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A_Guide_to_Offshore_Oil_Production

Mar 08, 2016

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  • OffshoreProduction

    GOM Facts : Over 50,000 wells drilled in

    GOM, 7,000 active leases, About 3600 structures About 3600 structures 64% of leases are in Deep Water

    (>1000 ft). Nearly 4,000 wells drilled in

    depths > 1000 ft 700 wells in all Federal water

    5,000 ft and greater Gulf of Mexico (GOM) provides

    97% of Federal OCS Production.

    Source: Dept. of Interior, May 27, 2010, Increased Measures for Energy Development on the Outer Continental Shelf,

  • History of Drilling the Gulf of Mexico

    1937 First Fixed Platform 1 mile out: Pure Oil 1947 - 18 miles out: Kerr McGee & Superior

    the Kerr-McGee field produced >50 years

    1966 first subsea well, Sinclairs Eugene Island 175 1979 First deep water (>1000 ft) Shells Cognac Field 1979 First deep water (>1000 ft) Shells Cognac Field 2003 first well drilled in 10,000 ft of water Chevron) 2004 first producing field at 7500ft of water depth Shell 2006 MMS estimates GOM contains 45 billion barrels of

    undiscovered technically recoverable oil and 3.9b proved.

    2009 second highest year for oil production.

    Sources: 2003 AAPG Explorer and2004 Deep Water Where the Energy Is MMS Publication

  • GOM Production

    In 2009, GOM production accounted for 31%of total domestic oil production and 11% oftotal domestic natural gas production.

    Oil production in 2009 represented the second Oil production in 2009 represented the secondhighest annual production for the Gulf ofMexico OCS.

    Source: Dept. of Interior, May 27, 2010, Increased Measures for Energy Development on the Outer Continental Shelf,

  • 2006 NOAA Map of 3858 Oil and GasPlatforms in the Gulf of Mexico

    There have been over 50,000 wells drilled in the Gulf of Mexico. About27,000 wells have been plugged and abandoned under DOI Regulations.

  • Gulf of Mexico OCS Active Leases

  • Offshore Production Facilities

    Wikipedia

  • Gulf of Mexico OCS Production Since the first major deepwater

    leasing boom in 1995 and 1996, asustained and robust expansion ofdeepwater drilling activity hasoccurred, largely enabled by majoradvances in drilling technology.

    In 2001, U.S. deepwater offshore oilproduction surpassed shallow wateroffshore oil production for the firsttime.offshore oil production for the firsttime.

    By 2009, 80% of offshore oilproduction and 45% of natural gasproduction occurred in water depths>1,000 ft, and industry had drillednearly 4,000 wells to those depths.

    In 2007, a record 15 rigs were drillingfor oil and gas in water depths of5,000 feet or more in the Gulf ofMexico.

    Operators have drilled about 700 wellsin water depths of 5,000 feet orgreater in the OCS.

    Source: Dept. of Interior, May 27, 2010, Increased Measures for Energy Development on the Outer Continental Shelf,

  • 3,000,000

    3,500,000

    4,000,000

    4,500,000

    5,000,0004,900,000

    Barrels of Oil Spilled

    Spill Volumes 1960 to 2010What is Typical?

    DeepWaterEra

    0

    500,000

    1,000,000

    1,500,000

    2,000,000

    2,500,000

    3,000,000

    1960-69 1970-79 1980-89 1990-99 2000-09 Macondoest.

    99,000 106,000 7,000 2,000 18,000

    Source: Dept. of Interior, May 27, 2010, Increased Measures for Energy Development on the Outer Continental Shelf,

  • 4,000,000,000

    5,000,000,000

    6,000,000,000

    3,455,000,000 3,387,000,000

    4,051,000,000

    5,450,000,000

    Production

    Spilled

    Production vs. Spill VolumesBarrels of Oil

    Deep Water Era

    0

    1,000,000,000

    2,000,000,000

    3,000,000,000

    1960-69 1970-79 1980-89 1990-99 2000-09 Macondoest

    1,460,000,000

    099,000 106,000 7,000 2,000 18,000 4,900,000

    Source: Dept. of Interior, May 27, 2010, Increased Measures for Energy Development on the Outer Continental Shelf,

  • OCS Blowout Events > 1,000 bbls1964-1970

    After these blowouts, in the period from 1971 through 2009, a total of approximately1,800 barrels was spilled on the Federal OCS as a result of blowout events. Of thatamount, 425 barrels were blowouts resulting from hurricane damage. An additional 450barrels occurred at an oil pump during production operations. Since 1956, 15 blowoutsresulted in at least one fatality; three of these events occurred after 1986.

    Source: Dept. of Interior, May 27, 2010, Increased Measures for Energy Development on the Outer Continental Shelf,

  • Blowouts what type?

    Blowouts represent a type of loss of well control event that canresult in large discharges of oil into the natural environment.

    Since 1970, the number of blowouts per number of wells drilled hasvaried significantly from year to year.

    From 1964 through 1970, a total of approximately 178,000 barrelsof oil was spilled on the Federal OCS as a result of blowout events(see Table 2).(see Table 2). About 13,000 barrels resulted from blowouts related to external

    forces, such as hurricanes and ship collisions. An additional 30,000 barrels were released when a production fire

    resulted in the loss of well control of 12 wells on a productionplatform.

    The remaining 135,000 barrels that were released during blowoutsoccurred during drilling, well completion, or workover operations.

    Source: Dept. of Interior, May 27, 2010, Increased Measures for Energy Development on the Outer Continental Shelf,

  • Deep Water Statistics

    Nearly 4,000 wells have been drilled in gulf water depth inexcess of 1,000 feet and 700 wells in all federal water 5,000feet or greater;

    80 % of offshore oil production and 45 percent of naturalgas production came from DW in 2009;

    DW oil production surpassed shallow water production in DW oil production surpassed shallow water production in2001.

    Economic Impact In 2009, federal offshore leasing revenue was $6 billion. All U.S. offshore operations provide direct employment

    estimated at 150,000 jobs. Since 1953, the federal government has collected $200 billion

    from lease bonuses, fees and royalty payments from all offshoreoperators.

    Source: Dept. of Interior, May 27, 2010, Increased Measures for Energy Development on the Outer Continental Shelf,

  • Offshore Spills and Blowouts

    From 1964 to 2009, 17.5 billion barrels of crude oil andcondensate have been produced in federal offshore waters,while 532,000 barrels have been spilled; meaning 30.3barrels have spilled per 1 million barrels produced;

    The number of spills jumped during the 2000-2009 decadeto 72 from 15 in the 1990s and the amount of oil spilledto 72 from 15 in the 1990s and the amount of oil spilledjumped to 18,000 barrels from 2,000 barrels in the 1990s.

    Seven offshore blowouts occurred in federal waters from1964 to 1970 that resulted in spills exceeding 1,000 barrels.Since 1971, blowout events have resulted in only 1,800barrels of spilled oil.

    Source: Dept. of Interior, May 27, 2010, Increased Measures for Energy Development on the Outer Continental Shelf,

  • Historical Spills?Very Small Prior to April 2010

    The last major incident resulting in oil coming ashorefrom a blowout in the US OCS occurred 41 years ago, in1969. From 1970 until April 2010, a total of 1,800barrels of oil spilled due to blowouts. Allmeasurements of safety have shown a steady level ofimprovement since modern Minerals Managementimprovement since modern Minerals ManagementService regulations came into effect in 1970.

    The safety record in the Gulf of Mexico for offshoreworkers is much better than that of the average workerin the US, and the amount of oil spilled is significantlyless than that of commercial shipping or petroleumtankers.

    Source: Society of Petroleum Engineers,SPE Notes, July 6, 2010

  • Historical US GOM Spills?Very Small Prior to April 2010

    The last major incident resulting in oil coming ashore from a blowout inthe US OCS occurred 41 years ago, in 1969. From 1970 until April 2010, atotal of 1,800 barrels of oil spilled due to blowouts. All measurements ofsafety have shown a steady level of improvement since modern MMSregulations came into effect in 1970. (SPE Notes, July 6, 2010)

    The GOM safety record for offshore workers is much better than that ofthe average worker in the US, and the amount of oil spilled from wells hasbeen significantly less than that of commercial shipping or petroleumbeen significantly less than that of commercial shipping or petroleumtankers. (SPE Notes, July 6, 2010)

    Over the past 45 years (to end 2009), 17.5 billion barrels of crude oil andcondensate have been produced in US federal offshore waters, while532,000 barrels have been spilled, meaning 30.3 barrels have spilled per 1million barrels produced (US DOI Statistics, May 27, 2010 report & Reuters, June 4, 2010).

    Natural Seeps, during the same 45 year time period, flowed an estimated50 million barrels of oil into US waters from natural subsea seeps (most inGOM and Southern California) (Source: Oil in the Seas III)

    SPE Notes can be found at www.spe.orgOil in the Seas III, National Research Council of the National Academies), 2003

  • How Big is The Recent Spill?(Engineering Estimates of 4.9 Million Barrels?)

    The Macondo blowout is the largest offshore oil spill inUS history. It is not the largest spill in world history,nor the largest spill in US history.

    The largest spill in world history was likely during the1991 gulf war, when the Iraqi army caused between 5.5and 11 million barrels to be released.and 11 million barrels to be released.

    The largest spill in US history was onshore in Kern,California, when 9 million barrels was spilled onshorein 1910 and 1911.