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Posts Tagged ‘safety’

In addition to suing for damages, the Justice Department is seeking civil penalties.  The amount has not been specified.

In the complaint, the United States alleges violations of federal safety and operational regulations, including:

  • Failure to take necessary precautions to secure the Macondo Well prior to the April 20th explosion;
  • Failure to utilize the safest drilling technology to monitor the well’s condition;
  • Failure to maintain continuous surveillance of the well; and
  • Failure to utilize and maintain equipment and materials that were available and necessary to ensure the safety and protection of personnel, property, natural resources, and the environment.

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President-elect Dilma joked recently that the oil discoveries were just the latest proof that God is Brazilian. And economists from Goldman Sachs no less are predicting that Brazil — along with Russia, China and India — will dominate the world economy in the 21st century.

If you didn’t see the 60 Minutes story on Brazil, you can view it here. With regard to the significance of Brazil’s recent deepwater discoveries, OGX owner Eike Batista offered the following:

Oh, it, it means we should be producing in excess of six million barrels a day. So it’ll put us in among the third, fourth largest producer in the world. Massive exporting.

According to this blog entry, Batista forecasts this 6 million bopd production rate (more than double the current output) by 2020!

Like other offshore producers, Brazil has experienced its tragedies, most notably the sinking of the P-36 production platform that resulted in 11 fatalities. Petrobras and Brazil have recovered nicely from that disaster, but outstanding safety performance is critical if they are to sustain their offshore success.

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Agenda

Live Webcast

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This is a very good column that we are posting with the permission of Gary Gentile, Platts Oilgram.

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Based on the chart above, I think we can now safely declare that the 2010 hurricane season is over. While the threat of tropical storms posed some problems for the Macondo response, the Gulf of Mexico was spared any significant damage or suspensions of production.

During the post-Macondo discussion about safety and regulatory issues, not much has been said about the major disruptions caused by Hurricanes Ivan, Katrina, Rita, Gustav, and Ike, and the attention and resources that have been dedicated to hurricane issues for the past five years. Major advances have been made in mooring capabilities and assessments, design standards, securing topsides equipment, and other aspects of hurricane preparedness.

How much did hurricane issues affect the assessment and management of other operating risks? This question may merit further attention.

Mars TLP took a direct hit from Hurricane Katina with sustained winds >150 mph

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Transocean Ltd. (RIG, RIGN.VX) said Thursday that a Swiss administrative court ruled that the company cannot pay out about $1 billion to shareholders because of the numerous Deepwater Horizon-related lawsuits pending against the rig owner in the U.S. Wall Street Journal

The $40 billion question: How much will Macondo ultimately cost Transocean? Halliburton? Anadarko? Mitusi? Cameron?

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Helix Q4000

Helix’s system, a competitor to a project led by Exxon Mobil Corp that is still in the planning stages, is built from equipment that was used to siphon oil from the sea floor after BP Plc’s Macondo well ruptured on April 20. Reuters article

Interesting. We don’t know the details, but this would seem to be a cost-effective approach that could be quickly implemented.

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While the significance of these charts is debatable, the occurrence of two historic blowouts – Montara and Macondo – within an eight month period is a clear signal that we have problems. The disturbing similarities in these two blowouts tell us that well construction, monitoring, barrier verification, and personnel training practices are not where they should be.

Link to article

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Washington Post report:

Workers on the doomed Gulf of Mexico oil rig were distracted by multiple activities going on simultaneously and didn’t try to shut the well until 49 minutes after potentially explosive gas particles began flowing in, a BP vice president told a federal investigative panel Wednesday.

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Blowout: Is Canada Next?

Thursday, December 9, 2010 at 9 pm on CBC-TV

If the title and announcement for this CBC documentary are indicators, this won’t be a scholarly review of the risks associated with Canadian offshore exploration and development. Nonetheless, those of you who can view CBC programming may want to tune in and see what they have to say.

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