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Posts Tagged ‘BSEE’

….for continuing to recognize the Conservation Division of the Geological Survey (USGS) as the US offshore safety regulator, even though 40 years have passed since that was the case and there have been 3 successor bureaus. 😀

33 CFR § 140.4 Relationship to other law. (current text excerpted from Coast Guard Subchapter N regulations)

(a) Design and equipment requirements of this subchapter for OCS facilities, including mobile offshore drilling units in contact with the seabed of the OCS for exploration or exploitation of subsea resources, are in addition to the regulations and orders of the U.S. Geological Survey applicable to those facilities.

USGS North Atlantic District, Hyannis, MA, Halloween 1980

Most of us old-timers think the best regulatory framework for the offshore program was in the USGS days (pre-1982). Some of this may be nostalgia, but there are some good reasons for this thinking:

  • USGS was/is an internationally acclaimed scientific organization that was always headed by a renowned geologist. The regulatory program was thus somewhat insulated from political pressures. Vince McKelvey, Bill Menard, and Dallas Peck were the Directors when I worked for USGS. Their credentials are linked. Bill and Dallas visited our Hyannis office (not at Halloween 😀) and were very supportive.
  • The Conservation Division was responsible for onshore operations on Federal lands as well as offshore activity. This facilitated information sharing and offered diverse career opportunities. My first bosses in New Orleans had worked previously in the Farmington and Roswell, NM offices.
  • We had excellent synergy with the other USGS divisions. The Marine Science Center in Woods Hole was an incredible resource for our Hyannis office. The Woods Hole office, particularly Mike Bothner and Brad Butman, had a critical role in the Georges Bank Monitoring Program, the best ever (in my biased opinion) environmental study of exploratory drilling operations in a frontier area.
  • The USGS Conservation Division had a very small and supportive headquarter’s staff, which minimized the potential for conflict with field offices.
  • Prior to the formation of the Minerals Management Service (MMS) in 1982, the Bureau of Land Management was responsible for leasing, but all regulatory functions were under USGS. This included resource evaluation/conservation, plan review and approval, permitting, inspections and enforcement, and investigations. The division of MMS responsibilities, most notably the assignment of plan approval to the leasing bureau (BOEM) rather than the regulatory bureau (BSEE), complicates the work of both bureaus and is a prescription for inefficiency, confusion, overlap, and conflict.

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Given the importance of flaring and venting from both environmental and resource conservation standpoints, accurate and reliable data are necessary and should be readily available to the public. ONRR has advised me that they will begin posting flaring and venting data on their website within 2 months. This is a positive step. Currently, data from the 3 primary sources differ considerably.

Data Sources:

Comments:

  • The EIA (from BSEE) and ONRR flaring/venting numbers should be the same given that the ONRR data are reported in accordance with BSEE regulations, and BSEE is presumably providing ONRR data to EIA. This needs to be clarified.
  • The World Bank’s gas flaring estimates are based on observations from satellites. This explains their lower numbers given that vented gas would not be detected and some flares might be missed.
  • In a 1/2021 interview with World Oil, the exiting BSEE Director commented that the “industry has consistently achieved a ratio of less than 1.25% of flared, vented gas to produced gas.” However, based on EIA flaring and venting data (from BSEE per EIA) and EIA gas production data, the volume of gas flared/vented exceeded 1.25% of the gas produced from 2016-2020 and was as high as 1.8% in 2019. (See the chart below.) Even if the lower ONRR flaring/venting totals are used, those volumes exceeded 1.25% in 2019 (1.5%).
  • BSEE/ONRR should make more detailed flaring/venting data available so that the differences between facilities and sectors (e.g. deepwater vs. shelf) could be assessed. Efforts should also be made to post these data in a more timely manner. At this time, 2021 data are still not available.

Reports of interest:

  • Argonne report for BSEE (2017):
    • p. 17 – “The 2015 BSEE/BOEM study on reducing methane emissions observed that “while natural gas production has declined, …vented and flared gas volumes as a percentage of produced natural gas are increasing” and noted that additional investigation is needed to determine why.” This is consistent with my observations and is probably due in large part to the fact that most gas production is now from oil-wells (e.g. associated gas).
    • p. 24 – “Argonne estimates, in 2015, platform startups for deep-water floating structures accounted for roughly 15% of the total annual flaring volume on the OCS and an additional 20% of the annual total resulted from monthly spikes associated with compressor outage, pipeline maintenance, and well-unloading.”
  • Univ. of Michigan study (2020): “Large, older facilities situated in shallow waters tended to produce episodic, disproportionally high spikes of methane emissions. These facilities, which have more than seven platforms apiece, contribute to nearly 40% of emissions, yet consist of less than 1% of total platforms.” 

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Important BSEE safety alert – barricades and fall protection

hazardous grating

I never liked the label “slips, trips, and falls” because it trivializes serious safety incidents. Falls don’t get headlines, but they kill workers. In the 10 years prior to Macondo, falls were the leading cause of Gulf of Mexico fatalities. 17 workers died from fall incidents during that period. Related incidents associated with falling or moving equipment (15) and lifting operations (5) accounted for another 20 fatalities. There was only one fire related fatality.

Unfortunately, BSEE’s posted incident data are incomplete, so more detailed, company specific analysis is difficult. No incident summaries whatsoever are posted for 2001-2012 and 2021, and 2020 fatalities are only described as “occupational” or “non-occupational.”

BSEE does do a very good job with their safety alert program, and has repeatedly expressed concerns about chronic grating and fall issues. 2022 Safety Alerts 438 and 427, and 8 other BSEE alerts issued within the last 3 years (nos. 353, 365, 378, 389, 399, 409, 416, 423) addressed grating and falls. BSEE has also conducted blitz inspections to identify problem facilities, and the Coast Guard has repeatedly raised concerns about grating and fall protection.

Per BSEE Safety Alert 365, grating, open hole, and fall prevention safety measures were seriously deficient at many of the facilities visited during their blitz inspections in 2019. The prevention of fall incidents requires the full commitment of management. Some companies are clearly not making that commitment.

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MMS, the National Institute of Standards and Technology, and Environment Canada were leaders in developing and testing in situ burn spill response capabilities in the 1990’s. Tests at the MMS (now BSEE) Ohmsett facility and at sea offshore Newfoundland demonstrated this important spill response option.

BSEE has continued to advance the MMS spill response research program, and recently announced an exciting enhancement to in situ burn capabilities. BSEE and the Naval Research Laboratory invented a low-emissions atomizer burner designed to cleanly and quickly burn spilled oil, even after oil has been emulsified with water. See the video below.

The atomizer works by converting a stream of liquid, in this case, neat or emulsified crude oil, into a fine spray. The combustible spray is then able to completely burn without the plume of black smoke or residue, leaving the area safer for people, wildlife, and the environment. The burner interfaces with off-the-shelf pumps and air compressor equipment, so the collected fuel can be pumped to the burner. It can be mounted on a floating platform to stand freely in the water and has been successfully tested on waves.

NRL

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Mr. Domangue began his career with BSEE in 1997 and has more than 30 years of experience in the oil and gas industry. He has served as the Deputy Regional Director for Districts, Investigations, Environmental, and Enforcement (DIEE), as Senior Technical Advisor for the BSEE Gulf of Mexico Region and was the Acting Chief of the National Offshore Training Center. Mr. Domangue also previously served as Office Supervisor for Regional Operations, and as District Manager for the Houma District Office of the BSEE Gulf of Mexico OCS Region. He holds a BS degree in petroleum engineering from Louisiana State University.

BSEE

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The International Regulators’ Forum (IRF) does a good job of compiling safety performance data for offshore oil and gas operations in member countries. Because these data are collected by the respective regulators and compiled in accordance with established guidelines, we consider the IRF compilations to be the most credible international incident summary data for the offshore industry.

BOE looked at the numbers for the IRF countries with the highest level of activity in terms of hours worked – Brazil, Norway, UK, and US. These countries accounted for 90% of the total hours worked in 2020, the last year for which data are available. The 2020 hours worked (millions) were also relatively similar for the 4 countries: Norway – 41.2, UK – 42.4, US – 50.4, Brazil – 50.7. The differences in hours worked were somewhat greater in the prior years, but not dramatically so.

We charted the fatality and lost-time (>3 days) data (below). Our intent at this point is to draw attention to the IRF data sets, not to assess and compare performance. We do think the overall safety performance in these and other IRF countries, while far from perfect, is quite good given the hundreds of millions of hours worked, complexity of operations, logistical challenges, and difficult operating environments. We recommend that the IRF prioritize the timely posting of these data, and begin providing causation information so that companies and other interested parties can better identify performance issues and safety trends.

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Linked below is an excellent compliance and incident data update by Jason Mathews. COVID-19 statistics are included. Kudos to BSEE’s Gulf of Mexico Region for their timely and comprehensive reviews and safety alerts.The collection, analysis, and timely publication of incident data are critical to safety achievement and continuous improvement.

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The New York Times calls out the CDC for not releasing Covid data:

Kristen Nordlund, a spokeswoman for the C.D.C., said the agency has been slow to release the different streams of data “because basically, at the end of the day, it’s not yet ready for prime time.” She said the agency’s “priority when gathering any data is to ensure that it’s accurate and actionable.”

Another reason is fear that the information might be misinterpreted, Ms. Nordlund said.

“The C.D.C. is a political organization as much as it is a public health organization,” said Samuel Scarpino, managing director of pathogen surveillance at the Rockefeller Foundation’s Pandemic Prevention Institute. “The steps that it takes to get something like this released are often well outside of the control of many of the scientists that work at the C.D.C.”

BOE and others interested in offshore safety have expressed similar frustration over delays in the release of incident data and reports by BSEE and the Coast Guard, and the limited inspection data that are publicly available. As is the case with the CDC, we suspect these issues have more to do with bureaucratic obstacles than technical limitations or staff reluctance.

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BSEE.gov
  1. Pictured above are BSEE inspectors from the famed Houma District conducting one of their (always) thorough pre-production inspections at Murphy’s King’s Quay semisubmersible production platform in the Gulf of Mexico. [Trivia question: Who was the first Houma District Supervisor?]
  2. King’s Quay is one of six deepwater platforms expected to begin production in the Gulf over the next several years. Others include Shell’s Vito and Whale, BP’s Argos, Chevron’s Anchor, and Beacon’s Shenadoah. All are semisubmersible platforms, the current design of choice for the deepwater Gulf. Production semis have become smaller and more efficient, greatly improving the economics of deepwater projects.
  3. These platforms feature efficient gas turbines and compression systems that should increase the GHG intensity advantage of deepwater Gulf production.
  4. These are the first deepwater production structures to be installed in the Gulf since Shell’s Appomattox in 2018. Per our previous post on this topic, current GoM production rates are not sustainable without regular, predictable lease sales and increased exploration.
King’s Quay under tow

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The law suit makes reference to the aging offshore facilities and the Huntington Beach pipeline spill:

Oil companies have been drilling off California for more than 50 years. The first platforms were installed in 1968 and production continues today. Much of this infrastructure has outlived its expected lifespan and is well beyond the age scientists say significantly increase the risk of oil spills.

Indeed, just months ago a pipeline connected to a platform in federal waters off Huntington Beach ruptured and spilled tens of thousands of gallons of oil into the marine environment. The spill fouled sensitive marine, beach, and wetland habitat; forced closure of fisheries; and harmed and killed birds, fish, plants, invertebrates, and marine mammals.

CBD law suit

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