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Posts Tagged ‘drilling’

From Platts Oilgram News (3 February 2011):

Mitsui affiliate MOEX Offshore has received invoices from BP seeking $2.64 billion in reimbursement related to the Macondo oil spill in the US Gulf of Mexico, Mitsui said February 2.

A wise attorney (not an oxymoron :)) recently mentioned that you had to be very careful about ventures that you are buying into (as a partner) or selling into (as a contractor or manufacturer). If something horrible happens, your company’s economic future could be jeopardized, even if your role was rather small.

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The future pace of drilling approvals in the Gulf of Mexico might be slowed less by new laws or regulations stemming from last year’s massive spill but by a decades-old law that opens the door to longer environmental reviews and litigation. New York Times

We know the NEPA process is slow and repetitive, but how much value is added? NEPA reviews don’t improve well integrity, BOP performance, or safety management programs; nor do they even address these fundamental safety and pollution prevention considerations, at least not in a substantive way.  Why not publish a single, comprehensive online environmental review for drilling and production operations in the region?  The review would cover all possible impacts for every type of operation. This detailed “living document” would be continuously updated as new environmental information is acquired, technology advances, and regulations and standards are updated.  The public could comment on specific operations as they are proposed, and could otherwise comment on the document at any time. Periodic public meetings could be held as necessary and desirable.

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The Government is ordered to pay legal fees for Hornbeck Offshore Services and several other companies that sued over the moratorium.

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Link to letter

The Louisiana coastal parishes are united in working with each other and with you to see the drilling process expedited as quickly as possible.  It is imperative to our collective economies that we move forward with the process of providing the energy that moves our nation.

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After reading our previous Cuba post, Paul Post reminded BOE that Cuba has been drilling directional wells from shore to offshore targets for many years.  He sent along some images from a 2005 report on Sherritt International Corporation’s operations in Cuba.  Two of those images are pasted above and below.

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A little bit of information on the BOP “forensic” testing from the Louisiana Record:

Justice Department attorney Michael Underhill said that a forensic report on the failed blowout preventor (BOP) which led to the Deepwater Horizon explosion and subsequent Gulf of Mexico oil spill should be finished in March.  Underhill spoke at a status conference for the BP multidistrict litigation in Judge Carl Barbier’s chambers at U.S. District Court for the Eastern District of Louisiana.

Barbier expressed concern over reports that the testing for the BOP and the cement used in drilling the Deepwater Horizon was falling behind. Underhill stated that the testing on the BOP should be done by the first week of March, but that’s “not a promise.” Underhill stated that the BOP investigation has already cost millions of dollars and has involved laser scanning all the equipment removed from the device. He also said that the forensic report on the BOP should be done by the end of March.

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It sounds like they are talking about drilling directionally from onshore locations to offshore targets:

Cuba will drill 20 new oil wells in 2011, mainly in the area from Havana to Varadero, some 120 kilometers east of the island’s capital, said Rafael Tenreyro, head of the exploration group of the Petróleos de Cuba Company. He noted that the drilling will take place from the coast to the sea, to reduce the environmental impact, reported IPS. Havana Times

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Unfortunately, this isn’t a Cajun joke.  According to Upstream, Noble’s Clyde Boudreaux, a deepwater semisubmersible, is being moved to Brazil to work for Shell.

We expect to see additional units leave the Gulf region, which may at some point impact the broader deepwater market. Roger Hunt, Noble

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While thunder-snow created a surreal setting outside, the scene was rather predictable inside as the National Commission co-chairs testified before the House Natural Resource Committee.  Members acknowledged the Commission’s service, questioned qualifications, expressed frustration with the “permitorium,” raised concerns about our economic and energy future, and disputed the conclusion that “systemic industry failures” contributed to the disaster.  Others suggested that Macondo safety issues had not been resolved, that the risks associated with offshore drilling were not being managed properly, and that everyone else in the world regulates offshore operations more effectively than the US (or at least their disasters have been less recent).

Putting all that aside, I was pleased by the interest of the members in the BOP failure. They seem to share our frustration with the delays in the BOP examination/testing/forensics/autopsy. Perhaps the Committee can determine the status of this very important aspect of the investigation, and provide a summary of what has happened since the stack was recovered and what work remains to be accomplished. That would seem to be a reasonable request.

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Good news first:

Scientists at the Woods Hole Oceanographic Institution in Massachusetts found circumstantial evidence that the chemicals guided some oil into underwater currents, stopping it from bubbling up to the surface, where it would do more damage, said marine chemist Elizabeth Kujawinski.

Now the bad:

But she added, “the dispersant is sticking around,” which is worrisome. The chemicals didn’t seem to biodegrade the oil and gas as fast as basic chemistry would predict.

See the AP article recommended by BOE oil spill guru Cheryl Anderson.

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