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Archive for the ‘Offshore Energy – General’ Category

Earth Networks: 13 to 14 named storms, with 7 to 8 becoming hurricanes and 4 becoming major hurricanes.

Colorado State University: 16 named storms, with 9 becoming hurricanes and 5 becoming major hurricanes.

Probabilities per Colorado State:

— A 72 percent chance that at least one major hurricane will make landfall on the U.S. coastline in 2011.

— A 48 percent chance that a major hurricane will make landfall on the U.S. East Coast, including the Florida peninsula.

— A 47 percent chance that a major hurricane will make landfall on the Gulf Coast from the Florida Panhandle west to Brownsville, Texas.

National Oceanic and Atmospheric Administration: expected to issue its forecast May 19

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The U.S. House of Representatives has voted to impose deadlines on the Obama administration to issue offshore drilling permits, as Republicans renew calls for greater amounts of domestic oil production amid rising gasoline prices. Dow Jones

Don’t you have to decide how you are going to regulate before setting deadlines? Now that the House has spoken and the bill is likely to die in the Senate, can we engage in a substantive discussion about how to regulate most effectively and efficiently? Congressional hearings?

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A Maersk Oil-owned FPSO which was damaged during heavy storms in the North Sea in February will be out of action for another year as it heads for drydock repairs. Upstream

More on the Gryphon Alpha incident.

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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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