Posted in energy, Uncategorized, tagged OPEC on August 12, 2021| Leave a Comment »
The White House urged OPEC to boost oil production Wednesday, saying recent planned increases are insufficient as countries around the world seek to emerge from the Covid-19 pandemic.
Wall Street Journal, 8/11/2021
(Eizenstat) urged Carter to “shift the cause for inflation and energy to OPEC, to gain credibility with the American people
Washington Post, 7/7/1979
Posted in Alaska, Gulf of Mexico, natural gas, Offshore Energy - General, Uncategorized, tagged API, BOEM, BSEE, DOE, Gulf of Mexico, offshore oil on August 9, 2021| Leave a Comment »
In the early 1990’s, Department of the Interior (DOI) and Department of Energy (DOE) leadership dabbled at re-branding the OCS Oil and Gas Program by reversing the order of the words. Clever? Perhaps by Washington public relations standards. One senior manager even changed his license plate from “OCS OIL” to “MMS GAS” (not much competition for those tags 😃). Technical staff were less enthused about this simplistic marketing gimmick that misrepresented the historical and scientific facts about oil and gas production. For many years, natural gas was a byproduct of oil production that was commonly flared. (This practice continues in some regions of the world, although to a lesser extent than in the past.)
Understandably, the Oil and Gas Journal wasn’t very impressed by the change. I saved a copy of their 1/24/1994 editorial (attached) on the subject. Per the OGJ:
We at the Journal love natural gas. But that doesn’t warrant an attempt to repeal the laws of nature and ignore the weight of tradition by renaming everything “gas and oil” this and that.
John L. Kennedy, Editor, Oil and Gas Journal, 1/24/1994)
To their credit, BOEM and BSEE web pages and announcements during recent administrations (both parties) indicate a preference for the more traditional “oil and gas.” (The DOE website largely ignores the existence of either oil or natural gas.) Surprisingly, the American Petroleum Institute (API), an industry trade organization with more than 100 years of history, is now consistently using “natural gas and oil.” This rearrangement of words is not entirely consistent with the interest of API’s members. In the offshore sector, the primary interest of API members is in finding and producing oil. if you think otherwise, look at the EIA GoM gas production data. Most of the Gulf’s declining gas production is now associated with deepwater oil production, and BSEE rightfully requires that this gas be used for fuel or transported for sale. Similarly, gas is a secondary consideration for API members exploring in Alaska given that 35 trillion cu ft of North Slope gas still awaits a pipeline.
Oil companies, and those who represent them, should be proud of their current and historical role in producing oil (and gas) for our economy, security, and way of life; and of the men and women who have toiled to locate and produce petroleum resources for the benefit of society. Are there better energy alternatives? Perhaps, but issues with these alternatives remain to be resolved, and oil and gas will continue to be important. Let’s focus on producing these resources as safely, cleanly, and reliably as possible.
Posted in Uncategorized, tagged Not My Job Award on August 8, 2021| 2 Comments »
Jim Lane, who inspired our NMJA program many years ago, has submitted this nominee from the Texas Hill Country where he now resides. The metal stake in the picture was used to support a sapling that was planted in a county park. However, neither the employee who planted the young tree nor any of his colleagues saw fit to remove the stake. Not their job? The end result is pictured below.
Posted in drilling, Gulf of Mexico, offshore, Uncategorized, tagged BOEM, carbon intensity, Gulf of Mexico, production on August 6, 2021| Leave a Comment »
A previous BOE post estimated that current stabilized GoM oil production rates were 1.7 – 1.8 million BOPD. EIA recently announced that May production was 1.791 million BOPD, which is consistent with our estimate. Per the chart below, GoM production was essentially unchanged from the beginning of the year despite a 37% increase in the price of oil (WTI) from 1 January to 31 May. This suggests that stabilized GoM production may have peaked pending first oil from several new projects.
Key production questions:
Regardless of one’s views on the urgency and timing of the “energy transition,” is there any doubt that oil and gas will continue to be important to our economy and security for years to come? If not, should deepwater GoM production, with its relatively low carbon intensity, be a core element of our energy strategy? To better understand the trade-offs, I suggest that BOEM’s Environmental Studies Program conduct a peer reviewed assessment of the carbon intensity of domestic and international supply alternatives. Product transportation considerations should be included in this assessment.
Posted in Uncategorized on August 6, 2011| 8 Comments »
I didn’t know what to expect when I kicked off this independent blog 18 months ago. I wanted to share some fun stuff, most notably the “Not My Job Award” favorites and the long list of “rigs-to-reefs” spinoffs. The blog was also a good way to follow and comment on emerging offshore energy issues and events.
Things didn’t go quite as planned, and two major accidents shaped our commentary and discussion. During the early days of the blog, attention was focused on the Montara hearings. Each day’s transcripts were posted within hours by the very efficient Montara Inquiry staff, so we were able to read the transcripts in the early morning hours (US eastern time). Our small band of Montara watchers commented daily on the events and received mention during the hearings.
Next came Macondo. The tragic fire and explosion killed 11, and the pollution spectacular that followed was streamed live for a worldwide audience. While officials in the US and around the world were busy solving problems that had yet to be identified, true offshore safety leaders were closely monitoring the investigations to learn what happened and why. Unfortunately, important gaps in our understaning of the accident still remain.
In light of increased personal and professional commitments, I have decided to discontinue BOE. The blog will be removed from the web on August 12th. I want to thank those who have visited the blog. Surprisingly, our obscure site had lots of visitors in the US and around the world.
In particular, I would like to thank Odd Finnestad and Cheryl Anderson. Odd is an expert on regulatory policy who helped shape Norway’s highly respected offshore safety program and has advised governments around the world about regulatory and safety issues. Odd has been an important contributor to BOE from the outset. Cheryl is the world’s leading authority on oil spill occurrence rates and causes, and has contributed numerous entries to the blog.
I also want to thank JL Daeschler, a pioneering subsea engineer, for his insights and commentary. In addition to being an outstanding engineer, JL is a very talented artists whose works are now on display at prestigious galleries in Edinburgh, Scotland. In you visit that wonderful city, make sure you view some of JL’s artwork. There are others who have made major contributions to BOE, but have chosen to remain anonymous. You know who you are; thank you for the support!
For good coverage of offshore safety issues, I encourage you to monitor Platts, Upstream, Fuel Fix, and Nola.com. I hope these or other professional sites develop tracking systems for offshore accidents and hold operators and regulators accountable for publishing updates and reports in a timely manner. I will continue to push for improvements in the collection and reporting of incident data.
I also recommend that you monitor the regulators’ websites. The site of the Petroleum Safety Authority of Norway (psa.no) provides timely information, reports, risk assessments, and updates on activities in the Norwegian sector, and is an excellent example of what a safety regulator’s website should look like.
In closing, I want to say that I am very optimistic about the future of offshore oil and gas operations in the US and around the world. I continue to be amazed by the dedication, competence, and commitment of offshore energy professionals. Although we don’t agree on everything, we are all committed to safety and pollution prevention. We can’t change the past, but we can shape the future. The world needs offshore energy, and it’s our job to respond to the challenge.
Feel free to contact me at edanenberger@gmail.com if there are any matters you wish to discuss.
Offshore to the future!
Bud
Posted in Uncategorized, tagged accidents, budget, drilling, inspection fees, offshore oil and gas, oil spill, safety on July 20, 2011| Leave a Comment »
from Platts Oilgram News:
Representatives Ed Markey of Massachusetts and Rush Holt of New Jersey introduced the so-called No Free Inspections for Oil Companies Act (H.R. 2566) July 15, in reaction to House Republicans’ proposal for funding the Bureau of Ocean Energy Management, Regulation and Enforcement. About $35 million short of the Obama administration’s request, the GOP’s $154 million budget rejected new and more expensive fees on offshore operators. The administration wanted to ratchet up industry fees to $65 million a year, from $10 million, to pay for a tougher inspections regime.
The annual inspection fees debate, a budget season ritual for 20+ years, has picked up intensity and financial significance in the post-Macondo spotlight. However, discussions about regulatory philosophy and the fundamental program decisions that dictate inspection strategy are still absent. Safety and pollution prevention are the goals, not inspections. While inspections are an essential part of any safety regime, they are just one component of a comprehensive regulatory program. More inspections would not have prevented Macondo. Better standards, training, technology, and attention to prior incidents (most notably Montara) may have.
Posted in Uncategorized, tagged Australia, NOPSA, operational review on July 19, 2011| Leave a Comment »
The 2011 Operational Review will examine NOPSA’s activities and legislated functions including engagement with stakeholders, particularly in relation to Safety Case development and the implementation and promotion of improved workplace safety practices and culture.
NOPSA CEO, Jane Cutler, said she welcomes the commencement of the 2011 Operational Review and will be keen to cooperate with the Review team and read the recommendations of the final report, scheduled to be handed to the Minister by Wednesday November 30.
Regular external reviews are valuable if for no other reason than to promote informed discussion, and to provide an opportunity for the public and regulated industry to provide input to an independent panel.
Posted in Uncategorized, tagged accidents, crack, drilling, evacuation, Nigeria, offshore drilling, safety, sinking, Transocean Marianas on July 6, 2011| 10 Comments »
This information is unconfirmed but the source is highly reputable:
We just received word this morning that the Transocean Marianas rig has developed a large crack in one of the pontoons on the #5/#6 anchor chain locker while they were picking up anchors, and is currently taking on water and listing. The bilge pumps are keeping up (barely), but there’s certainly concern that it might sink on location. So far, 68 people have been evacuated from location.According to RigZone, the Marianas was working offshore Nigeria. [Per one of our readers, (see comment below) Petrodata shows the rig operating offshore Ghana.]
More: The Marianas, spudded the Macondo in October, 2009, but was damaged by Hurricane Ida and towed to shore. The Deepwater Horizon was the rig that replaced the Marianas.
Posted in Uncategorized, tagged Anthony Weiner, offshore drilling, offshore energy on June 17, 2011| Leave a Comment »
No New Drilling Act of 2011: Amends the Outer Continental Shelf Lands Act to prohibit the issuance of any lease for the exploration, development, or production of oil, gas, or any other mineral on the outer Continental Shelf.
Alaska Oil Drilling Leases: To prohibit the Secretary of the Interior from selling any oil and gas lease for any tract in the Lease Sale 193 Area of the Alaska Outer Continental Shelf Region until the Secretary determines whether to list the polar bear as a threatened species or an endangered species under the Endangered Species Act of 1973, and for other purposes.
Posted in Uncategorized, tagged BOEMRE, Coast Guard, ohmsett, oil spill research on June 1, 2011| Leave a Comment »
Ohmsett
Yesterday’s Platt’s Oilgram News included an excellent Gary Gentile piece about Ohmsett and the recent visit by BOEMRE Director Bromwich and Admiral Zukunft of the Coast Guard. Both had high praise for this outstanding oil spill response test facility which has contributed greatly to improved understanding of boom and skimmer performance, in situ burning, and chemical treating agents. This quote from the Platt’s article gives you a sense of the facility’s importance:
AbTech Industries spent two days at OHMSETT testing a new polymer it hopes will be able to sop up hydrocarbons from produced water or water used in hydraulic fracturing. The company pumped saltwater contaminated with Louisiana crude at rates of up to 250 gallons per minute through its filtering system. “The facility is tremendously unique,” AbTech Chief Operating Officer Jonathan Thatcher said in an interview. “I don’t know where else we would go where we could pump up to 250 gallons per minute for days on end and contaminate it. It allows you to go and make any mistakes you need to make.”
Kudos to spill response visionaries like Ed Tennyson and John Gregory, MMS employees who had been pushing for the re-opening of Ohmsett since EPA closed the facility in the mid-1980’s. After the Valdez spill in 1989 they received the necessary support, and the facility has been going strong since its re-opening in 1992.
Bud's Offshore Energy (BOE) 