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Archive for September 8th, 2010

Video: Chinese Oil Rig Falls Into Sea

by admin on Sep.08, 2010, under Oil Rig

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What peak oil? Why an oil glut is ahead

by admin on Sep.08, 2010, under Oil Rig

d6db5 oil production.gi.top What peak oil? Why an oil glut is aheadA worker operates an “nodding donkey ” oil pump at an oil field near Baku, Azerbaijan.
By Richard Martin, contributorSeptember 8, 2010: 5:49 AM ET

FORTUNE — In May, less than a month after the blowout of the Deepwater Horizon oil rig explosion in the Gulf of Mexico, a key milestone was achieved with little notice: Total U.S. supplies of petroleum and products refined from it (including the Strategic Petroleum Reserve) surpassed 1.8 billion barrels, reaching the highest level in the last 20 years. Since then the total has continued to edge upward, hitting 1.87 billion barrels in the week ended August 27, according to the Energy Information Administration.

Despite the Iraq War and the resulting production disruptions, despite the moratorium on drilling in the Gulf, despite turmoil in Nigeria and ongoing cross-border transshipment quarrels in Central Asia and the multiple, repeated declarations that “peak oil” has arrived and supplies will inevitably dwindle, the United States has more petroleum on hand today than it has had since at least the beginning of the first Gulf War.

Part of that surplus comes from increased oil and gas production, particularly from ongoing production in the non-OPEC countries (including the U.S., where a “shale gas boom” has created a natural-gas glut). It also comes from flat demand due to the stumbling economic recovery and changing consumer behaviors. Neither of those factors is guaranteed to last. But as the summer driving season passes and students head back to school, awareness has gradually dawned that we may be looking at an oil surplus for years to come.

“In the last 18 months we’ve seen this big trend emerge,” says David Kirsch, research director at PFC Energy in Washington, D.C. “We spent five to 10 years in a supply-constrained market, characterized by the growth of the BRIC countries [Brazil, Russia, India and China] and concerns over the security of supplies.”

Now, Kirsch remarks, because of the financial crisis and the time it will take to pare down the debt of the major OECD nations, demand growth over the next decade is likely to be lower than previously forecast.

A new forecasting model

Official estimates of future oil supplies don’t yet reflect this emerging consensus. Believing that “world oil prices will rise slowly as world oil demand increases because of projected global economic growth, slower growth in non-OPEC oil supply, and continued production restraint by members of the Organization of the Petroleum Exporting Countries (OPEC),” the EIA forecasts that the spot price for West Texas Intermediate crude will start climbing again, averaging $81 per barrel in the fourth quarter of this year and $84 per barrel in 2011.

If government experts are wrong, though, we could see persistent surpluses and an oil price drifting toward $50 a barrel or even lower — far below the $75-per-barrel that King Abdullah of Saudi Arabia called a “fair price for oil” last year. Economists and policymakers have only begun to contemplate what that means.

New oil supplies are coming primarily from Central Asia and Iraq, where nearly a dozen major contracts have been finalized with foreign producers in 2010. The largest prize is the Rumaila Field, in southeast Iraq near the head of the Persian Gulf, with proven reserves 18 billion barrels. BP and China National Petroleum have signed a contract to jointly develop Rumaila. A report from the U.S. Special Inspector General for Iraq Reconstruction, issued in July, said that Iraqi production, currently around 2.4 million barrels per day (bpd), could reach 12 million bpd by 2017. Saudi Arabia currently produces around 8 million barrels a day.

In Central Asia, the grandiose predictions for the Caspian Sea basin heard in the late 1990s – “another Saudi Arabia” – are finally approaching reality. Kazakhstan, home of the two largest oil finds in recent decades — the super-giant Tengiz and Kashagan fields – is building more pipeline capacity heading east, to the vibrant markets of East Asia, rather than west, through the tangled pipeline politics of the Caucasus.

Even Israel, long one of the biggest oil importers in the Middle East, is getting into the act. Last year the U.S. Geological Survey reported that Israeli waters in the Eastern Mediterranean contain more than 120 trillion cubic feet of recoverable gas reserves — and new discoveries have added another potential 24 trillion or so since that report came out.

Questioning peak oil

At the same time, consumers have finally responded to higher gas prices and, perhaps, concern over the environmental impacts of burning fossil fuels. Miles driven by U.S. motorists have fallen over the last couple of years for the first time since such statistics have been collected, indicating that the American love affair with the automobile could be waning. And gasoline demand in China, the world’s largest automotive market, may not skyrocket after all, as the government ramps up its drive to replace internal combustion engines with electric vehicles.

An Israeli economy running on, and exporting, large domestic supplies of natural gas is only the most glaring of the geopolitical game-changers that $50-per-barrel oil would entail. Big growth in Iraq’s oil industry would lead that country into discussions, and possible disputes, with Saudi Arabia over OPEC’s production quotas. The worldwide gas surplus has already reduced the incentive and ability for Vladimir Putin’s Russia to engage in power games with gas importers in Eastern Europe. And, of course, cheaper oil from non-OPEC nations could limit the political focus in the U.S. on foreign oil supplies — and reduce Congress’s urgency to pass a comprehensive clean-energy bill.

More than anything, though, the looming oil surplus calls into question the concept of peak oil, at least in the near future, along with the whole science of forecasting future oil supplies. Adam Brandt, a professor at Stanford’s Department of Energy Resources Engineering, released a study last month examining the various models that have been used to predict the future of world oil supplies. “Data do not support assertions that any one model type is most useful for forecasting future oil production,” Brandt concludes. “In fact, evidence suggests that existing models have fared poorly in predicting global oil production.”

In other words, get ready for $50 oil. d6db5 bug What peak oil? Why an oil glut is ahead



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Two missing after China oil rig accident

by admin on Sep.08, 2010, under Oil Rig

BEIJING (AFP) – Two oil workers were missing but more than 30 others were rescued from a listing Sinopec rig off China’s northeast coast, the government said Wednesday, as the company insisted no oil was spilled.

Rescue teams saved 34 people who were working on the platform in the Shengli oil field off Dongying in Shandong province when the incident took place late Tuesday, the transport ministry told AFP.

Helicopters and rescue boats were searching for the two people who slipped from the platform, now leaning at a 45-degree angle in shallow waters, the Xinhua news agency said.

The Shengli oil field, the second-largest in China, is operated by Sinopec, the biggest oil refiner in Asia.

“No oil was spilled,” a Sinopec spokesman, who asked not to be identified, told AFP, confirming the rig’s valve had been immediately shut off and the 34 workers had been rescued.

“The cause of the accident is still under investigation,” the spokesman said, adding it was probably due to powerful waves generated by Typhoon Malou, which made landfall in central Japan on Wednesday.

The platform accident comes less than two months after a July 16 oil spill sparked by the explosion of two pipelines operated by the country’s largest oil company, China National Petroleum Corp, in the northeastern port of Dalian.

Official estimates said that 1,500 tonnes of crude poured into the Yellow Sea, but environmental watchdog Greenpeace said that the figure could be 60 times higher, making the spill one of the 30 worst in history.

The BP oil spill — triggered by an April 20 explosion on a rig off the coast of the southern US state of Louisiana — has resulted in an estimated 4.9 million barrels of oil gushing into the Gulf of Mexico.

The International Energy Agency recently announced that China had surpassed the United States last year to become the world’s top energy consumer, but Beijing still relies on coal for 70 percent of its fast-growing energy needs.

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Jonathan A. Schein: About This Year’s Oil Rig Explosions…Please Wait Another 25 Years Until There is Actual Change

by admin on Sep.08, 2010, under Oil Rig

Following the oil rig explosion explosion in the Gulf of Mexico last week, I was asked to appear on The Alyona Show on Russia Television to discuss whether we’ve really “learned anything” since the devastating BP oil spill in the Gulf last spring. [To view the interview, visit: http://www.youtube.com/watch?v=CXfE5atXBMU.] But that question is loaded because we all know that the real issue is not whether we have learned anything, but rather how we will approach similar situations in the future. The recent explosion was a great way to dive back into the problems with offshore oil exploration and production.

So far, it appears that all of the parties responsible for the explosion–from the owner of the rig to the U.S. Coast Guard to the local authorities–acted immediately to find out exactly what had gone wrong. Secondly, the White House quickly got in front of the story. From a public relations standpoint, everyone looked their best. And yet what have we really learned? To answer this question, we need to look back–not at the BP oil spill last spring, but at the 1989 Exxon Valdez disaster as a prime example of how “learning from” and “fixing” an oil disaster don’t always match up.

The Exxon Valdez tanker oil spill, in which an estimated 25 to 32 million gallons of oil was dumped into Prince William Sound as the tanker left Valdez, Alaska for Long Beach, California, is well documented, and its effects on the environment are still being felt today. Ostensibly, that disaster might not have taken place had the tanker’s captain not passed out in his bunk after a bender, leaving the third mate at the helm. However, there were a multitude of other problems which led to this disaster, including a faulty sonar system and the fact that the Exxon Valdez was a single hulled tanker.

As a result of that disaster, Congress passed the Oil Pollution Act of 1990 (OPA), which addressed many of the problems that led to the Exxon Valdez spill. The OPA noted that an estimated 60 percent of the oil would not have been spilled if the vessel had been double hulled. In other words, more than half the oil would have remained on the ship if construction standards had been different. Subsequently, the OPA mandated a phase-in for all oil tankers to be double hulled–unfortunately, however, the phase-in isn’t due to be completed until 2015, which is 26 years after the disaster.

So, what have we learned in the five months since the BP oil in the Gulf of Mexico and in the 21 years since Exxon Valdez? If history is any indication, it will most likely be at least a quarter of a century before any real progress will be made on completely repairing the problems that led to this latest oil disaster in the Gulf.

Jonathan A. Schein is CEO/ScheinMedia, publisher of MetroGreenBusiness.com.


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The Mariner Energy Oil Rig Explosion: In the Wake of the BP Disaster

by admin on Sep.08, 2010, under Oil Rig


de5a0 oil rig explosion The Mariner Energy Oil Rig Explosion: In the Wake of the BP DisasterAround 9:30 local time on September 2, an oil rig explosion explosion was reported in the Gulf of Mexico, about 90 miles south of Vermilion Bay. Despite the fire and explosion on the Mariner Energy rig, all 13 crew members escaped into the water and were rescued. The workers have been applauded for having the presence of mind to remember their training, as they were found wearing their survival suits and holding hands to stay together. The Crystal Clear, a support vessel for oil rig explosions that was in the area, found the crew members after they had been in the water for about 2 hours. These workers were given soda and water, then taken to a hospital where it was determined that only one of them had sustained injuries.

Behind the Blaze

The explosion resulted from a fire that started on the upper deck of the rig’s platform, where the living quarters are located, but the cause of the fire has not yet been determined. Members of the Coast Guard reported that the fire burned for hours, but has since been extinguished. Fortunately, the rig was undergoing maintenance at the time of the explosion, so no oil or gas was being produced. This is one likely reason for the lack of oil leaks associated with this incident, but surveillance will be continued to make sure that leaks do not emerge unnoticed.

Government Investigation

The U.S. government has announced that it will be conducting a full investigation of the Mariner Energy oil rig explosion incident. Michael Bromwich, the director of the U.S. Bureau of Ocean Energy Management (BOEM), stated that the investigation would attempt to find out what caused the fire and explosion, how it happened, and whether or not any laws or regulations were violated. If there have been violations, Bromwich said, the investigation would determine what kind of “enforcement action” should be taken.

Oil Industry Regulation

With the Mariner Energy explosion just a few months behind the BP disaster, environmental activists have been questioning oil industry regulation and wondering why nothing was done in the wake of the BP explosion. Sierra Club executive director Michael Brune called the BP disaster a “wake up call,” lamenting the fact that the world had “hit the snooze button” instead of paying attention and making much-needed changes to oil industry regulation. Today,” he stated on the day of the explosion, “the alarm went off again. However, it’s looking unlikely that any steps will be taken, as International Association of Drilling Contractors president Lee Hunt states that the Mariner Energy explosion was “an industrial-style accident that could have happened onshore.€ Arguments are sure to continue from both sides, so oil industry regulation will remain a difficult subject for the U.S.

About the Author: Heather Green is a Christian mom, freelance writer, pet lover and the resident blogger for OnlineNursingDegrees.org, a free informational website offering tips and advice on online nursing colleges.

[image via Jalopnik]

de5a0 pixel The Mariner Energy Oil Rig Explosion: In the Wake of the BP Disaster





BP oil leak report: blame shared for rig disaster

by admin on Sep.08, 2010, under Oil Rig

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UFO investigator featured speaker Thursday

by admin on Sep.08, 2010, under Area 51

The Northern Colorado Chapter of the Mutual UFO Network will host a meeting Thursday at the Cattlemen’s Steak House & Saloon, 2600 11th St. Road, in Greeley.

Dinner will be optional at 6 p.m., with the meeting beginning at 7 p.m.

Guest speaker will be Doug Wilson, Colorado MUFON chief investigator who has crossed into the infamous Area 51 in Nevada three times. He has also worked with the U.S. Department of the Interior on archeological digs and will talk about those digs and show photos from them.

Cost is $3 per person, $5 per couple. For more information, call Cheryl Gantz, (970) 339-2427.

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Five Filters featured article: “Peace Envoy” Blair Gets an Easy Ride in the Independent.

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Lecture on UFOs on Sept. 14

by admin on Sep.08, 2010, under Area 51

By Ali Littman
Observer staff writer
Published on Tuesday, August 31, 2010 11:19 PM MDT

In case New Mexicans thought they had moved on from their alien past, Norio Hayakawa reminds Rio Ranchoans that UFOs still exist — at least in our conscious.

Hayakawa will present a lecture on Sept. 14 at 6 p.m. at the Meadowlark Senior Center on the impact of “beliefs in UFOs€ on American pop culture.

It’s not about UFOs but belief in UFOs and there are millions of people in America who indiscriminately believe everything they hear. The belief in UFOs is definitely a significant part of American subculture,” Hayakawa said.

Hayakawa formerly participated in the Civilian Intelligence Network where he worked with intelligence gatherers to collect information on Area 51. Hayakawa will explain why a segment of the population insists on maintaining their beliefs in UFOs.

Hayakawa doesn’t deny aliens exist, he just wants people to base their beliefs in aliens on facts rather than faith.

“I’m not saying the whole phenomenon is imagination, but there are still some things we have to take into consideration,” Hayakawa said. “But the main point is that there are so many millions of people that are duped into believing things that are not factual or physical.”

Hayakawa is a long-time UFO researcher who has, for many years, investigated Area 51 in Nevada as well as some widespread claims about the existence of Dulce underground base in New Mexico, and has spoken in many conferences nationwide, especially in the early 1990s.

Lecture on UFOs on Sept. 14

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BP set to publish report on oil spill rig blast

by admin on Sep.08, 2010, under Oil Rig

LONDON (Reuters) – BP is due to release its internal investigation into what caused a rig blast that led to the United States’ worst ever oil spill on Wednesday and investors will be looking for clues as to whether BP will be able to fend off accusations of gross negligence.

BP’s partner in the blown-out Gulf of Mexico well, Anadarko Petroleum, has accused it of gross negligence.

If this is proven, BP will be liable for 100 percent of the costs of cleaning up the spill, rather than 65 percent it would otherwise pay, the level equal to its ownership of the well.

If gross negligence is proven, BP could also be liable to federal fines of over 20 billion dollars, as opposed to under a quarter of that if this is not proven.

BP has said it believes it was not grossly negligent and previous statements from it and testimony from survivors to official probes suggest representatives of all the companies involved will be criticized on Wednesday.

BP has previously criticized rig operator Transocean and Halliburton, the company which cemented the inside of the well. Investigators believe the cement job probably failed, allowing gas into the well, which subsequently came up onto the rig and caused the blast.

But if the report — which BP said was compiled by its head of safety, Mark Bly, without influence from senior management produces evidence of gross negligence — it could spook investors. However analysts do not expect this.

“We believe (the report) could shift the focus of culpability back toward Transocean and in particular the integrity of the Blowout Preventer (BOP) which should have acted as the ultimate fail safe,” Keith Morris, oil analyst at Evolution Securities said in a research note.

“If our view is correct then BP’s shares could rally this afternoon as expectations of gross negligence litigation is eroded.”

Yet, if BP seeks to shift most of the blame onto Transocean, which was responsible for the BOP, it risks being accused of merely seeking to reduce legal liability, rather than unveil the truth.

President Obama previously criticized blame-shifting by the companies, so if BP does dump more blame on others it could further depreciate BP’s already low currency in Washington, where it needs to curry favor if it wishes to continue operating in the Gulf of Mexico.

The report will be closely watched to see how far up the BP management chain it finds fault.

If BP only finds low-level employees to blame, it will be accused of a whitewash.

After its Texas City blast in 썕 when 15 workers were killed, BP sacked several hourly workers, blaming them for failing to follow correct procedures.

The official probe by government regulators later blamed more structural problems at BP, most notably a focus on cost saving over safety.

So far many U.S. politicians have already concluded that the rig blast was due to similar cost-cutting efforts by BP. Accusations of bad faith are likely to be enhanced if employees who failed to assist federal regulators are found to have contributed to the BP report.

(Reporting by Tom Bergin; Editing by Hans Peters)

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