, Angola had proven oil reserves of 9.5 billion barrels while government statements in December 2009 put total reserve numbers as high as 13.1 billion barrels.

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Unfortunately, this isn’t a Cajun joke.  According to Upstream, Noble’s Clyde Boudreaux, a deepwater semisubmersible, is being moved to Brazil to work for Shell.

We expect to see additional units leave the Gulf region, which may at some point impact the broader deepwater market. Roger Hunt, Noble

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