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Ocean Installer wins subsea installation job in GoM
Ocean Installer has been awarded a subsea installation job in the Gulf of Mexico with one of the world’s leading international oil and gas companies on its largest deepwater producing field which sits in over 1800m water depth.
This is Ocean Installer’s first SURF contract in the GoM and marks a milestone for the company in the region.
The project, which involves the installation and testing of umbilicals and associated equipment, will be managed from the Ocean Installer Houston office with onshore preparations starting immediately. Offshore work will take place this summer and Ocean Installer will be utilising the Subsea Construction Vessel (CSV) the Normand Clipper, which is on a long-term charter from Solstad Offshore.
“This is our first SURF job in the GoM and we are very pleased to have secured this work only a year after we established our Houston office and less than four months after introducing our first vessel in the region. We are now looking forward to working closely with our client to execute the project in a safe, high quality and efficient manner,” says Mike Newbury, President of Ocean Installer in the US.
Ocean Installer opened its Houston office in April 2013 and the Normand Clipper arrived in Houston in January. The vessel has been well-received in the market and has since its arrival experienced good utilisation executing several jobs in the regional spot market.
Press Release, May 02, 2014
The Making of FPSO TGT 1
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Finke: Profit is not a dirty word
By Ron Finke
Independence, MO —Why do we allow companies to have any profit at all? If a company makes a profit, doesn’t that mean that it charged more than it should have for its products?
This fiscal year ending Sept. 30, our federal government will pay out $2.2 trillion just for safety net and interest expenses, 97 percent of its total intake. The government needs money so shouldn’t we just raise taxes on companies that have excess profits?
Speaking of excess profits, everyone knows that gasoline prices are too high. Exxon Mobil had revenue of $424 billion in the past year and almost $38 billion was left over after interest, taxes and depreciation. What good is that doing society?
Exxon Mobil pays $9.1 billions of that net profit to its shareholders as a dividend, $1.88 per year per share, amounting to 24 percent. Almost half of its shareholders are institutions like pension plans, universities and other foundations. That might be doing some good.
In 2009 , the oil company paid $7.7 billion in U.S. taxes but no federal income tax. Why? It paid more than $15 billion of income tax to other countries where it gets its oil. Worldwide Exxon paid $78.6 billion in total taxes before we see any leftover profit. Nigeria makes out pretty well since it charges up to 85 percent of profit from its Exxon Mobil oil production.
If Exxon could pump more oil in the U.S., our government would get more income and other taxes. Since oil pumped and sold is gone, the behemoth looks for new oil everywhere. A few years ago, it and Norwegian Statoil began exploring in a new, deeper area of the Gulf of Mexico. It can only do that after paying the U.S. government for permits. The Department of the Interior now claims Exxon Mobil abandoned three of its five permits when it requested a short suspension of activity to upgrade its equipment for new safety technology and was a little slow in signing new contracts with Chevron as a new partner.
Oh, did I mention that the finding is estimated to be a billion or more barrels of oil? Or that the exploration had already cost $300 million (that came from profit leftover from previous years and sales)? Exxon is ready to start but our government has stopped Gulf drilling by regulation. The rigs have begun to be moved to Brazil and Africa.
There is a new steel plant in Youngstown, Ohio, already producing drill pipe for our domestic production. Perhaps it could make steel for something else, but I don’t know what.
Exxon Mobil will begin paying about $10 billion in royalties and taxes to the federal government if and when it can get started on the Julia field. In the meantime, it has sued the government over its alleged snatching of the three permits. That should be successful, but lawsuits are anything but cheap. So there goes more of that leftover profit.
I wonder how smaller companies fare in fights with the government. Our U.S. government has lots of lawyers and all the time in the world. Does this type of thing have anything to do with businesses stockpiling money instead of pushing ahead, taking initiative and hiring new workers?
Obama’s Real Energy Policy
Congresswoman Michele Bachmann recently promised $2/gallon gas at one of her campaign functions, and a researcher affiliated with NASA reported that aliens may destroy humanity to save the planet. Which statement is farther off the wall? Let’s set the stage with the facts.
Last week, the Obama administration found itself in a legal battle with Exxon over the largest find in the company’s history, a field of over 1 billion barrels off the coast of Louisiana. This represents 5% of total U.S. oil reserves and there’s supposed to be a lot more out there. The Marcellus Shale field in New York, Pennsylvania, Ohio, and Maryland contains between 160 and 500 trillion cubic feet of natural gas. Out in North Dakota, Montana, and Saskatchewan, the Bakken deposit is estimated to contain from 10-40 billion barrels of oil equivalent according to industry experts. This doesn’t include large deposits in Colorado, Wyoming, and elsewhere. Even if Bakken comes in at the low end it, represents another 40-50% increase in onshore American oil reserves.
In the meantime, the oil companies drilling in the Gulf of Mexico are still reporting incredible delays in re-opening even the inshore oil rigs. Offshore fields have become almost impossible to develop despite the incredible size of some of these discoveries. The government shut down even the inshore oil fields in the Gulf after the Deepwater Horizon disaster last year. The Department of the Interior just announced the first auction of oil leases since the Deepwater Horizon tragedy in April of last year, to be held in December. The Gulf provides 29% of America’s oil and 13% of our natural gas.
A report released in July by LA Senator David Vitter noted the departure of 10 deep-water rigs, the imminent departure of several more, and the diversion of 8 more since the moratorium was declared in May 2010. Each of these projects ranged from hundreds of millions to billions of dollars in investment. Many of those rigs are on their way to the vast 50- to 80-billion-bbl Lula oil field off the Brazilian coast. It is interesting to note that the Export-Import Bank is loaning $10 billion to Petrobras, the Brazilian oil company, to invest in their offshore oil industry. Funny timing.
The administration has also done its best to stall drilling both on the North Slope and in the Cook Inlet in Alaska. While talking about exploration, new pipelines, and improved practices, the reality is that every roadblock possible is being placed in the way of increased production. Last year, Fenton Associates, the public relations agency for many environmental groups, boasted that they had shut down drilling in Alaska.
“Drill, baby, Drill” has been replaced by “Chill, baby, Chill.”
While having approved several nuclear power projects, all of them additional reactors at existing sites, the government has adroitly avoided offering the necessary licensing guarantees necessary to obtain funding to build them. Another catch-22 engineered by the bureaucracy.
Ezra Klein in the Washington Post reports that the EPA is moving forward with its plans to shutter 20% of the nation’s coal-fired power plants. While many are grandfathered in, the power will still go offline starting in the next 18 months. The president has clearly stated on the record that he wants to put the coal industry out of business.
The real battle is being fought under the radar. The administration is using regulatory power and permitting to choke off conventional power. Last year, I sat in a packed conference center at China’s largest solar power conference as I listened to one of Europe’s leading solar power executives state that the industry needed to work to make conventional power so expensive that alternative energy sources can compete. This has been a part of the plan all along and the current administration seems to be working along those lines.
This is economic and engineering Luddism at its worst. After the farce of the carbon offset scam and many of the issues facing the industry, administrators, systems operators, and users would be well-advised to look upon many alternative energy technology providers with a gimlet eye. Objectivity is critical to the long-term health of the energy industry.
Let’s look at the alternatives. Test data on solar modules indicates a failure rate of between 3-7% within seven years of installation. Failures of inverters are exceeding 10%. None of this data is reflected in the current economic models for solar power. The assumption is 25 years, but there is very limited data. The business model for solar panels is becoming ever more challenging with rising materials costs globally and that of labor in China. In North America Solyndra has gone through over $535 million in government funding and is on the edge. Evergreen Solar, another poster child for solar power in this country, filed for bankruptcy last week.
Globally, the solar module industry will install 11-12 gigawatts of power this year, or the equivalent of 4-5 nuclear power plants. This certainly does not keep up with demand. As Germany and Japan have announced the phase-out of nuclear power, the great mystery is how it will be replaced.
As GM, Nissan, Toyota, and other car companies have ramped up production of electric vehicles, General Motors reported that the company had sold only 125 Chevy Volts in July. Costco announced that the company was removing electric vehicle charging stations from most of its locations because the stations are never used.
Wind power has received a lot of press, but even there, the largest project planned for the country was canceled because of obstruction and a poor financial outlook. Wind power is subsidized at up to 10 times the cost of conventional energy and is unpredictable. In studies of the over 6,000 turbines in Denmark, it has been found that without heavy subsidies, wind power would rapidly fail. Germany and Spain have withdrawn subsidies for wind power installations not because the industry has grown more viable, but rather because the difficulties and costs associated with this source of power outweigh the benefits.
And yet nowhere have I seen a coherent and objective study of the energy needs and policy of the United States, the world’s largest consumer. As American consumption of energy stands at 27,000 terawatts, with $85-bbl oil, an economy on the verge of recession, and significant capacity going offline, it would be nice to have a policy that is not based upon smoke and mirrors, or even some kind of sensible policy at all.
Maybe Congresswoman Bachmann isn’t so crazy after all. Judge for yourself. In the meantime I’ll be watching the skies for alien invaders.