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Ramping Up

From 12:00am to 12:00pm on June 7th, a total of 7,541 barrels of oil were collected and 15 million cubic feet of natural gas was flared.

This is a significant production increase if this rate is sustained.  The previous 24-hour total was 11,100 bbls of oil recovered.  The gas-oil ratio (GOR) is holding at about 2000, so we’re not seeing much change in the relative gas and oil production rates.  At this point, we probably want to see that GOR hold relatively steady or drop, since this effort is all about maximizing the oil flow.  If the vents at the top of the cap are primarily releasing gas, leaving these vents open could actually improve oil recovery.

Dette kan skje igjen (This could happen again)~ Magne Ognedal, Director General, Petroleum Safety Authority Norway

Magne’s quote in the Stavanger Aftenblad acknowledges that tragic accidents like the Macondo/Horizon blowout or Alexander Kielland sinking could happen again (see English translation of full article by BOE Europe Chief Odd Finnestad).  Magne goes on to say:

We must appreciate there are risks associated with our petroleum activities, and in our yearly risk assessments we attempt to put in concrete terms what those inherent risks are.  It is up to our national political system to determine whether this risk picture should be accepted or not.

and

We must endeavor to learn from whatever happens around the world, and if there is something that is also relevant to Norway we must apply those lessons, both regulators and industry

Industry and government officials would be wise to follow Magne’s lead and avoid “can’t happen here” statements.  A few of these statements were made in the US after the Montara (Timor Sea) blowout, and we know how that worked out.

Some very experienced and capable offshore managers have had “there but for the grace of God go I” moments in the wake of this disaster.  They know that this is not the time for boasting, piling-on, or schadenfreude.  Like Magne, real leaders are focused on monitoring the investigations, studying the findings and recommendations, and applying the lessons as necessary to further reduce their operating risks and the risks of others who conduct offshore oil and gas operations.

Aban Pearl

Global insurance broker Willis Group Holdings has revealed that the Deepwater Horizon and Aban Pearl drilling rig losses have given upstream energy insurers a record breaking monthly financial hit of $795m.

link

spill response methods

But I can tell you, based on 21 years’ experience analyzing and observing oil spills, that the best minds in the business are already doing all they can. No special techniques that would work well to clean up the oil in this situation aren’t being tried or planned. There simply are no foolproof solutions. ~ Dagmar Schmidt Etkin

link

Jason Mathews

Kudos to Jason Mathews, David Dykes, John McCarroll, and their Coast Guard colleagues for their excellent work on the MMS-USCG investigation of the Macondo blowout.  Catch some of the testimony on C-Span.

Good news; production has ramped up nicely via the LMRP cap.

Getting a better picture of the well’s flow rate potential.

We won’t get a good read on the cap’s effectiveness until its placement is adjusted and oil production is stabilized.  Flow to the surface may also be initiated through the choke and kill lines, which could supplement and improve the effectiveness of the cap system.

Update from Deepwater Horizon Response Facebook page:

The LMRP Cap is in place and nitrogen pressure head is slowly being reduced in the riser. Throughout the day, the vents in the cap will be closed as production begins on the surface. The goal is to ensure methane hydrates do not form in the cap.

  • “Worst environmental disaster in US history” –  Reporters may want to wait until all of the data are in before making those kind of statements.  Largest oil spill doesn’t necessarily equate to the worst environmental disaster.  Some very large spills have had minimal long-term environmental damage, while the effects of some smaller spills have been quite serious.  The extensive long-term monitoring program will give us the answers.
  • Loss of wetlands – Louisiana has experienced serious wetland losses for years with little attention from the national media.  The barrier islands, which were approved by Admiral Allen, have been on the drawing board for some time and are primarily for wetlands restoration purposes.  Ironically, these islands may not have been approved and funded were it not for the oil spill.
  • BP employees – I’d like to see some reporting from the standpoint of typical BP employees.  Their lives have also been shattered.  The very existence of their company, which has lost 1/4 of its market value, is threatened.  While few BP employees had anything to do with the Macondo disaster, they are all working hard to set things right and continue their domestic and international operations.  It must be frustrating to realize that no matter how hard they work, it won’t be good enough to satisfy the critics.
  • Will the national reaction do more damage than the spill?  US production is threatened in the Gulf and elsewhere, and jobs are already being lost.  Preventing offshore drilling and production doesn’t prevent oil consumption.  As long as we consume oil, there will be a risk of spilling it during the production and transportation process.  We need to better manage those risks.  We didn’t eliminate tanker transport after Valdez, and we shouldn’t eliminate offshore exploration and production in the wake of Macondo.  Let’s not boycott ourselves and make OPEC the primary beneficiary of this disaster.
  • “Nationalize BP”- Just when you thought the commentary couldn’t get any sillier, you hear this kind of nonsense.  Hugo Chavez must be smiling.