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Archive for the ‘Offshore Energy – General’ Category

It looks like Montara has not affected frontier exploratory drilling offshore Australia.  Per Upstream:

New Seaclem-1 will be the first well to be drilled off the New South Wales coast and will target an estimated 6 trillion cubic feet of gas in the Great White & Marlin prospects.

Well site is in PEP-11 (Advent Energy map)

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The Economist reports on the Laggan-Tormore gas project :

The £2.5 billion project, approved earlier this year, should deliver its first gas in 2014—a full 28 years after the Laggan field was discovered, a delay that exemplifies the region’s challenges. The field was too small and remote to justify the construction of a pipeline until the nearby Tormore field was discovered in 2007.

 

 

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Yesterday, I was fortunate to receive a copy of Bjørn Vidar Lerøen’s excellent book “Drops of Black Gold” which chronicles the history of Statoil and Norwegian offshore oil and gas development.  Of particular interest was a letter on page 17 of the book (not available online) that I had heard about but hadn’t seen. The letter, dated October 29, 1962, is from Phillips Petroleum to the chairman of a Norwegian government committee considering offshore oil and gas exploration.

Phillips’ request is quoted below.  You have to give  Phillips high marks for taking an aggressive negotiating position (or was it pure chutzpah?).  No small lease blocks for them.  Phillips asked for the whole Norwegian shelf including any future additions! And what would they offer in return – a seismic survey program costing an estimated $1 million.

We have reason for believing that the geologic basin in which large reserves of natural gas have been discovered in Holland may be extended northward into the Norwegian portion of the North Sea. Therefore, Phillips Petroleum Company is interested in obtaining from the Norwegian government an oil and gas concession covering the lands lying beneath the territorial waters of Norway plus that portion of the continental shelf lying beneath the North Sea which may now or in the future belong to or be under the control of Norway.

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The above slide is from the excellent presentation that Jan de Jong (Inspector General, State Supervision of Mines, the Netherlands) never got to deliver in Vancouver. As session chair, Jan graciously yielded his time to his panelists.

Jan’s presentation notes the growing importance of international cooperation. This trend has the potential to improve regulatory capabilities, expand data availability and access, reduce regulatory costs through the sharing of resources, reduce costs for industry through greater international consistency and regulatory certainty, and improve international relations.  The Netherlands, Russia, Norway, Cuba, the US, and everyone else should be on the same team when it comes to offshore safety and pollution prevention.  Some near-term suggestions follow:

  • Except where regional conditions dictate otherwise, the same standards should be applied worldwide.  Government and industry should be collectively questioning, testing, and improving these standards. Remember that the goal is continuous improvement, not mere compliance.
  • An international information system should provide for the collection and verification of incident and performance data.
  • Using international data and expertise, a cooperative risk assessment program should be initiated.
  • An organized international audit capability should be established to evaluate operators and regulators.
  • To improve access to expertise and reduce costs, a network of specialists should assist regulators worldwide.
  • Industry training requirements should be uniform and consistently applied, and regulator training programs should be consolidated regionally or internationally.
  • The international research network should be expanded.
  • To ensure that accidents are investigated independently and to minimize the potential for political influences on the investigation process, an international accident investigation capability should be established.
  • The safety culture message should be promoted worldwide.  Successes and failures should be cooperatively examined.

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The White House said Tuesday the government will lift a moratorium on deep water oil drilling in the Gulf of Mexico “very soon” – likely this week. Washington Post

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This New York Times article and video discuss the dispute on the island of Vinalhaven, Maine, about the noise associated with the island’s three wind turbines.

Comments:

-Locating wind projects offshore minimizes noise and visual issues, but increases costs and operational complexity.  There are always trade-offs.

-When all environmental impacts are considered, offshore natural gas is tough to beat: minimal visual impacts, none of the freshwater issues that are complicating shale gas development, few land use issues, little or no spill risk (depending how dry the gas is).  The trade-off is CO2 emissions. While combustion of natural gas emits 30% and 45% less CO2 than oil and coal respectively, the CO2 emissions are still significant.

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In recognition of the earlier fall harvests to our north, Canada celebrates Thanksgiving a month ahead of the US. As a result, Canada’s Thanksgiving coincides with our Columbus Day.  So Happy Holiday to folks on both sides of the border, even if you have to work! 🙂

Canada, which is on our minds this week as we get ready for the big conference in Vancouver,  is especially significant to our offshore scholars because of its long coastline, by far the longest of any nation (see below and this slightly different Wiki ranking).   80% of the world’s nations have coastlines bordering an open sea, and about 1/3 of all nations have an existing or planned offshore oil and gas program.

link

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There is tremendous benefit from collaboration between governments and between industry and governments working together on a global scale. Half of the remaining oil and gas resources are located offshore, and the demand for energy continues to grow. While each country may have unique societal demands that must be addressed, we also share many common technical and environmental challenges as we continue to explore the deep water. Carolita Kallaur, 2001, London

Carolita Kallaur

Carolita Kallaur’s words ring stronger today than ever, and the need for international cooperation on offshore safety issues has never been clearer. Carolita, who directed the US offshore oil and gas program at the end of her outstanding career with the Department of the Interior, was the spirit of offshore safety.  Her highest priorities were improving international standards and working together on safety and pollution prevention matters, and she worked tirelessly to promote these objectives.

Carolita also believed in recognizing outstanding organizations and individuals who demonstrated exceptional commitment to safety achievement.  She was instrumental in establishing an awards program in Houston that honored these outstanding leaders.

Shortly after she retired in 2002, Carolita contracted amyotrophic lateral sclerosis, an incurable nervous system disorder that is commonly known as ALS or Lou Gehrig’s disease.  She died just before Christmas in 2003. Carolita’s indomitable spirit lives on with an awards program that honors outstanding offshore safety leaders. These awards were first presented at the International Regulators’ Offshore Safety Conference in London in 2005, and were again presented at the second conference in Miami in 2007.  The International Regulators’ Forum has completed its latest round of deliberations, and will again be presenting Carolita Kallaur Awards at the Vancouver conference on 18 October.

I look forward to joining international leaders in honoring Carolita’s legacy and recognizing the deserving winners of these prestigious safety awards.  See you in Vancouver!

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While unveiling their “Guiding Principles,” Kathryn Klaber, Executive Director of the Marcellus Shale Coalition, said this:

We’re all in this together. We’re all only as good as whoever had a mistake this morning.

That this statement also applies to offshore oil and gas operations should now be painfully obvious to all.  Each company’s success is dependent upon every other company’s performance, not just in your region, but anywhere in the world.  The offshore industry needs to clearly and succinctly describe its universal commitment to safety and environmental protection.  Sweeping principles that guide all operations should be developed and endorsed by every operator and contractor.  The Marcellus document is a good starting point, but more details may be needed. Commitments to sharing and analyzing verified incident data, participating in standards development, assessing new technology, and sponsoring safety and environmental research should be included. Now is the time to act.  Who will provide the regional and international leadership?

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Greenpeace Photo

Despite protests, the UK has approved Chevron’s exploratory well in 1640′ of water west of the Shetland Islands.

It was a choice between producing oil and gas here in U.K. waters, where we have one of the most robust safety and regulatory regimes in the world, with all the economic benefits that will bring, or paying to import oil and gas from elsewhere. UK Department of Energy and Climate Change statement

It’s pretty hard to argue with that logic.

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