Daily Archives: February 2, 2012

Obama’s dishonest energy promise

Feb 2

Posted by

imageDespite pledge, government hasn’t allowed drilling on 97 percent of coast

President Obama’s ambiguous call to “open” 75 percent of the country’s potential offshore oil and natural gas resources to exploration may sound generous, but the truth is, the areas containing those resources are technically already included in the upcoming 2012 to 2017 offshore leasing plan, and they are virtually the same areas where exploration and production have been allowed for decades.

Look beyond the president’s rhetoric to his record and it becomes clear that jobs and energy security are not high priorities for this administration. The shortsighted decision to deny the Keystone XL pipeline and the unnecessarily long moratorium on drilling in the deep waters of the Gulf of Mexico are but two examples.

Political uprisings and social unrest over the past year have highlighted the instability of oil-producing regions in the Middle East and North Africa, and the situation shows no signs of improvement. Just a few weeks ago, Iran threatened to shut the Strait of Hormuz, a critical transport route for 40 percent of the world’s oil. A robust domestic oil and natural gas industry can shield the U.S. market from such events and protect the American consumer. Unfortunately, our current policies have failed.

Around the same time as the Iranian announcement, the American Petroleum Institute unveiled a Quest Offshore Resources study showing that the deep-water drilling moratorium and subsequent permit slowdown forced 11 deep-water rigs to leave the Gulf of Mexico since 2010, taking their jobs and investments to the shores of Brazil, Africa and elsewhere. Those moves translated to a loss of $21.4 billion for our economy and an estimated 72,000 jobs in 2010 and 90,000 jobs in 2011, according to the study. We must do better.

An earlier Quest study rolled out by the National Ocean Industries Association showed that if permitting rates surpassed pre-2010 levels, 190,000 offshore industry-supported jobs could be created nationwide within the next two years without a single dime of government stimulus. The positive benefits of returning the Gulf-permitting rates to higher, more consistent levels are clear. But the Gulf represents only a portion of our nation’s offshore resources. Alaska’s outer continental shelf holds immense potential, with almost 10 billion barrels of oil and 15 trillion cubic feet of natural gas lying untapped beneath the ocean floor. Approval of exploration permits would mean 55,000 new jobs and $145 billion in new wages. The federal government would also see a significant amount of new revenue – approximately $193 billion.

There are also considerable resources off the coast of Virginia, where residents and state leadership support exploration. Unfortunately, the Department of the Interior has yet to allow the industry to move forward there. In addition to denying Virginia’s desire for an offshore lease sale, the department’s 2012 to 2017 proposed oil and gas leasing program keeps the eastern Gulf and the Atlantic and Pacific coasts off-limits to exploration and delays development in Alaska. This sends job creation elsewhere, and closes the door on economic growth.

Despite the vital revenue generated, jobs created, wages paid and increased energy security, less than 3 percent of the federal outer continental shelf is leased, leaving more than 97 percent of these resource-rich areas devoid of any permits. I cannot think of a more glaring, missed opportunity. We simply cannot continually place our nation at the mercy of hostile nations while we ignore our own energy potential. Significant oil and natural gas resources lie off our coasts and across our northern border, waiting to enhance our energy security and help stabilize fuel prices. We need to go get them. The time has come for Congress and the president to put aside rhetoric and ideological debates, pass meaningful legislation that will open our offshore domestic resources for exploration and development, stop sending our hard-earned dollars to hostile and unfriendly nations, and invest in America’s future.

Randall Luthi is president of the National Ocean Industry Association

Source

Related articles

Posted in Oil & Gas - offshore, Political economy, Progressive Agenda, Regulation

Comments Off

Tags: , , , , , , , , , , , , , ,

Norway: Statoil Orders Subsea Structures for Asgard

Feb 2

Posted by

image

Bergen Group Offshore has, through its subsidiary Bergen Group Rosenberg AS, been awarded a contract by Statoil for fabrication of subsea structures for the Åsgard Subsea Compression Project with an estimated value of 50 MNOK.

The project involves delivery of 12 off PLEM structures (Pipeline End Manifold) and one riser base with a total estimated weight of 850 tonnes. The contract includes project management, shop engineering, planning and work preparation,  procurement, fabrication and testing of the structures. The work will commence immediately and final delivery shall take place in May 2013.

The project organization will be mobilized at Buøy, Stavanger where all project activities will be undertaken.

“Bergen Group Rosenberg very pleased to be awarded this contract. We are well positioned for the growing subsea market with our excellent track record for quality deliveries. Through recent investments in fabrication facilities and equipment we shall achieve further improvements in productivity and quality.” says Kristin Færøvik, Executive Vice President of Bergen Group Offshore and CEO of Bergen Group Rosenberg.

Statoil and its partners on Åsgard field have opted for subsea gas compression to help recover the big remaining reserves in this Norwegian Sea field. Subsea compression is expected to increase the recovery factor and producing life of Åsgard. By carrying out compression on the seabed, Asgard partners will achieve benefits in the form of improved energy efficiency and lower costs compared with carrying out compression on platforms or on land.

Articles

Source

Related articles

Posted in Norway, Oil & Gas - offshore, Subsea

2 Comments

Tags: , , , , , , , , , , , , , ,

South Korea: Pacific Drilling Extends Option for its 7th Drillship

Feb 2

Posted by

image

Pacific Drilling S.A.  has reached an agreement with South Korea’s Samsung Heavy Industries to extend until February 17, 2012 an option to construct a seventh ultra-deepwater drillship.

Under the revised terms of the option agreement, the delivery of the drillship will be no later than May 17, 2014. The commercial terms of the option agreement are unchanged.

Pacific Drilling is  a growing offshore drilling company that provides global drilling services to the oil and natural gas industry through the use of ultra-deepwater drillships. Pacific Drilling’s fleet of six ultra-deepwater drillships will represent one of the youngest and most technologically advanced fleets in the world. The company currently operates four recently delivered drillships and has two additional drillships on order at Samsung.

Articles

Source

Related articles

Posted in Drillship, Houston, MARINE VESSELS, South Korea, Texas, United States

1 Comment

Tags: , , , , , , , , , , , , , , , ,

Edison Chouest Orders PSV in Poland

Feb 2

Posted by

image

REMONTOWA SHIPBUILDING S.A has signed a contract for building of a Platform Supply Vessel for Edison Chouest Offshore from Louisiana, USA.

New building vessel is continuation of the series of four units of the same type which has been started last year. She will be built according to the project elaborated by polish design office MMC Ship Design & Marine Consulting Ltd from Gdynia. The vessel will be equipped with Diesel – Electric propulsion system allowing most cost efficient exploitation, reduction of fuel consumption and lower emission of NOx and SOx to the atmosphere.

Working deck of 1000 m2 will enable to carry high-volume goods, which makes that vessel the biggest one in her class. Technically advanced vessel will operate the complex deep-water operations in the region of South America and Africa.

The vessel will be equipped with Class 2 dynamic positioning system and fitted to operations in world – wide sea areas, in each weather conditions. After completion of the construction and carriage of complex sea trials, the vessel will be delivered to the Owner in the fourth quarter of 2013. The contract includes an option to build another, sister vessel.

Articles

Source

Related articles

Posted in AMERICAS, Cut Off, Europe, Poland, PSV, United States

Comments Off

Tags: , , , , , , , , , , , , , , ,

UK: Subsea 7 Bags Claire Ridge Project Contract

Feb 2

Posted by

image

Subsea 7 S.A. has been awarded a contract valued at approximately $100 million from BP Exploration Operating Company Limited for the Clair Ridge Project, West of Shetland.

The Clair Ridge development will comprise two new, bridge-linked platforms to be located to the North-East of Clair Phase 1.

The contract scope includes the project management, engineering, procurement, fabrication and installation of a 6km 22” oil export pipeline and a 14km 6” gas export pipeline connected to the new production facilities and existing Clair Phase 1 export systems. The pipeline systems will allow product to be transported from Clair Ridge to Sullom Voe Terminal (SVT) via a dedicated gas export pipeline spur tied into the Clair Phase 1 pipeline, and the associated gas will again be tied  into West of Shetland Pipeline System via the gas export pipeline.

The 22” oil export pipeline bundle will be fabricated at Subsea 7’s Wester site facility in Wick, Scotland and will be installed using the Controlled Depth Tow Method. The 6” gas export pipeline will be fabricated at Subsea 7’s Vigra spoolbase. The scope also includes tie-ins of integrated subsea towhead structures, field testing and pre-commissioning activities.

Engineering and project management will commence from our Aberdeen office in early 2012, with offshore operations due to commence in 2013.

Steph McNeill, Subsea 7′s Vice President, UK said: “We are pleased to be awarded this major pipeline project by BP, which builds upon our unique bundle technology. Fabrication will take place at our Wick facility in Scotland, which has a  proven track record of successful bundle design, fabrication and installation, securing work for approximately 100 people. We look forward to helping bring on-stream the Clair Ridge Project in an efficient, timely and safe manner.”

Articles

Source

Related articles

Posted in United Kingdom

Comments Off

Tags: , , , , , , , , , , , , , , , , , , ,

Apache Hires Ulstein Design PSV for Work in UK North Sea

Feb 2

Posted by

image

The platform supply vessel M/V Blue Fighter of PX121 design delivered by ULSTEIN in January has won a contract with American company Apache for work in the North Sea.

The ship was delivered from Ulstein Verft to Blue Ship Invest on 19 January, and entered the spot market in the British North Sea sector directly. After only days of operation in the spot market, the vessel will enter into a long-term contract as of next week.

Remøy Shipping has technical and commercial management of the vessel. “We are now in transit to Aberdeen where we will load before returning to the field,” reported Captain Trygve Valø yesterday afternoon. After a week in operation, the Captain and his crew are very pleased with the vessel’s performance. “Everything is working well – she is a good ship,” he concludes.

Frank Strandebø in Blue Ship Invest joined the vessel her first week in operation. He himself is a captain and got to test the ship in 8 metre waves: “It takes eleven hours from Aberdeen to the oil rig we have been working for, and with some spells of bad weather en route, we got evidence of the ship’s great sea-keeping qualities. She has soft and smooth movements and the X-BOW allows her to keep a higher constant speed in head sea.”

Strandebø greets the Blue Fighter project team in Ulstein Verft with the following: “This vessel is top notch. Everything has been working perfectly on the first trip, so all credit to the project team for the work you’ve done.”

The ship has a length of 83.4 metres and a beam of 18 metres. It has a cargo deck of 875 square metres and a load capacity of 4200 tonnes (dwt). Among others the ship meets the requirements of DNV’s Clean Design notation. It has a maximum speed of circa 15 knots and modern accommodation for 24 persons.

Offshore Energy Today Staff, February 2, 2012; Image: Ulstein Group

Articles

Source

Related articles

Posted in PSV, ULSTEIN, United Kingdom

1 Comment

Tags: , , , , , , ,

Exxon Shale Failure in Poland May Lengthen Gazprom’s Shadow

Feb 2

Posted by

image

By Joe Carroll

Exxon Mobil Corp. (XOM)’s failed shale-gas wells in Poland may hobble the nation’s effort to become one of the world’s major energy sources and dismantle Russian dominance of Eastern European natural-gas markets.

Exxon, the world’s largest energy company by market value, said two exploratory wells drilled in a Polish shale formation last year weren’t commercially viable. The gas discovered in the wells, Exxon’s first in Poland, failed to flow in sufficient quantities to justify bringing them into production, David Rosenthal, vice president for investor relations, said during a conference call yesterday.

International energy prospectors, including Marathon Oil Corp. (MRO), Chevron Corp. (CVX) and Talisman Energy Inc. (TLM), are probing Poland’s shale deposits to see if drilling techniques that revolutionized U.S. gas production can unleash reserves big enough to supply Polish demand for more than three centuries. Exxon’s setbacks suggest Poland’s shale poses unique challenges that may increase costs and delay output, said Gianna Bern, founder of Brookshire Advisory & Research in Chicago.

“Shale exploration is a very high-cost and high-risk business and the Polish shale market is still in its infancy,” Bern, who advises major oil companies on risk management and strategy, said in a telephone interview yesterday. “It’s early in the game for Poland, and they have significant potential reserves over there.”

Reduce Imports

Poland’s shale formations hold 187 trillion cubic feet of recoverable gas, according to an April 2011 assessment by the U.S. Energy Department. Those resources are 32 times larger than the country’s conventional gas reserves and enough to supply domestic consumption for 322 years.

For Poland, successfully unlocking gas from shale would be a boon to domestic manufacturers and power producers by diminishing the need for Russian imports that now supply two- thirds of demand, said Benjamin Schlesinger, president of Benjamin Schlesinger and Associates Inc., a Bethesda, Maryland- based adviser to gas producers, utilities, regulators and financial-services firms.

Poland’s dominant gas company, Polskie Gornictwo Naftowe i Gazownictwo, pays Russia’s state gas company Gazprom OAO (GAZP) $500 for 1,000 cubic meters ($14.16 per million British thermal units) of gas. That’s six times the benchmark U.S. price for the fuel.

Poor Wells

“Poland’s shale resources are enormous,” said Schlesinger, a Stanford University-trained engineer who helped the New York Mercantile Exchange design its gas futures contract. “Poland should be able to capture a good deal of those resources and reduce reliance on the Russian Federation.”

Gazprom’s depositary receipts rose 2.5 percent to $12.40, the highest closing price since Oct. 28. The London-listed receipts each are worth two ordinary shares in the Moscow-based company.

Exxon’s failures followed disappointing results at Polish wells drilled last year by 3Legs Resources Plc and BNK Petroleum Inc. (BKX) London-based 3Legs’s Lebien well and BNK’s Lebork well flowed at lower rates than similar prospects in the Barnett and Fayetteville shale regions in the U.S., Sanford C. Bernstein & Co. said in a Nov. 10 note to clients.

“Poland is cited among Europe’s best shale prospects, but Exxon’s result supports our caution on achieving material near- term volumes,” Oswald Clint, a London-based analyst at Bernstein, said in a note today.

Even so, it may be too early to draw any firm conclusions from Exxon’s drilling failure, said Pawel Poprawa, who specializes in shale at the Polish Geological Institute in Warsaw.

‘Technological Problem’

“If we look at the experience from the U.S. or Canada, no single well can provide the answer if the basin has potential or not,” he said. “Low flows seem to be a technological problem.”

Marathon Oil said today that it’s evaluating data after finishing its first well in a Polish shale formation. The Houston-based company said in a statement that it intends to drill three more wells during the next few months and withdraw rock samples for testing. Marathon plans a total of six to seven Polish shale wells this year, according to the release.

The Polish shale results come after Exxon encountered a dry hole in Hungary in late 2009 drilled in a tight-sand deposit similar to shale. Exxon walked away from the $75 million project after striking more water than gas.

Exxon and other major North American energy producers have been lured to explore shale prospects from Germany to Argentina after largely missing out on the boom in shale extraction in the U.S. that began in the middle of the last decade.

Smaller Explorers

Smaller explorers such as EOG Resources Inc. (EOG), Chesapeake Energy Corp. (CHK) and Range Resources Corp. (RRC) came to dominate the U.S. shale industry by default as the biggest international companies focused on locating billion-barrel offshore crude fields in places like the Gulf of Mexico and West Africa.

Shale formations were ignored by much of the energy industry for most of the past century because the rocks were considered too hard to crack using traditional drilling techniques. That began to change in the late 1990s with the development of new horizontal drilling practices and more- intensive hydraulic fracturing that succeeded in unlocking gas and crude from shale and similarly dense geologic deposits.

‘Attractive Fiscal Terms’

Exxon sought to jump-start its shale program in June 2010 with the $34.9 billion acquisition of XTO Energy, a Fort Worth, Texas-based pioneer of shale development. In addition to shale wells and undrilled prospects that stretch from the Mexican border to Canada, Exxon wanted to transfer XTO’s in-house expertise to foreign shale fields.

Exxon hasn’t disclosed its plans for further drilling in Poland. The shares rose 0.3 percent to $83.97 at the close in New York.

Poland has led European shale exploration by virtue of its tempting geology and by offering “attractive fiscal terms” to prospectors, the Energy Department in Washington said in a September report.

Still, a “likely aggressive tax burden” to be imposed on shale-gas producers may damp investor enthusiasm, analysts at Bank Zachodni WBK SA, based in Wroclaw, Poland, said yesterday in a note to clients.

Polish drilling also has been hindered by a scarcity of rigs, water and specialized equipment needed for shale wells, Bern said.

“Getting the things you need to drill these wells is much more difficult in Poland than in the United States, where the shale industry is very well-developed,” Bern said.

Source

Related articles

Posted in Europe, Oil & Gas - inland, Poland, Shale Gas

2 Comments

Tags: , , , , , , , , , , , ,

NMS Girl Of The Day #1 – Chantel Fouche

Feb 2

Posted by

As we announced earlier today (read all about how the badge system works) we’ll be announcing a NMS Girl Of The Day each weekday to celebrate some of the hottest entrants into the competition this year. The Sports Illustrated team are selecting their favourites from all the entrants and they will get their 15 minutes of fame (more like 24 hours or more) to enjoy being the NMS Girl Of The Day. The first person to receive the badge is Chantel Fouche. Well done Chantel!

As we announced earlier today (read all about how the badge system works) we’ll be announcing a NMS Girl Of The Day each weekday to celebrate some of the hottest entrants into the competition this year.

The Sports Illustrated team are selecting their favourites from all the entrants and they will get their 15 minutes of fame (more like 24 hours or more) to enjoy being the NMS Girl Of The Day.

The first person to receive the badge is Chantel Fouche. Well done Chantel!

To view Chantel’s profile and vote for her: CLICK HERE

For more New Model Search 2012 entrants: CLICK HERE

NMS Girl Of The Day #1 – Chantel FoucheSports Illustrated.

Posted in 2012 NMS Girl Of The Day

Comments Off

Tags: , , , , , , , , , ,

%d bloggers like this: