Daily Archives: October 8, 2011

BP Announces Significant Resource Extension of Mad Dog Field in Gulf Of Mexico

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Release date: 07 September 2011

BP announced today the drilling of a successful appraisal well in a previously untested northern segment of the Mad Dog field in the US Gulf of Mexico.

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The well results confirm a significant resource extension for the Mad Dog Field complex, which includes the existing field, in production since 2005, and appraisal drilling of the Mad Dog South field in 2008 and 2009. Pending confirmation through future appraisal drilling, the total hydrocarbons initially in place in the Mad Dog field complex are now estimated to be up to four billion barrels of oil equivalent.

The well, drilled by BHP Billiton on behalf of the unit operator BP, is located on Gulf of Mexico Green Canyon block 738 approximately 140 miles (225 kilometres) south of Grand Isle, LA., in about 4,500 feet (1,371 metres) of water. The well encountered about 166 net feet (50 metres) of hydrocarbons in the objective Miocene hydrocarbon-bearing sands and discovered an oil column of more than 300 feet (91 metres).

“With these additional hydrocarbon resources north of the main field, Mad Dog has been firmly established as a giant field in BP’s Gulf of Mexico portfolio, rivalling Thunder Horse in size of resource,” said Bob Dudley, BP group chief executive. “Working with the industry and regulators, we will apply our enhanced standards of safety, reliability and compliance to all of our Gulf activities as we continue to provide important jobs and energy to the nation.”

BP maintains a 60.5 per cent working interest in Mad Dog. BHP Billiton has a 23.9 per cent interest, Chevron Corporation, through its subsidiary Union Oil Company of California, has a 15.6 per cent interest.

Due to the materiality of the Mad Dog South finds in 2009, BP has been advancing development options to increase production from Mad Dog by adding another spar production facility with a production capacity of 120,000–140,000 barrels of oil equivalent per day (boed).

“Coupled with the recent exploration success at the discovery at the Moccasin prospect, located in Keathley Canyon, the Mad Dog result re-emphasizes the exploration and development potential of the Gulf of Mexico and the region’s ability to continue to deliver material projects for BP,” Dudley added.

On Sept. 6, 2011 Chevron Corporation announced the Moccasin discovery in the Lower Tertiary play on Keathley Canyon block 736. BP has a 43.75 per cent working interest in the Moccasin prospect. The prospect is operated by Chevron U.S.A. Inc., also with a 43.75 per cent interest, and the co-owner is Samson Offshore Company with 12.5 per cent interest.

Notes

  • The Mad Dog Field started production in 2005 and utilizes a truss spar platform, equipped with facilities for simultaneous production and drilling operations. The facility is designed to process 80,000 barrels/day of oil and 60,000 standard cubic feet/day of gas.
  • Oil and gas is transported to existing shelf and onshore interconnections via the Mardi Gras Transportation System.
  • BP is one of the largest producers of oil and gas in the US Gulf of Mexico with net production of over 250,000 boed. BP is progressing eleven Gulf of Mexico projects: Atlantis Phases 2 and 3, Kaskida, Mars B, Galapagos, Na Kika Phases 3 and 4, Freedom, Mad Dog Phase 2, Mad Dog North and Tiber.
  • Major BP developments in the deepwater Gulf of Mexico include: Pompano, 1994; Marlin, 2000; Horn Mountain, 2002; Na Kika, 2003; Holstein, 2004; Mad Dog, 2005, Atlantis, 2007, Thunder Horse 2008.

Original Article

THE MUDCUBE SYSTEM (video)

Uploaded by starslush on May 29, 2008

The MUDCUBE is a system for effectively treatment of drilling fluids. A special designed vacuum system pulls the fluid through the screen and degasses the same fluid.

The cuttings will be processed on the rotating screen and will have very little fluid attached when leaving the screen. No mechanical force is given to the screen and change of screen is no longer a time consuming, costly and ineffective process.

New Baker Hughes Research and Technology Center in Brazil Demonstrates Next Phase in Network of Global Technology Solutions

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HOUSTON, Oct. 7, 2011 /PRNewswire/ — Baker Hughes (NYSE: BHI) announced today the opening of a new research and technology center in Rio de Janeiro designed to enable the development of technologies and solutions to unlock the full potential of deep water and pre-salt reservoirs.

“Baker Hughes’ new research facility on the CENPES (Centro de Pesquisas Leopoldo Americo Miguez de Mello) campus will open up a new level of collaboration with our customers and Latin American universities. Together we will build a new generation of highly specialized wellbore construction tools and services to economically produce the pre-salt reservoirs in offshore Brazil,” said Andy O’Donnell, president of the Western Hemisphere for Baker Hughes. “The new Baker Hughes Rio Research and Technology Center in Brazil represents the next phase in the expansion of our global technology network and strengthens our capability to provide local solutions.”

The Brazil center is one of 10 major research and technology facilities globally situated in the U.S., U.K., Russia, Germany and Saudi Arabia. The centers focus on providing solutions to oil and gas challenges specifically related to applications engineering and geosciences. In addition, the facilities enable Baker Hughes to provide support for field testing of new products and regional customization of existing commercial products.

By the end of 2012, the Rio Research and Technology center is expected to create 45 new jobs and the company will continue to add to its workforce by recruiting regional scientists and engineers and other professionals to the center as new projects are initiated.

Baker Hughes is already partnering with the Federal University of Rio de Janeiro and Petrobras to consult on the design, construction and operation of a full-scale laboratory drilling simulator located near the university. Baker Hughes will reproduce field-drilling conditions in a controlled environment so that the drilling process can be monitored, characterized and improved.

Baker Hughes provides reservoir consulting, drilling, formation evaluation, completions, pressure pumping and production products and services to the worldwide oil and gas industry.

Original Article

RELATED LINKS
http://www.bakerhughes.com

Baker Hughes: CS-AP Gravel Pack System (video)

Uploaded by BakerHughesInc on Oct 21, 2010

The CS-AP™ is a cake saver — acid placement gravel pack system.

Spar Transportation and Installation (video)

Uploaded by TechnipNA on Sep 8, 2009

SPAR: The robust, reliable deepwater solution

Drillship animation in the Gulf of Mexico (video)

Uploaded by Infinity3Dmedia on Feb 16, 2010

Drillship animation in the Gulf of Mexicohttp://www.infinity-3d.com – high-end digital media services.

IER Identifies Coal Fired Power Plants Likely to Close as Result of EPA Regulations

“So if somebody wants to build a coal-fired plant they can. It’s just that it will bankrupt them…”

– Barack Obama speaking to San Francisco Chronicle, January 2008

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Will EPA‘s regulations shut down power plants in your state?

The United States has the world’s largest coal resources. In fact we have 50 percent more coal than Russia, the country with the next largest reserves. But coal use in the United States is under assault.

Before becoming President, Barak Obama promised to bankrupt coal companies. As President, he has tried various strategies to force Americans to use less coal. After failing to pass a national energy tax (cap-and-trade), the President vowed to continue his attack on coal stating, there is “more than one way to skin a cat.”

Currently, EPA is leading the Obama administration’s assault on coal with a number of new regulations. Two of the most important are the “transport rule” and the “toxics rule” (Utility MACT). Combined, these regulations will systematically reduce access to affordable and reliable energy. According to our report:

EPA modeling and power-plant operator announcements show that EPA regulations will close at least 28 gigawatts (GW) of American generating capacity, the equivalent of closing every power plant in the state of North Carolina or Indiana. Also, 28 GW is 8.9 percent of our total coal generating capacity.

  • Current Retirements Almost Twice As High As EPA Predicted

EPA’s power plant-level modeling projected that Agency regulations would close 14.5 GW of generating capacity.  That number rises to 28 GW when including additional announced retirements related to EPA rules, almost twice the amount EPA projected.  Moreover, this number will grow as plant operators continue to release their EPA compliance plans.

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How to produce energy and jobs without all the waste

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Simply issue drilling permits, and Gulf oil rigs will do the rest.

By Jim Noe
The Washington Times

As news continues to break about the bankruptcy of the government-backed solar- panel manufacturer Solyndra LLC, much commentary has focused on who said what inside the ad- ministration prior to the company’s collapse. But the implosion of a company once touted as a symbol of the booming job creation that would accompany America’s energy future brings larger lessons about our country’s energy and economic needs.

Our country’s energy future hinges in large part on how we manage the gradual transition to a blended energy supply portfolio based in part on next-generation, sustainable energy sources such as solar, geothermal, wind and others that have yet to emerge. The question we need to ask ourselves as we undertake this long-term process is: What do Americans need now, and where can we find it?

Unfortunately, the administration seems inclined to duck that question, favoring poster-ready solutions like Solyndra over more pragmatic discussions about how best to use our country’s existing resources. Its reluctance is a shame, as it comes at the cost of unrealized energy production and forsaken American jobs – particularly in the Gulf of Mexico region.

How have administration energy policies – so friendly to unproven prospects like the solar-powered Solyndra – treated the proven assets we have in the Gulf of Mexico? Not quite as sunnily, to say the least. A host of new permitting requirements have been developed in the past 1 1/2 years for exploration and development of offshore resources in the Gulf. While meant to promote the safest and most environmentally friendly operations possible – goals heartily shared by industry, whose long-term viability depends on sustainable production – the process by which companies secure permits for exploration and production has become unpredictable and opaque.

While there is robust demand for drilling in the Gulf, the pace of issuing permits for new wells (5.2 per month) has slowed to a trickle not seen since energy demand nearly evaporated during the recessionary days of 2009. What this means in real-world terms is that it can take an operator three months to secure a permit for a new well – a time frame that is insufficient to satisfy demand. On top of that, the backlog of permits awaiting decisions within the Department of the Interior just reached its highest level since the Gulf spill 1 1/2 years ago.

According to the administration’s own Energy Information Administration (EIA), U.S. energy output is slated to decrease by 250,000 barrels per day per year under domestic energy production policies. EIA forecasts show Gulf production declining 14 percent both this year and next, a drop of approximately one-third of 2010 amounts by the end of 2012.

By the same token, our current energy policies have allowed a historic loss of drilling rigs to occur, jeopardizing our ability to produce our natural resources. Since 2001, 78 jack-up drilling rigs have left the Gulf, leaving 42 currently available. Thirteen rigs have left the Gulf since April 2010 alone. The departure of these high-technology, capital-intensive rigs means our country’s capacity to ramp up production likely has been curtailed for years to come.

The job losses associated with the administration’s reluctance to support offshore production are also severe. According to a study by IHS Global Insight, run by renowned energy analyst Daniel Yergin, “In 2012, the [Gulf oil and gas] industry could create 230,000 American jobs, generate more than $44 billion of U.S. [gross domestic product], contribute $12 billion in tax and royalty revenues, produce 150 million barrels of domestic oil, and reduce by $15 billion the amount the U.S. sends to foreign governments for imported oil.” The study also cites benefits outside of the Gulf, with one-third of new jobs generated in California, Florida, Illinois, Georgia and Pennsylvania.

There is one final lesson to be noted here. While the Solyndra collapse likely will end up costing the American taxpayers who helped fund the company’s expansion, production of our natural resources in the Gulf adds money to the U.S. Treasury – something you don’t see a lot these days. In 2008, the offshore industry paid $8.3 billion in royalties and $9.4 billion in bids on new leases. In 2010, the numbers fell sharply because of the spill and the drilling moratorium, with payments falling to $4 billion in royalties and just $979 million in lease bids. The outlook for 2011 revenues under the current pace of permitting is more on track with 2010 than 2008.

The future of U.S. energy supplies will no doubt hinge on developing resources that are only now emerging onto the scene. Today’s needs call for more tangible action. To boost jobs, energy supplies and U.S. Treasury revenue, the administration should prioritize improvement in the Gulf permitting regime rather than let energy policy be guided by politics.

Jim Noe is senior vice president, general counsel and chief compliance officer of Hercules Offshore Inc., the largest shallow-water drilling company in the Gulf of Mexico. He also is executive director of the Shallow Water Energy Security Coalition.

Original Article

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