November 2024 Gulf of Mexico oil production was the lowest in the 2023/24 timeframe, with the exception of Sept. 2024 when production was reduced by Tropical Storms Francine and Helene.
Look for production in the Gulf of America to soar! (eventually😉)
The NTSB has finally issued their report (attached) on the 12/29/2022 helicopter crash that resulted in 4 fatalities at Walter’s West Delta 106 A platform. The NTSB report on the Huntington Beach pipeline spill took a comparable amount of time (26 months) to complete. By comparison, the lengthy and complex National Commission, BOEMRE, Chief Counsel, and NAE reports on the Macondo blowout were published 6 to to 17 months after the well was shut-in.
The gist of the NTSB’s findings is pasted below.
The report summarizes operations standards, but does not consider the associated operator/contractor safety management systems that are intended to prevent such incidents. The report notes that:
Was the contractor/operator aware of these deviations from company policy? Should they have been?
The report implies that human (pilot) error was the cause of the dynamic rollover, but fails to assess the organizational controls that are intended to prevent such errors. How was a pilot with 1667.8 flight hours (1343.8 as the PIC), who had made 23 trips to this platform, repeatedly making fundamental positioning and takeoff errors?
The report also notes that:
This is interesting wording given that the perimeter light was identified as the pivot point, one of the 3 requirements for a dynamic rollover. Why wasn’t that violation observed by the operator/contractor and corrected? What helideck inspection procedures were in place? Did NTSB consider the fragmented regulatory regime for helicopter safety, particularly with regard to helidecks?
Centre Party leader Trygve Slagsvold Vedum: “What we were clear about all along is that beginning the process of linking ourselves more closely to the EU’s dysfunctional electricity market and energy policy is completely out of the question.”
While looking at electric prices and power sharing, consideration should be given to the desirability of transmitting electricity from shore to distant offshore platforms that have ample natural gas for power generation purposes. This practice increases electric prices for consumers and introduces reliability/safety concerns with no net environmental benefits.
Picture of Old Stavanger where former colleague and BOE contributor Odd Bjerre Finnestad (RIP) once lived.Stavanger is both a lovely city and the “Oil Capital of Norway.”
The Secretary of the Interior is, by far, the most important offshore energy official in the Federal government. Yesterday, Doug Burgum was easily confirmed to be the next Secretary. Nonetheless, the following 18 senators chose to vote against his confirmation:
Pioneering offshore engineer J.L. Daeschler, a Frenchman who lives in Scotland and has worked on drilling rigs worldwide, shared his 1974 training certificate signed by Bill Hise, the first director of the Blowout Prevention and Well Control Training Center at LSU. JL recalls his training:
The LSU well control course was new and very well organized. Training options were limited at that time. LSU took a step forward and incorporated equipment donated by Cameron Iron Works, Armco Steel /National, VETCO, and others.
The course was split between indoor class room style and outdoor trainingon a live well to remind us of the real things, like hard hats, tally books, and safety shoes.
LSU had a 1200 ft vertical well and a small 2″ diameter gas injection line to create a bottom hole gas kick, using a nitrogen truck as the supply. (note: the live well was a first for any well control school.) You had a choice of several manual chokes.  I selected the Cameron Willis choke to circulate the gas kick out with no increase in mud weight (drillers method).
The mud return level, kick detection, and general management of the operation were realistic as if on a rig. The gas would whistle and escape thru a vent line.
The training was simple and effective in that proper well control procedures were learned. In the process, there were many errors. Mud was seen flying out of the mud shaker/pits. School management would bring things under control and explain the errors that were made !!!
Given the importance of minimizing drilling risks, the Minerals Management Service (MMS) was the primary funder of the LSU facility. MMS predecessor, the Conservation Division of USGS, first established well control training requirements in 1975 (pasted below).
… Union Oil Company’s reckless well plan forever scarred the U.S. offshore program. Learn more about the details.
Santa Barbara blowout
Examinations of the Santa Barbara, Montara, and Macondo blowouts, the Piper Alpha fire, and other major incidents should be a part of every petroleum engineering curriculum, and should be mandatory for those who conduct and regulate offshore oil and gas operations.
There is no better learning experience than studying the failures that had such enormous human and economic consequences.
The attached bill not only nullifies most OCS leasing bans, but fundamentally changes the OCS Lands Act provision (Sec. 12(a)) that authorizes such Presidential withdrawals.
Revoke all Presidential leasing bans except for the 2020 withdrawals, which could presumably be reversed by President Trump.
Limit withdrawals to under 150,000 acres (the equivalent of 26 lease blocks of typical size) in total or contiguous with any other withdrawal.
Limit cumulative withdrawals to 500,000 acres (87 lease blocks) without congressional approval.
Sunset withdrawals after 20 years.
Require geological, economic, and security assessments for any future withdrawals.
Give Congress the authority to review and potentially overturn future withdrawals.
Ensure that future withdrawals do not contradict an approved Five-Year Offshore Oil and Gas Leasing Program.
Does this bill have a chance? Realistically, the prospects are probably not good. Although the bill currently has an impressive list of 24 sponsors, all are Republicans and none are from Florida. Absent support from Florida Republicans and some interior state Democrats, it will be difficult to gain traction.
Interactive map showing OCS areas where oil and gas leasing is now prohibited (I.e everywhere but the Central and Western Gulf of Mexico and the Cook Inlet)
Equinor’s investment of over 26 billion kroner in the Danish wind power company Ørsted has so far been a financial disaster – and now it’s going from bad to worse.
“We are very negative about the whole green initiative, as the return on the investments they make is far too low. When they also buy minority stakes in other green companies that we cannot count on, such as Ørsted, it means that we would rather own other oil companies.” Gaute Eie, Eika Kapitalforvaltning
The market has long been concerned that Equinor will throw money at renewable projects with low or no profitability.
In a recent note, Pareto analysts Tom Erik Kristiansen and Olav Haugerud point out that the Ørsted writedown does not bode well for Equinor’s own US projects either. They foresee a writedown of up to $1.1 billion, given that Equinor faces the same type of challenges as Ørsted.
Eie believes there is no reason why Equinor in particular should have a green initiative:
Aker BP is not doing green, VÃ¥r Energi is not doing green, and all the big oil companies are going back on this. Then we’ll see if Equinor has the guts to buy even more Ørsted shares, because now it’s 35 percent cheaper. If they do, we’ll have even fewer Equinor shares.
Sissener believes Equinor should rather focus on dividends and concentrate on oil and gas projects.
– We generally stay away from companies where the state is a major owner, because there you have to be so politically correct all the time. What we need are shareholder-friendly board representatives who know how to run a business and maintain control. In a broader perspective, this helps to destroy trust in Norwegian business.
Withdrawal from the Paris Climate Change Agreement:The US Ambassador to the UN shall immediately submit formal written notification of the US withdrawal from the Paris Agreement under the United Nations Framework Convention on Climate Change.Â
Encourage energy exploration and production on Federal lands and waters, including on the Outer Continental Shelf.
Eliminate the electric vehicle (EV) mandate.
Requires immediate review of actions that could burden the development of energy resources.
Develop and begin implementing action plans to suspend, revise, or rescind all unduly burdensome agency actions.
Revoke climate change and “clean energy” EOs.
Terminate all activities, programs, and operations associated with the American Climate Corps (RIP 😉).
Expedite and simplify permitting processes.
Facilitate the permitting and construction of interstate energy transportation and other critical energy infrastructure, including pipelines.
Disband the Interagency Working Group on the Social Cost of Greenhouse Gases.
Terminate the Green New Deal.  All agencies must immediately pause the disbursement of funds appropriated through the Inflation Reduction Act of 2022 (Public Law 117-169) or the Infrastructure Investment and Jobs Act (Public Law 117-58).
The Secretary of Energy is directed to restart reviews of applications for LNG export projects as expeditiously as possible.
estimated peak production:100,000 barrels of oil equivalent per day (boe/d)
water depth – 8600 ft
200 miles south of Houston
estimated recoverable resource: 480 million boe.
first oil only 7.5 years after discovery (includes COVID delay)
Vito clone: replicates 99% of the hull design and 80% of the topsides from Vito.
high efficiency gas turbines and compression systems
~ 30% lower greenhouse gas (GHG) intensity over its life cycle than the already efficient levels being achieved at Vito. (Why the push to run electric cables from shore to North Sea platforms with ample gas production?)
This is all good, but what is next? Will technological advances once again sustain GoM production? The short answer appears to be yes!
The efficiencies achieved with the simpler platform designs combined with the high pressure (>15,000 psi) technology developed over the past 2 decades will facilitate production from the highly prospective Paleogene (Wilcox) deepwater fans. (For those interested in learning more about the geology, see the excellent presentation by Dr. Mike Sweet, Univ. of Texas, that is embedded in this post.)