Some northeast states and their public utilities may be in a bit of a bind. Either they accept higher electric rates and the likely public backlash, or they deviate from their staunch anti-gas, anti-nuclear orthodoxy. Similarly, oil companies that have invested heavily in offshore wind may find that they are not just less profitable, but (even) less popular.
Something here does not remotely add up. If New York state succeeds by 2030 in closing its natural gas plants — the plants that account for 60% of the State’s generation capacity — that would bring our total installed capacity down from 37.5 GW to as little as 15 GW. But we need almost 60 GW to meet projected demand. And that’s 60 GW that can be called on any time as needed to meet peak usage. The 9 GW of projected offshore wind turbines wouldn’t make much of a dent even if they operated all the time and could be dispatched to meet peak demand, which they can’t. Instead, they will operate only about a third of the time, and at their own whim. At best they will provide about 3 GW on average, when what we need for this full electrification project is more like 45 GW of dispatchable power to add to our existing hydro and nuclear.
Offshore platforms: In some regions, there is a push to power platforms with renewable energy transported by electric cable. Currently, most platforms are efficiently powered by gas turbines which satisfy energy needs even when demand spikes during well operations like tripping out of the hole. The extent to which renewables can reliably support platform operations during these and other operations, when power interruptions are unacceptable from a safety standpoint, is a risk that must be assessed prior to committing to alternative energy sources.
The environmental benefits of powering platforms with renewable energy also have not been clearly documented. In most cases, offshore platforms produce sufficient gas to support their power demands. Should platforms be powered by imported electricity, gas that is not used for platform operations would presumably be marketed for consumption elsewhere or reinjected.
If the gas is marketed and consumed elsewhere, there is essentially no net (global) CO2 emissions reduction benefit. Gas that is reinjected is wasted unless there is an enhanced oil recovery benefit. So, the net environmental benefit from importing electric power seems questionable, and the operational risks could be significant.
In Guyana’s inaugural offshore licensing round, Sispro Inc. stands out as the only Guyanese company among the bidders. Located in South Cummingsburg, Georgetown, this indigenous start-up is a stand-out. So, who are the locals behind it?
Founded by four women – Dr. Melissa Varswyk, Abbigale Loncke-Watson, Dr. Ayodele Dalgety Dean, and Dee George, Sispro has leadership with diverse backgrounds in finance, health, education, energy, and human rights.
The worst conditions were relatively common by Georges Bank standards. Per the NOAA data buoy (see plots below), the wind speed peaked at 40.8 kts, gusts at 58.3 kts, and wave height at 29.2 ft.
Looking back at my Georges Bank Exploratory Drilling paper (1983), a spring storm in April 1982 generated 105 mph winds and 35 foot swells. I’ll post information on the rig performance issues during those operations at a later date.
Venus is very impressive in the pre-dawn September sky and will peak in brightness over the next week days. Worth checking out!
Venus will be brightest in the morning sky around September 19, 2023, and will reach 44 degrees elongation from the sun by the end of the month. Venus will brighten from magnitude -4.6 to -4.8 during the month.
The reason that the planet Venus is so dazzlingly bright is because it is completely enshrouded in thick clouds that reflect sunlight at us.
In ancient times, mariners looked up to the night sky for guidance, and one celestial body held a special role in their navigation: Venus. With its bright and consistent appearance, Venus served as a reliable reference point for sailors venturing across vast oceans. This article explores the significant role that Venus played in early navigation, guiding mariners safely to their destinations and paving the way for future advancements in seafaring.
Cantium’s record is especially impressive given that most of their platforms were installed more than 40 years ago and some date back to the 1950s. They have also been a very active development well driller.
While Kosmos and Beacon have somewhat lower violation and penalty exposure because their production is via subsea wells tied back to surface facilities operated by other companies, they are demonstrating that entrepreneurial deepwater independents can also be safety leaders.
“The Pickerel-1 prospect was our first (exploration well on the Mississippi Canyon 727) and we are delighted that it was an oil discovery. Black Pearl will be the next and that will hopefully be a tieback (to Tubular Bells with first oil expected mid-2024).
“Then we have a wildcat opportunity (the Vancouver exploration prospect) later in the year in the Green Canyon. With the other 80 exploratory blocks that we have in the Gulf, we will be actively drilling for the next several years,” Hess said.
Data are on a fiscal year basis (i.e. 2022 started on 10/1/2021 and ended on 9/30/2022)
These data are only for civil penalties paid in that year. Data for civil penalties referrals are not publicly available.
Nothing terribly surprising in the data. Fieldwood’s issues have been discussed at length.
Note (last chart) the lag between the date violations were observed and the date penalties were paid. This lag is significant but understandable given due process considerations.
Fastest payment: 6 months by Shell for an open hole that was not properly barricaded ($26,750 penalty, 2018).
Slowest payment: 54 months by LLOG for failing to install and maintain equipment properly (three 2016 violations)
Largest civil penalty paid: $512,900 by bp for a high-pressure gas release caused by the use of improper seals (May 8, 2018 violation).
Smallest civil penalty paid: $16,300 by Arena for the release of 1000 psi gas on October 16, 2018
Water depth: 2500 m (Mexico’s first ultra-deepwater project)
Distance from US maritime border: 30 km
Distance offshore: 180 km
Reserves: 324.7 million BOE proved, 478.7 million BOE probable
Production: Floating Production Unit with an oil production capacity of 100,000 B/D connected to an FSO vessel with a capacity of 950,000 bbl. Gas not used to power FPU will be reinjected
The civil penalties provision in the 1978 OCS Lands Act (OCSLA) Amendments was flawed in that it stipulated that operators must be given time to take corrective action before a civil penalty could be assessed. The “time to take corrective action” requirement was confirmed by a 1983 Federal Court decision in Louisiana:
The Court agrees with Chevron’s construction of Section 24(b) and holds that civil penalties may only be imposed under Section 24(b) for violations which continue after the violator has been notified of the breach and has failed to correct it within a reasonable period allowed. This conclusion is based primarily upon a careful review of the pertinent statute. The first sentence sets forth the conditions of liability:
If any person fails to comply with any [provision of the Act] after notice of such failure and expiration of any reasonable period allowed for corrective action, such person shall be liable for a civil penalty of not more than $10,000 for each day of the continuance of such failure.
The court decision gutted the Minerals Management Service (MMS) civil penalties program. Civil penalties could no longer be assessed until the operators had been given time to correct their violations, even those that endangered workers and the environment.
Ironically, Congressman George Miller (D-CA), an ardent opponent of the offshore oil and gas program, proved to be an important MMS ally by adding language to the Oil Pollution Act of 1990 that amended the OCSLA civil penalties provision. The first draft of that language expanded the civil penalties authority to include violations that may constitute a threat of serious, irreparable, or immediate harm or damage to life, property, or the environment.
We were able to revise that draft by adding the words “or constituted” after “constitute” to cover situations where the threat was no longer present. For example, if an inspector found that a well had been drilled without required elements of the well control system in place, the threat may no longer be present at the time the violation was detected but it certainly was when the well was drilled.
The revived MMS civil penalties program was fair and effective, and BSEE seems to be administering the program in a similar manner. Civil penalties data for the past 4 years will be posted next week.
Bud's Offshore Energy (BOE) 