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Archive for the ‘UK’ Category

converted semi-submersible initiates production at the Argyll field

JL Daeschler, a pioneering subsea engineer who lives in Scotland, has fond memories of his interactions with Fred and Ferris Hamilton, the brothers whose company was the first to produce oil in the UK sector of the North Sea (1975). Their small company aced the super-majors by initiating production at the Argyll Field with subsea wells and the Transworld 58, a converted semi-submersible drilling rig. Their rig conversion was an early predecessor to the modern floating production units that have become the surface facilities of choice for deepwater development.

JL recalls that Ferris and Fred took time to discuss any problem with any employee. Should there be arguments, they were often followed by more relaxed discussions about sailing, cars, cooking, and other topics of mutual interest. The brothers would travel from Denver for the annual Christmas dinner in Aberdeen, and invited everyone from the warehouse crew to the production manager. There was a great sense of community among the employees and contractors.

As JL notes, there were no satellite positioning systems, and real time communications with the rig were short and limited to the normal marine radio channels. This was a remarkable era of achievement for the North Sea and the offshore industry, as operations expanded and technology advanced to support them. I have much respect for these offshore pioneers and their contributions to societies around the world.

Related articles:

British Secretary of State for Energy Tony Benn, center, with Frederic Hamilton and Captain Harry Koutsoukos opening a valve to release the first oil from the North Sea into the BP refinery on the Isle of Grain in 1975.

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Each annual licensing round will only take place if key tests are met that support the transition to net zero. The first test is that the UK must be projected to import more oil and gas from other countries than it produces at home

The second is that the carbon emissions associated with the production of UK gas are lower than the equivalent emissions from imported liquefied natural gas

If both these tests are met, the NSTA will be required to invite applications for new licences annually.

GOV.UK

The “key tests” would seem to ensure annual licensing rounds for the foreseeable future. The charts below are from UK EiTi. The first chart illustrates the sharp decline in UK production over the past 20 years. The second and third charts illustrate the large projected gaps between supply and demand, particularly for natural gas.

In 2050, total production of oil and gas is estimated at ~10 million tonnes of oil equivalent. The projected 2050 demand is estimated at ~35 tonnes. For domestic production to exceed imports over the next 20-30 years, resource licensing and field development would have to be very successful and efficient.

Projections of UK Gas Demand and Production
Projections of UK Gas Demand and Production

With regard to the second test, carbon emissions from the production of UK gas should maintain their advantage over imported LNG given the energy required to liquefy and transport that gas.

It would have perhaps been more transparent to simply stipulate annual licensing rounds, but that would probably not have been politically acceptable.

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The North Sea Transition Authority (perhaps the transition is a bit more complicated than changing the name of the licensing agency) has announced the awarding of 27 new oil and gas licenses in the UK sector of the North Sea. Summary bullets:

  • Quicker-to-production areas chosen to aid UK energy security
  • First to be awarded from 115 applications – the highest number since 2016/17 29th Licensing Round (see map below)
  • More blocks will be offered subject to additional environmental checks

These licences are in the Central and Northern North Sea, and West of Shetland. There are currently 284 offshore fields in production in the UK North Sea and an estimated 5.25 billion boe in total projected production to 2050. 

CGG map showing applications

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Platform Harmony jacket

An excellent paper by John Smith and Bob Byrd is attached.

The authors recommend the operators of large OCS platforms offshore California and in the Gulf of Mexico who propose to partially remove platform jackets prepare Comparative Assessments to support their decommissioning applications. The Comparative Assessments can also be prepared to support the case for allowing partial removal of smaller platform jackets and allowing pipelines and drill muds and cuttings to remain in-situ.

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Offshore veteran JL Daeschler brought the historic destruction of the Ocean Prince to my attention.

At about 2 am on the day of the storm, the rig’s superstructure was torn off during a gale. By 7:10 am about a third of the drilling plattform had dissapared under 60 feet water.”

I didn’t realize that some early North Sea wells were drilled with semisubmersible rigs that were sitting on bottom, ala submersibles.

Per JL Daeschler, “the barge master on Ocean Prince was unsettled about sitting on a sandbank in the North Sea with waves as deep as the water depth, hence accelerating the scouring around the pontoon on the sea bed and distorting the forces on an unsupported hull. On a semisubmersible floating rig there is a great level of compliance between the mooring system and the forces on the leg and bracing. Worst case, you let the mooring go and drift. 

It’s noteworthy that: “During the same storm which claimed the ”Ocean Prince,” the rig’s sister ship ”Ocean Viking,” while drilling afloat, withstood winds and waves of equal force.”

The entire crew of the Ocean Prince was safely evacuated. The helicopter pilot’s last name was fitting given his bravery during the rescue!

Hero of the rescue effort was Capt. Robert Balls, 32, a former naval pilot who was alerted to remove the stranded crewmen. Within 45 minutes after he was awakened at Scarborough Hotel at 6 a.m., he was piloting a Wessex 60 helicopter across the North Sea fighting gale winds 400 feet up.”

“Captain Balls flew the copter with a minimum load of fuel in order to carry more than a full passenger load to the oil rig ”Constellation,” which was drilling about 20 miles south of the ”Ocean Prince.” On the first lift he transported 19 men. Usually, the capacity of the Wessex 60 is 16. On the second trip he took 18 crewmen. The final trip, he flew eight men directly to Scarborough.”

Before the storm:

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The Piper Alpha fire was the worst disaster in the history of offshore oil and gas operations and sent shock waves around the world. Eight months later another interactive pipeline-platform fire killed 7 workers at the South Pass 60 “B” facility in the Gulf of Mexico. A US Minerals Management Service task group reviewed the investigation reports for both fires and recommended regulatory changes with regard to:

  1. the identification and notification procedures for out-of-service safety devices and systems,
  2. location and protection of pipeline risers,
  3. diesel and helicopter fuel storage areas and tanks,
  4. approval of pipeline repairs, and
  5. location of ESD valves on pipelines.

Paul Schneider and I wrote a paper on the task group’s findings and that paper was published in Offshore Operations Post Piper Alpha (Institute of Marine Engineers,1991). The proposed regulations that followed summarized these findings and can be be found at this Federal Register link.

Lord Cullen’s comprehensive inquiry into the Piper Alpha tragedy challenged traditional thinking about regulation and how safety objectives could best be achieved, and was perhaps the most important report in the history of offshore oil and gas operations. Per Cullen:

Many current safety regulations are unduly restrictive because they impose solutions rather than objectives. They also are out of date in relation to technological advances. Guidance notes lend themselves to interpretations that discourage alternatives. There is a danger that compliance takes precedence over wider safety considerations and that sound innovations are discouraged.

Cullen advocated management systems that describe the safety objectives, the system by which those objectives were to be achieved, the performance standards to be met, and the means by which adherence to those standards was to be monitored. He called for safety cases that describe major hazards on an installation and provide appropriate safety measures. Per Cullen, each operator should be required in the safety case to demonstrate that the safety management systems of the company and the installation are adequate to assure that design and operation of the platform and its equipment are safe.

Links for the full Piper Alpha Inquiry: volume 1 and volume 2

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BBC article

The images were provided by Magellan, a UK company that conducts surveys for the offshore oil and gas industry:

Established in 2015, Magellan is driven by a management team whose background includes offshore contracting, geotechnical survey and ultra-deep water ROV operations, including environmental and site investigation.  These operations have been conducted for a wide range of clients across the oil and gas, fibre-optic and subsea recovery industries.

Supported by the board, the management team have guided and overseen the integration of standard oil and gas practices as well as the building and development of 6,000m ROVs, specialist and innovative winches and a range of purpose-built subsea tooling.”

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The offshore oil and gas (O&G) sector is set for the highest growth in a decade in the next two years, with $214 billion of new project investments lined up. Rystad Energy research shows that annual greenfield capital expenditure (capex) broke the $100 billion threshold in 2022 and will break it again in 2023 – the first breach for two straight years since 2012 and 2013.

Offshore activity is expected to account for 68% of all sanctioned conventional hydrocarbons in 2023 and 2024, up from 40% between 2015-2018.

Rystad

Comments:

  • Middle East investment continues to be strong
  • Good for South America thanks to Brazil (16 new FPSOs by the end of the decade) and the Guyana success story.
  • Strong forecast for Norway and the UK boosts Europe.
  • North America could do far better with less obstructive access policies.

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15 Minute Cities

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