Production from Equinor’s important Johan Sverdrup field, which accounts for 755,000 bopd (36% of Norway’s oil production), was shut-in on Monday as a result of a power outage. Production was in the process of being restored on Tuesday.
According to Equinor, the outage was caused by overheating at an electric converter station onshore.
A 2022 BOE post questioned Norway’s push to power offshore platforms with electricity transmitted from shore. This incident reinforces those concerns. Summary:
Most offshore platforms produce sufficient gas to support their power demands
Assuming gas that is not used to power a platform is marketed and consumed elsewhere, the net (global) reduction in CO2 emissions from electrifying offshore platforms is negligible. (Perhaps there is actually a small increase in net emissions given the power required to transport the gas to markets and the emissions associated with onshore power generation).
Offshore power demands are highly variable, especially when drilling operations are being conducted.
Gas turbines are reliable, and capable of responding to variable power demand. Excess generation capacity is typically provided.
Power from shore increases the cost of platform operations and could decrease ultimate recovery of oil and gas resources.
Per NPD, electrification of the shelf will increase electricity prices for onshore consumers and increase the need for onshore facility investment.
Gas turbines or diesel generators are still necessary to satisfy emergency power needs at the platforms.
Long power cables are vulnerable to damage (accidental or intentional), as are onshore power stations.
I hope the investigation of this incident considers some of these broader electrification policy issues.
Equinor diagram: The purple cable shows power from shore to Johan Sverdrup phase 1, established in 2018. The yellow power cable shows power from shore to Johan Sverdrup phase 2 and the Utsira High area solution, from 2022. The orange cable shows power from shore to the Sleipner field centre and connected fields from late 2022. Black cable shows existing power cables at Sleipner field centre and to the Gudrun installation.
Equinor reports that all 5 Hywind turbines have been returned to service after being towed to Norway as part of a 4-month maintenance campaign.
Even though the turbines had only been in operation since 2017, Equinor puts a positive spin on the 4-month maintenance outage, declaring total victory:
“The successful completion of the maintenance campaign on Hywind Scotland is a testament to the collaborative efforts of our teams and partners. As the world’s first floating offshore wind farm, Hywind Scotland has demonstrated the immense potential of floating wind. Through this maintenance campaign, we’ve gained valuable insights that will help us refine maintenance practices and optimise this technology for the future. By sharing our learnings, we aim to contribute to the growth and development of the floating wind industry.”
Some of the folks in Scotland have a different take as evidenced in this video:
Meanwhile, the turbines planned for offshore Central California will also have to be towed to shore for major maintenance. Nearby harbor areas like Morro Bay (pictured below) would be overwhelmed by the large structures and the maintenance and repair operations. Central Coast residents are not enamored with “another attempt to industrialize the coast.” Towing the towers to LA/Long Beach, albeit rather distant from the leases, would seem to be the preferred option for such work.
Looking forward, the first power generation from floating wind turbines on the Central Coast is forecast for 2034. Betters may want to take the over!
While the Orsted acquisition does not appear to have been directed by the Norwegian government, the State’s 2/3 ownership of the company no doubt influences renewable energy targets and broader corporate strategy.
The initial market reaction to the Orsted purchase was negative (see chart below). On a day when most oil companies’ share prices rose in response to the jump in oil prices, Equinor shares opened sharply lower.
As the above examples illustrate, turbine blade failures, like the Vineyard Wind incident near Nantucket, are not unique to GE Vernova. GE’s rivals, Siemens Gamesa and Vestas, have also experienced serious quality control issues.
Per ReviewEconomy (2023), “Unexpected and increasing wind turbine failure rates, largely in newer and bigger models, are savaging the profits of some of the world’s biggest manufacturers, as Siemens Gamesa, GE and Vestas report heavy repair and maintenance losses.”
In light of the manufacturing challenges, all 3 companies report increased emphasis on quality control. Why has quality control to date been inadequate and how will the past problems be corrected?
Has the wind industry’s sense of entitlement, as evidenced in their tax credit, rate increase, and departure expectations, affected their safety and quality culture? Has industry and governmental wind energy promotion rushed development and compromised design and fabrication decisions? It’s time for wind developers, manufacturers, and regulators to make sure their priorities are in order.
On Constitution Day, best wishes to our Norwegian friends!
This JL Daeschler photo was taken in Stavanger harbor in 2003. JL’s wife Debra, a Petrodata Marine editor, is pictured in the foreground. The rig in the background is the Maersk (now Noble) Innovator, a large jackup capable of operating in water depths to 492 ft. The legs are 674 ft (Washington Monument = 555 ft).
Havtil prioritizes risk assessment and publishes their comprehensive annual analysis of safety trends in a timely manner. The 2023 RNNP was posted in Norwegian earlier this year and the summary report is already available in English. RNNP reports are an important safety resource that should be reviewed and discussed wherever oil and gas operations are conducted.
As an example of the breadth of these reviews, the two sets of charts below convey data that are not typically documented by offshore safety regulators. The first set documents near-misses that did not result in injuries, but did expose workers to that risk.
The second set of charts is a summary of worker responses to a survey, a means of assessing the safety culture. The big jump in favorable responses to the HSE questions is encouraging. In particular, the report notes (p. 14) that responses to a question about being pressured not to report incidents has moved in a positive direction in the last two surveys. Hopefully, this is an industry-wide trend.
Bud and Odd (2008 photo)L to R: Jan de Jong (Inspector General, State Supervision of Mines, the Netherlands), Max Ruelokke (CEO, Canada – Newfoundland and Labrador Offshore Petroleum Board), and Odd FInnestad
Yesterday, I learned that Odd Bjerre Finnestad passed away on Christmas Eve, 2021. Odd was an international safety leader, a founder of the International Regulators’ Forum (IRF), and a driving force behind the IRF book, “A legacy of safety.”
In 2003, the US Minerals Management Service honored Odd, two other Norwegians, Magne Ognedal and Gunnar Berge, and Taf Powell from the UK, with International Leadership Awards for their outstanding leadership in facilitating the exchange of information among offshore regulatory agencies, encouraging cooperation on offshore safety and pollution prevention issues, coordinating participation in the development of international standards, cooperating on safety audits and research projects, compiling incident data, exchanging training information and discussing materials and equipment issues.
Odd was also an important contributor to this blog during the difficult times following the Montara and Macondo blowouts in 2009 and 2010.
Pasted below is the English language version of the excellent obituary that appeared in the Stavanger Aftenblad. RIP Odd; your impressive contributions to offshore safety are greatly appreciated.
Memorial: Odd Bjerre Finnestad died on Christmas Eve 2021, aged 79. Odd was employed by the Norwegian Petroleum Directorate (OD) in 1980, later the Petroleum Safety Authority (Ptil) when resource and safety management was divided into two agencies in 2004. He worked there until his retirement in 2013.
Born in the maritime city of Stavanger, he chose a maritime career. As a young naval officer, he met his Anna Dorothy in Londonderry in Northern Ireland. They married in 1967, and our thoughts go out to her and the rest of the family today. His maritime education and experience led Odd to a scholarship position at the Norwegian Institute of Maritime Research and a research program focusing on personal safety at sea. This was an important experience as head of the Section for Worker Protection and the Working Environment in NPD.
Even though most of the Working Environment Act had been applied to permanent installations on the Norwegian continental shelf as early as 1977, demands for employee participation and tripartite cooperation met resistance in parts of the industry.
Odd took on the big challenges with great commitment. On the drilling deck there was still something of the cowboy culture, where safety and the working environment had poor conditions. Several of the residential quarters appeared to be barrack-like accommodation and little had yet been arranged for women in the new industry.
He was concerned that the professional environment should have professional diversity, and that the work should be anchored in research and development. At a time when the share of women offshore was minimal, he was a driving force behind realizing the film project “Norwegian continental shelf – also for women”.
The major accidents with the Bravo blowout in 1977 and the Alexander L Kielland disaster in 1980 had documented the risks in the business in the worst possible way. With these as a backdrop, he participated in the work to develop a new supervision scheme with subsequent information work. This laid the foundation for a three-year engagement at the International Labor Organization (ILO) in Geneva from 1989, where he worked on a global study on various inspection regimes related to the working environment.
For the rest of his professional life, Odd was closely linked to international cooperation at government level. The most important arena was the International Regulators ́ Forum (IRF) where the Ptil director represented the Norwegian authorities. The forum meets annually, but much of the work takes place through ongoing contact between the participating countries. This is where Odd’s ability to see connections and make strategic contacts came in handy. He actively contributed to the IRF developing a culture for rapid and effective exchange of information on risk levels, regulations and supervision.
Odd monitored all channels almost around the clock, in order to convey news of interest. Often before these were picked up by the world press. He thereby also became an important contributor to Ptil’s information environment.
It is a pioneer in Ptil’s role as watchdog and promoter of safety and the working environment in the petroleum industry who has now passed away. We will remember Odd as a committed colleague and friend.
Remembering the 123 offshore workers who lost their lives on this dayin 1980 in one of the offshore industry’s great tragedies 🙏
See the excellent interview with Magne Ognedal that describes the evolution of Norway’s highly regarded offshore regulatory regime following the Alexander Kielland tragedy.
One person has died following the helicopter crash outside Bergen in Norway on the night of Wednesday 28th February. The helicopter was on a training assignment for Equinor ’s SAR service for the Oseberg area in the North Sea.
Search and rescue service is critical to offshore safety, and North Sea operators have excellent SAR capabilities. Sadly, one person died and five were injured (two seriously) when a Sikorsky S-92 helicopter, owned by Bristow and under contract to Equinor, crashed offshore Bergen last night. The crew was training to serve offshore workers in need.
11/21/2023: Nauru Ocean Resources Inc. (NORI) shares data from their 2022 test mining on the impacts of seafloor sediment plumes. See the informative video embedded below.
12/7/2023: 31 members of congress send letter to Secretary Austin (attached) regarding the importance of deep-sea polymetallic nodules from a national security standpoint.
1/3/2024: National Defense Authorization Act (NDAA) is signed into law, and includes provisions directing the Department of Defense to submit a report to the House Armed Services Committee assessing the domestic processing of seafloor polymetallic nodules by March 1, 2024. See text pasted below.
1/11/2024: The Wall Street Journal reports on growing US political support for deep sea mining.
“the committee directs the Assistant Secretary of Defense for Industrial Base Policy shall, by March 1, 2024, submit a report to the House Armed Services Committee assessing the processing of seabed resources of polymetallic nodules domestically. The report shall include, at a minimum, the following: (1) a review of current resources and controlling parties in securing seabed resources of polymetallic nodules; (2) an assessment of current domestic deep-sea mining and material processing capabilities; and (3) a roadmap recommending how the United States can have the ability to source and/or process critical minerals in innovative arenas, such as deep-sea mining, to decrease reliance on sources from foreign adversaries and bolster domestic competencies.
Bud's Offshore Energy (BOE) 