Across the board, from petroleum to power, renewables to distribution, the energy industry is focused and committed to safety. This week's headlines are proof of that.
While scary, the explosion at Enterprise Products Partners' Mont Belvieu petrochemical facility is extinguished and under control. Tragically one person did lose his life, but no other injuries or fatalities were reported from the massive blaze. In two days, much of the complex is back up and running, and the company and various regulatory groups are earnestly investigating the cause of the accident.
Offshore the UK, a severe winter storm knocked the Gryphon FPSO from its moorings. Four of ten anchors were broken, and the vessel was moved off position due to a severe storm. The crew aboard the facility quickly shut production down and repositioned the boat -- within 10 minutes. Non-essential
Statoil reported a well incident at the Deepsea Atlantic in the Norwegian North Sea. A gas bubble caused alarm, and the BOP and other safety mechanisms in place kept anything else from happening. While the incident is being investigated, the problem could have snowballed into a larger one had safety aboard the rig not been exemplary.
Canada's Transportation Safety Board released a report this week concerning the 2009 fatal helicopter crash offshore Newfoundland, pushing for increased safety regulations for helicopters working offshore.
Another type of danger, McAfee reported that a number of oil and gas firms were targeted with a cyber threat. The Night Dragon cyberattacks originated in China and targeted insider information and bidding data.
For more news on Health, Safety, Security and Environment, visit PennEnergy.com.
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Phaedra
Friend Troy is the content director for PennEnergy.com, an all-energy website that
provides oil and gas, power and infrastructure news, analysis, reports and more.
Sign up for a free
daily enewsletter today.
Thursday, February 10, 2011
Thursday, February 3, 2011
Egyptian tensions push oil prices higher -- but is is the climb sustainable?
The price of oil is on the rise due to mounting tensions in Egypt.
The price of Brent crude in London reached above $103 a barrel, while oil on the NYMEX climbed closer to $93 a barrel -- with the $100 mark not far away.
Tens of thousands of people have taken to the streets across Egypt to protest the 30-year rule of President Mubarak, calling for him to step down and an immediate democratic election.
Although Egypt is not a major producer of oil in comparison to some of the others, its geographical proximity to the Middle East and Israel have energy traders concerned.
In a conversation with Phil Flynn, an executive at PFG Best and leading oil analyst and energy trader, he revealed that the concern is that the unrest may spread across to neighboring countries, risking supply from other operations.
Nonetheless, most analysts agree that the current price of oil is not sustainable based on the current supply and demand fundamentals. Over the last few months, the price of oil has been climbing on an increased global demand and the belief that the economy is on the mend. Because the recent spike is based solely on the Egyptian concerns, the price is likely to descend when peace is once again established.
In addition to sparking a rise in oil prices, the situation in Egypt has caused other notable petroleum news, including:
While the world looks on, Egyptian protesters practice their voices in the first efforts at free speech many have ever had.
....................................................
Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
The price of Brent crude in London reached above $103 a barrel, while oil on the NYMEX climbed closer to $93 a barrel -- with the $100 mark not far away.
Tens of thousands of people have taken to the streets across Egypt to protest the 30-year rule of President Mubarak, calling for him to step down and an immediate democratic election.
Although Egypt is not a major producer of oil in comparison to some of the others, its geographical proximity to the Middle East and Israel have energy traders concerned.
In a conversation with Phil Flynn, an executive at PFG Best and leading oil analyst and energy trader, he revealed that the concern is that the unrest may spread across to neighboring countries, risking supply from other operations.
Nonetheless, most analysts agree that the current price of oil is not sustainable based on the current supply and demand fundamentals. Over the last few months, the price of oil has been climbing on an increased global demand and the belief that the economy is on the mend. Because the recent spike is based solely on the Egyptian concerns, the price is likely to descend when peace is once again established.
In addition to sparking a rise in oil prices, the situation in Egypt has caused other notable petroleum news, including:
- International operators and producers have moved quickly to evacuate any foreign employees working in Egypt, as well as their families, to ensure their safety should protests ignite into a more violent situation.
- RWE Dea has declared a force majeure on the jackup it contracted from Atwood Oceanics for drilling in the Mediterranean Sea offshore Egypt.
- The Egyptian military has been deployed to protect the Suez-Mediterranean (SuMed) oil pipeline that spans the Suez Canal from any possible attack.
While the world looks on, Egyptian protesters practice their voices in the first efforts at free speech many have ever had.
....................................................
Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
Thursday, January 27, 2011
Will shale gas commercially support LNG export from the US?
With massively increased natural gas production due to improved drilling and development technologies, namely horizontal drilling and hydraulic fracturing, shale gas development in the US needs to find new demand to improve prices.
T. Boone Pickens and others stress that the transportation sector should take better advantage of the "clean" fuel alternative, and many have supported natural gas as a fleet truck solution.
Also, natural gas-fired power plants produce a fraction of the greenhouse gases that coal-fired power plants do, which has helped to increase the number of gas power construction projects in the US.
Because natural gas is, well, a gas, it has typically been relegated to domestic markets. In other words, natural gas is transported and sold where pipelines can carry it. But LNG offers a solution, a wider market for natural gas. And increasing demand in Europe, India and China could snap up production in the US and possibly help to raise prices on the Henry Hub.
But is shale gas export via LNG commercially viable?
Cheniere Energy thinks so. The company skirted the headlines again this week -- twice -- with new sales agreements for its Sabine Pass LNG facility proposed for the Gulf Coast of Louisiana. In addition to previous agreements with Chinese and Spanish firms, this week's two MOUs involved Sumitomo (Japanese) and EDF (France).
While Bechtel has been tapped to provide the engineering to support the transformation, final governmental approval for the Sabine Pass LNG terminal has not been given to switch the facility from import to export.
Additionally, there are a few other facilities that have proposed the idea, as well, which certainly gets natural gas producers, who have been battling depressed prices for some time now, very excited.
The second-largest producer of natural gas in the US, Chesapeake Energy has divulged that the company is interested in exporting LNG. While the company isn't planning to invest in an LNG export facility, Chesapeake will support LNG export efforts by signing long-term supply agreements.
In fact, Chesapeake has signed a MOU with Cheniere concerning its Sabine Pass LNG facility, promising up to 500,000 mcf/d of gas to the facility.
“Every operator on the Gulf Coast has a liquefaction plan,” said Mike Stice, senior vice president for natural gas projects at Chesapeake Energy. “In the near term, if you get the right political wave, you can do it really quickly.”
Nonetheless, I've heard contradictory reports from analysts concerning the economic viability of exporting shale gas production via LNG to international markets.
What are your thoughts?
.......................................................
Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
T. Boone Pickens and others stress that the transportation sector should take better advantage of the "clean" fuel alternative, and many have supported natural gas as a fleet truck solution.
Also, natural gas-fired power plants produce a fraction of the greenhouse gases that coal-fired power plants do, which has helped to increase the number of gas power construction projects in the US.
Because natural gas is, well, a gas, it has typically been relegated to domestic markets. In other words, natural gas is transported and sold where pipelines can carry it. But LNG offers a solution, a wider market for natural gas. And increasing demand in Europe, India and China could snap up production in the US and possibly help to raise prices on the Henry Hub.
But is shale gas export via LNG commercially viable?
Cheniere Energy thinks so. The company skirted the headlines again this week -- twice -- with new sales agreements for its Sabine Pass LNG facility proposed for the Gulf Coast of Louisiana. In addition to previous agreements with Chinese and Spanish firms, this week's two MOUs involved Sumitomo (Japanese) and EDF (France).
While Bechtel has been tapped to provide the engineering to support the transformation, final governmental approval for the Sabine Pass LNG terminal has not been given to switch the facility from import to export.
Additionally, there are a few other facilities that have proposed the idea, as well, which certainly gets natural gas producers, who have been battling depressed prices for some time now, very excited.
The second-largest producer of natural gas in the US, Chesapeake Energy has divulged that the company is interested in exporting LNG. While the company isn't planning to invest in an LNG export facility, Chesapeake will support LNG export efforts by signing long-term supply agreements.
In fact, Chesapeake has signed a MOU with Cheniere concerning its Sabine Pass LNG facility, promising up to 500,000 mcf/d of gas to the facility.
“Every operator on the Gulf Coast has a liquefaction plan,” said Mike Stice, senior vice president for natural gas projects at Chesapeake Energy. “In the near term, if you get the right political wave, you can do it really quickly.”
Nonetheless, I've heard contradictory reports from analysts concerning the economic viability of exporting shale gas production via LNG to international markets.
What are your thoughts?
.......................................................
Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
Thursday, January 20, 2011
Offshore rig construction market heats up
In addition to the ever-climbing price of oil, I can tell that the industry believes that offshore oil and gas exploration and development are coming back: The offshore rig construction market is heating up.
Offshore drilling contractors are lining up rigs for construction in shipyards worldwide. And it's not only the ultra-deepwater rigs that are getting added to the fleet -- high-specification jackups are being built with just as much gusto.
Despite the drilling moratorium and permitting delays in the US Gulf of Mexico, the offshore drilling market is red hot. In addition to a growing demand for hydrocarbons resulting in a increased need for offshore drilling, Petrobras has contracted the majority of the ultra-deepwater fleet for the foreseeable future for drilling campaigns offshore Brazil, which leaves a void for other producers. (Plus, Petrobras is moving forward with a tender for the construction of up to 28 deepwater drilling rigs to be built in Brazil.)
Enter a growing newbuild offshore rig fleet.
In the last two days, five new rigs have been added to the newbuild list.
Aker Drilling has contracted a firm two ultra-deepwater drillships from Daewoo Shipbuilding in South Korea for $600 million a pop, in addition to having a stipulation for another two optional rigs built into the contract.
Additionally, Noble Corp. contracted Hyundai Heavy Industries for two ultra-deepwater drillships for a combined price of $1.2 billion, also with an additional two rig option.
Atwood Oceanics optioned for another high-spec jackup from PPL Shipyard for $190 million; this is in addition to the original two the company ordered in October 2010. Another two jackup options remain on the table.
Just in the last few months, other newbuild construction contracts include Standard Drilling's order of a $180 million jackup from Keppel Fels and Mermaid Maritime's order of two jackup drilling rigs with an option for another two for $360 million from KFels.
Also, Noble Corp. ordered two high-spec jackups from Sembcorp for $440 million.
Earlier this month, Diamond Offshore ordered two ultra-deepwater drillships from HHI for $590 million a piece, with an option for another.
In October 2010, Seadrill ordered two turnkey jackup drilling rigs from Jurong Shipyard, with an option for another four. In November 2011, Seadrill ordered two firm ultra-deepwater drillships from Samsung for $600 million each, with another two-rig option it can exercise.
Not counting Petrobras, that's 18 new rigs in three months to join the line, with potentially another 14 rigs in options.
Additionally, Transocean is paying $195 million for an under-construction jackup with PPL Shipyard; and Seadrill bought two under-construction ultra-deepwater semisubs for $1.2 billion from Jurong Shipyard, as well as the under-construction CJ-70 harsh-environment jackup for $257 million.
Drilling contractors have cited strong backlogs and considered ultra-deepwater drilling waiting lists as reasons why they're adding to their fleets.
Whatever the reason, the strong newbuild offshore rig construction market certainly points to a rejuvenated drilling and development environment in the future.
...................................................
Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
Offshore drilling contractors are lining up rigs for construction in shipyards worldwide. And it's not only the ultra-deepwater rigs that are getting added to the fleet -- high-specification jackups are being built with just as much gusto.
Despite the drilling moratorium and permitting delays in the US Gulf of Mexico, the offshore drilling market is red hot. In addition to a growing demand for hydrocarbons resulting in a increased need for offshore drilling, Petrobras has contracted the majority of the ultra-deepwater fleet for the foreseeable future for drilling campaigns offshore Brazil, which leaves a void for other producers. (Plus, Petrobras is moving forward with a tender for the construction of up to 28 deepwater drilling rigs to be built in Brazil.)
Enter a growing newbuild offshore rig fleet.
In the last two days, five new rigs have been added to the newbuild list.
Aker Drilling has contracted a firm two ultra-deepwater drillships from Daewoo Shipbuilding in South Korea for $600 million a pop, in addition to having a stipulation for another two optional rigs built into the contract.
Additionally, Noble Corp. contracted Hyundai Heavy Industries for two ultra-deepwater drillships for a combined price of $1.2 billion, also with an additional two rig option.
Atwood Oceanics optioned for another high-spec jackup from PPL Shipyard for $190 million; this is in addition to the original two the company ordered in October 2010. Another two jackup options remain on the table.
Just in the last few months, other newbuild construction contracts include Standard Drilling's order of a $180 million jackup from Keppel Fels and Mermaid Maritime's order of two jackup drilling rigs with an option for another two for $360 million from KFels.
Also, Noble Corp. ordered two high-spec jackups from Sembcorp for $440 million.
Earlier this month, Diamond Offshore ordered two ultra-deepwater drillships from HHI for $590 million a piece, with an option for another.
In October 2010, Seadrill ordered two turnkey jackup drilling rigs from Jurong Shipyard, with an option for another four. In November 2011, Seadrill ordered two firm ultra-deepwater drillships from Samsung for $600 million each, with another two-rig option it can exercise.
Not counting Petrobras, that's 18 new rigs in three months to join the line, with potentially another 14 rigs in options.
Additionally, Transocean is paying $195 million for an under-construction jackup with PPL Shipyard; and Seadrill bought two under-construction ultra-deepwater semisubs for $1.2 billion from Jurong Shipyard, as well as the under-construction CJ-70 harsh-environment jackup for $257 million.
Drilling contractors have cited strong backlogs and considered ultra-deepwater drilling waiting lists as reasons why they're adding to their fleets.
Whatever the reason, the strong newbuild offshore rig construction market certainly points to a rejuvenated drilling and development environment in the future.
...................................................
Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
Thursday, January 13, 2011
Gladstone LNG project promises rejuvenation for flood-ravaged Queensland
Australian major Santos sanctioned the $16 billion Gladstone LNG project Thursday, along with project partners Total, Petronas and Kogas.
The GLNG project will develop coal seam gas resources in the southeast of Queensland and transport them 420 kilometers via pipeline to the Gladstone LNG facility on Curtis Island. With two trains, the GLNG project will produce some 7.8 mtpa, and production start-up is slated for 2015.
Notably, the GLNG development will create some 5,000 jobs in Queensland during the construction phase and a permanent 1,000 jobs once the LNG facility comes on stream. The project will create an estimated 1,500 jobs in Queensland in 2011 alone.
This comes as welcome news to the flood-ravaged region, and the government has applauded the GLNG investment in Queensland.
“Proceeding now with projects like this will be a tremendous boost to the Queensland economy as we recover from the devastating impact of the floods,” said Queensland Premier Anna Bligh on the news of the final investment decision in GLNG.
And the Federal Minister for Resources and Energy Martin Ferguson added, "“This project and economic development more generally is important in underpinning the skills, tax revenue, weather and capacity to respond and rebuild in the aftermath of the current flood crisis in Queensland."
For an extensive listing of jobs across the petroleum and power sectors, visit PennEnergyJobs.com.
........................................
Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
The GLNG project will develop coal seam gas resources in the southeast of Queensland and transport them 420 kilometers via pipeline to the Gladstone LNG facility on Curtis Island. With two trains, the GLNG project will produce some 7.8 mtpa, and production start-up is slated for 2015.
Notably, the GLNG development will create some 5,000 jobs in Queensland during the construction phase and a permanent 1,000 jobs once the LNG facility comes on stream. The project will create an estimated 1,500 jobs in Queensland in 2011 alone.
This comes as welcome news to the flood-ravaged region, and the government has applauded the GLNG investment in Queensland.
“Proceeding now with projects like this will be a tremendous boost to the Queensland economy as we recover from the devastating impact of the floods,” said Queensland Premier Anna Bligh on the news of the final investment decision in GLNG.
And the Federal Minister for Resources and Energy Martin Ferguson added, "“This project and economic development more generally is important in underpinning the skills, tax revenue, weather and capacity to respond and rebuild in the aftermath of the current flood crisis in Queensland."
For an extensive listing of jobs across the petroleum and power sectors, visit PennEnergyJobs.com.
........................................
Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
Thursday, January 6, 2011
2010 energy trends offer insight into 2011
There were a number of major energy stories in 2010. From the oil spill in the Gulf of Mexico to the continuing emergence of shale in North America and beyond, from the escalating price of oil to increased spending in the renewable energy sector -- the energy industry is certainly heating up.
2010 Energy News of the Year
1. While the oil spill was tragic news and the subsequent drilling moratorium has resulted in thousands of lost jobs, an ever-increased focus on health, safety and environment (HSE) is definitely a good thing. While HSE has always been a priority for the industry, companies have been striving to renew that commitment.
2. Across the US and abroad, shale solidified its place in the "hot topic" category. From the Marcellus to the Eagle Ford, increased drilling rig numbers, billions in JVs and A&Ds spotted the headlines throughout 2010, and are likely to continue to do so in 2011.
3. The rising price of oil is on everyone's mind in the energy industry. After increasing some 15 percent in 2010, the price of oil is positioned to hit $100 in 2011 and possibly climb higher.
4. The US administration's renewable energy loan guarantee program has helped to spur a wave of new projects across the nation in both renewable energy and grid updates.
Other stories that topped the charts:
Drilling in frontier regions caught the eye of many readers -- whether the Falklands or Greenland. Also, a top story for the power side was the potential for mini nuclear plants. Smart grid always nets readers, as well as regulatory news.
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Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
2010 Energy News of the Year
1. While the oil spill was tragic news and the subsequent drilling moratorium has resulted in thousands of lost jobs, an ever-increased focus on health, safety and environment (HSE) is definitely a good thing. While HSE has always been a priority for the industry, companies have been striving to renew that commitment.
2. Across the US and abroad, shale solidified its place in the "hot topic" category. From the Marcellus to the Eagle Ford, increased drilling rig numbers, billions in JVs and A&Ds spotted the headlines throughout 2010, and are likely to continue to do so in 2011.
3. The rising price of oil is on everyone's mind in the energy industry. After increasing some 15 percent in 2010, the price of oil is positioned to hit $100 in 2011 and possibly climb higher.
4. The US administration's renewable energy loan guarantee program has helped to spur a wave of new projects across the nation in both renewable energy and grid updates.
Other stories that topped the charts:
Drilling in frontier regions caught the eye of many readers -- whether the Falklands or Greenland. Also, a top story for the power side was the potential for mini nuclear plants. Smart grid always nets readers, as well as regulatory news.
........................................
Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
Thursday, December 2, 2010
Emerging Tech: Carbon Capture Storage takes center stage
I sat in on a webinar held by The Energy Collective this week. A climate change specialist with Shell spoke, as well as an energy analyst. Among other things, they stressed the importance of the energy community as a whole to develop a successful Carbon Capture Storage (CCS) program -- for power generation, as well as downstream initiatives.
CCS helps to reduce emissions of CO2 and greenhouse gases by trapping them and injecting them into the earth. An improved and functioning CCS technology will allow the US and other countries to meet their greenhouse gas emission targets -- while still producing enough energy to meet a growing demand.
US Energy Secretary Steven Chu this week described the success of clean energy in China and other countries a "Sputnik Moment" for the US.
"When it comes to innovation, Americans don't take a back seat to anyone - and we certainly won't start now," said Secretary Chu. "From wind power to nuclear reactors to high speed rail, China and other countries are moving aggressively to capture the lead. Given that challenge, and given the enormous economic opportunities in clean energy, it's time for America to do what we do best: innovate. As President Obama has said, we should not, cannot, and will not play for second place."
CCS Programs in North America
There are a number of CCS programs currently under way, and the industry's best and brightest are certainly on the case. Its truly becoming an energy industry-wide effort.
The US Department of Energy has committed $1 billion to support the FutureGen 2.0 CCS project, using the oxy-coal combustion technology developed by Babcok and Wilcox and Air Liquide. The project will test the CCS technology at a power plant in Illinois.
While many think of coal-fired power and its efforts to become clean coal through developing CCS, the petroleum industry is also involved.
Shell just filed for regulatory approval for its Quest Carbon Capture and Storage project in Alberta, Canada, to serve its Athabasca Oil Sands Project there. Quest will be the first application of CCS in the oil sands, and the technology will likely serve as a catalyst for future applications in the petroleum realm.
In the future, CCS will likely help to reduce emissions from all downstream efforts, including refineries, in addition to natural gas-fired power plants and clean coal power generation installations.
.....................................
Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
CCS helps to reduce emissions of CO2 and greenhouse gases by trapping them and injecting them into the earth. An improved and functioning CCS technology will allow the US and other countries to meet their greenhouse gas emission targets -- while still producing enough energy to meet a growing demand.
US Energy Secretary Steven Chu this week described the success of clean energy in China and other countries a "Sputnik Moment" for the US.
"When it comes to innovation, Americans don't take a back seat to anyone - and we certainly won't start now," said Secretary Chu. "From wind power to nuclear reactors to high speed rail, China and other countries are moving aggressively to capture the lead. Given that challenge, and given the enormous economic opportunities in clean energy, it's time for America to do what we do best: innovate. As President Obama has said, we should not, cannot, and will not play for second place."
CCS Programs in North America
There are a number of CCS programs currently under way, and the industry's best and brightest are certainly on the case. Its truly becoming an energy industry-wide effort.
The US Department of Energy has committed $1 billion to support the FutureGen 2.0 CCS project, using the oxy-coal combustion technology developed by Babcok and Wilcox and Air Liquide. The project will test the CCS technology at a power plant in Illinois.
While many think of coal-fired power and its efforts to become clean coal through developing CCS, the petroleum industry is also involved.
Shell just filed for regulatory approval for its Quest Carbon Capture and Storage project in Alberta, Canada, to serve its Athabasca Oil Sands Project there. Quest will be the first application of CCS in the oil sands, and the technology will likely serve as a catalyst for future applications in the petroleum realm.
In the future, CCS will likely help to reduce emissions from all downstream efforts, including refineries, in addition to natural gas-fired power plants and clean coal power generation installations.
.....................................
Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
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