Hydrocarbons occupy a vital role in our life and continue to play an important role for many more years to come. We need to follow all technological innovations to continue our productivity standards to achieve our production targets. Let us extend our vision to achieve this mission.

Saturday, June 9, 2012

LinkedIn may face privacy inquiry


Professional networking website LinkedIn may be investigated by the Irish Data Protection Commissioner's Office after some user passwords were compromised in a security breach.Professional networking website LinkedIn may be investigated by the Irish Data Protection Commissioner's Office after some user passwords were compromised in a security breach.

Professional networking website LinkedIn may be investigated by the Irish Data Protection Commissioner's Office after some user passwords were compromised in a security breach.

Gary Davis, Ireland's deputy data-protection commissioner said the incident falls within the area that can be investigated under the agency's code of practice on data breaches.

"We are in ongoing contact with LinkedIn in relation to the matter," Davis said in an e-mail.

"I am not in a position to indicate how we will be progressing."

Irish privacy regulators can levy fines on electronic- communication providers and networks for data breaches, Mr Davis said.

Ireland polices LinkedIn's data security because its base for operations outside the US is in Dublin.

The company, based in Mountain View, California, apologised to customers in a blog post yesterday and said that its more than 160 million users will know if their accounts were affected because their passwords will no longer be valid.

"We take the security of our members very seriously," LinkedIn said in the blog post. The company cites security issues as a risk for investors in regulatory filings and disclosed as recently as last month that it experienced website disruptions and outages for reasons including "denial of service or fraud or security attacks."



http://www.irishtimes.com/newspaper/breaking/2012/0607/breaking33.html

Strict safety measures for oil and gas exploration

LORNA SIGGINS

Potential hydraulic fracturing or "fracking" and refining of gas drawn from the Kinsale and Corrib gas fields will be monitored by the State's energy regulator before the end of next year.

Fines of up to €3 million or imprisonment for up to three years may be imposed for breaches, according to the Commission for Energy Regulation in a document published yesterday.

It promises "extensive" monitoring and enforcement of the new safety system, which will apply to both onshore and offshore oil and gas exploration and extraction, including shale gas "fracking", if licensed here.

The controversial "fracking" technique is currently the subject of a second study by the Environmental Protection Agency, which will inform the approach to be taken by Minister for Energy Pat Rabbitte.

Penalties for breaches of the commission's new safety system will include an immediate suspension of activities on foot of an emergency direction order or a court application.

Production could be halted altogether if developers lose their safety permit.


http://www.irishtimes.com/newspaper/ireland/2012/0609/1224317567991.html



Thursday, June 7, 2012

FPSO Training Course - London, Paris or Milan


Join the 1000+ FPSO professionals who have already benefited from attending this course

Regularly sells out - book early to avoid disappointment!

View the FPSO London Training Course Programme.

  1. The course offers a solid foundation in all aspects of FPSO developments
  2. It will help delegates understand the key strategic, technical and commercial aspects in putting an FPSO together
  3. This course is essential for all personnel involved with FPSOs, whether technical or commercial
  4. It will you understand the information needed to make sound decisions throughout the project cycle
  5. Delegates will leave the course equipped with a better understanding of FPSO technology and project execution strategies to enable them to offer significantly greater contributions to future projects they are involved in

Comprehensive sessions at the FPSO training course will:

  • Include workshop sessions providing delegates with the opportunity to transform the theory into practice by working in groups to develop an FPSO project strategy
  • Provide an introduction to FPSO design and technology
  • Review the regulatory issues, class and regional requirements
  • Gain an understanding of the overall commercial aspects of the project
  • Examine the crucial safety and environmental issues
  • Review the key drivers for selecting and designing mooring and riser systems for different environments
  • Analyse the main design issues of turret mooring & fluid transfer systems
  • Examine the key issues related to the conversion of tankers


For details, open the link below:

http://www.informaglobalevents.com/event/fpso-europe



Fracking Emissions Are 50% Lower than EPA Estimate


Source: Steve Everly, Energy InDepth  (6/5/12)

"The bigger story is that these substantially lower emissions estimates demonstrate how committed the industry is to reducing environmental impacts, even without new regulations."


A new study released today shows that methane emissions from wells completed via the hydraulic fracturing process are actually 50% less than estimates made by the U.S. Environmental Protection Agency. The study, released by URS Corp. and The LEVON Group, uses data from nearly 20% of all natural gas producing wells in the United States (more than 91,000 wells, to be more specific), a data set that is more than ten times larger than what EPA used. The study was commissioned by America's Natural Gas Alliance (ANGA) and the American Petroleum Institute (API).

More specifically, the study found that methane emissions from a technique known as "liquids unloading"—used to remove water and other liquids to improve the flow of natural gas in the wellbore—are 86% lower than what EPA estimated, while methane emissions from refractured wells are 72% lower. EPA's inflated data on liquids unloading is particularly significant, as that phase accounted for more than half of all the emissions from natural gas systems for which the EPA accounted in its estimates.

The researchers concluded that, had EPA relied on this larger and more complete data set, its emissions estimates would be 50% lower.

Of course, this isn't the first study to raise doubts about EPA's methane numbers.

A report from IHS-CERA, for example, found that EPA's estimates for methane emissions are "dramatically overstated" and "not credible," adding that it would be "unwise to use them as a basis for policymaking."

Furthermore, a study earlier this year from the Environmental Defense Fund highlighted the fact that EPA's current estimate of methane emissions is "double the prior estimate, which was itself twice as high as the previously accepted amount."

Those findings are particularly significant considering that the EPA has admitted its estimates are based "mostly" on two studies "conducted in the early and late 1990s." In other words, EPA increased its estimates not by gathering new data, but rather largely through changes in inputs to computer models.

The takeaway from all of this is not just that EPA's data is flawed or that the agency needs a better system for creating its emissions inventory—although both of those are salient points. The bigger story is really that these substantially lower emissions estimates demonstrate just how committed the industry is to reducing environmental impacts, even without burdensome and duplicative new regulations. As the new study notes:

"It is clear that companies are not waiting for regulatory mandates or incentives to upgrade equipment, or to alter practices like venting and flaring in favor of capturing methane where practical. Instead, operators are seizing opportunities to reduce the potential environmental impacts of their operations. Industry is therefore confident that additional, systematic collection of production sector activity data will not only help target areas for future reductions but also demonstrate significant voluntary progress toward continually 'greener' operations." (ANGA/API study, p. v)

Be sure also to check out ANGA's release, which further summarizes and contextualizes the study's findings.

Steve Everly
Energy InDepth

Wednesday, June 6, 2012

Schlumberger Unveils New Marine Seismic Technology

Schlumberger

Schlumberger announced the launch of IsoMetrix marine isometric seismic technology and the IsoMetrix family of marine seismic products. This breakthrough technology outputs isometrically sampled point-receiver data in both crossline and inline directions—capturing the returning wavefield in three dimensions and providing the most accurate images of the subsurface ever recorded.

The IsoMetrix system uses calibrated, multisensor MEMS technology that forms part of the new WesternGeco Nessie-6 point-receiver seismic streamer. The sensors measure acoustic pressure as well as vertical and crossline acceleration throughout the frequency range, and these measurements are provided as customer deliverables.

"Through an extensive 10-year research and engineering program, we have developed a new category of seismic that not only includes the acquisition technology, but also the algorithms and workflows needed to manage such an unprecedented amount of data," said Carel Hooykaas, president, WesternGeco. "The step change in imaging is as profound as was the move from X-rays to full 3D scans in the world of medicine."

IsoMetrix technology enables efficient exploration, high-resolution near-surface characterization, well integrity planning and unmatched 4D repeatability. The technology is compatible with other WesternGeco services such as the Coil Shooting and Dual Coil Shooting acquisition techniques. Field trials last year proved the technology's high accuracy, achieving a 12:1 crossline reconstruction ratio and producing a 6.25-m data grid from streamers 75 m apart.

A new range of applications is now being developed based on IsoMetrix technology to address currently intractable exploration and development challenges while simultaneously improving productivity.

‘Minor’ leak at Penglai 19-3

 6/5/2012

A scheduled oil transfer was interrupted when approximately 3.8 barrels of oil were released from the Penglai 19-3 offshore oilfield in Bohai Bay, the field's operator ConocoPhillips China announced on Tuesday, 5 June 2012.

The company said in a statement that the oil spilled after a marine hose coupling parted during transfer operations on Sunday, 3 June. It is currently investigating why the coupling disconnected.

ConocoPhillips said that a surveillance team boarded a helicopter at daybreak on 4 June and indentified a single sheen. The company then deployed an oil containment boom and an oil skimming vessel to begin clean-up operations. ConocoPhillips said it conducted three additional aerial surveys and concluded on 5 June that the sheen was no longer present.

ConocoPhillips said that the current incident is not related to last June's spill, which released 3,217 barrels of oil and oil-based drilling fluids into Bohai Bay.

ConocoPhillips operates block 11/05, which includes Penglai 19-3, with 49% interest. Its partner CNOOC (China National Offshore Oil Corp.) holds 51% participating interest in the block.

Audrey LeonBy: Audrey Leon,
aleon@oilonline.com

Tuesday, June 5, 2012

Latest Economic Statistics Are Not Good for Energy Market

Last Friday morning the anxiously awaited U.S. jobs report for the month of May was released to gasps of disbelief by investment professionals and politicians. The assembled economic prognosticators on CNBC's Squawk Box morning stock market show were debating their forecasts calling for anywhere from 125,000 to 165,000 jobs having been created by the American economy last month prior to the government's statistical release. The consensus estimate, as reported by the CNBC anchors was about 150,000-155,000 jobs. One of the CNBC forecasters had reduced her estimate in the prior 24 hours after Thursday's release of the ADP proprietary report of private sector job growth that suggested that only 133,000 new positions had been created last month. When the CNBC reporter read the release from the Bureau of Labor Statistics (BLS) saying only 69,000 total new jobs had been created, with 82,000 being private sector jobs while the public sector lost 13,000 jobs, everyone reacted with utter shock.

Not only was the job creation number extremely weak, but the BLS revised prior monthly estimates of employment growth lower. The March employment number was reduced by 11,000 to 143,000 and April's number was slashed by 38,000 to 77,000 jobs, barely above the May estimate. Other reported measures of the labor market's health were also weak in May as the unemployment rate ticked up by one-tenth to 8.2 percent as more workers re-entered the labor force seeking jobs. The average workweek for all nonfarm employees edged down by 0.1 hours to 34.4 hours in May. Significantly, the manufacturing workweek declined by 0.3 hour to 40.5 hours, and factory overtime declined by 0.1 hour to 3.2 hours.

The average hourly earnings for private nonfarm workers increased by 2-cents to $23.41, which was a positive. Over the past 12 months, average hourly earnings have increased by 1.7 percent. Unfortunately, for the 12 months ending in April, inflation as measured by the Consumer Price Index increased 2.3 percent. If we average the annualized inflation rate for the first four months of 2012, we have a 2.7 percent rate, which dwarfs the increase in annual average hourly earnings growth meaning that workers' real income has declined. Falling gasoline prices, as they follow crude oil prices lower, suggest American consumers are starting to get some cost of living relief, but it probably won't be enough to send them on a buying binge that would help jumpstart the economic recovery. It would also boost energy demand.

The bad economic news released on Friday continued the string of bad data released earlier in the week – a revised assessment of GDP growth in the first quarter of 2012, down to 1.9 percent from the earlier estimate of 2.2 percent; a report by outplacement firm Challenger, Gray & Christmas that there were 61,887 layoffs in May, the largest monthly total since September 2011 when 115,730 workers were terminated; and that the stock market declined in value by 6 percent in the month of May. Not only are U.S. economic statistics weak, but increasingly the data from other important countries around the world are showing deterioration. Take for example China, where the government's official Purchasing Managers' Index (PMI) that measures buying primarily by the large state-owned companies fell in May to 50.4, which was below expectations of 52.2 and marked the largest monthly drop in over two years. The reading, however, was still positive. Numbers of 50 or above indicate that the economy is in an expansion mode, conversely those below 50 signal contraction.

The PMIs for Australia and South Korea are also falling, and we have seen announcements by natural resource companies Rio Tinto and BHP Billiton that they are scaling back their plans to expand capacity in many of their mineral operations. Reduced capital spending by these companies means less equipment purchased and fewer new workers hired, which means less energy needed.

Everyone is well aware of the financial and economic turmoil in Europe. Virtually every country in Europe is either in a recession or close to entering one. This state of affairs is demonstrated by the Eurozone PMI charts in Exhibit 1 on the next page. In the regional chart, the Eurozone has the lowest reading. Within the Eurozone, Ireland is the only country with a PMI reading of 50 or above, signaling its economy is growing.

These weak economic statistics contributed to a dramatic stock market sell-off last Friday when the popular market indices fell by about 2.5 percent. Not only were stocks down, but crude oil futures dropped by over $3 per barrel taking WTI back to barely above $83 per barrel, down 20 percent over the past two months. As the chart in Exhibit 2 demonstrates, as crude oil prices began their slide earlier this year oilfield service stocks followed.

Musings: Latest Economic Statistics Are Not Good for Energy Market

Last week, as oil futures prices declined by nearly $7.50 per barrel to close at an eight month low, or over an 8 percent drop for the week, the OSX was pummeled, falling by more than 7.5 percent. It was clear by the end of last week that investors expect the future for energy and oilfield service companies to be much more difficult than they had expected merely a few days prior.

Musings: Latest Economic Statistics Are Not Good for Energy Market

Weak economic statistics suggest falling oil demand in the future, which is not good for energy companies. To see what the growing economic weakness in North America and Europe has meant to global energy demand, one only needs to look at the change in the 2012 oil consumption estimate of the International Energy Agency (IEA) between its first forecast made last July and its most recent May projection. Globally, the consumption estimate has been cut by one million barrels per day. The Americas and Europe have both seen their demand estimates reduced by 400,000 barrels per day.

The demand cuts for those two regions were joined most recently by a cut to the demand estimate for Asia/Pacific. The Former Soviet Union is projected to see an increase in demand while Middle East consumption will fall by 100,000 barrels per day and Africa remains unchanged. Given the latest economic statistics from China and South Korea, we fully expect to see a further reduction in Asia/Pacific's demand estimate.

Musings: Latest Economic Statistics Are Not Good for Energy Market

On a year to year basis, 2012's oil demand was initially projected to grow by 1.5 million barrels per day in July 2011, but now it is expected to increase by only 800,000 barrels per day. Since we have not yet reached the mid-point of 2012, we will not be surprised to see demand in 2012 increase by only a few hundred thousand barrels per day. If the sovereign debt crisis in Europe is not resolved in the next six months and the U.S. economic recovery doesn't accelerate, the weakening pace of economic activity in the Asia/Pacific region could contribute to little or no oil demand growth in 2013. That would seem to be what the stock market is saying, and would certainly present a challenge to the energy business.

G. Allen Brooks works as the Managing Director at Parks Paton Hoepfl & Brown. Reprinted with permission of PPH & B.

Italian Gov't Plans to Amend 2010 Offshore Oil and Gas Drilling Ban: Senator


Source: Alina Trabattoni, Platts  (6/4/12)

"The planned changes would aim to boost local production of oil and gas, which has declined at a time when energy imports have become increasingly costly and vulnerable to disruption."


The Italian government plans to revoke a 2010 ban on offshore oil and gas drilling, permitting companies to start drilling operations within a 12-mile limit off the coast in "environmentally protected areas," Italian Senator Francesco Ferrante said in a telephone interview.

The offshore drilling restrictions were introduced in 2010 following the Macondo disaster in the Gulf of Mexico. Before the ban, the government had authorized €4.5 billion ($5.59 billion) of investment in offshore drilling. It banned these activities within five miles of the Italian coast and 12 miles off the protected areas.

The new measures are expected to lower the drilling threshold all around Italy to five miles from the coastline, Ferrante said. They could be introduced as early as this week, at the next cabinet meeting.

Once introduced by cabinet decree, the planned changes will come into effect after the Italian president signs off on the measures. However, they will require parliamentary approval to remain in force after an initial 60 days.

"There is talk that the introduction of these measures is very imminent," Ferrante of the center-left PD party said.

"If these changes are pushed through, we will obviously fight them when they come to the Senate for approval. Not only are they not particularly beneficial economically speaking, but they also pose significant environmental risk."

The center-right has a majority in both houses of parliament and tends to support the technocratic government of Prime Minister Mario Monti.

In recent months, oil and gas companies such as Eni and Edison, have pressed the government to review the law. Interest has also been expressed by foreign companies, including Shell and Ireland-based oil exploration company Petroceltic, in offshore drilling in Italy if the government were to lift the ban.

The planned changes would aim to boost local production of oil and gas, which has declined at a time when energy imports have become increasingly costly and vulnerable to disruption. The closure of the Swiss Transitgas and Libyan Green Stream pipelines over the past year as well as the moratorium on nuclear energy development highlight the country's need to boost production, the companies have said.

Italian economic development minister Corrado Passera has estimated the measures would give the government a windfall of €2 billion ($2.49 billion), Ferrante said. The funds would be useful for Italy, which entered a recession in the last quarter of 2011, and where the economy is expected to shrink 1.5% this year.

Government-introduced austerity measures worth €20 billion aimed at cutting government debt including tax increases and cuts in government spending on salaries and pensions have weighed down on economic growth in the eurozone's third-largest economy.

Alina Trabattoni
Platts

Monday, June 4, 2012

Coalseam Gas a Hot New Energy Source?

Coalseam Gas a Hot New Energy Source?

New Zealand's biggest coal company has confirmed Taranaki as the country's hot spot for future development of a new energy source - coalseam gas.

State-owned enterprise Solid Energy is now forecasting that the vast coalfields in eastern Taranaki have the potential to produce enough gas to supply a 400-megawatt power station the size of Huntly for 45 years.

The company says an independent assessment of its coalseam gas acreage in Taranaki indicates it has 858 billion cubic feet (24.3 billion cubic meters) of what are known as contingent resources, which could represent as much as 900 petajoules of gas - way up on its previous estimate of 190PJ.

By way of comparison, the Pohokura offshore gasfield in North Taranaki contains between 500 and 1200PJ of gas, while South Taranaki's Kupe field is estimated to contain 300PJ. A city the size of New Plymouth consumes around 5PJ a year for residential use.

Solid Energy has reacted to the results of the assessment - which was conducted by Texas-based Netherland, Sewell and Associates Inc - by applying to the Government for a five-year extension of the petroleum exploration permit that encompasses the eastern Taranaki coalfields. This will give the company time to move into discovery and appraisal phases.

And, so that it can focus its entire coalseam gas operations on Taranaki, the company has dumped a number of exploration permits it now considers to be less prospective, including Waiau and Winton in the South Island, and Counties in the North Island. It also looks likely to mothball an exploration permit at Huntly, including a coalseam-gas demonstration plant it built there.

Dr. Steven Pearce, Solid Energy's general manager of gas developments, said in an interview last night that his company will now carry out more exploration drilling in an effort to find the best place to build a pilot gas production plant.

"There's lots that needs to be done - build the pilot plant so we can then begin to understand what rates of gas production we can achieve, and the cost of production," he said.

"But it is very exciting for us. The results of our exploration drilling out there have exceeded all expectations, and we are confident we have discovered a very significant nonconventional gas supply."

Solid Energy's decision to focus its coalseam gas operations entirely on Taranaki follows the drilling of a series of exploration wells along the region's eastern border over the past two years. Four of them were drilled in the Waitaanga and Mt Damper areas, with a further seven drilled in Tahora and Tangarakau.

Pearce said the success of the drilling program, and the assessment that has resulted in the four- fold increase in contingent gas resources, is extremely encouraging.

Coalseam gas is being used increasingly around the world - it already provides 15 percent of the United States' gas supply and close to 90 percent in Queensland.

According to information supplied by Solid Energy, when coal forms in the ground, associated chemical and biological processes produce methane gas. This methane sticks to the coal surface and stays in place because of high underground pressure within the coalseam. When water is pumped out of the seam, the pressure is lowered and the gas is released to the surface.

Copyright 2012 Fairfax New Zealand Newspapers. All Rights Reserved.

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