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On Sunday, the Norwegian government announced that its sovereign wealth fund, the world’s largest, wwould divest its Russian assets, worth around 25 billion Norwegian crowns ($2.80 billion).

Reuters

“In the current situation, we regard our position as untenable,” Equinor Chief Executive Anders Opedal said in a statement. “We will now stop new investments into our Russian business, and we will start the process of exiting our joint ventures in a manner that is consistent with our values.”

Reuters

British oil giant BP said Sunday that it is “exiting” its $14 billion stake in Russian oil giant Rosneft over Moscow’s invasion of Ukraine in one of the biggest signs yet that the Western business world is cutting ties over the Kremlin’s invasion of Ukraine.

Washington Post

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Last month (12/2021), BSEE finally posted the 2020 incident statistics. Unfortunately, no details or incident summaries are provided for the 6 fatalities. The fatalities are simply classified as “occupational” (4) or “non-occupational” (2). As a result, we still know very little about these fatal incidents 13 – 24 months after they occurred.

The BSEE spreadsheet advises that 3 of the 4 “non-occupational” fatalities are being investigated, but the reports are still “pending.” Why the long delay? The National Commission, BOEMRE-CG, and NAE investigations of the Macondo tragedy were completed (and reports published) in less time.

No explanation is provided as to why the 4th occupational fatality is not being investigated.

Also, investigations of the preparedness and response aspects of the 2 non-occupational fatalities would have been beneficial. What was the cause of death? What medical screening procedures were in place? What treatment capabilities were available at the facility? How much time was required to transport the workers to hospitals? These are important considerations for the offshore community.

Below is a summary of the publicly available information for the 6 fatalities:

  • 1/14/2020: A worker died on a Diamond drillship on a lease (Mississippi Canyon 822) operated by BP. According to BSEE this was a non-occupational fatality. Per the listing of investigations, no investigation was conducted.
  • 5/16/2020: A worker died on a Fieldwood platform (Ewing Bank 826 A). Per BSEE, this was an occupational fatality and the investigation is still pending. There were no media reports or company announcements.
  • 6/2/2020: A worker died on the Valaris DS-18 drillship working for EnVen Energy at Green Canyon 767. Per BSEE, this was a non-occupational fatality and no investigation was conducted.
  • 6/20/2020: A worker died on at the Green Canyon 18 A platform operated by Talos. Per BSEE, this was an occupational fatality but no investigation is indicated for this incident. No media reports or company announcements could be found.
  • 8/23/2020: A worker died on the Pacific Khamsin drillship working for Total at Garden Banks 1003. A month later, at an Investors’ Day presentation, Total announced that the incident occurred while the crew was preparing to move the rig to avoid Tropical Storm Laura. Total’s statement included this defensive statement: “This is a routine operation that was executed with no time pressure as the rig disconnection had been decided well in advance.” Per Total, the findings of their investigation were shared with the regulators in Sept. 2020, but BSEE advises that their investigation is still pending.
  • 12/2/2020: A worker died on DCOR’s Platform Gilda in the Santa Barbara Channel offshore California. The BSEE investigations update provides no information on the status of the investigation. Per local media, 3 men fell from the platform and others jumped into the water to assist. No information is provided on the reason why the 3 men fell.

The number of US OCS fatalities remains unacceptably high, and timely data sharing and investigations are needed to better assess causes and trends. In that regard, this recommendation from the 2016 National Academies report entitled “Strengthening the Safety Culture of the Offshore Oil and Gas Industry” merits further industry/government attention and action:

Recommendation 4.2.2: Because accident, incident, and inspection data all are needed to identify and understand safety risks and corrective actions, the committee recommends full transparency such that regulators make all these data readily available to the public in a timely way, taking into consideration applicable confidentiality requirements.

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Per Offshore-Energy.biz, BP’s semi-submersible Argos production platform has arrived on location in the Gulf of Mexico. The floating platform will operate in 4500′ of water as part of BP’s Mad Dog 2 project. Production, which is expected to reach 140,000 boe/d, should begin in the 2nd quarter of 2022.

Per BOEM’s platform data base, this will be the 58th surface production facility in the deepwater (>1000′) GoM and the first such facility installed since Shell’s Appomattox in June, 2018. These platforms account for more than 90% of US offshore oil production.

BP photo: Argos at Ingleside, TX
BP graphic

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While the official BOEMRE-USCG and National Commission/Chief Counsel investigation reports were quite good and there are countless court documents and ad hoc reviews of the blowout, some important Macondo issues have not been fully addressed. BOE will touch on these issues periodically starting with the decision to terminate the top kill operation on 5/28/2010.

The top kill operation (see diagram above) was intended to overcome and halt the flow of oil by pumping heavy mud into the well bore.  The operation was not successful because the pumping rate and mud weight did not generate sufficient pressure.  Per an excellent paper by Dr. Mayank Tyagi and colleagues at LSU  (Analysis of Well Containment and Control Attempts in the Aftermath of the Deepwater Blowout in MC252):

It is very likely that if the top kill had been designed to deliver more than 109 bpm of 16.4 ppg drilling fluid below the BOP stack for a sustained period, the Macondo blowout could have been stopped between May 26-28, 2010. Given that the well was successfully shut-in with the capping stack in July, and that the subsequent bullhead (static) kill was successful, certainly a higher rate top kill would have been successful at that time.

The American Thinker, citing the New York Times, reports that Energy Secretary Chu stopped the top kill operation over the objections of some BP engineers. While it was reasonable to be concerned about possible casing leaks and the fracturing of subsurface formations, the subsequent (7/15/2010) closure of the capping stack demonstrated that the well had sufficient integrity to support the top kill operation. Questions regarding why a higher rate top kill effort was not attempted and how that decision was made are therefore important and merit discussion. Did the Macondo well flow unnecessarily into the Gulf for an additional 48 days (5/28-7/15)? Did the National Incident Command facilitate or delay source control?

Keep in mind that the NIC almost made a similar mistake in July. Even after the capping stack successfully shut-in the well on 7/15, Incident Commander Thad Allen (USCG) continued to call the closure of the capping stack a temporary test and threatened to require BP to resume flow from the well. Fortunately, informed input from experienced engineers prevailed. The well remained shut-in and the static well-kill operation was successful.

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Dauphin Island tarballs, May 2011

Cheryl’s update after reviewing the latest reports:

  • There is a USCG unified command specific to BP spill residue after storms.
  • The tarballs are not considered toxic, just an unattractive nuisance.
  • Tarball cleanup on Dauphin Island was halted on May 1 to protect nesting birds.
  • BP estimates a total Macondo spill volume of about 4 million bbl as opposed to the government estimate of 4.9 million bbl.
  • BP estimates that 850,000 barrels were captured, burned or skimmed off the water.
  • 1,260 people remain employed in spill cleanup as of [July 14, 2011], down from a peak of 48,200 a year ago

Articles of interest:

Alabama.com

WALA New Orleans

Bloomberg Business Week 

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You be the judge.

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BP settled Macondo litigation with Weatherford, manufacturer of the float equipment equipment used in the Macondo well. The failure of this equipment was a key contributing factor in the Macondo blowout. Under the agreement, Weatherford will pay BP $75 million.  This money will be applied to the $20 billion Macondo trust fund.

Weatherford is the first of BP’s contractors to formally agree with BP that the entire industry can and should learn from the Deepwater Horizon incident. Accordingly, Weatherford has committed to working with BP to take actions to improve processes and procedures, managerial systems, and safety and best practices in offshore drilling operations. BP and Weatherford will encourage other companies in the drilling industry to join them in this improvement and reform effort.

Comments:

  1. $75 million seems like a rather modest payment by Weatherford given the magnitude of Macondo damage costs. BP will “indemnify Weatherford for compensatory claims resulting from the accident.”  Presumably, Weatherford’s sales agreements provide good legal protection.
  2. One of the root causes of the Montara blowout was also a float collar failure. That float collar was also supplied by Weatherford.  I’m surprised that this common cause and supplier have received almost no attention. Of course, no one has paid much attention to Montara, either before or after Macondo. Had more attention been paid to the Montara inquiry, Macondo might have been avoided.  (Note that most of the post-Macondo commentary still implies that deep water is the threat even though Montara was in 80 m of water and the root causes of Macondo were not water depth related).
  3. When do we learn more about the “improvement and reform effort” described in the quote above?

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High-ranking congressmen made a concerted effort to financially distance themselves from BP in the aftermath of the Deepwater Horizon oil spill, either by reducing or altogether dumping their stock holdings, according to a Center for Responsive Politics analysis of lawmakers’personal financial disclosure documents released Tuesday. 

House Speaker John Boehner (R-Ohio) and Sen. John Kerry (D-Mass.) gave up all or a significant amount of their holdings in BP after the 2010 spill, which leaked an estimated 205 million gallons of oil in the Gulf of Mexico and killed 11 oil platform crew members in the initial explosion. Open Secrets Blog

Financial decision? Moral leadership? Fear of guilt by association? Washington front-running? Political weakness? I wonder where they reinvested their money.

More on lawmakers’ finances.

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Hundreds of witnesses expected.

The trial won’t proceed quickly, if the parties call all the witnesses on their lists.

Transocean’s roster of 304 included 82 of its own employees, 87 from oil company BP, and 18 from cement contractor Halliburton.

BP listed 71 witnesses from Halliburton, 110 others, plus anyone else who has been or will be deposed.

The United States listed 56 from BP, 32 from Halliburton, and 76 others.

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Fair or harsh? You be the judge.

Federal prosecutors are considering whether to pursue manslaughter charges against BP Plc (BP/) managers for decisions made before the Gulf of Mexico oil well explosion last year that killed 11 workers and caused the biggest offshore spill in U.S. history, according to three people familiar with the matter. Bloomberg

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