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Posts Tagged ‘accidents’

Hurricane Juan - "Sudden Storm" killed 9 offshore workers in 1985

The offshore industry has an outstanding hurricane evacuation record, but the Macondo blowout adds a significant new dimension to the decision making process.  Disconnect the production risers and 35,000 to 60,000 bopd flow directly into the Gulf.  Suspend the relief wells and the final Macondo solution gets moved that much farther into the future.

There will be pressure to minimize the downtime and that would be a mistake.  Days, not hours, will be needed to prepare for the evacuations.  Decisions will have to be made well in advance of a storm’s arrival and will be based on less reliable long-term weather forecasts.  If a shutdown decision is made too soon, hundreds of thousands of additional barrels of oil pour into the Gulf.  If the decision is delayed, lives are threatened.

The most frightening scenarios are associated with “sudden storms” which can form in or near the Gulf and explode into hurricanes in hours, not days.  The rapid formation and development of these storms precludes an orderly shutdown and evacuation process, and poses a major safety threat to workers.  In 1985, nine offshore workers were killed when Hurricane Juan formed suddenly in the Gulf and personnel could not be safely evacuated.

Let’s hope that the well is brought under control before any hurricanes enter or form in the Gulf.  If not, decision makers need to exercise extreme caution and shutdown operations before lives are threatened.

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I believe they’re going to try and intercept somewhere around between 16,700 and 17,000 feet. We will confirm that for you and put out a statement tomorrow.

Comment: I pasted that portion of the well cross-section above.  It looks like the plan is to drill into the 7″ x 9 7/8″ annulus (the most likely flow path) and secure that annulus.  Based on the float and casing shoe issues that have been reported, the flow could also be inside the 7″ production casing or both inside the casing and in the annulus. (Also, sealing the annulus could force flow through possible shoe channels inside the production casing).  They will presumably have to drill through the 7″ casing (after the annulus has been secured?) and set a cement plug inside the casing.

They decided not to use the blowout preventer because of the uncertainty regarding the status of the wellbore and what pressure might do going down. That’s the reason they abandoned the Top Kill and the capping exercise at that point.

Comment: Admiral Allen confirms reports that the second BOP option was dropped because of downhole issues.  Poor well integrity sure makes things difficult.  Concerns have been raised about the strength of the 16″ casing, and possible fracture paths outside casing.   If the ROV had been able to actuate the BOP and seal the well, would casing failure and formation fracturing have occurred; or are subsequent events (erosion?) the primary reason for these well integrity concerns?

Secretary Salazar and Secretary Chu had a meeting last week in Washington with other industry representatives beyond BP, other oil-producing companies that are out there, and we’ve actually identified a couple of platforms that are in the area that might be capable of taking the product coming out of the wellbore through pipelines and either producing it or putting it back down into the reservoir. We’re exploring that over the next couple of days.

Comment: Yikes!

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OMNI-MAX Anchor

Pasted below is a note from Evan Zimmerman that I am posting with his approval.  As many of you know, MODU station-keeping has historically been a major problem during hurricanes.  For the past 5 years, industry and government leaders have worked hard to improve hurricane and deepwater mooring capabilities.  Evan has been a key participant in this effort.  His company developed advanced anchors (see above picture) and mooring lines, and new risk assessment tools for assessing mooring system failure probabilities and their consequences.   The Gulf of Mexico will not be a safer place if deepwater technology leaders like Delmar are forced to close or move their equipment and personnel overseas.

The moratorium on drilling has put more than 70% of all that risk reducing mooring equipment on its way to the beach without contracts.  For a company like Delmar that derives more than 95% of its income from deepwater OCS drilling activity, its clear that we will have to immediately start shipping equipment outside of the US to find work.  Its my expert opinion that without a doubt, the offshore station keeping safety options will be reduced once drilling activities resume.  Its also clear the longer the moratorium continues, the fewer moored rigs will be left to drill not only the intermediate water depth areas the DP rigs cannot, but also the ultra deepwater wells they have been so busy drilling safely.  The longer this moratorium continues, the higher the station keeping risks for both DP and moored rigs the MMS will have to approve to keep the few rigs left in the Gulf working.  It’s the single biggest disappointment in my career to see all the hard work that MMS, Delmar and industry have done to increase station keeping safety quickly slip between our fingers here domestically.  I leave overseas again week after next to try to secure work for half (two sets) of OMNI-Max anchors as well as most of our other risk reducing equipment that now is no longer on contract due to the moratorium.

We are the last US owned deepwater anchor handling company that has brought the safest and most technically advantageous equipment to the mooring industry, and it looks like we will have to drastically change inclusive of cutting jobs domestically and moving outside of the US.

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We know about the Macondo victims, most notably the 11 men who died and their families, but who stand to benefit from the blowout?

  1. OPEC – Will OPEC’s market share grow as the US and others prevent or delay production?
  2. West Africa and Brazil – Better rates and availability for deepwater rigs?
  3. PTTEP (Montara) – Not receiving much attention as BP draws all the flack
  4. Shale gas – Can the huge promise be realized?  Will natural gas gain an increased share of the transportation market?
  5. Alternative Energy – Are these industries ready to step up?
  6. Spill response research – Government and industry oil spill research funding always jumps after major spills.
  7. Nuclear industry – Perhaps, but Macondo may remind people that “the unthinkable” can happen.
  8. Lawyers – The only sure winners.  The litigation spectacular has already begun.

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No Love for Long Strings – The rest of the industry has distanced itself from BP’s casing program, swearing their allegiance to tiebacks.

CEO sails while “small people” suffer – The PR disaster continues for BP.

BP partner seeks annulment – The first shots in the multi-billion dollar BP-Anadarko dispute have been fired.  Look for new liability clauses in operating agreements and regulations.

Who is in charge and accountable? – Macondo, like Montara, was entirely preventable.  Know who is in charge, and make sure they are competent and cautious leaders.  As a friend told me yesterday, the best technology can be undone by human arrogance.

Just ‘Roo It! – Australia’s investigation process works great until it comes to releasing reports.  Varanus Island deja vu?

Storm watch – Another common concern for Montara and Macondo – the onset of hurricane/cyclone season.  We need about six more weeks (preferably more) until the first hurricane evacuations in the Gulf.

Sad irony – The first FPSO production in the Gulf of Mexico is at the Macondo field.

90+% recovery – Promised soon with new well cap and production systems.

Relief? – First relief well is ahead of schedule.  Has a well ever been more anticipated and needed?

Aftermath – While the chance of BP operating Macondo is virtually zero, will PTTEP be allowed to continue operating Montara?

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BP Gas Station

In addition to the obvious irony in this BP gas station’s warning sign, perhaps there is a separate and unintended message in the sign’s last 3 lines – “you are responsible for spills.”  The gasoline that we purchase at the pump does not just arrive there magically.  That gasoline is the end product of a complex exploration, production, transportation, and refining process.  When we consume petroleum products (and other forms of energy), we are tacitly accepting the associated environmental risks.  If we aren’t comfortable with those risks, we should look at our own habits and how they contribute.

BP is responsible for the Macondo spill.  However, our own lifestyle decisions are the reason for the extraordinary demand for the oil that BP and other companies produce.  We can’t blame BP for the intractable sprawl, congestion, and pollution that have resulted from those decisions.

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25,290 barrels of oil were recovered on 17 June through the dual production system – 16,020 bbls through the LMRP cap to the Enterprise and 9,270 bbls (burned) via the choke/kill lines to the Q4000.

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Terry Barr, President of Samson Oil and Gas, provided some interesting Macondo perspectives to the Wall Street Journal.

This well failed its casing integrity test and nothing was done. The data collected during a critical operation to monitor hydrocarbon inflow was ignored and nothing was done. This spill is about human failure and it is time BP put its hand up and admitted that.

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If the contrast between the Montara and Macondo political responses wasn’t already evident, take a look at today’s events.  While Tony Hayward was being hammered once again at a congressional hearing despite establishing a $20 billion damage payment fund, Australian Resources Minister Martin Ferguson seems to be in no hurry to release the Montara Inquiry Report.  According to Australia Broadcasting, Mr. Ferguson says he has to take into account legal considerations:

So as to ensure that I do not prejudice any potential further investigations which could include criminal offenses, or undermine any natural justice considerations of any individuals.

Say what?  How about preventing future accidents?

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BOP Testing Timeline

Transocean’s interim report is circulating online.  Click here: Transocean Investigation

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