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Offshore Safety Factoids

MMS’s Annual SAFE Awards Luncheon is usually held in conjunction with the mammoth oil industry trade show, the Offshore Technology Conference in Houston. The SAFE Awards honor those companies with exemplary safety and environmental performance during the previous year. The evaluation is based on records from MMS’s active inspection programs.

This year’s SAFE Awards Luncheon, scheduled during next week’s OTC, has been postponed due to the ongoing Deepwater Horizon incident.

Oh, by the way, among the 2010 SAFE Award finalists: BP Exploration & Production Inc.

Just sayin’.

The President promised today to send Department of the Interior “SWAT teams” offshore “to investigate oil rigs”.

For years, the MMS has had an active inspection program for drilling rigs and production platforms. Violators may receive “warning INCs” (for Incident of Non-Compliance) for minor technical violations to civil penalties for more serious violations of the regulations.

For FY 2010, Congress directed MMS to raise $10 million from operators by, for the first time, charging a fee for inspections. Fees range from $2,000 to $6,000 per platform.Our small company had an overnight effective tax increase of $25,000.

So, this spectacle of the government suddenly acting as if all that is needed is “more inspection” is pretty much what I was expecting.

Cross-posted at VladEnBlog.

COMMENTS

  • SteveLA

    Vlad

    I’ve always appreciated your views from The ‘patch, so a question.

    What happened with the drilling rig that went down in the gulf? I thought there were auto shut-off and such devices at the well head, seabed?, to keep the sort of spill happening now from happening.

    Not a snark question, I’m genuinely interested in what may have gone wrong.

    • http://vladenblog.tumblr.com Vladimir

      Blowout preventer should have automatically shut in. ROV problems closing it “manually” reinforce suspicions.

      It sounds like several levels of mechanical failures, possibly compounded by human error. Not really fair of me to guess.

      Don’t forget it’s in 5,000 ft of water. Very challenging.

      • SteveLA

        Vlad

        When the word starts getting out, I’d very much appreciate you coming back and posting a blog about what happened. Kind of like when Art posts about Alaska and mbecker on one of the other AZ folks post about there, you get a better take on things from some who has a worms eye view of what’s going on.

    • txgho1911

      While the casing or cementing process is underway would TO / BP had pipe rams or appropriate blind rams at the sea bed BOPs?
      I cannot believe they had correct sized pipe rams for every size of intermediate casing they may have utilize in the bore.

      Weight and viscosity of the cement was likely different from the circulation fluid. A slug or casing pushing or displacing the wall materials out could have allowed circ fluid to fall into the formation around the bore. Loss of circ fluid equals loss of equalizing pressure on oil formation.

      I know this is not comprehensive and is just some of the possible factors. Making a hole for thousands of feet to miles from 5k feet under water has complications and every platform will have unique aspects of these operations.

      • http://vladenblog.tumblr.com Vladimir

        …and were in the process of testing the liner top through drill pipe. Pictures confirm that drill pipe was in the hole.

        That points to a possible liner top failure.

        Casings would have been landed in the wellhead below the BOPs. The bilnd rams should have sheared the drill pipe and secured the well.

        Video at the Coast Guard flickr site (flickr.com/uscgd8, I believe) shows the ROV’s attempts to operate the manual controls on the BOP.

        • horizon3

          The well had been completed, perforated, and tested.
          They had applied for and received a permit from MMS to temporarily abandon the well, to return later with a floating drilling / production platform, to develop the field.
          Without a statement from the crew / BP we won’t know for sure what operation they were engaged in when the initial explosion occurred. So I will put forth a hypothetical scenario.
          They had just completed a drill stem test, and were reverse circulating the oil in the drill stem to the surface, someone dropped the ball or there was an equipment malfunction, that ignited the oil & gas at the shale shakers, or the test crews DST test separator, this started the explosion. The explosion may also have been at the rig floor, which could explain why the BOPs weren’t operated immediately, as no-one there on the floor was alive or conscious to activate them. However there are several other BOP stack operator panels located around the rig and several fail-safe stations as well, and the BOPs could have been closed from any of them. This evidently didn’t happen, most likely because the initial fire and explosion damaged the the stack control umbilical. and the Riser motion compensator system, if the compensator cables burned through the riser would have dropped and rendered any other attempt at controlling the well impossible. This is evident in that the ROV operations have not been able to close the shear rams and stop the flow. From the films I have seen of the rig in the media I could see no riser under the rig while it was still on the surface and on fire, but this could just be bad camera angles. However the USCG and BPs ROVs have done films of the subsea stack and dropped riser. https://www.piersystem.com/go/site/2931/ as evinced in the pics and video, the riser is shown still attached to the stack and bent over with the drill string still inside.
          With the drill pipe at such an angle and kinked in the stack the annular BOP and the rams cannot function to seal the well, and even if the shear rams functioned and cut the drill pipe, they don’t have seals, to seal the wellbore after shears are used the drill stem must be lifted at least above the blind rams so they can be closed. But without a means to move the pipe, the rams are useless.
          About the only way to remedy this is to drill a relief well and kill and cement the well off above the production zone. Then move another rig over the well to cut and lift off the junk to regain access to the wellhead, and permanently plug and abandon the well. The Rig will most likely never be recovered, as recovering a vessel of that size from 5000ft has never been attempted, and the cost would be prohibitive at best. Most likely they will try and pump the diesel and engine oil from its tanks, and set demolitions to remove any elevated structures from the wreck.

          This is a very sad episode for the industry and for the missing crews families, my heart goes out to them.

          • http://vladenblog.tumblr.com Vladimir

            In fact, I heard today that Halliburton had cemented the liner 20 hours before.

            And we’ve heard from a fairly reliable source that they were testing the liner top, which would make sense.

            I agree, a very sad episode.

          • horizon3

            The well had been perforated and drill stem tested.
            The operation they were engaged in was was circulating the drilling riser to seawater in preparation to cap the well, before mentioned for temp. abandonment, a retrievable bridge plug had been set in the 7″ liner above the perforated zone. It is being estimated that either the bridge plug failed, or the liner hanger seals failed. when the well lost the hydrostatic head of 5,000ft of drilling mud from the riser. Since they were pumping the liner to seawater, the flow from the riser was being diverted to a barge, where the mud would be taken to shore and disposed of or cleaned and recycled. Under normal circumstances where the drilling mud is circulated back to the mud pits, the flow alarm system would have told the driller that the flow out of the pumps was less that the flow returning which would have alerted him to an impending well kick, but since flow was going to a separate vessel, this alarm was cut out of the loop. This resulted in the oil & gas getting to the surface and ensuing explosion and fire.
            I am going make some assumptions here as to what transpired after that, in that the explosion and fire damaged the BOP control umbilical, and surface control of the stack was lost. This leaves the BOPs in autonomous mode where they are supposed to close in automatically. but an added hazard may have been induced by a collapsed riser, if the riser unloaded to oil inside, the differential pressure at the BOP stack would be over 600psi this exceeds a 22″ risers collapse rating, which is only around 350psi for new riser. This in turn would have pinched the drill pipe so it could no longer move, and its possible that a tool joint is in the shear rams, which would render them useless as they lack the power even under ideal situations to cut a tool joint. and since they were circulating the riser to seawater the drill pipe would have been open ended, with out a safety valve on the end, so even if both sets of pipe rams closed there would still be a completely open ended drill string, to allow flow.

            Here is a schematic and photo of the riser where it’s bent over at the top of the BOP stack
            www.flickr.com/photos/uscgd8/4563035602/in/ph otostream/
            Here is a photo of a subsea BOP stack similar to the one we are dealing with
            oilstatesintl.com/_filelib/ImageGallery/Produ cts_Services…

            I have made several comments on this at that site where the flickr photos are, as well as those of many others,

          • horizon3

            try this one.

            http://www.flickr.com/photos/uscgd8/4551846015/

    • zuckey6

      I really don`t care what may happen to th rig you asked about.Our country needs todeill for oil because the alternativ fuelsevvionmentalists suggest we should use seem impractical. Drilling for oil is the only way to reduce ane eventually eliminate our depndentcy on foreign oil.

  • Achance

    that everything fails. Is that what happened here? I know the “Patch” well enough to know that no major is going to much cheap out because they know how much these things cost, economically and politically.

    There’s all sorts of wierd speculation from Greenie sabotage to prevent offshore development to producer sabotage to run up the price of oil. I’m not naive enoght to believe either without a Helluva bunch of evidence, but, that said, this thing just ended any hope of more offshore developement for decades.

    I mean, Vlad, I thought these thing were supposed to work like a dry break; if you yank the hose out, the thing shuts down. What do you think happened?

    • http://vladenblog.tumblr.com Vladimir

      Apollo 11 was awesome. Then we did it again and in people’s minds it became routine when Apollo 12 did it again.

      Drilling conditions in deepwater are difficult geomechanically. Recovering from a mishap in 5,000 ft of water is a lot more challenging than in 50 ft because you can’t dive.

      Mechanical systems fail, that’s why they’re tested. Humans make errors, too, despite training. I would be surprised if the investigation didn’t determine that both were involved.

      That’s not to say that the results of the investigation will necessarily perfectly depict reality. Having been on the receiving end of the MMS proctoscope, I speak with experience. The investigators are human, too, and they can have prejudices & political influences.

      As I blogged over the weekend, this was not sabotage. It was an accident. I hesitate to speculate too much out of fairness to BP, Transocean, the victims and the responders.

      I’m working on a couple of thoughts and will blog more about it later.

      To clarify a point in the OP, BP was a finalist, and potentially the winner of the SAFE Award based on its 2009 safety & environmental performance.

  • Woo_girl

    Axelrod says no new drilling until the cause of the accident is found.

    • yoyo

      I swear, this country needs to operate a little more like a flight deck on an aircraft carrier…

      If you have an accident or mishap, you don’t stop everything. You clean up, yes. You investigate, yes. But you do BOTH while still carrying out the business of the day. You have to – you still have planes in the air and they have no where to go.

      This is as absurd as saying, “No more recoveries until we figure out why the 3-wire snapped.”

      • Woo_girl

        this administration doesn’t know it’s ass from a hole in the ground.

      • Finrod

        This issue will blow up in their face then.

        • Achance

          the oil companies, so he’s probably hoping for stratospheric oil prices. If ’08 was any indication, he has friends who can get the price there if he wants it. I think very high gas prices cost the Democrats more seats in November, but I don’t think BHO’s junta cares.

          • Finrod

            The campaign commercials write themselves: just list off all the businesses that the gov’t has taken over, and end with “There’s a name for when the government owns all the businesses– it’s known as fascism.”

      • zuckey6

        See my reply to Steve(So What Happened).

  • archer52

    http://www.realclearpolitics.com/video/2010/04/29/obama_announces_he_will_be_sending_swat_teams_to_oil_rigs.html

    Now he could be that he is once again showing just how little he really knows about how things work in the real world and substituted SWAT for a proper name, but if I see actuall SWAT guys taking positions on wells…..

    What does he know we don’t?

    • http://vladenblog.tumblr.com Vladimir

      An unfortunate choice of words from our rookie President.

      They are sending inspectors & telling them to write plenty of traffic tickets.

      • archer52

        Typical bureaucratic response by government. Ticketing oil rigs not on fire because another did catch on fire. Boy we sure showed them how on top of things we are!

        It is akin to having a homeowner watching his house burn to the ground and getting an ordinance violation citation from the cops for having a fire without getting a permit.

  • dwscho

    justify their deep seated desire to stop all oil drilling. The Left and wackoo environmentalists quickly jumped on the spill to call for a moratorium on off-shore drilling. Dems in Congress eagerly took up the cause. The Obama administration (not wanting to miss capitalizing on a crisis) has stated no more drilling will be allowed until the investigation has been completed. We all know government investigations take years to complete.

    I am no oil engineer. Intuitively though, it seems to me that off-shore drilling carries greater challenges and risks given the environment they work in. Makes you wonder why they don’t call for more drilling on land where you don’t have the issues of water spreading spills, wave action on the rig, etc to contend with.

    While the Left and the Administration will continue to capitalize on this crisis, let’s not forget the thousands of wells and rigs working in the Gulf without encountering similar problems. No doubt, this spill is an econmic and environmental disaster but, let’s not lose our heads and shut down the whole industry while the feds go on a witch hunt and use the crisis to shut down off-shore drilling. We need to drill for our own oil and stop funding the oppressive regimes in the mid-East.

    • http://vladenblog.tumblr.com Vladimir
      • dwscho

        Sorry Vlaimir but, I am not sure I know where to find the post. Can you direct me? Thanks.

        • Achance
          • dwscho

            Achance for steering me to the site.

  • WoodstockRedCat

    I have many friends in LA/MS who work in the field in the industry.
    You guys have had a sterling record of safety and I know people are working past exhaustion to figure out a way to cap this as quickly as possible.

    • Richard Mullins

      So this is an exception and not the norm. The fact that they do this quite often with only a few accidents is something that we should applaud. Those Offshore Drilling opponents need to get kicked in the head because they make things worse and so they prejudice to it. I’m sure that if we had more onshore accidents, they do what they are doing now.

  • Achance

    Some Alaskans like to whine about the horrible effects of the Exxon Valdez and they fought out a class action lawsuit with Exxon for 20 years over damages finally getting a billion and change out of Exxon after several trips to the USSC. But the reality is that for the State as a whole, the Exxon Valdez spill got us out of the depression induced by there being no follow-on development to Prudhoe Bay and the collapse of oil prices in the mid-’80s. Banks were folding, businesses closing, foreclosures were rampant, and people just driving up to the bank and putting the house keys in the night deposit box was a common event. At the State government level, there were more than a few pay days where we sweated making the payroll because oil revenue was so low. And then the Exxon Valdez hit Bligh Reef and spilled 11 Million gallons of crude oil into Prince William Sound.

    There is only one narrow and mountainous road connecting Valdez, Alaska to the rest of the World. Valdez became the center of the recovery and cleanup work. Air access is by air taxi using mostly twin turboprops, though Alaska Airlines’ jets can get in there if your nerves are up to it. Whittier and and Seward on the western side of the Gulf have road and rail access but limited air access. Cordova, to the east of the spill area has no road access but twice daily jet service by Alaska Airlines. In those days communication was very difficult and really limited to the above towns; anything out in the actual spill area was by VHF radio or other radio-telephone service. From either Juneau or Anchorage the spill area was very far away!

    And the whole economic and physical might of Exxon and the State of Alaska descended on those little towns practically overnight. Big oil companies don’t spend $5 when $50 will do, especially when they really need to look like they’re doing something, and Exxon poured money on that spill. Everybody with a claptrap boat that could get it to Valdez, Cordova, Whittier, or Seward had it chartered to Exxon or one of its subcontractors, especially the now notorious Veco, Inc. Everybody who could cut loose got over there to work, and in late March there are usually lots of unemployed people in Alaska, some of whom are even willing to get off the beach in Hawaii or Mexico and come home for work. They poured billions of dollars worth of materiel and labor into that cleanup and for the first time since early ’86, the CPI actually went up in Anchorage in the last half of ’89. Exxon threw about $5 Billion with a B at the cleanup and that cash injection got the Alaska economy moving again. In many ways it had a better impact than constructing the Pipeline because it didn’t attract so much Outside labor and the money stayed in the Alaska economy. So, there is an upside to even a lot of bad things.

    That said, the PWS coast is almost entirely rocky “beaches,” sheer rock, or glacier faces and can fairly easily by washed off by weather and mechanical means, the US Gulf Coast has extensive marshes and wetlands that will be the devil’s own job to protect and clean, so everybody needs to prepare for seeing dead, oiled birds and animals ad nauseum in the MSM.

    • http://vladenblog.tumblr.com Vladimir

      “…everybody needs to prepare for seeing dead, oiled birds and animals ad nauseum in the MSM.”

      Local broadcasters are about to soil their laundry.

      You’re exactly right about chartering vessels. I’ve heard that they’re putting shrimpers & oyster fishermen on the payroll. Maybe it will mitigate their damages. The oyster claims alone will be phenomenal. These guys have historically made more money off trumped up oil damage claims than they have off actually harvesting the slimy little bivalve.

      • Achance

        whether he actively fished or not. First Exxon paid exorbitant leases for their boats to transport cleanup labor and supplies then they got their hand in the damages suit. Now the “Copper River Red Salmon,” the fishery claimed by many to have been ruined by the spill is THE premium brand of Alaska Salmon; they make a huge deal of the first shipments of Copper River Red in the fancy restaurants in SEA and SFO – Alaska Airlines flies the fish down there and salmon dinners go for forty and fifty bucks. I’ve had Copper River Red and the only thing it has on any other red salmon is a good branding effort. We don’t have them much here and the streams that do have them are a fifty or sixty mile trip. So, for 100 plus gallons of gas at $3+, I’ll buy them at the store if at all.

        The herring fishery has gone away in PWS but it has also gone away in other places so it isn’t clear that the Exxon Valdez spill caused it. It has gone away here and some speak sacrilege and assert that it is because of whale predation, but don’t tell anybody I said that.

    • klondike

      A friend of mine attempted to convince me to return to Alaska for the cleanup. I declined because I knew him – he’s one of those who has been trying to convince people for 30 years that the gas line was starting.

      He and his wife went to Valdez to participate in the cleanup – they made $40K each in two months. $80,000 total for the two of them for two months’ work.

      Two months’ work.

      • Achance

        During the Pipeline i didn’t really mind living in a clapped out camper trailer with no hookups out in the truck yard. Even well into my thirties I didn’t mind ratting around Arctic Alaska in small airplanes and sleeping on school floors and the like. But by my late thirties it was beginning to tell; one close call and one frostbite scar too many! So, I sat down with myself to have a talk about what I was going to do when I grew up. The only firm conclusion I drew was that whatever it was, it wasn’t going to involve wearing an Eddie Bauer North Slope parka or Refrigerwear coveralls or wearing a Helly-Hanson rain suit while working! That resolution has served my pretty well.

        I was sorely tempted to try to get leave or just quit my job with the State to go work on the Exxon Valdez clean up, but I just couldn’t justify leaving my daughter, still in high school, alone or staying with a friend; unattended girls can get in way too much trouble at that age and in this town. So, I dutifully stayed with my State job, though I did go up there several times. We had all sorts of labor issues and serious management problems as well. If you’ve ever seen the HBO movie about the Exxon Valdez spill, I can tell you first, it didn’t happen that way and, second, the guy they make into a hero wasn’t. That guy remained a pain in the State of Alaska’s butt for twenty years over all that and we finally just bought his resignation and retirement in the mid-’00s. His first grievance came to me during the cleanup period. I did a little poking and prying and wrote a memo to my boss saying words like, “the issues raised in the dispute are beyond the competence and experience of mere labor relations practitiioners” and I pitched it over to the Department of Law where it and subsequent issues with him kept the lawyers busy for twenty years.

  • janis

    I quit watching those anchors and commentators a long time ago, Art, and, not having cable, don’t have to accidentally subject myself to the dead, oiled birds on MSNBC or CNN either. (With apologies to Erick Erickson, who is no dead, oiled bird. He’s a nice, clean eagle.)

    I saw this compared to “Bush’s Katrina” at some news outlet or other, probably Drudge. Anyone want to take bets that Obama gets any blame for this? No, I didn’t think there would be any takers. Big Oil and greedy consumers driving trucks will get all the blame.

  • Achance

    http://www.adn.com/2010/05/01/1258669/bp-didnt-plan-for-major-spill.html

    It’s only a matter of time before the “Blame Bush” meme starts, you know. Of course, in this story you have the best of the leftwing press, the McClatchey-owned Anchorage Daily News, no fans of the oil industry, and the Associated Press.

    • http://vladenblog.tumblr.com Vladimir

      I guess she took that idiot Bill Maher up on his challenge, heh.

      Prince William Sound, this ain’t. It’s a lighter gravity oil and much will evaporate in moving the 50 miles to shore & getting worked by the waves.

      That bird is getting a lot of press, I see.

      This may end up being a mess, but not the environmental Chernobyl that the press seems to crave.

      • Achance

        film, especially that one oiled otter trying to shake itself clean. This is what the PWS Trust, a largely Greenie group that the Industry and taxpayers support, says the animal casualties were:
        250,000 seabirds, 2,800 sea otters,
        300 harbor seals, 250 bald eagles, 22
        killer whales, and billions of salmon
        and herring eggs??the ?best?
        estimate of how many animals died
        outright from the spill.

        I suspect that “best” used in this context means highest. That said, that area is so remote that recovery efforts would be difficult and long coming in some areas.

        • klondike

          the guy who was jumping up and down trying to get the attention of, well, just about anyone involved in the Exxon Valdez cleanup to pay attention to his proposal about human hair? He was a hairdresser, and he gave a demonstration showing how human hair soaks up oil. He placed the hair cuttings from his salon into panty hose and tossed it into water with floating oil. Sure enough, the hair and pantyhose soaked up the oil. He was trying to show people an inexpensive and effective way to deal with the floating oil, but no one would listen.

          • Achance

            they used over half a million miles of absorbent boom. I don’t know what the big booms they use for oil spill cost, but the little ones you carry on a boat to contain fuel or oil spills sure ain’t cheap.

            Everybody was trying to sell something and everybody had some great new idea that they were trying to get Exxon to buy. Those that didn’t get bought off just sued them.

          • horizon3

            Have you heard of “Thinsulate”? that is what is stuffed into absorbent booms, it soaks up oil but is waterproof so it doesn’t sink. There are typically several pallet sized bails of 2ftx2ft pads of the stuff on offshore rigs to soak up deck spills of engine oils, hydraulic fluid and such. Because if the greenies see anything like a sheen coming from an offshore rig, they have the operators in court before the sun sets.

        • hickorystick

          Since the Feds stand to keep 75% of what the oils worth, after costs. The Feds also have more say where and how the oil is to be drilled than BP. President Barack Obama gave the final OK, so this oil spill his and his alone.

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