Gaffney, Cline & Associates have audited the drill-ready target prospect with mean resources of 400 MMbbls
Standalone success on hitting the mean target is expected to achieve NPV10 of $2.5 billion at $60 oil
The test well cost is estimated to be $30 million and provides exposure to own a material interest in the entire license
The initial target is a carbonate platform and shows strong evidence of reservoir trap and intact seal, Cretaceous kitchen source and live oil seeps
Recent advanced seismic relative dispersion technical work provides further evidence of reservoir porosity and permeability, the presence of a seal, and additional reservoir potential
The License, formerly owned by Tullow, is well-supported by the Jamaican government with attractive fiscal terms
While it’s highly unlikely that wind turbine siting activities are responsible for the alarming number of whale deaths, some of the vociferous wind industry defenders would have been among the first to point the finger at oil and gas operations if there were any in the US Atlantic.
Some quotes from a recent USA Today article followed by BOE comments:
“It’s just a cynical disinformation campaign,” said Greenpeace’s oceans director John Hocevar. “It doesn’t seem to worry them that it’s not based in any kind of evidence.” (Comment: World class chutzpah on the part of Greenpeace, the master of disinformation.)
Gib Brogan, a campaign director with Oceana, an international ocean advocacy group, said those opposed to wind power are using a spate of whale deaths in the area as an opportunity. (Comment: Does Oceana suddenly find this type of opportunism to be shocking?)
“Groups opposed to clean energy projects spread baseless misinformation that has been debunked by scientists and experts,” said JC Sandberg, chief advocacy officer with the American Clean Power Association, a renewable energy trade group. (Comments: Use of the term “clean energy” is clever advocacy that serves to discredit other forms of energy. All energy sources have pros and cons, environmentally and otherwise. Wind and solar have significant visual, space preemption, navigation, wildlife risk, and intermittency issues, and are heavily dependent on subsidies and mandates. When all issues are considered, one could argue, as we have, that offshore gas, particularlynonassociated gas, is perhaps the environmentally preferred energy alternative.)
Per the LA Times, companies linked to the cargo ships accused of dragging anchors over Amplify Energy’s pipeline have agreed to pay $45 million to settle lawsuits. The ships were identified by Sky Truth (see above image) shortly after the spill (October 1, 2021).
Meanwhile, Amplify is suing the vessel owners for damaging the pipeline and failing to notify the authorities after the damage occurred. Amplify would seem to have a good case given that inspection reports indicate that the pipeline was in good shape prior to the anchor damage and that the Beta Unit platforms had a good safety and compliance record.
Last year, BOE featured 5 deepwater platforms that were under construction: Shell’s Vito and Whale, Murphy’s King’s Quay, bp’s Argos, and Chevron’s Anchor. These floating production units are noteworthy for their lighter, smaller designs. King’s Quay was the first to produce, beginning last April. The spotlight is now on Vito which began producing today. Vito’s peak production should reach 100,000 boe. The other 3 platforms are expected to begin production this year or next.
8 “bombs” were placed near the island of Bornholm in the Baltic Sea, six of which exploded in a rather flat area. The explosives destroyed three of the four Nord Stream 1 and 2 gas pipelines. (This explains why one of the four pipelines wasn’t damaged. Presumably, concerns about the unexploded ordinance have been addressed by Sweden.)
Norway identified a relatively shallow area (80m water depth) near Bornholm.
It only took a few hours to place the explosives
No one in Congress was informed of the plan
In response to criticism about his reliance on unidentified sources, Hersh said that many of his articles were dependent on such sources. If his sources were named, they would be fired or worse.
Below is a very good Jeffrey Sachs interview (new) with appropriate pushback from the host Freddie Sayers. Nothing really new, but both Sachs and Sayers are informed and articulate. Worth viewing.
41 years ago today, 84 men lost their lives on the Ocean Ranger. BOE’s 40th anniversary posts can be viewed here and here. The excellent 40th anniversary tribute video is embedded below. Remember these heroes.
The Nord Stream sabotage likely released more methane than the complete lifecycle of a GoM lease sale (upstream and downstream). Also, the Nord Stream explosions may have released more methane than is emitted by all US offshore producers in an entire year. Here are the numbers:
lifecycle upstream emissions from a typical GoM lease sale (BOEM)
118
lifecycle up- and downstream emissions from a typical GoM sale (BOEM)
151
Finally, remember that offshore oil and gas leasing results in a net reduction in GHG emissions.
The No Leasing scenario results in roughly double the CO2e emissions for upstream activities compared to those of the Leasing scenario, given that, collectively, the substitute energy sources have higher GHG emissions per unit of production (also known as “GHG intensity”) compared to the forgone domestically produced OCS oil and natural gas of the Leasing scenario.
Bud's Offshore Energy (BOE) 