Posts on ‘May 29th, 2015’

Extracts

How do you go about removing a massive piece of infrastructure from a hostile environment like the North Sea?

Oil giant Shell has come up with one answer which could be put to the test next year – using a mega-ship to remove the topside of an oil platform in a single lift.

The oil firm hopes Pioneering Spirit – originally called Pieter Schelte – will prove a game-changer by successfully removing the main structure in one go.

Allseas also has a contract from Shell to remove the topsides of two of the other three platforms in the field – Bravo and Alpha (along with Alpha’s steel jacket) – subject to consultation and UK government approval. It has an option to do the same with the fourth platform, Charlie. read more

By Royston Wild – Friday, 29 May, 2015

“In my opinion both stocks are in danger of a severe share price collapse as the oil market outlook becomes ever gloomier.”

Shares across much of the oil sector have received a massive fillip in recent months in line with a recovery in the crude oil price. After the Brent barometer shuttled from $115 per barrel last summer to multi-year lows around $45 in January, a subsequent reduction in the US rig count has underpinned a solid price recovery — indeed, the benchmark was recently trading around the $64 mark.

With investors hoping these measures will represent a sea-change in the oil market’s supply/demand dynamics from next year, shares in oil major BP (LSE: BP) (NYSE: BP.US) have flipped 10% higher since the turn of the year. Investor sentiment in Shell (LSE: RDSB) (NYSE: RDS-B.US) has wavered more recently, however, and the stock is now trading 11% lower from the close of 2014. read more

By: MICHEAL KAUFMAN: May 29, 2015 

European oil giant Royal Dutch Shell Plc (ADR) (NYSE:RDS.A) has elected the head of its Chinese operations to lead the company’s planned merger with UK-based natural gas company, BG Group Plc (ADR) (OTCMKTS:BRGYY), as it seeks approval from regulatory authorities in several countries.

Earlier this week, the oil company told its senior executives that it has elected Huibert Vigeveno, executive chairman for Shell’s Chinese operations, to spearhead the deal with BG Group, according to a report by Sky News. Mr. Vigevena, who will hold the position of executive VP for integration, will see his appointment become effective in August. read more

From a regular contributor 

THE BEAR FACTS -EMERGENCY RESPONSE MAY TAKE TWO OR THREE MONTHS TO ARRIVE!

“The risk of a blowout or spill is always present when a well is drilled. The US government estimates the probability of such an event in Alaska at 75%. In many cases a relief well is the only way in which a blowout can be brought under control, especially if the well casing is breached. There is no “new technology” in existence that eliminates the risk of a blowout, or provides a guarantee that a blowout can be quickly brought under control if it occurs. 

The requirement for “same season” relief well capabilities is intended to avoid a situation where a blowout occurs late in the season and continues unabated until the weather improves sufficiently to undertake well control operations in the following year. The time required to mobilise a second rig, drill a relief well, and kill a blowout may be 2-3 months or more. The “same season” relief well requirement therefore effectively shortens the summer drilling season to just a few weeks. If this requirement is enforced, exploration and development of the Arctic will be almost impossible. If this requirement is not enforced and Shell has a blowout which continues through the winter, the clean-up costs may far exceed Shell’s financial resources.  read more

By Emily Schwing, KUCB – Unalaska | May 28, 2015

Two 25-foot Coast Guard response boats arrived in Dutch Harbor this week. The boats will patrol waters off the coast of Dutch Harbor as oil giant Royal Dutch Shell moves forward with plans to explore for oil in the Arctic Ocean.

“This is very unusual, especially for Alaska,” said Lieutenant Aaron Renschler. He’s the Chief of Enforcement for the U.S. Coast Guard in Anchorage.

“We do deploy our assets around other parts of the state, but specifically for Dutch Harbor, this is the first time.” read more

Federal Agency Dings Shell for Oil Rig Mishap in Arctic

ANCHORAGE, Alaska — May 28, 2015: By DAN JOLING Associated Press

As Royal Dutch Shell PLC seeks permits for exploratory oil drilling off Alaska’s northwest coast, a federal agency has concluded the company underestimated risk the last time it moved drill rigs to Arctic waters.

A National Transportation Safety Board report issued Thursday said the probable cause of the grounding of the company’s mobile drilling vessel, the Kulluk, in 2012 was “Shell’s inadequate assessment of the risk for its planned tow” across the Gulf of Alaska. read more

Oil industry rebuts proposed Arctic drilling mandates

May 28 2015, 18:58 ET | By: Carl Surran, SA News Editor

Federal Investigators Blame Shell for Alaska Drill-Ship Accident

By CASSANDRA SWEET: May 28, 2015 

Federal investigators have blamed Royal Dutch Shell Plc and its contractors for the December 2012 shipwreck of a drill ship off the coast of Alaska.

FULL ARTICLE