Monday, July 16, 2018

Investment Gears to Gas as Nearly Half of Senior Oil and Gas Professionals Prep for Energy Transition


Nearly two-thirds (64%) of oil and gas sector leaders expect to increase or sustain spending on gas projects in 2018, as the sector prepares for gas to overtake oil as the world’s primary energy source in the mid-2030s.

Confidence in the case for gas is growing, according to a survey by DNV GL, a technical advisor to the industry. The vast majority (86%) of the 813 senior industry professionals surveyed agree that gas - the least carbon-intensive fossil fuel - will play an increasingly important role in the global energy mix over the next decade, up from 77% last year.

The findings appear in Transition in Motion, a special report from DNV GL’s research on the outlook for the oil and gas industry in 2018. It reveals the primary driver for investment in natural gas and LNG projects this year is the global energy transition.

The pace of the oil and gas industry’s intentions to lower carbon emissions differs by region, however. Just a third of survey respondents in North America (33%) say that their company is actively preparing for the shift to a lower carbon energy mix this year, compared to more than half (51%) in Middle East and North Africa.

The stage is set for gas to become the largest single source of energy. Demand for it will peak in the mid-2030s, well after the use of each of the other fossil fuels has gone into long-term decline, according to DNV GL’s 2017 Energy Transition Outlook, an independent forecast of the global energy mix in the lead-up to the mid-century. The model predicts the industry’s intentions for increasing gas investments will accelerate in the early-2020s as major oil companies decarbonize their business portfolios.

“Society’s transition to a less carbon-intensive energy mix is already a reality, and oil and gas will continue to be crucial components. Our research affirms that the industry is already taking positive steps to secure the important role we forecast gas to play in helping to meet future, lower-carbon energy requirements,” said Liv Hovem, CEO, DNV GL- Oil & Gas.

“Significant investment will be needed in the gas industry over the coming decades to increase capacity, transform assets to source and transport a decarbonized mix of energies, and to safely build and maintain the infrastructure needed to connect emerging supply regions with evolving demand centres,” Hovem added.

Power generation is predicted to be the primary consumer of gas in most regions, though manufacturing could demand similar volumes in emerging markets. DNV GL’s 2017 Energy Transition Outlook suggests that North East Eurasia and the Middle East and North Africa will increase gas output towards 2040 at least, overtaking North America as the world’s largest gas producer. Production is also forecast to double in China, the Indian Subcontinent and South East Asia.

Friday, July 13, 2018

ExxonMobil Australia mulls LNG import terminal

ExxonMobil Australia is considering the import of LNG into eastern Australia to help ease the predicted shortfall of gas supply from 2021 and protect its existing market share.

The company also is increasing its exploration program in Bass Strait as well as considering the development of a field extension called West Barracouta.

“Combined with the existing Gippsland basin resource and infrastructure, an LNG import facility could ensure that ExxonMobil can continue to meet our customers’ needs,” the company said.

The LNG facility would be timed to become operational by 2022.

Output from the Gippsland basin, dominated by ExxonMobil and the mainstay of Victorian gas production and supply for the last 50 years, is expected to fall to half of its current levels by 2022.

If ExxonMobil’s plan to import LNG proceeds, it will compete with two other import proposals: AGL Energy’s planned import terminal at Crib Point in Victoria to bring in gas from 2021 and the Japanese JERA consortium’s planned terminal at Port Kembla on the New South Wales coast to begin imports from 2020.

Wednesday, July 11, 2018




 Discussions between Broomfield officials and Extraction Oil & Gas Inc. took an unexpected and heated turn at Tuesday night's City Council meeting.

Representatives of the oil and gas operator came to discuss aspects of their Comprehensive Drilling Plan (CDP), but ended up walking out of the meeting in protest during questioning from Ward 4 Councilman Kevin Kreeger — the council member who raised his hand first during council comments, and the only one who was able to ask questions of Extraction.

The meeting was the first of a two-part review of the CDP before it was scheduled to be approved by Broomfield officials. The second review, so far, is set for the June 26 council meeting.

Before Eric Jacobsen, senior vice president of operations for Extraction, and a handful of other Extraction representatives walked out, Kreeger pushed for answers on the cause of a December rig accident in Windsor, truck traffic and the risk registry included in the CDP.

Other council members, including Ward 5 Councilwoman Guyleen Castriotta and Mayor Randy Ahrens, had questions for Extraction that went unanswered as the meeting devolved.

Castriotta backed up comments from Kreeger, including challenging an Extraction analogy comparing the safety of an oil and gas development to driving a car. The council members argued that someone makes a choice to drive a vehicle, compared to having a large-scale industrial site move into the neighborhood.

She also took issue with Extraction's assertions about its safety culture. Earlier in the meeting, Jacobsen said the company has drilled 71 wells with zero fatalities and zero spills leaving oil pads.

"Just because you say something's safe doesn't make it so," she said.

Ward 3 Councilman Deven Shaff also defended Kreeger, saying Jacobsen set the tone at the beginning of the agenda item by making "personal attacks" and "condescending statements."

One example was Extraction sending a letter to Broomfield last week requesting that "certain council members recuse themselves from that deliberation due to biases they have exhibited publicly against Extraction and its plan pursuant to the operator agreement."

The risk registry referenced by Kreeger originally was prepared by Charles Taylor Co. for Broomfield as a tool to register hazards associated with oil and gas operations. Broomfield officials asked Extraction to use the data to create a registry as part of the CDP that indicates the "likelihood" of each risk listed.

Kreeger said the number the company submitted in its CDP shows a 57 percent chance of a catastrophic fault over the lifetime of the project; Extraction representatives said that they reported figures based on what Broomfield provided.

Chris Moss, who developed the registry and who now works at Compass Risk Services LLC, has indicated that it is not intended to be used as a tool to calculate overall risk of a catastrophic incident at all well sites, but merely to register risks — the probability of the individual risk over the lifetime of the 84 wells, and to delineate mitigation measures that would reduce the probability of each risk.

Those risk percentages, which Jacobsen said were not assigned by Extraction but by a lone risk assessor, are elevated. He said the company is in full compliance with the risk management portion for the CDP and that percentages were not part of that.

"We believe the percentages included in the task force's registry are outlandishly too high," Jacobsen said.

While Extraction officials went back and forth with Kreeger, he announced that he was going to finish his comments, and that the Extraction representatives could "sit down." He then said "see ya" as they started to walk away.

"They chose to leave. I didn't tell them to leave," Kreeger said moments later.

"I am sorry that they left, Mike," Kreeger said, addressing Ward 2 Councilman Mike Shelton, who had raised his arms in a questioning gesture. "I truly am."

Concerning Windsor, Jacobsen had said the company conducted an internal analysis that was provided to the state, and that the regulatory body — the Colorado Oil and Gas Conservation Commission — was satisfied with Extraction's findings. Sending Broomfield a 14-point letter addressing the Windsor accident went "above and beyond" what was required of them, Extraction representatives said.

During his presentation, Jacobsen said Broomfield delaying approval of the CDP — beyond what was called for in its own municipal code — "was illustrative of concerning behavior."

"This is a document that should have been administratively approved by staff weeks, if not months, ago," Jacobsen said.

Extraction representatives were told by Broomfield staff that they were looking for consensus, or a "head nod," from the council before approving the plan.

Kreeger said he took "great exception" to the perception that Extraction is telling the council, and the public, that it is somehow holding up the process. He said plans, the first of which were submitted Dec. 17, contained hundreds of errors and even referenced incorrect pad sites.

"It was a piece of garbage," Kreeger said. "The idea we should have approved this weeks or months ago is ridiculous."

Ward 1 Councilwoman Elizabeth Law-Evans thanked Broomfield resident Lois Vanderkooi for her comments earlier in the evening about how human brains respond to bullying.

"I'm certainly not a mental health professional, but the thought just crossed my mind that, 'did we just see a textbook response of that just a few minutes ago?'" Law-Evans said, after Extraction representatives left the meeting.

She said she felt the meeting had turned into a conflict instead of a discussion.

"I think there's a lot of hostility. I think there's a lot of what my kids learn at school as 'othering' were you can stick the other side in a box and depersonalize them," she said. "You can call them nasty names and say mean things about them, and you don't have to worry about their feelings because they're the 'other.'"



Law-Evans said she was sad and upset about how the evening turned out because she wanted to have a substantive discussion about the issues — and instead Broomfield could be facing a lawsuit Wednesday morning. Law-Evans said she hopes the discussion continues leading up to the June 26 city council meeting.

"I don't like the idea of oil and gas — more development because we already have some. I don't like the idea of more of it coming to Broomfield more than anyone else," she said. "I don't like it at all. If I had authority to keep it out, I would. We just don't have that authority."

With regard to measure 301 — the ballot issue passed by voters in November that codifies placing the health and safety of Broomfield residents first in oil and gas matters — Law-Evans said she thinks Broomfield kept to the "spirit" of the ballot initiative. She said Broomfield officials used the power they had via a memorandum of understanding with Extraction to influence negotiations and come up with best-management practices. Broomfield staff took "tiny slivers" of leverage and through negotiations and persuasion, and turned them into more protections for Broomfield citizens.

"It's not a discussion anymore," she said. "I think we're heading in a brand new direction."

Broomfield currently has 96 wells, according to Tami Yellico, director of strategic initiatives, said in response to council questions.

Jeff Bybee, deputy chief of operations with North Metro Fire Rescue District, said he can only speak anecdotally, but that in the 36 years he's been with the district, he has seen only a handful of catastrophic events from existing wells. Some resulted in injury, he said, including one death. All were people working on oil and gas sites.

Law-Evans said using that 50 percent risk assessment, Broomfield should have seen 40 catastrophic events.

"It doesn't ring true," she said. "It doesn't make sense."

http://www.broomfieldenterprise.com/news/ci_31942288/heated-exchange-at-council-meeting-leads-oil-firm

Monday, July 9, 2018

Construction worker killed in 'targeted execution' at Pasco job site


The Pasco County sheriff says a construction worker was shot and killed in a "targeted execution" at a job site in Wesley Chapel on Wednesday.

The sheriff's office responded to reports of shots fired at a home on Marsciano Lane in the Estancia at Wiregrass subdivision around 12:49 p.m. and found Heans Gianni Alvarez dead at the scene.

Alvarez was part of a crew working at the home and was on a break with other crew members when two black men walked into the house.

Deputies say the men passed by the other workers, tapped Alvarez on the leg and then shot and killed him.

The suspects are described as two light-skinned black men that are about 5'3" with short dread-like hair.

The sheriff's office says this was an isolated incident, and stress that there is no danger to the community.

Friday, July 6, 2018

Dfcu Bank Rolls Out Skilling Programme To Support Oil & Gas Local Content Agenda


KAMPALA, UGANDA- At least 100 business leaders from across different sectors will benefit from dfcu Bank’s Oil and Gas local content skilling and sensitization program every month.

As part of the Business Accelerator Program, dfcu has planned a series of workshops targeting multiple sectors that can potentially take up opportunities in the Oil and Gas sector.

William Sekabembe , the dfcu Executive Director & Chief Commercial Officer underscored their aptness at supporting the local content agenda through an Accelerator programme that provides skills and training as well as provision of financial solutions.

“We have taken deliberate steps to form partnerships that give us access to cheap funds making it possible for us to extend long term financing at favorable rates,” said Sekabembe.

According to Harriet Kiwanuka, the Head Oil & Gas sector at dfcu, the Bank has a suite of be spoke financing solutions for local suppliers in the Oil & Gas Sector.

“We have developed innovative and flexible financial solutions to ensure that financing is made available on terms which meet the requirements of both local content services providers and the Bank” She said.

The workshops are aimed at providing an enabling environment for local content service providers to enhance their operational capacity and access to financing.

Over Thirty (30) medical practitioners, under their Umbrella body – the Uganda Private Medical Practitioners Association, attended the first session that was held at the dfcu Tower in Kampala.

They held extensive discussions on a range of issues including health, safety and environment; opportunities and standards in medical services, legal and regulatory framework in the Oil and Gas sector and access to finance.

http://www.busiweek.com/dfcu-bank-rolls-out-skilling-programme-to-support-oil-gas-local-content-agenda/

Wednesday, July 4, 2018

Rescue crews free man trapped after construction accident

CARMEL, Ind. (WTHR) - Rescue crews in Hamilton County freed a construction worker who was trapped in a hole Tuesday morning.

The incident happened near 131st and Towne Road in Carmel at a new home construction site.

The man was working on a foundation around a house. when the dirt gave way and trapped him.

Carmel Fire along with help from a trench rescue team from Westfield worked to free the man.

Medics transported the man to the hospital to be treated for a broken leg.

Monday, July 2, 2018

U.S. And Russia To Dominate World’s Oil & Gas Pipeline Spending


The U.S. shale boom and the massive Russian expansion of natural gas pipelines will make the United States and Russia the dominant spenders on oil, petroleum products, and natural gas pipelines through 2022, data and analytics company GlobalData says in a new report.

The other big spenders between 2018 and 2022 will be Canada, China, and Nigeria, according to the analytics firm.

The U.S. will be leading the capital expenditure (capex) on oil and gas pipelines, with an estimated US$88.4 billion on new pipelines by 2022, while Russia is seen spending US$78.8 billion.

In the United States, spending on natural gas pipelines will account for around 40 percent of the total planned pipelines by 2022, with crude oil and natural gas liquids (NGL) expected to have 31-percent and 24-percent shares of expenditure, respectively.

In Russia, the spending is mostly focused on natural gas pipelines, which will account for 88 percent of the planned pipelines expected to come online by 2022. Petroleum products pipelines and oil pipelines are the next major planned pipelines with capex share of 7 percent and 4 percent, respectively.

“Booming unconventional oil and gas production is in turn driving the growth of the pipeline network in the US. More and more operators are focusing on connecting growing unconventional production with the Gulf coast for export of oil and gas,” said Soorya Tejomoortula, Oil and Gas Analyst at GlobalData.

“Russia is further expanding its massive natural gas pipelines network for exports. The country is building pipelines to transport natural gas from its production centres to demand centres such as China, Japan, India and Europe,” Tejomoortula noted.

While U.S. spending on pipelines will surge through 2022, currently, the fastest-growing oil producing region in the United States, the Permian, is nearing the limitsof its pipeline takeaway capacity and some producers may be forced to shut in wells within months, according to the chairman of one of the biggest U.S. shale producers, Pioneer Natural Resources.

“Some companies will have to shut in production, some companies will move rigs away, and some companies will be able to continue growing because they have firm transportation,” Sheffield told Bloomberg said last week.

Public comment period extended for Walan air quality regulations construction permit

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