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Key points (the full report is attached):

  • Government’s backing of unproven, first-of-a-kind technology to reach net zero is high-risk.
  • Government should assess whether its full carbon capture, usage and storage (CCUS) program will be affordable for taxpayers and consumers, given wider pressures on energy bills and the cost of living. 
  • There are no examples of CCUS technology operating at scale in the UK.
  • CCUS may not capture as much carbon as expected.
  • International examples show that CCUS performanc expectations are far from guaranteed.  
  • 3/4 of the almost £22bn envisaged to support the projects will come from levies on consumers who are already facing some of the highest energy bills in the world.
  • The Government’s downgraded target of storing 20 to 30 million tonnes per year of CO2 by 2030 is now seen as no longer achievable

How will the Trump administration view offshore carbon disposal? Some elements of the oil industry see CCUS as a lucrative business opportunity. Budget and inflation hawks, along with most environmental organizations, are strongly (and rightfully in my opinion) opposed.

CCS/carbon disposal posts on BOE.

2024 YR4

Tom Maunder brought this to my attention:

It may sound apocalyptic, but a newly detected asteroid nearly the size of a football field now has a greater than one percent chance of colliding with Earth in about eight years.

Per CNN, the risk has increased:

“…the asteroid has a 2.2% chance of hitting our planet on December 22, 2032, according to the European Space Agency. The risk assessment has increased from a chance of 1.2% over the last week due to new observations.”

Tom Maunder’s assessment in response to my comment about a SpaceX deflection mission:

Deflection could be possible.  Right now they don’t know as much about the trajectory/orbit as they need to.  This rock was just discovered at Christmas and it is presently heading outbound on its orbit.  They are scouring past “sky photos” to see if it might have been imaged before but so far, no luck there. 

It will only be visible through April, then its out of sight for a couple of years.  Hopefully they will have enough info to forecast the orbit and determine that it will come close to earth but not impact.  They went through that exercise with Apothis which will miss earth by about 15000 miles on Friday, April 13, 2029.  That is closer than the geosynchronous communication satellites at 23000 miles.”

I suspect if an impact cannot be ruled out before it disappears that plans will be made to send a recon mission when it next approaches earth in 2028.

California fires

My friends and former colleagues in Southern California do not live in areas that were devastated by the recent fires.

However, Nabil Masri, one of our outstanding petroleum engineers, sent this picture taken from his driveway in Camarillo during the “Mountain Fire” in November. His home was in an evacuation warning area, and the family was packed and ready to go. Fortunately, things improved and they did not have to evacuate.

Not a single offshore wind turbine will be installed offshore New Jersey during the reign of Gov. Murphy, a leading proponent of offshore wind. How much did his wind advocacy cost NJ taxpayers?

Meanwhile, management of what is left of the Atlantic Shores partnership continues to deny the obvious – that there is no realistic path forward for their projects.

Finally, NJ Congressman Chris Smith is questioning any further action by BOEM on offshore wind projects. See the attached letter.

Thanks to the Colorado Oil & Gas Association’s tongue-in-cheek “Customer Appreciation Award,” which rivals the Not My Job Award as a means of recognizing extraordinary individual and organizational chutzpah, Chris Wright was on our radar long before he became Secretary of Energy.

He continues to impress:

Johan Sverdrup field, 155 km from shore

On Tuesday, Equinor halted all production from the Johan Sverdrup field, western Europe’s biggest producer. An outage in the offshore power system has been cited as the cause.

A Jan. 26, 2022 BOE post questioned Norway’s electrification policy for offshore platforms. Another post discussed a loss of power to the Sverdrup field only 10 weeks ago.

In addition to the production losses, these incidents increase safety risks and onshore electricity prices with no net environmental benefit.

Hopefully, the investigation reports will be posted so that the lessons learned can be shared.

Electric cables from shore power the Johan Sverdrup field

Check it out!

Of particular interest are mandated reviews of the:

  • RIsk Management and Financial Assurance Rule: Those who want to gut this rule should come to the table with proposals that better protect the taxpayer from decommissioning liabilities. Pretending that decommissioning financial risks don’t exist or that they are someone else’s (or the govt’s) problem is unacceptable.
  • 5 Year leasing program – This review is urgently needed. See this and this!
  • BOP/Well Control Rule – This keystone safety rule has undergone multiple reviews in recent years. Because of the rule’s importance, further review for continuous improvement purposes may nonetheless be warranted. Here are the blog comments on the current version of the rule.

Not on the list, but should have been: A review of the fragmented regulatory regime for offshore pipelines, and the outdated and inconsistent regulations.

November 2024 Gulf of Mexico oil production was the lowest in the 2023/24 timeframe, with the exception of Sept. 2024 when production was reduced by Tropical Storms Francine and Helene.

Look for production in the Gulf of America to soar! (eventually😉)

The NTSB has finally issued their report (attached) on the 12/29/2022 helicopter crash that resulted in 4 fatalities at Walter’s West Delta 106 A platform. The NTSB report on the Huntington Beach pipeline spill took a comparable amount of time (26 months) to complete. By comparison, the lengthy and complex National Commission, BOEMRE, Chief Counsel, and NAE reports on the Macondo blowout were published 6 to to 17 months after the well was shut-in.

The gist of the NTSB’s findings is pasted below.

The report summarizes operations standards, but does not consider the associated operator/contractor safety management systems that are intended to prevent such incidents. The report notes that:

Was the contractor/operator aware of these deviations from company policy? Should they have been?

The report implies that human (pilot) error was the cause of the dynamic rollover, but fails to assess the organizational controls that are intended to prevent such errors. How was a pilot with 1667.8 flight hours (1343.8 as the PIC), who had made 23 trips to this platform, repeatedly making fundamental positioning and takeoff errors?

The report also notes that:

This is interesting wording given that the perimeter light was identified as the pivot point, one of the 3 requirements for a dynamic rollover. Why wasn’t that violation observed by the operator/contractor and corrected? What helideck inspection procedures were in place? Did NTSB consider the fragmented regulatory regime for helicopter safety, particularly with regard to helidecks?

Centre Party leader Trygve Slagsvold Vedum: “What we were clear about all along is that beginning the process of linking ourselves more closely to the EU’s dysfunctional electricity market and energy policy is completely out of the question.”

While looking at electric prices and power sharing, consideration should be given to the desirability of transmitting electricity from shore to distant offshore platforms that have ample natural gas for power generation purposes. This practice increases electric prices for consumers and introduces reliability/safety concerns with no net environmental benefits.

No photo description available.
Picture of Old Stavanger where former colleague and BOE contributor Odd Bjerre Finnestad (RIP) once lived. Stavanger is both a lovely city and the “Oil Capital of Norway.”