Shell drilling rig goes aground off Alaska
The Kulluk oil rig, owned by Royal Dutch Shell, that ran aground off Alaska on the night of December 31, was still being battered by winds and high seas days later. The rig, operated by Noble Drilling, was being towed south for repairs at a shipyard in Washington State in advance of the 2013 drilling season, when crews ran into trouble during a storm on December 27. Towing equipment broke, engines on the primary tug failed, and a series of relief vessels, including a US Coast Guard cutter, were unable to maintain control of the drifting rig. The Kulluk was carrying about 143,000 gallons of diesel fuel and 12,000 gallons of other hazardous fluids onboard, but no oil has been spotted in the water and there was currently no evidence of damage to the rig’s hull. In the latest development a team of six experts from Smit Salvage was airlifted onto the rig by a Coast Guard helicopter, and an emergency towing system has also been placed on board.
www.hazardexonthenet.net. 2-3 Jan. 2013. http://tinyurl.com/bxwldjj
World coal and gas consumption rose 5.4% and 2.2% respectively in 2011
New research by the Worldwatch Institute (www.worldwatch.org) shows that, although oil remains the world's leading energy source, coal and natural gas continue to grow in significance. Global consumption of coal increased 5.4% in 2011, to 3.72bn tons of oil equivalent, while natural gas use grew 2.2%, to 2.91bn tons of oil equivalent. Driven mainly by rising demand in China and India, coal's share in the global primary energy mix reached 28% in 2011. Natural gas usage grew in all regions except the European Union, which experienced a 9.9% decline in consumption. Natural gas accounted for nearly 23.7% of global primary energy consumption in 2011, down from 23.8% in 2010.
www.hazardexonthenet.net. 2 Jan. 2013. http://tinyurl.com/auudgsk
EIA says US will become LNG exporter in 2016
In its Annual Energy Outlook 2013 the US Energy Information Administration forecasts large increases in domestic oil and gas production. Key findings include: crude oil production, especially from tight oil plays, will rise sharply over the next decade; motor gasoline consumption will be less than previously estimated; the United States will become a net exporter of natural gas earlier than previously estimated; renewable fuel use will grow at a much faster rate than fossil fuel use; and net imports of energy will decline.
www.hazardexonthenet.net. 21 Dec. 2012. http://tinyurl.com/avpyasa
Shell re-launches Houston technology center
Royal Dutch Shell has relaunched its Houston technology centre after extensive modernisation and expansion. The centre is the largest of Shell's three technology hubs (the company has technology centres at Rijsiwjk, the Netherlands and at Bangalore, India). With more than one million square feet of laboratory and office space, it is home to more than 2,000 of Shell's scientists and engineers - including six Chief Scientists. The centre is also the global base for a number of specific technology areas across upstream and downstream.
www.rigzone.com 9 Jan. 2013. http://tinyurl.com/bg4pjfp
Indonesia aims to create 3,000 new jobs through higher O&G spending
Indonesia's SKMigas has announced that, in line with its increased oil and gas expenditure this year, it expects some 3,000 new jobs to be created. This follows from the unit's approval of 274 contractors' work plans and budgets last year, which it recently handed over to its headquarters. Of the 274 contractors, 74 are in the production phase such as Total E&P Indonesia in the South Mahakam block in East Kalimantan and ConocoPhillips in the Sumpal field in South Sumatra. These 74 contractors are slated to invest around $23.5bn this year, with the investment budget broken down as follows: $14.7bn to production activities, $5bn to development projects, $2.3bn to exploration plans and $1.5bn to general administration. The consolidated work plan includes the drilling of 1,200 developing wells, 1,100 work-over wells and 100 exploration wells.
9 Jan. 2013. http://tinyurl.com/ahh7yn8
Statoil to build giant pipeline from Arctic to Nyhamna
Statoil has unveiled plans to build a natural gas pipeline with a capacity of up to 70M cubic metres (Mm3)/day connecting flows from the Arctic to the east coast of Norway by the end of 2016. The 480km Polarled pipeline will take natural gas volumes of up to 47bn cubic metres (Gm3) from Statoil's Aasta Hansteen field to natural gas processing plant Nyhamna. The project aims to allow a tie-in with the Linnorm field via Draugen, Zidane via Heidrun, as well as constructing branch pipelines south of Aasta Hansteen. Statoil has submitted the plan for development and operation of Aasta Hansteen, which will be the first deep-water development in the Norwegian Sea, and the Polarled pipeline to the Ministry of Petroleum and Energy.
www.downstreamtoday.com 10 Jan. 2013. http://tinyurl.com/bxtxap8
TransCanada to run $5.1 billion pipeline project
TransCanada Corporation has announced that it has been chosen by Progress Energy Canada to build, own and operate a 5bn Canadian dollar pipeline project that would transport natural gas to a new liquefied-natural-gas export terminal planned off Canada's west coast. The Pacific Northwest LNG export terminal in British Columbia was proposed as part of the multi-billion takeover of Progress Energy Resources Corporation by Malaysian state-run company Petroliam Nasional Bhd. TransCanada said it expects to finalise definitive agreements for the Prince Rupert Gas Transmission project early this year. The proposed pipeline will transport natural gas primarily from the North Montney gas-producing region near Fort St. John, British Columbia to the LNG export facility, which is aimed at exporting natural gas to Asian markets.
http://tinyurl.com/bxtxap8
Hess budgets $2.7 billion for unconventional E&P in 2013
Hess Corporation has announced a 2013 exploration and production budget of $6.7bn, of which 40% will be dedicated to unconventional oil and gas plays. Greg Hill, president of Hess Worldwide E&P, said the company plans to spend $2.2bn in the Bakken formation this year compared with $3.1bn last year. In the Bakken, which straddles the US-Canadian border, Hess operates 14 rigs in North Dakota and plans to complete expansion of its Tioga gas plant this year.
Oil&Gas Journal online, 11 Jan 2013. http://tinyurl.com/ahqcpj6
Abundance of activity in oil and gas market
The oil and gas sector is expected to be 'very bullish' in 2013 and 2014. A predicted $740bn will be spent by the Middle Eastern and North African exporters on energy projects during the next 5 years. Some major projects are briefly discussed. A table lists the top international contractors and design firms in the sector, giving $M revenue for each.
ENR - Engineering News-Record, vol.269, no.17. 10 Dec.2012. pp.62-63.
