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House Energy Hearing on America’s Energy Future (June 15, 2010)
House Energy Hearing on America’s Energy Future
Top executives of five major oil companies, including BP America, testified before lawmakers and faced questions about their company’s track records on offshore oil drilling. At the House Energy Subcommittee hearing, witnesses discussed the impact of the nation’s dependence on oil and how the use of renewable and alternative energy sources can reduce overall oil dependence.
Washington, DC : 4 hr. 48 min.

watch Oil Hearing: Part 1 watch Oil Hearing: Part 2 watch Complete C-SPAN Coverage: Gulf Oil Spill


(from CSPAN-3)



My Note –

The most disturbing thing out of those hearings above in the House Energy Subcommittee was when the man who heads up one of the major oil companies and holds positions at the National Petroleum Council and at the American Petroleum Institute – said they had no other ideas or ways to handle an oil spill, containment, cleanup, spill mitigation, oil spill response other than the plans that were submitted with what they contained. He and the others all responded that they had attended two industry task forces – one of which was about oil spill and mitigation. But none of them knew anything else that could be done.

Now, honestly – there have been literally thousands of ideas submitted to BP, to the various oil companies over the years, at many petroleum industry trade shows, used around the world in oil spill situations which haven’t been used in the US and through a multitude of tv cable news shows highlighting many individual ideas. So, how is it possible for the leaders of these companies and their oil industry associations to not know any of those ideas nor have any access to any of them at this point? How is that happening?

– cricketdiane


National Petroleum Council



As mentioned by the oil industry CEOs on the panel of above hearings –

Industry forms two new task forces to address oil spill issues

Cathy Landry | 202.682.8122 | landryc@api.org

WASHINGTON, June 10, 2010 – In the wake of the oil spill in the Gulf of Mexico, the U.S. oil and natural gas industry has formed two additional task forces to address both short- and long-term issues related to subsea well control (stopping/mitigating the release of product at the point of origin) and spill response and cleanup.

“As an industry, we are continually reviewing our practices and improving where necessary, all areas of operations, especially in light of this tragedy,” said American Petroleum Institute President and CEO Jack Gerard. “We will be working across our industry, bringing together experts and specialists, to improve safety and environmental performance by learning from any gaps identified in the handling of this spill.”

The new task forces will be developed with the assistance of the American Petroleum Institute, the Independent Petroleum Association of America and the National Ocean Industries Association and bring together equipment manufacturers, subsea specialists, spill experts and deepwater contractors.

The new task forces will interact with Congress as they develop formal findings and recommendations to improve capabilities and technologies, and present these findings to the presidential commission for its consideration. The findings and recommendations also will assist industry to identify best practices to incorporate into future response planning and capability.

The task force focusing on subsea well control and response will address technologies and practices for controlling the release of oil from its source. It also will review equipment designs, testing protocols, research and development, regulations and documentation, and make recommendations for improvements. Among other things, it will look at various well-control procedures, including the “junk shot,” coffer dams, “top kill” and other subsea containment and collection methods.

The oil spill response task force will review existing spill-response processes and technologies, identify gaps and seek options to address those gaps through recommended practices and procedures, as well as research and development. Among other things, it will look at planning and pre-staging of assets, mechanical recovery methods, dispersants (including their toxicity and application), shoreline protection issues, bio remediation, unconventional response technologies, wetlands protection and the use of volunteers.

These two new task forces supplement two previously announced task forces, developed with the assistance of API and set up in May, which focus on offshore equipment and offshore operating practices.

API looks forward to working with the government on these issues.




API President and CEO

Jack Gerard
Jack N. Gerard

Jack N. Gerard is president and CEO of the American Petroleum Institute, the national trade association that represents all aspects of America’s oil and natural gas industry.

Gerard brings a strong industry trade association background to API, as well as experience on Capitol Hill. He most recently served as president and CEO of the American Chemistry Council, and earlier held the same title at the National Mining Association. He assumed his current duties at API on November 1, 2008.

During his three years at the Chemistry Council, the association fortified its advocacy initiatives on issues important to the chemicals industry and worked closely with Congress on major legislation. Gerard and the ACC were named among the “Best of K Street” in The Hill newspaper’s listing of top advocates. Chemical News & Intelligence included Gerard among a dozen “leaders of the decade” for the chemical industry. Six months after joining API, The Hill named Gerard a top trade group lobbyist who forcefully advocated for America’s oil and natural gas industry.

Gerard also spent close to a decade working in the U.S. Senate and House. He came to Washington in 1981, and worked for Rep. George Hansen. He also worked for Sen. James A. McClure, who chaired the U.S. Senate Energy and Natural Resources Committee.

Sen. McClure retired in 1990, and Gerard joined him in founding McClure, Gerard & Neuenschwander, Inc., a Washington, D.C.-based government relations consulting firm. Gerard served as Chairman and Chief Executive officer and focused on issues such as international sports, telecommunications, energy and mining.

Gerard lives in Virginia with his wife, Claudette, and their eight children, including twin boys the family adopted from Guatemala.

He serves as a board member and is the immediate past Chairman of the National Capital Area Council – Boy Scouts of America, is co-chair of The George Washington University Graduate School of Political Management’s Council on American Politics, is Chairman of the Board of Directors for the Congressional Coalition on Adoption Institute, and is a member of the Conservation Fund’s Corporate Council.

Gerard was born and grew up in Idaho. He holds a Bachelor of Arts in Political Science and a Juris Doctor from George Washington University.

As the industry’s national trade association, API’s nearly 400 members range from the largest major oil company to the smallest of independents and represent all segments of the industry.



My Note –

One of the men speaking at the Energy Subcommittee in Congress who belongs to Chevron, the American Petroleum Institute and the National Petroleum Council who was very proud of their two industry task forces having participated in them recently and the one who also said (and the other CEOs agreed) that they didn’t have anything else – no other ideas – no other ways to handle the spill, the containment or the response – even today.



As mentioned by T. Boone Pickens on Larry King Live (06-15-10) –


S 1408– vs. HR 1835 – NAT GAS Acts – S 1408– vs. HR 1835 – Side by

File Format: PDF/Adobe Acrobat – Quick View
NAT GAS Act- S. 1408. 111 th. Congress. NAT GAS Act- HR 1835 ….. Senate resolution that the EPA should streamline the process


The NAT GAS Act is a bi-partisan bill in both the U.S. House of Representatives and the Senate. Larson (D-CT) and Sullivan (R-OK) introduced H.R. 1835 and it already has more than In the Senate, Senators Menendez (D-NJ) and Hatch (

R-UT) were joined by Senate Majority Leader Reid (D-NV) to introduce S. 1408.
National Petroleum Council

NPC Mailing Address:
1625 K Street, NW
Suite 600
Washington, D.C. 20006

Telephone: (202) 393-6100
Fax: (202) 331-8539
E-Mail: info@npc.org


  • John S. Watson

    John S. Watson

    Chairman and Chief Executive Officer

    John S. Watson is chairman and chief executive officer of Chevron Corporation, a position he assumed on January 1, 2010.

    A native of California, Watson earned a bachelor’s degree in agricultural economics from the University of California at Davis in 1978 and a master’s degree in business administration from the University of Chicago in 1980.

    Watson joined Chevron in 1980 as a financial analyst. He held financial, analytical and supervisory positions before being elected president of Chevron Canada Ltd. in 1996. In 1998, he was elected a vice president of the corporation, with responsibility for strategic planning and mergers and acquisitions. In 2000, he led the company’s integration effort following the Chevron-Texaco merger and then became the corporation’s chief financial officer.

    In 2005, he was elected president of Chevron International Exploration and Production, with responsibility for the company’s exploration and production activities outside North America. In 2008, he was elected executive vice president for strategy and development.

    Watson is a director and member of the Executive Committee of the American Petroleum Institute. He is also a member of the National Petroleum Council, The Business Council, Business Roundtable, the J.P. Morgan International Council and the American Society of Corporate Executives.

    Updated: April 2010



My Note –

One of the Congressional Members from California showed the Santa Barbara spill from 1969 with the methods used to cleanup and the booms that didn’t work then either – along with the same hand cleanup of shores and booms being done now – which in 40 years have not changed.

but looking at this page on the National Petroleum Council site – it seems there is a big problem –

Look at these dates on the information under the header emergency planning and preparedness from the left hand sidebar of the opening page –

– cricketdiane


Securing Oil and Natural Gas Infrastructures
In the New Economy



Industry Assistance to Government – Methods for Providing Petroleum Industry Expertise During Emergencies


Short-Term Petroleum Outlook –
An Examination of Issues and Projections



The Strategic Petroleum Reserve:
A Report on the Capability
to Distribute SPR Oil



Emergency Preparedness for Interruption of Petroleum Imports into the United States (1973)

(from – )
National Petroleum Council assets offered for

Emergency Planning and Preparedness

Emergency Planning and Preparedness



Environmental Issues
The Oil Pollution Act of 1990 – Issues and Solutions (1994)

This report presents the Council’s findings regarding the implementation of financial responsibility provisions of the Oil Pollution Act (OPA) as they relate to offshore facilities. The Council has concluded that, properly implemented, OPA could safeguard the public interest by improving oil spill prevention and response without undue harm to the oil and gas industries. However, regulations similar to those outlined by the Minerals Management Service (MMS) in its Advance Notice of Proposed Rulemaking could have serious and substantial impacts on all segments of the oil and gas industries and disrupt commerce in many other areas.

The report examines the issues involved including: (1) a legal background and history; (2) the potential impacts on U.S. oil and gas production; and (3) impacts on the insurance and financial communities, and other parties. The report presents potential solutions that can be implemented by the MMS and makes recommendations to the Secretary of Energy. Specifically, the report discusses the flexibility available to the MMS in five critical interwoven areas of the OPA financial responsibility rulemaking:

  • Risk basing the $150 million financial responsibility level
  • The implementation of a de minimis provision
  • The definition of “guarantor”
  • New criteria for self-insurance including membership in an MMS-approved mutual loss funding agreement
  • The interaction of OPA’s financial responsibility regulations with state requirements.

(208 pages) Price: $25.00

Environmental Issues


And this one from the same page –

Environmental Conservation –
The Oil and Gas Industries

The report considers three principal areas: current industry operations and the facilities and procedures that are used to protect the environment; the specific areas of environmental law and regulation that have directly affected the availability and cost of petroleum products and natural gas; and significant environmental issues of the 1980s.

The report is presented in two parts: the Overview volume published by the NPC in December 1981; and a more detailed volume describing petroleum industry operations and their relationship to environmental quality, which was published by the NPC in mid-1982. The latter volume contains extensive notes and references and is indexed to facilitate its use as a reference document.

1981 – (126 pages) Price: $18.00

1982 – (688 pages) Price: $36.00

National Petroleum Institute offering of environmental conservation issues – hasn’t even come from the last ten years – no shit.


From CSPAn Hearings on 06-15-10 (yesterday)

Senate HELP Cmte. Hearing on Health Impact of Gulf Oil Spill Sen. Tom Harkin (D-IA) chaired a Senate Health and Labor Committee hearing on the health impact of the Gulf of Mexico oil spill. We heard about workers cleaning up the spill and the contamination of seafood in the Gulf.

Washington, DC : 1 hr. 34 min.
watch Hearing on Oil Spill Impact on Health


My Note –

And these folks from the US health agencies leadership in the hearings above – didn’t know that after the Exxon Valdez spill, after the spill in Spain over 8 years ago and other spills around the world – people affected by the spills, the negative health damages from the spill on people, the crude oil chemical compounds and the dispersants were studied.

Those studies do exist that link petroleum and crude oil and petroleum products to health damages and bad health effects including long-term effects. There are studies upon studies upon studies and these people on this panel from every big health agency in our government all said the studies of the effects of petroleum crude oil on people don’t exist. That just isn’t true. – It isn’t even true in the United States.

Why don’t they know of these studies? – it looks like they are just lining up to study the damn thing again and count people without using any of the information acquired from previous knowledge of what it does to people including those studies from the effects of petroleum chemicals that are already known – benzene included.

What is the matter with these people that would cause them to act like that information doesn’t exist? It is 2010, not 1940 – but even in 1940 there had already been studies done on what affects crude oil has on people because there were explosions and spills of it – even then.

– cricketdiane


60 000 US beer barrels = 7 040.86592 m3

Search Results

  1. News for 60,000 barrels

    Reuters UK
    BP Well Gushing as Much as 60000 Barrels Oil a Day, US Says‎ – 4 hours ago

    By Jim Polson June 16 (Bloomberg) — BP Plc’s well in the Gulf of Mexico is gushing as much as 60000 barrels of oil a day, the government said yesterday,

    BusinessWeek186 related articles »

  2. Gulf Oil Flow as Fast as 60000 Barrels Per Day – ScienceInsider

    Jun 15, 2010 Administration officials announced late today that the Deepwater Horizon well is most likely gushing 35000 to 60000 barrels per day and
    news.sciencemag.org/…/gulf-oil-flow-as-fast-as-60000-b.html?…10 hours ago

    Get more results from the past 24 hours

  3. Gulf oil spill could be up to 60000 barrels a day – latimes.com

    Jun 16, 2010 A federal group again revises its estimate of the Gulf of Mexico leak rate. A consistent upward revision of the figures has undermined
    http://www.latimes.com/…/la-na-oil-spill-20100616,0,1169383.story58 minutes ago


google search for –

200,000 barrels a day petroleum crude oil wells

More Crude, Less Gasoline and Distillates

Jun 12, 2010 The API estimated that crude inventories rose 616000 barrels, Last week’s Energy Department data showed crude supplies increased by 200000 barrels. stocks now stand at 365.1 million barrels, well ahead of seasonal averages. NYMEX crude oil volume averaged 805879 contracts per day;

Stock:BP (BP)

British Petroleum has won permission to start burning oil and gas piped up from …. Crude Oil Production (Thousand barrels per day), 2562, 2475, 2414, 2401, 2535 On December 31, 2008, production began at four wells in BP’s Thunder with production capacity around 200000 barrels of oil equivalent per day.
http://www.wikinvest.com/stock/BP_(BP)12 hours ago

Saudi Arabia Oil – Saudi Arabia Oil Industry – Saudi Arabia Oil

It is capable of producing more than 5 million barrels of oil a day and 400000 barrels a day, Najid which can produce 200000 barrels a day, At the current level, Saudi Arabia produced more than 11 million barrels of crude oil a day and access to any data concerning Saudi Arabia’s oil wells and reserves.

BP is one of the world’s largest oil and gas companies in terms of production capacity. In 2009, the company’s exploration and production segment produced approximately 2.53 million barrels of oil per day as well as 8.48 million cubic feet of natural gas per day while the company’s refining throughput averaged 2.28 million barrels/day.[1] BP expands its production capacity through improved rig equipment and technology as well as expansions into other countries.[2] As of April 2009, BP’s operates in 29 countries including Mexico, Russia, Algeria, and many others in the Middle East and Africa.[3] While BP’s global reach gives the company an ability to access “untapped” reserves, many of its operations are exposed to political risk in those countries. In particular, BP’s Russian operations faced significantly managerial problems in 2008, but these tensions eased in January 2010 with the appointment of Maxim Barsk to CEO.[4]

BP’s production and refining operations are exposed to world-wide oil and natural gas prices and consumption.[5] Due to low consumption of oil and natural gas products in late 2008 and early 2009, BP laid off thousands of workers and cut capital expenditures significantly as part of the company’s plan to reduce annual costs from $32 billion in 2007 to $28 billion in 2009.[6] BP’s fourth quarter profit of $4.3 billion quarterly reflected both the success of these strategies as well as a improvement in oil prices.[7] Although energy consumption is low relative to 2007 levels, the company believes that world energy demand could be 45% higher by 2030, and its world-wide operations have the potential of giving it an advantage over its competitors.[8] In 2009 and early 2010, BP formed several joint ventures in both the oilsands and biofuel production markets in order to improve its production capacity and enter non-traditional energy production markets.[9] BP has also created a separate business that specializes in alternative, renewable forms of energy known as BP Alternative.[10] Through investments of $2.9 billion from 2005 to 2009, BP Alternative is capable of profiting from the use of renewable energy and reducing BP’s reliance on oil and gas.[11]

Quarterly Analysis 1Q 2010: Due to higher oil prices, BP’s first quarter 2010 profits were $6.08 billion compared to $2.56 billion in the first quarter of 2009.[19] Oil prices nearly doubled their 2009 levels; oil prices averaged $78 per barrel in first quarter of 2010 versus $40 per barrel in 2009.[20] The year-over-year rise in oil prices has resulted from increases in energy demand as well as declines in inventory. In terms of production, the first quarter did not show significant increases in production; rather, they reflected an increase in startup projects.[21] New projects coming underway include a few deepwater Gulf of Mexico wells as well as the company’s Noel natural gas project in Canada.[22]

Exploration and production(22% of 2008 Revenues): Through its Exploration and Production segment, BP engages in the search for undeveloped oil and gas reservoirs, the development of reservoirs, and the production and transportation of oil and natural gas from developed wells.[23] BP’s upstream activities include the exploration and extraction of crude oil and natural gas from wells in eight different countries.[24] In 2008, the company completed nine major production projects. On December 31, 2008, production began at four wells in BP’s Thunder Horse field, the world’s largest semi-submersible oil platform in terms of reserves, with production capacity around 200,000 barrels of oil equivalent per day.[25] BP processes and transports the extracted crude oil and natural gas through a series of pipeline networks, processing facilities and terminals, and LNG facilities.[26]

High energy prices and increased production resulted in record profits for BP in 2008. Profit before tax and interest was $37.9 billion, 39% higher when compared to annual profit for 2007. BP’s 2008 profits were higher primarily because of rising oil prices, which peaked at $147 per barrel in July 2008.[27] For BP, the average prices of crude oil and natural gas liquids in 2008 respectively increased 30.8% and 8.5% when compared to average prices in 2007.[28] Production of natural gas and oil increased 5% and also contributed to 2008 profits.[29] Production in 2008 totaled 3,838 million of barrels of oil equivalent per day. [30]

In September 2009, BP announced the discovery of a deepwater oil field in the Gulf of Mexico. The oil field, which is capable of holding 3 billion barrels of oil equivalent, is 4,000 feet below water.[31][32] Putting the oil from this discovery on the market has the potential of taking up to 10 years.

In December 2009, BP sold its interest in Kazakhstan’s Tengiz oil field and pipeline carrying oil between Kazakhstan and Russia for $1.6 billion to Lukoil.[33]

In March 2010, BP announced the closing of a deal with Devon Energy that consisted of exchanges in cash and assets held by the companies. For $7 billion in cash, BP acquires some of Devon Energy‘s assets in Brazil, Azerbaijan and the US deepwater Gulf of Mexico.[34]

In addition, Devon Energy acquires a 50 per cent stake in BP’s Kirby oil sands interests in Alberta, Canada, for $500 million.[35] The deal makes BP’s Kirby interest a 50/50 joint venture with Devon as the operator. From these transactions, both companies acquire interests in areas they specialize in.

BP acquires several new deepwater oil and gas projects while Devon, whose 2010 strategy has been to focus on land-based oil and gas, increases its oil sands assets.[36]

In April 2010, BP announced that it will temporarily cut production at its Thunder Horse platform due to maintenance on its undersea manifolds.[37] Production at the Thunder Horse platform, which is capable of producing 250,000 barrels of oil per day, is going to be cut in half during the maintenance.[38] The temporary cut in production is expected to reduce annual production by 10,000 BOE/day.[39] The maintenance was expected, and BP has accounted for the reduction in production in their 2010 projections.[40]

Refining and Marketing( 78% of 2008 Revenues): BP’s Refining and Marketing operations include the processing of crude oil into refined petroleum products and the sale of those products to wholesalers and retailers located in over 100 countries around the world. In 2008, the Refining and Marketing segment was reorganized into the fuels value chains (FVCs) and international businesses (IBs) groups.[41] The FVCs integrate the activities of refining, logistics, marketing, supply and trading, on a regional basis.[42] The IBs include the manufacturing, supply and marketing of lubricants, petrochemicals, liquefied petroleum gas (LPG) and aviation and marine fuels.[43] In total, BP operates 17 refineries worldwide with total throughput capacity of 2,155 million barrels per day.[44] As of December 31, 2008, BP’s worldwide retail network consisted of 22,600 stations branded BP, Amoco, ARCO and Aral.[45]

In 2008, crude oil prices had a significant effect on the profits BP made from processing and selling petroleum products like diesel and gasoline.[46] While revenue increased 27.7% in 2008, BP had a net loss of $1.9 billion for 2008,compared to a net profit of $6.1 billion in 2007.[47] Rising crude prices in the first half of 2008 cut the price differential between the selling price of refined petroleum products and the cost of making those products and lead to BP’s net loss in 2008.[48] BP’s profitability was also negatively effected by the declining value of BP’s inventories when gasoline prices dropped in the second half of 2008.

BP Alternative Energy: In 2008, BP created BP Alternative Energy, a separate company that focuses on low-carbon energy sources.[49] In 2008, BP invested $1.4 billion in BP Alternative Energy as part of BP’s commitment to spend $8 billion between 2005 and 2015 on the development of alternative energy sources like wind, solar, biofuels, and carbon capture and storage systems.[50] In 2008, BP’s solar capacity declined by 15 megawattts.[51] On the other hand, wind energy capacity increased 251% due to increased investments in the construction of wind farms and turbines.[52] In May 2009, BP’s chief executive Tony Hayward said that solar power remains an inefficient source of energy compared to crude oil and natural gas.[53] BP has been closing factories around the world, and announced a cut in its investment in alternative energies from $1.4bn in 2008 to $1bn in 2009.[54] In 2009, BP solar began using sub-contractors in China to manufacture its solar products. Outsourcing manufacturing has given BP the capacity to produce about double 2008 output.[55] However, BP Alternative Energy’s production of energy and profits have the potential of declining in 2009 when compared to 2008 as a result of weak demand for alternative energy sources, such as solar power.[56]

Although a separate company, BP Alternative Energy reports its earnings to BP’s other businesses and corporate segment.[57] Revenue for 2008 was $5 billion, compared to $3 billion in 2007. However, BP’s alternative energy operations had a net loss of $1,258 million in 2008 and $1,233 million in 2007.[58]

in August 2009, BP formed a joint venture with Martek Biosciences (MATK) in order to develop biofuels out of sugars.[59] While Martek Biosciences (MATK) has developed the technology to convert sugars into fuel, the joint venture seeks to build that technology for use on a large scale.[60]

According to BP’s management, the year-over-year improvement in 2009 may not be repeatale in 2010.[78] Increased production volumes, improved oil prices and stronger cost controls were the reasons behind 2009’s earning results.

BP finds potentially 3 billion barrels of oil in the Gulf of Mexico, but is it worth drilling?

In September 2009, BP announced the discovery of a field in the Gulf of Mexico that potentially holds more than 3 billion barrels of oil equivalent.[81] However, the oil, which is located under 4,000 feet of water and another 35,000 feet of sea bed, is hard to extract at a profit. Oil located in the Gulf’s lower tertiary requires extremely advanced, and expensive technology. To drill each well costs about $200 million and also requires deepwater pipelines and floating facilities.[82] As a result, the deepwater find has the potential of being unprofitable unless oil prices rise or new technology reduces the costs of drilling.[83] Despite the potential costs, many Western oil companies have begun exploring deepwater regions in order to expand their oil sources.[84] Many countries like Saudi Arabia, Venezuela, and potentially Brazil are nationalizing oil production, which has left oil majors like BP with few places to explore and drill.[85]

Through joint ventures, BP enters the oilsands production market

In 2009 and 2010, BP inked several deals with oilsand production companies that have the potential of increasing BP’s exposure to that type of production. Since March 2010, the deals struck by BP have typically followed a “combination” approach, which basically slice the management of particular asset between the two companies while allowing both to receive revenue from them.[86] The result of these deals make it possible for both companies to retain a portfolio of assets without requiring that they have to run all of the assets. BP announced in March 2010 a $7 billion dollar deal with Devon Canada Corporation.[87] The two companies agreed to work together on the Kirby oilsands lease south of Fort McMurray, Alta. However, Devon is designated as the project´s operator. From the deal, Devon’s share of the oilsands production market as well as the size of BP’s offshore production operations have the potential of expanding.[88] BP has made similar deals involving oilsands production. In 2007, BP and Husky Energy Inc. struck a deal evenly splitting the ownership of BP´s refineries in the United States and Husky´s oilsands leases. However, each company would operate their own side of the venture. In March 2010, BP agreed to make capital contributions to Value Creation Inc., a privately held production company, in exchange for an operating stake in Value Creation’s oilsand’s leases.[89]

BP’s profits fall 57% in first half of 2009, business strategy becomes “Simplicity and Efficiency”

BP’s net profit after taxes for the first quarter of 2009 was $2.38 billion, down 62% from the first quarter of 2008.[90] The decline in BP’s profits is primarily the result of the low price of oil. Averaging $43 per barrel in the first quarter of 2009, oil prices were 56% lower in the first quarter of 2009 when compared to prices for the first quarter of 2008.[91] Lower prices had such a strong effect on BP’s net profits because the price of oil affects BP in two ways.[92] Lower oil prices reduce both the profit BP receives from the sale of its oil products and the value of its oil inventories. Oil majors like BP have have not had to cut capital spending as severely as independent refiners and producers. However, BP funded its first quarter 2009 capital expenditures by drawing from fund investments or dividends, and the first quarterly profits of 2009 barely covered BP’s dividend payments according to the Financial Times.[93]

For BP, second quarter profits declined 53% from profits for the second quarter 2008. Profits from exploration and production operations fell 53% too as a result of lower earnings from its equity-accounted entities like TNK-BP.[94] However, year-over-year production increased 4% for the quarter due to the completion of offshore projects in the first quarter of 2009.[95] Within BP’s Fuels Value Chains, refining margins in the first half of 2009 decreased when compared to refining margins in the first half of 2008.[96] BP’s refining margins were lower than the global average due to BP’s highly upgraded facilities, which were negatively impacted by a narrow light-heavy crude spread.[97]

In an effort to offset declining profits, BP has reduced capital spending for 2009 and taken additional measures to cut operating costs. Through numerous layoffs and cuts in capital expenditures, BP has the potential of reducing annual costs from $32 billion in 2007 to $28 billion in 2009.[98] According to BP’s chief executive Tony Hayward, BP’s cost reductions in the first quarter of 2009 reflect the company’s, “continued focus on simplification and efficiency.”[99] The completion of the expensive Thunder Horse Platform in early 2009 is capable of reducing costs in the remaining quarters of 2009 as well.[100]

For the third quarter of 2009, BP reported profits that were 34% lower than for the same quarter in 2008.[101] Although its profit slipped in 2009, BP’s ability to reduce costs across its operations improved its profitability.[102] Restructuring and increases in efficiency accounted for almost half of the cost cuts in the third quarter.[103] The remaining cost reductions came from foreign currency effects and lower energy costs.[104] As a result of these efforts, the costs associated with producing oil and gas fell 18% during the quarter, BP experienced positive cash flow, and net debt fell $800 million from the second quarter.[105] In June 2009, BP predicted that its overall cost cuts had the potential of reaching $3 billion in 2009. Given the Company’s success at reducing costs in the third quarter, BP is predicting that cuts have the potential of reaching $4 billion by the end of 2009.[106]

To reduce costs, BP restructures its alternative energy operations,and plans for biofuel rebound

Between 2005 and 2015, BP plans to spend $8 billion in developing energy from wind turbines, solar cells, biofuels, and carbon capture systems.[107] Through these investments in cleaner forms of energy, BP has the potential of financially benefiting from U.S. Government mandates for cleaner fuel. BP began restructuring its solar operations in 2009 as part of the company’s plan to reduce operating costs and make solar power an economically competitive form of energy.

In order to combat solar cell prices that have been falling since the fourth quarter of 2008, BP Solar has outlined plans that have to potential restructure how the company manufactures its solar product as well lower overall production costs in 2009.[108] BP Solar plans to close its cell manufacture and module assembly facilities in Frederick, Maryland and Madrid, Spain.[109] Despite these planned reductions, BP’s global manufacturing capacity has the potential to increase in 2009 and 2010 due to manufacturing contracts that BP Solar signed in 2008 to supplement its own manufacturing capacity.[110] In 2009 BP Solar has the raw material resources and capacity to produce and sell 320MW in modules, a 100% increase from 2008.[111]

Despite it efforts to reduce solar costs and increase its biofuel capacity, BP has begun to reduce spending on its alternative energy operations.[117] In July 2009, BP closed its BP Alternative Energy office in London. Additionally, CEO Tony Hayward said in July that BP’s strategy in 2009 focuses on its oil and gas operations rather than its wind, solar, and biofuel operations.[118] Hayward said that BP’s shift away from alternative energy is a result to rising costs and declining profits in the alternative energy industry. In the first quarter of 2009, BP Alternative Energy provides less than 1 per cent of BP’s revenues and none of its profit.[119]

Of BP’s assets, 41% are located in the US and 20% in Europe. [123] While its refining operations are located almost completely in the U.S. and Europe, BP’s has exploration and production operations are located in 29 countries.[124] Major development projects are located in the Gulf of Mexico, Azerbaijan, Algeria, Angola, and parts of Pacific Asia.[125] Although BP’s expanding global reach is capable of increasing its production capabilities, political instability in many of these countries has the potential of damaging or destroying BP’s operations. The company believes its operations most exposed to political risk are located in Iran, Cuba, Syria, and Russia.[126]




Stock:BP (BP)

British Petroleum has won permission to start burning oil and gas piped up from …. Crude Oil Production (Thousand barrels per day), 2562, 2475, 2414, 2401, 2535 On December 31, 2008, production began at four wells in BP’s Thunder with production capacity around 200000 barrels of oil equivalent per day.
http://www.wikinvest.com/stock/BP_(BP)12 hours ago


(Excerpts from above article on BP at wikinvest)

Of BP’s assets, 41% are located in the US and 20% in Europe. [123] While its refining operations are located almost completely in the U.S. and Europe, BP’s has exploration and production operations are located in 29 countries.[124] Major development projects are located in the Gulf of Mexico, Azerbaijan, Algeria, Angola, and parts of Pacific Asia.[125] Although BP’s expanding global reach is capable of increasing its production capabilities, political instability in many of these countries has the potential of damaging or destroying BP’s operations. The company believes its operations most exposed to political risk are located in Iran, Cuba, Syria, and Russia.[126]

In September 2009, BP announced the discovery of a deepwater oil field in the Gulf of Mexico. The oil field, which is capable of holding 3 billion barrels of oil equivalent, is 4,000 feet below water.[31] Putting the oil from this discovery on the market has the potential of taking up to 10 years.[32]

Despite it efforts to reduce solar costs and increase its biofuel capacity, BP has begun to reduce spending on its alternative energy operations.[117] In July 2009, BP closed its BP Alternative Energy office in London. Additionally, CEO Tony Hayward said in July that BP’s strategy in 2009 focuses on its oil and gas operations rather than its wind, solar, and biofuel operations.[118] Hayward said that BP’s shift away from alternative energy is a result to rising costs and declining profits in the alternative energy industry. In the first quarter of 2009, BP Alternative Energy provides less than 1 per cent of BP’s revenues and none of its profit.[119]


My Note –

Google search for this – one of the comments I heard today in the energy hearings was that from BP man which stated the second boat is coming which will burn off the oil being recovered which didn’t make any sense to me until I saw the above sentence in the wiki invest listing on google – so I’m looking for this now –

British Petroleum has won permission to start burning oil and gas piped up from

BP can start burning oil, gas piped up from broken well to slow

Jun 15, 2010 BP won permission to start burning oil and gas piped up from its broken BP has collected 5.6 million gallons of oil through its latest
www.startribune.com/business/96366054.html20 hours ago

(from the Google News section – )

Setback as BP starts burning oil

The Press Association – 12 hours ago
BP has been given permission to start burning oil and gas piped up from its broken sea floor well as part of a pledge to triple the amount of crude it stop


Setback as BP starts burning oil

(UKPA) – 12 hours ago

BP has been given permission to start burning oil and gas piped up from its broken sea floor well as part of a pledge to triple the amount of crude it stops from spewing into the Gulf of Mexico.

But it suffered a setback on Tuesday when a bolt of lightning struck the the Discoverer Enterprise, the ship capturing oil from the blown-out well, and ignited a fire that halted containment efforts.

The fire was quickly extinguished and no one was injured, and BP said it hoped to resume containing oil from the well.

Federal authorities gave permission late on Monday for BP to use a new method that involves pumping oil from the broken well head to a special ship on the surface, where it would be burned off rather than collected. It hopes to trap as much as 2.2 million gallons of oil daily by the end of the month as it deploys additional containment equipment, including the flaring system.

The plan, unveiled after the US federal government pressed BP to work faster on containing the gusher, came as President Barack Obama paid his fourth visit to the stricken Gulf. He promised residents that life would return to normal after the worst oil spill in US history, which has disrupted fishing and tourism and spoiled ecologically-rich estuaries.




CORRECT:BP:No Estimate On When Q4000 Containment Ship Will Start Working

(“BP: No Estimate On When Q4000 Containment Ship Will Start Working,” published at 18:28 EDT, misstated the first name of a BP spokesman. The correct version follows.)

HOUSTON -(Dow Jones)- BP PLC (BP, BP.LN) said Tuesday that the Q4000 hasn’t begun collecting oil from the broken Macondo well in the U.S. Gulf of Mexico.

The ship was designed to add 5,000 to 10,000 barrels a day of extra capacity to BP’s containment system and was supposed to be connected Monday and ramp up on Tuesday, according to the federal officials.

The ship continues to “ramp up,” BP spokesman Toby Odone said Tuesday afternoon. There is no estimate on when it will be fully operational, he said.

This news comes on the same day BP announced that a small fire halted the Discoverer Enterprise’s containment efforts for nearly five hours. In a typical 12-hour period the Discoverer Enterprise captures about 7,500 barrels of oil. Later in the summer, BP plans to disconnect the Discoverer Enterprise and Q4000 and bring in ships that have more capacity and that can withstand harsher sea conditions.

Also on Tuesday, a team of federal and independent scientists increased its estimate on how much oil is spewing from the well.

The flow rate is likely between 35,000 to 60,000 barrels of oil a day. Last week, the team put the rate at 20,000 to 40,000 barrels of oil a day.

Wednesday, 16 June 2010 – 02:10
-By Susan Daker, Dow Jones Newswires, 713-547-9208; susan.daker@dowjones.com


According to BP Statistical Review 2006:

  • 1 barrel equals 42 US gallons
  • 1 BPD = 42/24/60 = .0292 GPM
  • 1 GPM = 34.29 BPD
  • 1 barrel equals 158.984 Litres
  • The approximate conversion for BPD to tonnes/year is 49.8, so 100,000 BPD equals around 4,980,000 tonnes per year.



My Note –

So, I had read a comment on an article in the last hour that said there is no way a well could put out 60,000 barrels per day. But, I think somewhere I saw a well that was considered to be hardly producing at 200,000 barrels per day (by the oil industry judgment) and the oil companies during the energy hearings yesterday were described as having plans for oil spill response and mitigation that concerned 250,000 barrels a day and 150,000 barrels a day – which obviously they would fail to mitigate considering these are the same plans in use by BP today that isn’t working. However, that means the expectations are for massive spills of hundreds of thousands of barrels of oil a day. And, they are expecting to burn it off rather than to claim it.

And, the oil field in question (Macondo in the Gulf of Mexico) contains at least 3 billion barrels of oil –

Oh, damn.

And, I still don’t see how these oil companies’ trade associations and CEOs have none of the ideas, products, systems and concepts included in the massive number of suggestions offered and numerous products available that could be included in the spill response plans? How could they still be getting none of that – not one damn bit?

– cricketdiane


BP tests way to capture more crude

By JENNIFER LATSON Copyright 2010 Houston Chronicle

June 15, 2010, 7:44PM

BP performed final tests Tuesday on a system for collecting more oil from its blown-out well, hoping to further limit a disaster that the government now says is spilling up to 60,000 barrels of oil a day into the Gulf of Mexico.

Since early this month, BP has been collecting around 15,000 barrels a day from a cap over the wellhead and a pipeline to the drillship Discoverer Enterprise on the Gulf’s surface.

But that’s less than half of the 35,000-60,000 barrels per day a government-organized panel of scientists now says is flowing from the Macondo well, which has been spewing crude into the Gulf since the April 20 blowout destroyed the Deepwater Horizon drilling rig and killed 11 workers.

At 42 gallons in a barrel, the top of the new range is more than 2.5 million gallons a day.

( . . . )

10,000 more barrels a day

Engineers were putting the finishing touches on a new containment system they believe will collect an additional 10,000 barrels per day.

The Q4000 Direct Connect, as the new system is called, is a reconfiguration of equipment used in a failed earlier attempt to plug the well by pumping in heavy drilling mud. Now used in reverse, as a kind of vacuum, that equipment is expected to siphon oil to the Q4000, a multipurpose vessel on the surface. There the oil and natural gas will be separated and burned, since the Q4000 cannot store or process crude.

“We’ve received the approvals to go ahead,” BP spokesman Robert Wine said Tuesday afternoon. “We’re just doing final checks.”

Burning the oil

BP officials say they plan to burn the oil for four to six weeks, after which they expect to switch to floating platforms and shuttle tankers that can collect and store more oil.

The tankers, en route to the Gulf from the North Sea, are more durable and would be able to disconnect more easily in a hurricane.

In the interim, BP is bringing in a second drillship, the Transocean-owned Discoverer Clear Leader, to siphon an additional 10,000 barrels of oil per day from the well.




My Note –

I’m doing a google search from something I read – for

pre-test expectations Macondo

(I added Macondo – so maybe they had an idea what it would produce ahead of time? Probably.)

Found something interesting – not what I was looking to find – this well is 140 miles southeast of Louisiana in the Gulf of Mexico – it shows how they set up the underwater subsea systems to recover the oil – from very expensive toys on the seabed –

Mensa, Gulf of Mexico, USA

Mensa is located 140 miles south-east of New Orleans and encompasses Mississippi Canyon blocks 686, 687, 730 and 731. The water is approximately 5,300ft deep.


The discovery well was drilled using Sonat’s drillship, Discoverer Seven Seas. One delineation well has been drilled and two remaining production wells are also planned. They will be drilled by the Transocean semisubmersible, George Richardson.


The target reserves are in the Upper Miocene ‘1’ sand, at a depth of approximately 15,500ft. The average net thickness is approximately 100ft. Ultimate recovery from the field is estimated at 720 billion ft³ of natural gas.

The first Mensa well produced approximately 108 million ft³ of gas per day. A peak production rate of 300 million ft³ of gas per day was achieved in the second quarter of 1998.


The subsea system consists of three wells, connected to a subsea manifold five miles away, which is in turn tied back via a 68-mile 12in flowline, to the shallow-water platform West Delta 143. This is the longest tieback in the world, beating the previous record of 30 miles, established by the Troll Oseberg Gas Injection Project, in the Norwegian sector of the North Sea.


The manifold/template base has four well-receiver slots and eight utility service slots, including hydraulic umbilicals, glycol injection and hydrate remediation.

The template base is located on the seafloor. It is not connected by piling to the seafloor, but relies on its mass for stability. It has a diameter of 94ft, is 12.5ft tall and weighs about 200t.

The manifold sits on the template base. This is a separate assembly, which can be recovered independently of the template. It has a diameter of 16ft, is 16ft tall and weighs about 50t.


The EDS is located near the subsea manifold. It takes electrical power and communications signals from the platform at West Delta 143, amplifies the signal (which decreases over the 63 miles from the platform to the EDS site), and distributes it to each of the subsea wells, five miles away.


The three subsea trees provide the interface between the wellheads and the infield flowlines. The trees are of a 10,000psi composite block guidelineless design, with a vertical-flow piping connection mandrel for mating with the well jumper.


The flowlines transport the gas from the wells to the manifold, then on to the platform at West Delta 143. The three infield 6in flowlines are five miles long. They are made of carbon steel pipe and connected to the manifold with a stab and hingeover termination, and to the tree via a laydown sled and rigid jumper.

The 12in interfield flowline is 63 miles long, made of carbon steel pipe and is connected to the manifold via a sled and jumper. It is connected to the West Delta 143 platform via risers.


The hydraulic umbilicals are constructed of carbon steel, with zinc coating. They supply the hydraulic fluid and chemical injection (glycol).

There are three seven-line, five-mile infield hydraulic umbilicals and one three-line, 63-mile interfield hydraulic umbilical.

The electrical umbilicals are double-armoured cable and transmit electrical power and signals between the master control station on the West Delta 143 platform and the electrical distribution structure. There are three five-mile, infield electrical umbilicals and one 63-mile interfield electrical umbilical.

The 3in glycol supply line supplies glycol to the subsea manifold, where it is distributed to the various wells.


Located on West Delta 143, this computer-based system monitors operational status of wells and other subsea equipment and has the capability to open and close the wells.

Expand Image Expand Image
Location map. Mensa is located 140 miles south-east of New Orleans and encompasses the Mississippi Canyon blocks 686, 687, 730 and 731.

Expand Image Expand Image
Mensa Schematic. When it came on stream in July 1997, Mensa was the deepest production well in the world although this has since been superseded by Marlim Sul.

Expand Image Expand Image
A subsea development schematic.

Expand Image Expand Image
The subsea production manifold.

Expand Image Expand Image
Schematic of the subsea tree. The three subsea trees provide the interface between the wellheads and the infield flowlines.

Expand Image Expand Image
The Mensa subsea production system and the subsea tree.




The development of the Telemark area through the installation of the floating drilling and production platform spar was finalised in 2007. The spar is a multi-column, deep draft platform designed to have a capacity of 25 million barrels per day of oil

The Telemark Hub is a deepwater offshore project in the Gulf of Mexico. It is owned and operated by ATP Oil & Gas. The project involves three fields – Mirage, Morgus and Telemark.

The Mirage field is located in Mississippi Canyon (MC) block 941 at a water depth of 3,800ft. It was discovered in 1998. The Morgus Field is located at a water depth of 4,304ft of water at MC block 942. Both the adjoining fields were developed together. The third field, Telemark, is situated in Atwater Valley block 63 at a water depth of 4,450ft in the US Gulf of Mexico.



My Note –

Do you know that Representative Markey in the hearings held yesterday in the Energy Subcommittee said that 141 wells producing in the Gulf of Mexico for the five oil companies on the panel were paying ZERO in royalties – they are getting the oil from our nation’s natural resources for free? How did that happen?

It was stated that is something like $50 Billion dollars in royalties that would have been paid otherwise and not noted at what percentage that would be – but they are getting the oil for FREE – for NO Royalties. That is definitely criminal for every single person who approved it being that way. That is against all national policies of using our national resources for corporate profits. It cheated the states, it stole from our national treasury, it thieved those resources from the American people and cheated the American people who consummately and collectively own those resources.

– cricketdiane


From May 4, 2010 “OilGram”

The Loop current that flows through the
Gulf of Mexico is not likely to move toward
the Macondo oil spill, a top scientist for the
National Oceanic and Atmospheric Administration
said Tuesday.

Charlie Henry, NOAA’s
oil spill expert and also the agency’s support
site coordinator with the US Coast
Guard, said he does not expect the roughly
5,000 b/d of oil leaking from the BP-operated
Macondo well to enter the current, which
is the chief way that water moves through
the US Gulf. The Loop current travels south
of Macondo, located at Mississippi Canyon
Block 252, and “we don’t believe the current
will move up,” Henry said. Henry said
this time of year is near to the period when
“strong” northern cold fronts appear with
extended winds. That “reduces the potential
to connect with the Loop current,” he said.



16.11.2009 Analysis: Eni Exploration Pays Off Eni is the national oil company (NOC) of Italy. The Italian Government owns a 30% share in the company, of which 20% is held through the state treasury and 10% is held through the Cassa depositi e prestiti.

(excerpt from what they are taking from the Gulf of Mexico – )

Two contracts are due to start before the end of the year. Eni will start drilling in the GOM with Transocean’s Marianas semisubmersible Dec. 2, 2009. The NOC has contracted the rig for two years at $565,000/day. The Marianas is currently working at the Macondo Field at Mississippi Canyon Block 252 No. 1 for BP at $446,000/day.

Eni will drill off Pakistan with Vantage Energy Services’ Aquamarine Driller jackup starting on Dec. 11, 2009 through Jan. 31, 2010. The rig is currently ready stacked.

Just two weeks later, Eni will start the $650,000/day contract for Transocean’s Deepwater Pathfinder. The drillship will drill for Eni in the Gulf Of Mexico until Feb. 3, 2015.

In February 2009, Eni reported that the ENSCO 8500 semisubmersible made a discovery in the GOM. The exploration well Heidelberg-1 is in Green Canyon Block 859. The well was drilled in 5,340 ft of water and drilled down to 30,062 ft. It encountered more than 200 ft of net hydrocarbon-bearing sand.

Eni also started production from a number of fields in 2009. Production at Thunder Hawk in Mississippi Canyon Block 734 in the Gulf Of Mexico started in July. The field was discovered in 2004 and has been developed through three subsea wells tied back to a semisubmersible production unit with production capacity of 45,000 b/d and 70 MMcf/d.



My Note –

So, they are giving our oil away to countries and corporations without any regard for our national interests? No royalties? No return on what belongs to the American people and the treasuries of states throughout the Gulf Coast and the United States? What kind of moron created that energy strategy?

They’ve literally given away Trillions of Dollars in Resources and energy resources? Why did they do that?

– cricketdiane


US appeals Anadarko royalty case

The US Justice Department has asked the Supreme Court to overturn a legal decision between the Interior Department and US independent Anadarko Petroleum that, if allowed to stand, could cost the government billions of dollars in lost oil royalties from energy companies.

Upstream staff 14 July 2009 19:36 GMT

Justice, on behalf of the Interior Department, is fighting a lower court’s ruling that said Anadarko did not have to pay about $350 million in royalties for drilling on federal leases in the US Gulf issued between 1996 and 2000.

If the ruling stands in Anadarko’s favor, other energy companies could avoid paying drilling fees that “will likely cost the United States at least $19 billion in forgone or refunded royalties,” the Justice Department said in its filing to the Supreme Court.

The department said the lower court’s interpretation of the royalty relief law was “flatly wrong” and that the amount of money at stake makes the case worthy of review by the Supreme Court, according to a Reuters report.

The Supreme Court’s justices are not expected to decide whether to hear the case until they return in early October from their summer recess.

The dispute centers on financial incentives Congress gave energy companies in the 1990s when oil prices fell to $10 a barrel.

To make drilling in the deeper waters of the US Gulf more profitable, royalties were waived on initial oil and natural gas production.

The Interior Department sought to end that royalty relief if oil and gas prices increased significantly, which they did.

US independent Kerr-McGee, which was bought by Anadarko in 2006, sued the department, arguing it did not have the authority to take away the royalty relief provided by Congress.

The company won in the initial trial and on appeal.

Anadarko has said the clear intent of Congress was “to assure that companies were afforded the royalty treatment it granted as encouragement to make huge investments in the deep-water Gulf of Mexico frontier.”

Published: 14 July 2009 19:36 GMT  | Last updated: 14 July 2009 19:36 GMT



My Note –

Was the judge who made the decision on this case taking money from the oil industry as many have been across the Gulf States and federal courts?

– cricketdiane


Vito wildcat pays off big in the US Gulf

US independent Anadarko Petroleum hit more than 250 net feet of oil pay in the Miocene sands at the Vito exploration well in Mississippi Canyon block 984.

Upstream staff 29 July 2009 20:53 GMT

“We are very excited with the initial results encountered at the Vito well,” Anadarko executive Bob Daniels said in a release.

“We expect to drill two additional prospects that are targeting similar sub-salt Miocene objective sections along this trend at our Silverado and Haleakala prospects in Mississippi Canyon in 2010. In the meantime, the partners will continue evaluating the data from Vito and the timing of an appraisal well.”

The Vito well was drilled to a total depth of about 32,000 feet (9754 metres) in 4038 feet of water, using the Noble Amos Runner deepwater drilling rig.

Once it wraps up at Vito, Anadarko plans to move the rig to drill at Caesar/Tonga in the Green Canyon area.

Anadarko operates the Vito well with a 20% working interest.

Co-owners include Anglo-Dutch supermajor Shell with a 55% working interest and Norwegian state-run StatoilHydro with a 25% working interest.

Shell will assume operatorship of Vito after rig release on the current well.

A map of the Vito discovery and surrounding area will be available under the “Media Center/Anadarko News” tab here.

Published: 29 July 2009 20:53 GMT  | Last updated: 29 July 2009 20:53 GMT



Chris Oynes

From Wikipedia, the free encyclopedia

Chris Oynes was the U.S. Minerals Management Service (MMS) associate director for offshore energy and minerals management before he retired in May 2010. Oynes, who oversaw oil and gas leasing in the Gulf of Mexico for 12 years before being promoted to MMS associate director had come under fire for being too close to the industry officials he regulated.[1][2]

During his tenure at the Gulf regional office in Louisiana for the MMS, Oynes played a central role in an offshore leasing foul-up that cost taxpayers an estimated $10 billion in lost revenue. The Interior Department‘s inspector general called the matter “a jaw-dropping example of bureaucratic bungling.” Despite that, the agency’s then-director, Johnnie Burton,[3] promoted Oynes in 2007 to associate director for the offshore program.[4]

On May 24, 2010 the New York Times reported that under his watch in the Gulf, MMS regulators allowed industry officials to fill in their own inspection reports in pencil and then turned them over to the regulators, who traced over them in pen before submitting the reports to the agency. MMS staff also routinely accepted meals, tickets to sporting events and gifts from oil companies.[5]


  1. ^ [1]
  2. ^ [2]
  3. ^ Chris Oynes Named Associate Director of the MMS Offshore Program, February 5, 2007
  4. ^ Federal oversight of oil industry is broken: An editorial (The Times-Picayune, May 16, 2010)
  5. ^ Inspector General Faults Minerals Management Service (New York Times, May 24, 2010)



Lynn Scarlett

From Wikipedia, the free encyclopedia

Deputy Interior Secretary Lynn Scarlett

P. Lynn Scarlett was the Deputy Secretary of the Interior from 2005 to 2009.

Appointed by President George W. Bush, Scarlett was sworn in as Deputy Secretary of the Interior on November 22, 2005. In 2006 she served as acting Secretary of the Interior between the administrations of Gale Norton and Dirk Kempthorne.

Before joining the Bush Administration, Scarlett was President of the libertarian Reason Foundation in Los Angeles, California, an organization she had been involved with since the 1980s. Scarlett is a leading exponent of free-market environmentalism.


George W. Bush Administration personnel

United States Department of the Interior officials

On March 16, 2006, Kempthorne was nominated by President George W. Bush to replace Gale Norton as the 49th Secretary of the Interior. On May 10, 2006, Kempthorne’s nomination was approved by voice vote by the United States Senate Committee on Energy and Natural Resources.

Upon Kempthorne’s appointment as Secretary of the Interior, environmental groups characterized him as someone who has “almost always favored changing laws like the Endangered Species Act and the Safe Drinking Water Act to make them more favorable to commercial interests.”[2]

In December 2007, as a result of a long-term investigation and resignation of former Deputy Assistant Secretary Julie MacDonald, Inspector General Earl Devaney found “abrupt and abrasive, if not abusive” management[8] at the department under Kempthorne’s supervision. U.S. Senator Ron Wyden, chairman of the Senate Subcommittee on Public Lands and Forests, attributed the “untold waste of hundreds of thousands of taxpayers’ dollars” to MacDonald’s actions.[9] Of the department, Representative Nick J. Rahall II, chairman of the House Natural Resources said “The results of this investigation paint a picture of something akin to a secret society residing within the Interior Department that was colluding to undermine the protection of endangered wildlife and covering for one another’s misdeeds.”[10]

In September 2008, Devaney reported wrongdoing by current and former employees of the Minerals Management Service, an agency under Kempthorne’s administration that collects about $10 billion in oil and gas royalties annually, and one of the government’s largest sources of revenue other than taxes. According to the New York Times, “Eight officials in the royalty program accepted gifts from energy companies whose value exceeded limits set by ethics rules—including golf, ski and paintball outings; meals and drinks; and tickets to a Toby Keith concert, a Houston Texans football game and a Colorado Rockies baseball game…. The investigation also concluded that several of the officials “frequently consumed alcohol at industry functions, had used cocaine and marijuana, and had sexual relationships with oil and gas company representatives.” The New York Times reports a whistle blower officially complained about the wrongdoings in the spring of 2006, prior to Kempthorne’s being sworn into the office.[11]

On December 16, 2008, the Center for Biological Diversity announced intent to sue the Interior Department under Kempthorne for introducing “regulations… that would eviscerate our nation’s most successful wildlife law by exempting thousands of federal activities, including those that generate greenhouse gases, from review under the Endangered Species Act.” The lawsuit, which is critical of policy advocated by Kempthorne and President George W. Bush, was filed in the Northern District of California by the CBD, Greenpeace and Defenders of Wildlife. According to the CBD, “The lawsuit argues that the regulations violate the Endangered Species Act and did not go through the required public review process. The regulations, first proposed on August 11th, were rushed by the Bush administration through an abbreviated process in which more than 300,000 comments from the public were reviewed in 2-3 weeks, and environmental impacts were analyzed in a short and cursory environmental assessment, rather than a fuller environmental impact statement.”[12]

In 2009, CNN correspondent Campbell Brown criticized Kempthorne for using “$235,000 of your money to renovate his office bathroom at the Department of Interior.” According to Brown, the costs included a shower, a refrigerator, and a freezer hidden behind lavish wood paneling, as well as “DK” monogrammed towels.[13] Donald Swain, Chief of the Interior Department’s National Business Center said the towels do not exist. He further says the project came in $10,000 under budget and was approved by the General Services Administration. [14]

  1. ^ Wyden-Requested IG Report on Interior Corruption Uncovers “Contempt for the Public Trust” and “Untold Waste” – Senator praises Devaney’s investigation into political interference in ESA decisions.
  2. ^ Report Finds Meddling in Interior Dept. Actions
  3. ^ Sex, Drug Use and Graft Cited in Interior Department
  4. ^ Bush Administration Regulations Gutting Protections for Nation’s Endangered Species Published Today – Conservation Groups’ Challenge to 11th Hour Reductions in Protections for Nation’s Wildlife Moves ForwarD



Gale Ann Norton (born March 11, 1954) served as the 48th United States Secretary of the Interior from 2001 to 2006 under President George W. Bush. She was the first woman to hold the position.

Before being named Interior Secretary in 2001, Norton was senior counsel at Brownstein, Hyatt & Farber, P.C., a Denver-based law firm. The firm was listed with the U.S. Congress as a lobbyist for NL Industries, formerly known as National Lead Company.

Norton has been associated with a number of groups in the “wise use” or “free-market environmentalist” movement, such as the Property and Environmental Research Center [2], of which she is a fellow.

In 2004, Norton was mentioned as a possible candidate for the U.S. Senate in her home state of Colorado, after the incumbent, Ben Nighthorse Campbell, decided to retire. However, she ultimately decided against it, and the seat was won by Democrat Ken Salazar.

Norton resigned as Secretary of the Interior in March 2006. She was succeeded by Idaho Governor Dirk Kempthorne.

After Norton’s resignation, she joined Royal Dutch Shell Oil company as a legal adviser in their oil-shale division, drawing further criticism from environmentalists due to her prior support for oil drilling and use of U.S. national forests.[1] On September 17, 2009 the United States Department of Justice made it known that they were investigating whether Norton used her government position to illegally benefit Royal Dutch Shell.[2]

Jack Abramoff controversy

Council of Republicans for Environmental Advocacy (CREA) was founded by Norton and Grover Norquist in the 1990s. Jack Abramoff directed his tribal casinos to donate $225,000 to CREA.[3]

In a February 2002 letter to Norton, John Doolittle complained that a Louisiana tribal casino had been wrongly shut down because the Bureau of Indian Affairs refused to recognize a newly elected tribal council. The subsequent new council hired Abramoff’s firm after the elections. In June 2003, Doolittle wrote a letter to Norton criticizing the Bush administration’s response to a tribal government dispute in Iowa. In October 2003, Doolittle appealed in a letter to Norton for quicker action for a Massachusetts tribe that was seeking federal recognition.

No evidence has been presented suggesting that mailing these letters to Norton had any impact on her or on the Department of the Interior.

Both the Iowa and Massachusetts tribes hired Abramoff’s lobbying firm, Greenberg Traurig, in that year. [4]

  1. ^ Norton will join Royal Dutch Shell – Steve McMillan, Denver Post, December 28, 2006
  2. ^ “Former Interior Secretary Gale Norton is focus of corruption probe”. Los Angeles Times. September 17, 2009. http://www.latimes.com/news/nationworld/nation/la-na-norton17-2009sep17,0,6215749.story.
  3. ^ Papers Link GOP Lawmaker, Abramoff Clients – Erica Werner, San Francisco Chronicle, January 29, 2006



George W. Bush Administration cabinet members

George W. Bush Administration personnel

Republican Liberty Caucus members






G cont.











The market failure view

Some economists believe that the market is unable to correct the negative externalities of industrial production and excessive depletion of non-renewable resources. In this view, firms receive the full benefit of creating their products in a way that generates pollutants but do not bear the full social costs of the increased pollution. They have no economic incentive to create products in a way that minimizes pollution and absent targeted environmental regulations, will continue to do so. This activity would be rational, because it would be profitable for a firm to overpollute, while letting others absorb the costs of its effects and cleanup. Regarded this way, opponents of market solutions to the problem of pollution assert that market mechanisms left to their own devices contain built-in incentives for environmental degradation. The case for free market valuation is complicated by uneven regulation, e.g. the standards set for recycling (under Resource Conservation and Recovery Act, of 1976) are more strict than the government regulation of mining (General Mining Act, 1872).

Ecological economist Robin Hahnel has enumerated what he terms the four basic defects of a market economy with respect to the environment as:[1]

  1. overexploitation of common property resources;
  2. overpollution;
  3. too little pollution cleanup; and
  4. overconsumption.

(from an argument against the opposing viewpoint which suggests that a market free of regulation will prevail upon organizations and corporations to not pollute the environment – which is why it is found on this page – on wikipedia – )


The “free market environmentaist” concept was held by the Bush administration, Republican leaders and business leaders as well and those Secretaries of the Interior that they appointed – Dirk Kempthorne and Gale Norton, included.

That has resulted in this – (among other things including the mining accidents recently that have killed dozens of mine workers and the Deepwater Horizon incident spewing over 60,000 barrels of oil a day into the Gulf of Mexico and the loss of all royalties on the oil and natural gas drilling in the Gulf of Mexico).

– my note, cricketdiane


(also from the above wikipedia entry)

Regulatory capture

Many free-market environmentalists argue that the problem of regulatory capture whereby large companies play a large role in setting regulations has created a system where things are far too biased in favor of large companies. For instance, in the United States lands that could be more valuably used for tourism are often used for resource extraction because the many disorganized tourists cannot have the same impact on government as the few organized corporations. If the land was privately held the land owner would realize that tourism would make more of a profit than logging and nature would be preserved.


Anadarko Strikes Oil at Samurai Prospect in Gulf of Mexico
Anadarko Petroleum Corp.
Wednesday, June 24, 2009

Anadarko announced a Miocene discovery at the Samurai prospect in the deepwater Gulf of Mexico in Green Canyon block 432. The discovery well, located approximately 12 miles north of the Marco Polo platform, encountered more than 120 feet of net oil pay in several high-quality sands.

“Samurai marks our third discovery in the deepwater Gulf of Mexico this year,” said Bob Daniels, Anadarko Sr. Vice President, Worldwide Exploration. “We are very pleased with the results of this initial well, which is located in close proximity to existing infrastructure, demonstrating the value of our hub-and-spoke approach. We look forward to drilling a sidetrack appraisal well within the next year. The continued success of our worldwide exploration program reinforces our expectations of discovering approximately 350 million BOE (barrels of oil equivalent) of net resources in 2009, which is a 50-percent increase from the expectations we communicated at our investor conference in March of this year.”

Samurai was drilled using the Belford Dolphin drillship. The well is located in approximately 3,400 feet of water and was drilled to a depth of about 31,700 feet. Anadarko operates the block with a 33.33-percent working interest. Partners in the discovery include Murphy Oil Corporation and Samson Offshore Co., each with a 33.3-percent working interest.

In addition to the exploration activities described above, Anadarko announced that it has expanded its commodity derivative program. The company entered into additional fixed-price natural gas swaps for June, July and August 2009 and also increased its 2010 derivative positions for both crude oil and natural gas through costless, three-way collars.



3 Gulf Research Institutions to Receive First Round of $500MM Funding
BP plc
Tuesday, June 15, 2010

BP announced significant progress in its half-billion dollar pledge to the Gulf of Mexico Research Initiative (GRI). Three research institutions in the Gulf region will receive a total of $25 million in fast-track funding for high-priority studies of the distribution, composition and ecological interactions of oil and dispersant.

On May 24 BP announced a commitment of up to $500 million to the GRI open research program to study the impact of the Deepwater Horizon incident, and its associated response, on the environment and public health in the Gulf of Mexico.

“It is vitally important that research start immediately into the oil and dispersant’s impact, and that the findings are shared fully and openly,” said BP chief executive Tony Hayward. “We support the independence of these institutions and projects, and hope that the funding will have a significant positive effect on scientists’ understanding of the impact of the spill.”

Three initial studies will help establish critical baseline data as the foundation for subsequent research. In this first round of funding, GRI is providing:

  • $5 million to Louisiana State University;
  • $10 million to the Florida Institute of Oceanography (FIO) hosted by the University of South Florida;
  • $10 million to the Northern Gulf Institute (NGI), a consortium led by Mississippi State University (NGI).

The $5 million to LSU is part of GRI’s commitment to provide $10 million over 10 years to the university. This was announced by GRI at its launch on May 24, 2010. This funding is in recognition of LSU’s significant experience in dealing with the oil and gas industry, and its deep multi-disciplinary knowledge of the Gulf of Mexico and the Gulf region.

“Being selected to receive funds from BP to conduct research into the impacts of oil spills and dispersants on the environment is truly a testament to the high-caliber research expertise of our faculty,” said LSU Interim Vice Chancellor for Research & Economic Development Doris Carver. “These grant dollars will allow our researchers to put their expertise to work to help understand the environmental impacts of oil spills and to develop solutions to help mitigate those impacts.”

FIO is a consortium of 20 institutions in Florida with marine science interests, including the 11 state universities. FIO was established by the State University System to support Florida’s coastal marine science, oceanography and management programs through education, research, and public outreach. FIO facilitates the activities of educators, scientists and agencies responding to state, regional, national and international issues through provision of centralized facilities and research vessels.

NGI is a consortium of universities led by Mississippi State University, in partnership with the University of Southern Mississippi, Louisiana State University, Florida State University, and Dauphin Island Sea Lab.

“Based at Stennis Space Center, NGI and its member universities have proven themselves to be leaders in research that can advance our scientific understanding of the Gulf region and its climate, natural resources, and habitat,” said David Shaw, Mississippi State’s Vice President for Research and Economic Development. The institute will bring extensive background and expertise to this very important undertaking.”

In the near future BP will publish a Request for Proposals, inviting research institutions to participate in an independent peer-review process to register their interest in becoming a GRI Research Center. These centers will be selected by a peer review process, overseen by GRI’s Advisory Council. GRI will use the highest professional standards in determining the institutions that will receive this competitive funding. Once issued, the RFP will be available to download from http://www.bp.com.





Evaluation of Casing Design Basis for Macondo Prospect, May 14, 2009

File Format: PDF/Adobe Acrobat – View as HTML
May 14, 2009 – Evaluation of .Casing Design Basis for. Macondo Prospect . Mississippi Canyon Block 252. OCS-G-32306 Well No.1. Revision 2. 14 May 2009. EPT Drilling

Solar car tour hits bump in Quarter; burglar breaks in an hour after it pulls into N.O.

Published: Tuesday, April 28, 2009, 8:45 AM     Updated: Monday, October 19, 2009, 11:48 PM

Marcelo da Luz gave up his job, girlfriend and nearly a half-million dollars to build a solar-powered car and drive it all over the Americas, a trek that brought him and several international volunteers, following in a van, to New Orleans early Sunday evening.

But an hour after he parked on a busy, well-lighted French Quarter street, someone broke into the van and stole passports, laptops, credit cards, cash, a digital camera and a portable hard drive.

Despite the estimated $10,000 loss, da Luz seemed in high spirits the next morning, describing the break-in as a “dent” in his ecological barnstorming tour. He insisted that he was still enjoying his first visit to the Crescent City. After discovering the theft, da Luz and an assistant from the Netherlands trotted to a nearby tavern to “drown their sorrows.”

The futuristic solar car, unmolested by thieves, lured gawkers and sympathizers Monday morning as it rested near the intersection of Esplanade Avenue and North Peters Street like a metallic manta ray.

Betty Altenburger, of Philadelphia, arrived from a nearby hotel in her pajamas to eye the glinting black-and-gold vehicle. She bristled when she learned of the theft.

“These guys were working for a cause bigger than both of them, ” she said. “. . . It’s just really sickening. It would be nice to show them that not everybody’s like that.”

Altenburger offered da Luz and the solar crew breakfast. Then she returned with a $20 bill — a donation.

Passers-by pointed cell phone cameras at the car. One posed for a shot by reclining on its smooth body, until da Luz warned her she might crack some of the 893 brittle solar cells coating the car’s fiberglass shell.

Jennifer Zdon, The Times-PicayuneMarcelo Daluz on Monday stands next to the solar-powered car that he invented and has been driving across country.

A smashed window

Da Luz, 40, has driven his 13-foot-long, 470-pound, spaceship-like car and crew of volunteers to the Arctic Circle, Toronto, Vancouver, San Francisco and Los Angeles. During the latest leg of his 15,000-mile trip, da Luz zipped through Houston, Lafayette and Baton Rouge.

Until he parked the van Sunday at about 7 p.m. near the Old U.S. Mint, he had no problems.

“We left it unsupervised for maybe 45 minutes, ” said da Luz, a native of Brazil.

“They worked incredibly fast, ” said Michael Feith, a volunteer assistant from the Netherlands.

When they parked, the sun was still out. Though the van contained thousands of dollars worth of valuables, Da Luz and his volunteers felt comfortable simply locking it and walking away.

But when da Luz returned to the van about 8 p.m., someone had smashed the back window. The door lock protruded in the open position.

The items reported stolen included the laptops, two passports, one digital camera and a portable hard drive, said officer Garry Flot, a New Orleans police spokesman.

Feith, 21, a student, lost his passport, a laptop computer and a backup hard drive containing the trip’s finances, a business plan and journal entries he needed to turn in to earn internship credit for the trip.

Volunteer photographer Winnie Ko of Hong Kong lost a laptop, most of the pictures she had taken and nearly $2,000 in cash. She had planned to spend it in New Orleans, da Luz said.

“She flew (and drove) halfway around the world for this, ” he said. “She was going to stay a week because this was her last stop on the trip before flying home, but because this happened, she left” Monday.

When the time came for Monday’s demonstration drive, da Luz and Feith grasped the car’s front and rear edges and split open the body like a giant boiled crab. Da Luz slid into the form-fitting seat. It’s unlikely the car could accommodate anyone less svelte. He steers with what look like motorcycle handlebars. He peers forward through a teardrop canopy, and rearward via a video-camera feed. The little vehicle can hit 70 mph, and go from zero to 60 in six seconds.

With little start-up sound, da Luz pulled the all-electric car away from the curb and sent it humming quietly along Esplanade. It skimmed just a foot above the pavement.

Though the unusual car has been all over the world, one local onlooker feared the vehicle’s three delicate-looking wheels wouldn’t survive the Crescent City’s notoriously fractured streets.

Pursuit of his dream

Da Luz, a former airline flight attendant, first conceptualized a solar-powered car back in 1987, when he saw solar power cars race across the Australian outback on TV.

Since that day, he has believed “this technology is clean and sustainable. We could be using it, but we lack the political will, ” da Luz said. “We’re all waiting for a government, something, someone to save the planet for us. It’s not going to happen.”

Da Luz later flew to Australia to see the cars in person. Students and teachers helped him develop a concept while he juggled time with his girlfriend and his flight attendant job.

Da Luz spent about $500,000, mostly his own money, supplemented by donations, to build the car, which stores solar power in 26 lithium-ion batteries. The airline laid him off because he spent so much time on the car. His girlfriend left him, too.

But da Luz pushed on and readied the car, which he named “Power of One, ” for a test drive by March 2005. Because Canada’s authorities wouldn’t register it for road use, he drove it on a frozen lake. He then flew it to Barbados to register it. He has since driven it nearly 15,000 miles, mostly on back roads, recently breaking a world record for distance traveled by a solar-powered car, according to several media outlets.

He has been stranded in places for days when the sun didn’t shine. Da Luz said the police stopped him in Alaska stopped after a motorist called 911 to report “a UFO on the streets.”

Despite his setback in New Orleans, da Luz plans to continue east to the Atlantic coast of Florida.

“I don’t hope anything bad happens to whoever did this or anything, ” he said. “I just hope their lives turn out better so they don’t need to do this to anyone else.”

. . . . . . .

Doug MacCash can be reached at dmaccash@timespicayune.com or 504.826.3481.

Ramon Antonio Vargas can be reached at rvargas@timespicayune.com or 504.826.3371

(etc. – includes a video)



Noble Energy, Inc.

Wednesday, April 01, 2009

Noble Energy has announced a discovery at the Santa Cruz prospect in Mississippi Canyon Blocks 519/563. The well, located in 6,515 feet of water, was drilled to a total depth of approximately 18,900 feet. Open-hole logging indicated over 140 feet of net gas condensate pay and more than 110 feet of net oil pay in multiple high-quality reservoirs. The overall thickness of the reservoirs encountered was greater than originally expected.

David Stover, Noble Energy’s Executive Vice President and Chief Operating Officer, said, “The results at Santa Cruz complement the successful momentum we have been experiencing in our worldwide exploration programs. Our discoveries at Santa Cruz and Isabela will be an important development program for our Company. Current plans consist of subsea tiebacks to nearby infrastructure, and we anticipate first production from this area in 2011.

“Our deepwater Gulf of Mexico program is positioned very well, with a combination of existing production, several ongoing developments of recent discoveries, and a growing exploration portfolio. Our next exploration test will likely be late in the year at Deep Blue in the Green Canyon region, which will be testing our largest deepwater Gulf of Mexico prospect to date,” Stover added.

Noble Energy operates the Santa Cruz discovery with a 23.25 percent working interest. Other interest owners in the discovery are Houston Energy, L.P. with 10 percent, Red Willow Offshore, LLC with 20.25 percent, and BP Exploration & Production Inc., a wholly-owned subsidiary of BP America Inc. with the remaining 46.5 percent.



At the beginning of 2005 Iraq’s oil ministry has awarded a consortium of three international firms a contract to conduct a reservoir study of the Suba-Luhais oil fields in southern Iraq. Vitol, Anadarko Petroleum Corp. (APC) and Dome Oil of the United Arab Emirates have been awarded the study, which is separate to the Suba-Luhais development contract, which hasn’t been awarded yet. The ministry asked the cabinet to approve its recommendation for the award of the development contract for Suba-Luhais, which calls for raising the two adjoining oil fields’ production from 50,000 barrels a day to around 190,000 b/d.

During 2003 Iraq’s production decreased by 33.9% to 1 344 000 barrels per day, (BP Stats, 2004). Only about 2,300 wells have reportedly been drilled in Iraq (of which about 1,600 are actually producing oil). 17 of 80 discovered fields having been developed,



World Petroleum Council – Canadian Association



Strange – I just accidentally found this – looking for petroleum yields expected for the Macondo Prospect –

On September 19, 2001, CBS reported:

Sources tell CBS News that the afternoon before the attack, alarm bells were sounding over unusual trading in the U.S. stock options market.

An extraordinary number of trades were betting that American Airlines stock price would fall.

The trades are called “puts” and they involved at least 450,000 shares of American. But what raised the red flag is more than 80 percent of the orders were “puts”, far outnumbering “call” options, those betting the stock would rise.

Sources say they have never seen that kind of imbalance before, reports CBS News Correspondent Sharyl Attkisson. Normally the numbers are fairly even.

After the terrorist attacks, American Airline stock price did fall obviously by 39 percent, and according to sources, that translated into well over $5 million total profit for the person or persons who bet the stock would fall.


At least one Wall Street firm reported their suspicions about this activity to the SEC shortly after the attack.

The same thing happened with United Airlines on the Chicago Board Options Exchange four days before the attack. An extremely unbalanced number of trades betting United’s stock price would fall — also transformed into huge profits when it did after the hijackings.

“We can directly work backwards from a trade on the floor of the Chicago Board Options Exchange. The trader is linked to a brokerage firm. The brokerage firm received the order to buy that ‘put’ option from either someone within a brokerage firm speculating, or from one of the customers,” said Randall Dodd of the Economic Strategy Institute.

U.S. investigators want to know whether Osama bin Laden was the ultimate “inside trader” — profiting from a tragedy he’s suspected of masterminding to finance his operation. Authorities are also investigating possibly suspicious trading in Germany, Switzerland, Italy and Japan.

On September 29, 2001, the San Francisco Chronicle pointed out:

“Usually, if someone has a windfall like that, you take the money and run,” said the source, who spoke on condition of anonymity. “Whoever did this thought the exchange would not be closed for four days.

“This smells real bad.”


There was an unusually large jump in purchases of put options on the stocks of UAL Corp. and AMR Corp. in the three business days before the attack on major options exchanges in the United States. On one day, UAL put option purchases were 25 times greater than the year-to-date average. In the month before the attacks, short sales jumped by 40 percent for UAL and 20 percent for American. ***

Spokesmen for British securities regulators and the AXA Group also confirmed yesterday that investigations are continuing.

The source familiar with the United trades identified Deutsche Banc Alex. Brown, the American investment banking arm of German giant Deutsche Bank, as the investment bank used to purchase at least some of the options.


Last weekend, German central bank president Ernst Welteke said a study pointed to “terrorism insider trading” in those stocks.

The Chronicle illustrated the story with the following chart:

On October 19, 2001, the Chronicle wrote:

On Oct. 2, Canadian securities officials confirmed that the SEC privately had asked North American investment firms to review their records for evidence of trading activity in the shares of 38 companies, suggesting that some buyers and sellers might have had advance knowledge of the attacks.

FMR Corp. spokeswoman Anne Crowley, said her firm — which owns the giant Fidelity family of mutual funds in Boston — has already provided “account and transaction” information to investigators, and had no objection to the new procedures announced yesterday. Crowley declined to describe the nature of the information previously shared with the government.

So the effort to track down the source of the puts was certainly quite substantial.

What were the results and details of the investigation?

Apparently, we’ll never know.

Specifically, David Callahan – executive editor of SmartCEO – submitted a Freedom of Information Act request to the SEC regarding the pre-9/11 put options.

The SEC responded:

This letter is in response to your request seeking access to and copies of the documentary evidence referred to in footnote 130 of Chapter 5 of the September 11 (9/11) Commission Report.


We have been advised that the potentially responsive records have been destroyed.

If the SEC had responded by producing documents showing that the pre-9/11 put options had an innocent explanation (such as a hedge made by a smaller airline), that would be understandable.

If the SEC had responded by saying that the documents were classified as somehow protecting proprietary financial information, I wouldn’t like it, but I would at least understand the argument.

But destroyed? Why? (See Afterword for additional details.)



Strange – never heard anything about that.

(my note)

Further from same site –

BP Official Admits to Damage BENEATH THE SEA FLOOR par noreply@blogger.com (George Washington) Samedi 12 Juin 2010 :: Washington’s Blog :: RSS

As I noted Tuesday, there is growing evidence that BP’s oil well – technically called the “well casing” or “well bore” – has suffered damage beneath the level of the sea floor.

The evidence is growing stronger and stronger that there is substantial damage beneath the sea floor. Indeed, it appears that BP officials themselves have admitted to such damage. This has enormous impacts on both the amount of oil leaking into the Gulf, and the prospects for quickly stopping the leak this summer.

On May 31st, the Washington Post noted:

Sources at two companies involved with the well said that BP also discovered new damage inside the well below the seafloor and that, as a result, some of the drilling mud that was successfully forced into the well was going off to the side into rock formations.

“We discovered things that were broken in the sub-surface,” said a BP official who spoke on the condition of anonymity. He said that mud was making it “out to the side, into the formation.”

On June 2nd, Bloomberg pointed out:

Plugging the well is another challenge even after BP successfully intersects it, Robert Bea, a University of California Berkeley engineering professor, said. BP has said it believes the well bore to be damaged, which could hamper efforts to fill it with mud and set a concrete plug, Bea said.

Bea is an expert in offshore drilling and a high-level governmental adviser concerning disasters.

On the same day, the Wall Street Journal noted that there might be a leak in BP’s well casing 1,000 feet beneath the sea floor:

BP PLC has concluded that its “top-kill” attempt last week to seal its broken well in the Gulf of Mexico may have failed due to a malfunctioning disk inside the well about 1,000 feet below the ocean floor.


The broken disk may have prevented the heavy drilling mud injected into the well last week from getting far enough down the well to overcome the pressure from the escaping oil and gas, people familiar with BP’s findings said. They said much of the drilling mud may also have escaped from the well into the rock formation outside the wellbore.

On June 3rd, The Canadian Press quoted the top government official in charge of the response to the oil spill – Admiral Thad Allen, the commandant of the Coast Guard – as pointing to the same possibility:

The failure of the so-called top kill procedure – which entailed pumping mud into the well at high velocity – suggested “there actually could be something wrong with the well casing, and there could be open communication in the strata or the rock formations below the sea floor,” Allen said.

On June 7th, Senator Bill Nelson told MSNBC that he’s investigating reports of oil seeping up from additional leak points on the seafloor:

Senator Bill Nelson (D-FL): Andrea we’re looking into something new right now, that there’s reports of oil that’s seeping up from the seabed… which would indicate, if that’s true, that the well casing itself is actually pierced… underneath the seabed. So, you know, the problems could be just enormous with what we’re facing.

Andrea Mitchell, MSNBC: Now let me understand better what you’re saying. If that is true that it is coming up form that seabed, even the relief well won’t be the final solution to cap this thing. That means that we’ve got oil gushing up at disparate places along the ocean floor.

Sen. Nelson: That is possible, unless you get the plug down low enough, below where the pipe would be breached.

Indeed, loss of integrity in the well itself may explain why BP is drilling its relief wells more than ten thousand feet beneath the leaking pipes on the seafloor (and see this).

Yesterday, recently-retired Shell Oil President John Hofmeister said that the well casing below the sea floor may have been compromised:

[Question] What are the chances that the well casing below the sea floor has been compromised, and that gas and oil are coming up the outside of the well casing, eroding the surrounding soft rock. Could this lead to a catastrophic geological failure, unstoppable even by the relief wells?

John Hofmeister: This is what some people fear has occurred. It is also why the “top kill” process was halted. If the casing is compromised the well is that much more difficult to shut down, including the risk that the relief wells may not be enough. If the relief wells do not result in stopping the flow, the next and drastic step is to implode the well on top of itself, which carries other risks as well.

As noted yesterday in The Engineer magazine , an official from Cameron International – the manufacturer of the blowout preventer for BP’s leaking oil drilling operation – noted that one cause of the failure of the BOP could have been damage to the well bore:

Steel casing or casing hanger could have been ejected from the well and blocked the operation of the rams.

Oil industry expert Rob Cavner believes that the casing might be damaged beneath the sea floor, noting:

The real doomsday scenario here… is if that casing gives up, and it does come through the other strings of pipe. Remember, it is concentric pipe that holds this well together. If it comes into the formation, basically, you‘ve got uncontrolled [oil] flow to the sea floor. And that is the doomsday scenario.

Cavner also said BP must “keep the well flowing to minimize oil and gas going out into the formation on the side”:

And prominent oil industry insider Matt Simmons believes that the well casing may have been destroyed when the oil rig exploded. Simmons was an energy adviser to President George W. Bush, is an adviser to the Oil Depletion Analysis Centre, and is a member of the National Petroleum Council and the Council on Foreign Relations.

On May 26th, Simmons referred to this issue on MSNBC:

On May 27th, Simmons again addressed this issue on MSNBC:

And he referred to it again on Bloomberg on May 28th:

And again on MSNBC on June 7th :

We have a right to know what’s really going on.

Given the impact on America’s people, natural resources and economy, BP and the government must fully disclose the amount of damage underneath the sea floor, and what that means for the efforts to cap the well.

(Lire la suite) noreply@blogger.com (George Washington)

Mexico Will Sue BP for Gulf Oil Pollution-Related Expenses par noreply@blogger.com (George Washington) Samedi 12 Juin 2010 :: Washington’s Blog :: RSS

For years, Americans have thought of Mexico as a country where there are next to no environmental laws.

Indeed, many American and British companies have opened factories in Mexico because their environmental laws are so lax.

It is therefore ironic that the Mexican Environment Minister said that Mexico is suing BP, a British corporation which is causing one of the worst environmental accidents ever in the U.S., helped by the corruption of U.S. regulators.

As Bloomberg notes:

Mexican Environment Minister Juan Elvira Quesada said yesterday in an interview in Mexico City [that] Mexico plans to sue BP to get reimbursed for related expenses and wildlife damage in Mexican territory. Pemex, the ministries of the navy, environment and agriculture are incurring expenses caused by the company, he said.***

“The lawsuit will not be against the government of United States, it’ll be against the company British Petroleum,” Elvira said.

Note: Mexico is responsible for the worst oil spill in world history: Ixtoc. But the BP oil spill in American waters will probably surpass Ixtoc as the world’s worst spill before it is finally capped.

(Lire la suite) noreply@blogger.com (George Washington)

Chairman of Goldman Sachs International Was – Until Last Year – Also Chairman of BP par noreply@blogger.com (George Washington) Jeudi 10 Juin 2010 :: Washington’s Blog :: RSS

Janine Wedel has written extensively on how the “shadow elite” rule the world and about the “flexians” – the movers and shakers of the shadow elite who glide across borders, and structure overlapping (and not fully revealed) roles in government, business, media, and think tanks to serve their own agendas.

Wedel says that flexians wear many hats both within and outside of government, and use their networks of contacts to influence policy – are warping our democracy and the rule of law.

Peter Sutherland is the quintessential flexian.

According to his September 2009 bio:

Peter Sutherland is chairman of BP plc (1997 – current). He is also chairman of Goldman Sachs International (1995 – current). He was appointed chairman of the London School of Economics in 2008…. Before these appointments, he was the founding director-general of the World Trade Organisation. He had previously served as director general of GATT since July 1993 [and was] chairman of the Board of Governors of the European Institute of Public Administration (Maastricht) 1991-1996.

Sutherland resigned as BP’s chairman in 2009, but apparently still serves in various key capacities.

Sutherland is managing director – as well as chairman – of Goldman Sachs International (Goldman Sachs International is the very powerful subsidiary of the Goldman Sachs Group, of which Lloyd Blankfein is CEO). Sutherland is also an Advisory Director of the Goldman Sachs Group itself.

And he was is European Chairman for the Trilateral Commission.

He has, at various times, attended meetings of the Bilderberg group.

He is also one of the chief financial advisers to the Vatican.

As if that is not enough, Sutherland also serves in the following capacities (click on “Read Full Background”):

Mr. Sutherland served as an Attorney General of Ireland and also served as European Commissioner from 1985 to 1989 where he was responsible for competition policy…. He serves as the Chairman of British Petroleum, BP Amoco PLC and United Kingdom. From 1989 to 1993, he served as the Chairman of Allied Irish Bank. …. He serves as a Non-Executive Director of Telefonaktiebolaget LM Ericsson. He serves as a Director of Goldman Sachs International. He has been Member of Supervisory Board at Allianz SE since January 2010 and serves as its Member of International Advisory Board …. Mr. Sutherland served as a Non Executive Director of BP Plc since July 1995. He serves as a Member of Foundation Board of World Economic Forum. He served as an Independent Non Executive Director of National Westminster Bank PLC since January 2001. He served as an Independent Non Executive Director of The Royal Bank Of Scotland Plc from January 2001 to February 6, 2009…. In addition, he serves on the board of Allianz, Koc Holding A.S. and is a member of the advisory board of Eli Lilly…. He served as a Director of LM Ericsson Telephone Co since 1996, Ericsson SPA since 1996 and Investor AB since 1995. He served as a Non Executive Director of Royal Bank of Scotland Group plc from January 2001 to February 6, 2009.

Sutherland is – literally – like Lloyd Blankfein and Tony Hayward rolled into one. But unlike Blankfein and Hayward, he has also held numerous powerful governmental and quasi-governmental positions.



My Note –

I thought this was pretty funny from the industry that couldn’t figure out the difference between an oil leak of 1,000 or 5,000 barrels per day and one that is closer to 60,000 – 70,000 or more barrels per day.

– cricketdiane


From Wikipedia, the free encyclopedia

Jump to: navigation, search

PRODML (Production Markup Language) is a family of XML and Web Services based upstream oil and natural gas industry standards from Energistics and its PRODML Special Interest Group (PRODML SIG).

PRODML Standards support automated production data acquisition, operations monitoring, optimization, reporting, and configuration management business processes. PRODML-based interactions are used by production software components, including field data hitorians, surveillance applications, model analysis and management applications, optimization applications, simulation applications, etc.

The PRODML initiative was started in 2005 by five energy companies: BP, Chevron, ExxonMobil, Shell, and Statoil, joined by eight supplier companies: Halliburton, Invensys, Kongsberg, OSIsoft, Petroleum Experts, Schlumberger, Tieto, and Weatherford as well as Energistics.

PRODML Standards evolved from the Energistics family of standards for drilling, completions and interventions, WITSML, initiated in 2000.


EnergyML is the foundation for consistency and interoperability among all Energistics data transfer families of standards, including besides the PRODML Standards, WITSML for drilling, completions, and interventions and RESQML(tm) for reservoir characterization.

See also

External links



BP Proceeds with Hoi Thach Gas Development, Offshore Vietnam

BP is preparing a platform-based development of its giant Hoi Thach gas and condensate field in the Nam Con Son basin off Vietnam.

The company favored one, or possibly two conventional steel platforms with liquid stripping facilities and a floating storage and off-loading vessel for liquid drop-out at an offshore terminal. Frontier Engineering, a Wood Group company has just completed a conceptual study for the field.

Currently certified gas reserves in block 5-2 are 2.4 trillion cubic feet plus an additional 90 million barrels of condensate. However, industry believes the field contains closer to 4 trillion cubic feet of gas. Production per well ranges to 71 million cubic feet per day of gas and 7,250 barrels of condensate.

The field was initially discovered in 1995 and is expected to ultimately be produced via the Nam Con Son export pipe line. The 399 kilometre trunk line, reportedly the world’s largest two phase pipeline, was designed with spare capacity in order to permit a tie-in from the 5-2 block.

BP and national oil company PetroVietnam are partners in Block 5-2 with BP holding 75.9% interest and PetroVietnam 24.1%.

Publication Date: March 2003
Source: Upstream – The International Oil and Gas Newspaper



Iran Tender Process Continues

Iran’s state-owned Pars Oil & Gas Company (POGC) has approved financing terms on a $350 million U.S. drilling job at Phases 9 and 10 of the South Pars gas project and is hoping a new prequalification round will illicit more interest than its first tender last year. The drilling job which POGC itself estimates will cost about $300 million U.S. involves 22 directional development wells with a maximum of 62 degrees deviation and two vertical wells.

Two jack-up rigs will be required and the contract will cover all associated services including engineering, procurement, logistics, coring, perforating and testing. Under the new round which includes response to concerns raised earlier by prospective bidders, the National Iranian Oil Company (NIOC) will be involved in arranging financing and “securing the final approval for insurance coverage from respective export credit agencies”. An official said NIOC in effect will be responsible for providing guarantees for loans arranged by contractors through their respective state insurance agencies.

The two South Pars phases are to produce 2 billion cubic feet per day of gas for domestic consumption and 80,000 barrels per day of condensate for export. Some sulphur and LPG will also be produced for export.

Publication Date: March 2003
Source: Upstream – The International Oil and Gas Newspaper


using above terms for a google search –

Pars Oil & Gas Company (POGC) BP National Iranian Oil Company (NIOC)

Yields –

Subsea Oil and Gas Directory –

for Subsea Industry Professionals


Worldwide Directory of
Subsea Oil & Gas Projects and Field Data

Subsea Fields
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Subsea Oil Gas Fields Operators
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Subsea Projects by Region
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Overview of the Subsea Industry
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Subsea Oil & Gas Field Operating Companies
The complete list of companies being the end users for our subsea oil gas companies directory services and operators of the subsea field developments.
Oil Gas Operator Companies




Subsea Oil Gas Fields Offshore Gulf of Mexico


Atlantis North Flank – Atlantis North Flank is the first of several options to develop resources in the Atlantis North area.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Atlantis – Discovered in 1998, the Atlantis oil field development is the world’s deepest moored semi-submersible production facility
Operator: BP, Location: America(North), Gulf of Mexico, USA
Baldpate – located in Garden Banks Block 260 in the Gulf of Mexico. The water depth averages approximately 1650ft. Amerada Hess is the operator of the Baldpate Field.
Operator: Amerada Hess, Location: America(North), Gulf of Mexico, USA
Brutus – is Shell’s fifth TLP in the gulf and the 17th deepwater project in the gulf in which Shell was involved. Brutus field covers Green Canyon Blocks 158 and 202. Development called for a tension-leg platform in 2,985 ft of water.
Operator: Shell, Location: America(North), Gulf of Mexico, USA
Cameron Highway Oil Transport System – system is a deepwater crude oil transport system with a capacity of 600,000b/d. It stands as the longest offshore oil pipeline in the US, measuring in excess of 390 miles.
Operator: Enterprise Oil, Location: America(North), Gulf of Mexico, USA
Cantarell Oil – comprises four adjacent oil fields known as Akal, Chac, Kutz and Nohoch, with Akal being the most important. The complex is located in the Bay of Campeche, Gulf of Mexico, off the coast of the Yucatan Peninsula.
Operator: Pemex, Location: America(North), Gulf of Mexico, Mexico
Canyon Express – entails the development of three gas fields in the deep Mississippi Canyon, approximately 120 miles south-east of New Orleans.
Operator: Total, Location: America(North), Gulf of Mexico, USA
Constitution / Ticonderoga – field is located in Green Canyon blocks 679 and 680, approximately 190 miles southwest of New Orleans in the Gulf of Mexico. The field has estimated proven and probable resources of approximately 110 million barrels of oil.
Operator: Kerr McGee, Location: America(North), Gulf of Mexico, USA
Devil’s Tower Gas – is located about 140 miles south-east of New Orleans, at Mississippi Canyon (MC) Block 773 in 5,610ft of water.
Operator: Dominion E&P, Location: America(North), Gulf of Mexico, USA
Dorado – The Dorado development consists of a three well subsea tie-back to the Marlin TLP
Operator: BP, Location: America(North), Gulf of Mexico, USA
Genesis – is 150 miles south of New Orleans in the Gulf of Mexico, across Green Canyon blocks 160, 161, and 205. The field lies in the Viosca Knoll Carbonate Trend and contains known reserves of 160 million barrels of crude oil.
Operator: ChevronTexaco, Location: America(North), Gulf of Mexico, USA
Glider – The Glider field is located in Green Canyon Block 248 in the Gulf of Mexico, approximately 165 miles south-southwest of New Orleans in around 3,400ft of water. The GC 248 lease was wholly acquired by Shell at the OCS Lease Sale 152 in 1995.
Operator: Shell, Location: America(North), Gulf of Mexico, USA
Gyrfalcon – on-stream in December 1999, based on the world’s first 15,000psi subsea tree. This single completion is tied back to Shell’s GC-19 Boxer facility, located some 2.9 miles away.
Operator: Reading and Bates Development Company, Location: America(North), Gulf of Mexico, USA
Hickory – is operated by Anadarko, which owns a 50% working interest in the Grand Isle blocks 110, 111 and 116, along with partners Shell (37.5%) and Ocean Energy (12.5%). Hickory lies in the Grand Isle block 116
Operator: Anadarko, Location: America(North), Gulf of Mexico, USA
Hoover Diana – In late 90’s ExxonMobil announced startup of oil/gas production from the Hoover Diana development in the Gulf of Mexico. The fields are located 200 mi south of Houston, in 4,800-ft water.
Operator: ExxonMobil, Location: America(North), Gulf of Mexico, USA
Horn Mountain – development is located in 5,400ft of water, approximately 100 miles southeast of New Orleans, in the Gulf of Mexico. The deep water field lies in Mississippi canyon blocks 126 and 127.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Holstein Oil and Gas Development – oil and gas development lies approximately 150 miles South of New Orleans in Green Canyon block 645. It was discovered in 1999 adjacent to the Mad Dog and Atlantis fields.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Horn Mountain NWFX – Horn Mountain (HM) is a single piece truss spar located in Mississippi Canyon Blocks 126-127, approximately 84 mile south of Venice, Louisiana.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Independence Hub Six Natural Gas Anchor Fields – is the result of five independent exploration and production companies and a midstream energy company coming together to facilitate the development of multiple ultra-deepwater natural gas and condensate discoveries.
Operator: Anadarko, Location: America(North), Gulf of Mexico, USA
King South – The King South project is a tie-back to the King subsea pump manifold one mile away. Oil will be transported to Marlin through the existing King flow-lines
Operator: BP, Location: America(North), Gulf of Mexico, USA
King Sub-Sea Pump – The King South project is a tie-back to the King subsea pump manifold one mile away. Oil will be transported to Marlin through the existing King flow-lines.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Llano – Llano field is located approximately 200 miles southwest of New Orleans in the Gulf of Mexico. ExxonMobil with 22.5 percent equity, interest owners include Shell (operator at 27.5 percent) and Amerada Hess (50 percent).
Operator: Shell, Location: America(North), Gulf of Mexico, USA
Matterhorn – is located in the Gulf of Mexico, Mississippi Canyon Block 243 (MC 243) in 2,811’ of water, 30 miles SE of the mouth of the Mississippi river and 100 miles SE of New Orleans (Louisiana). TOTAL E&P USA, Inc. has 100% ownership
Operator: Total, Location: America(North), Gulf of Mexico, USA
Magnolia – is located along the southern edge of the Titan Mini-Basin where multiple deep-water reservoir sands encounter a series of down-to-the-basin and antithetic faults adjacent to salt. Located in Garden Banks blocks 783 and 784 about 180 mi
Operator: ConocoPhillips, Location: America(North), Gulf of Mexico, USA
Manatee – Shell is the operator of the project with a 52 percent interest with Devon Energy holding the remaining 48 percent interest. Manatee is the fourth subsea production system utilizing Bullw
Operator: Shell, Location: America(North), Gulf of Mexico, USA
Mars – is located in the Gulf of Mexico about 130 miles south-east of New Orleans. The discovery well was drilled on Mississippi Canyon block 763 using the drillship, Discoverer Seven Seas.
Operator: Shell, Location: America(North), Gulf of Mexico, USA
Mensa Gas – encompasses Mississippi Canyon Blocks 686, 687, 730 and 731. The natural gas field is located in the Gulf of Mexico 225 km (140 miles) southeast of New Orleans in water depths of 1,610 m (5,300 ft).
Operator: Shell, Location: America(North), Gulf of Mexico, USA
Morpeth – is located in the Gulf of Mexico, Ewing Bank (EW) blocks 921, 964 and 965, off the shore of Louisiana. The field is located in 1700-ft water.
Operator: British Borneo, Location: America(North), Gulf of Mexico, USA
Mardi Gras Oil and Gas Transportation System – fields lies in the Mississippi Canyon and Green Canyon areas of the Gulf of Mexico. In the southern Green Canyon area, pipelines are planned to transport gas and oil from the Mad Dog, Holstein and Atlantis fields.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Mad Dog Drilling Unit – field is located in Western Atwater Foldbelt, Gulf of Mexico, approx. 190 miles south of New Orleans. The nominal water depth is 4,500ft and the field runs along the Sigsbee Escarpment.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Marco Polo – is located in Green Canyon block 608, 160 miles south of New Orleans. It is fully owned and operated by Anadarko Petroleum. The field was discovered in April 2000 and lies in water 4,300ft deep. It produced its first oil in March 2004
Operator: Anadarko, Location: America(North), Gulf of Mexico, USA
Na Kika Oil and Gas – host facility project is in Mississippi Canyon, Block 474 about 140 miles south east of New Orleans. Louisiana, USA in water depth 6300’.
Operator: Shell, Location: America(North), Gulf of Mexico, USA
Neptune – is in 1,930 feet of water in the Gulf of Mexico’s Viosca Knoll block 826. Daily gross production in 2003 was 14,000 barrels of oil and 23 million cubic feet of gas. Kerr-McGee operates Neptune with 50% interest along with the joint partner
Operator: Kerr McGee, Location: America(North), Gulf of Mexico, USA
Nansen and Boomvang Gas Fields – fields lie in the East Breaks area of the Gulf of Mexico, approx. 150 miles south of Houston. Nansen lies in East Breaks block 602 and Boomvang lies in blocks 642, 643 and 683.
Operator: Kerr McGee, Location: America(North), Gulf of Mexico, USA
Petronius – located in 1,754 feet of water in Viosca Knoll Block 786, began production of oil and gas on July 9, 2000. A compliant piled tower design, it is 610 m (2,001 feet) high, the tallest free-standing structure in the world.
Operator: ChevronTexaco, Location: America(North), Gulf of Mexico, USA
Ram Powell – field lies in the Viosca Knoll area in the Gulf of Mexico, approximately 125 miles south-east of New Orleans and around 80 miles south of Mobile, Alabama in water depths ranging from 2000 to 4000ft.
Operator: Shell, Location: America(North), Gulf of Mexico, USA
Red Hawk – field is located in Garden Banks block 877 in the deepwater Gulf of Mexico. It has been developed using the world’s first cell spar facility. The field is operated by Kerr-McGee with a 50% interest, on behalf of Devon Energy (50%).
Operator: Kerr McGee, Location: America(North), Gulf of Mexico, USA
Serrano and Oregano – are Shell’s 14th and 15th deepwater projects in the Gulf of Mexico. Although Serrano and Oregano are separate fields, the development activities are being executed through a single, integrated plan. The fields are in 3,400ft of water.
Operator: Shell, Location: America(North), Gulf of Mexico, USA
Thunder Horse Oil – is located in Mississippi Canyon Block 778 and 822. It is 75% owned by BP and 25% by ExxonMobil. Ultimate recovery from the field is estimated at 250,000 barrels of oil per day.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Typhoon – is located in blocks 236 and 237, in the central Green Canyon area of the Gulf of Mexico. This lies approximately 100 miles off the coast of Louisiana, in water depths of 2,000ft. The field is being developed jointly by the operators.
Operator: ChevronTexaco, Location: America(North), Gulf of Mexico, USA
Tahoe – The Tahoe Unit encompasses the blocks 783 and 827, in the Viosca Knoll area. These blocks are located in the Gulf of Mexico approximately 140 miles ESE of New Orleans and 105 miles south of Mobile, Alabama in water 1,500ft deep.
Operator: Shell, Location: America(North), Gulf of Mexico, USA
Troika – oil field is located 150 miles offshore Louisiana, in the Gulf of Mexico, in Green Canyon 244 unit. It lies in water 2700ft deep.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Tanzanite – is located in the Gulf of Mexico, 75 mi offshore in 314-ft water in Eugene Island block 346. Anadarko Petroleum Corporation is the 100% owner and operator in the field. Anadarko estimates at least 140 MED MER bo equivalent reserves in Tanzanite.
Operator: Anadarko, Location: America(North), Gulf of Mexico, USA
Ursa – Shell Deepwater Production is the operator and holds a 45% interest in Ursa. BP Amoco has a 23% interest, and Conoco and Exxon each hold 16% in the project. The Ursa field is located approximately 130 miles southeast of New Orleans.
Operator: Shell, Location: America(North), Gulf of Mexico, USA





Quest Global Prospects Report

File Format: Microsoft Excel
Apr 18, 2007 – 386, LLOG, 100, 3136, Mississippi Canyon 547, North America, GOM-US, ‘MC547’, Exploration, 2625.6, 800, 4, 2010, Prospect (Prospect), Noble Lorris Bouzigard



File Format: PDF/Adobe Acrobat

Archive – Maritime Technology News

Dec 30, 2005 – The Vito well is located in Mississippi Canyon block 984, about 70 km southwest of the …… A well on the North Sea Verona prospect is dry. Drilling







Macondo Prospect, Gulf of Mexico, USA

The Macondo prospect is situated on Mississippi Canyon block 252 (MC 252), offshore Louisiana, Gulf of Mexico, USA, and is owned and operated by British Petroleum (BP).

The initial exploration plan for the project was submitted by BP to Minerals Management Services (MMS) in March 2009. The plan included drilling and temporary abandonment of two exploration wells over the prospect. The operator took control over the prospect through the Lease Sale #206 by MMS in March 2008.

As per the plan, the rig was supposed to be drilling the second of the two wells planned. But it faced oil spills over two fronts: one at the wellhead and another at the surface offshore. The wells are located in lease G-32306 over the prospect.

The well was planned to be drilled to 18,000ft, and was to be plugged and abandoned for later completion as a subsea producer.




Subsea Oil and Natural Gas Fields by BP

Easington Catchment Area (ECA) – gas development was awarded DTI approval in November 1998. The £150 million first phase of ECA will involve the development of the two gas fields Neptune and Mercury.
Operator: BP, Location: Europe(North), North Sea, UK
Mardi Gras Oil and Gas Transportation System – fields lies in the Mississippi Canyon and Green Canyon areas of the Gulf of Mexico. In the southern Green Canyon area, pipelines are planned to transport gas and oil from the Mad Dog, Holstein and Atlantis fields.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Magnus EOR – – the UK’s most northerly oilfield – was discovered in 1974 by the semi-submersible drilling rig Sedco 703. It lies 160km north-east of the Shetlands in block 211/12a. Oil was found 2,709m below the seabed in a water depth of 186m.
Operator: BP, Location: Europe(North), North Sea, UK
Mad Dog Drilling Unit – field is located in Western Atwater Foldbelt, Gulf of Mexico, approx. 190 miles south of New Orleans. The nominal water depth is 4,500ft and the field runs along the Sigsbee Escarpment.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Holstein Oil and Gas Development – oil and gas development lies approximately 150 miles South of New Orleans in Green Canyon block 645. It was discovered in 1999 adjacent to the Mad Dog and Atlantis fields.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Greater Plutonio, Block 18 – fields lies in 1,200m to 1,500m of water. In 1999, BP drilled the Platina and Plutonio wells using the deepwater drillship Pride Angola, and followed these in 2000 with four more: Galio, Paladio, Cromio and Cobalto.
Operator: BP, Location: Africa, West of Africa, Angola
Shah Deniz – gas and condensate field, discovered in 1999, located 100km south of Baku at a water depth of 600 metres in the Caspian Sea. Estimated reserves at Shah Deniz exceeds 400 million cubic meters of gas
Operator: BP, Location: Asia, Caspain Sea, Azerbaijan
Eastern Trough Area Project (ETAP) – is an integrated development of seven different reservoirs. Four separate fields are operated by BP, namely Marnock, Mungo, Monan and Machar (the M fields). And three by Shell, called the Heron, Egret and Skua fields.
Operator: BP, Location: Europe(North), North Sea, UK
Valhall Flank Water Injection Platform – field was discovered in 1969 and came onstream in 1982. It is operated by BP (28.09%) on behalf of Amerada Hess (28.09%), Enterprise (28.09%) and TotalFinaElf (15.72%).
Operator: BP, Location: Europe(North), North Sea, Norway
Bruce Phase II – field was originally developed under Phase I, using two bridge-linked platforms, both connected to the main 52in Frigg trunkline by a 6km, 32in-diameter gas-export pipeline.
Operator: BP, Location: Europe(North), North Sea, UK
Bombax Pipeline Development – pipeline development is part of an integrated initiative to develop BP’s gas resources from the East coast of Trinidad and Tobago.
Operator: BP, Location: America(North), Trinidad and Tobago, Trinidad and Tobago
Azeri-Chirag-Gunashli (ACG) Oil – field lies some 120km off the coast of Azerbaijan in 120m of water and contains 5.4 billion barrels of recoverable oil. Overall investment will reach $10 billion, including $3 billion for the BTC export pipeline.
Operator: BP, Location: Asia, Azerbaijan, Azerbaijan
Thunder Horse Oil – is located in Mississippi Canyon Block 778 and 822. It is 75% owned by BP and 25% by ExxonMobil. Ultimate recovery from the field is estimated at 250,000 barrels of oil per day.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Horn Mountain – development is located in 5,400ft of water, approximately 100 miles southeast of New Orleans, in the Gulf of Mexico. The deep water field lies in Mississippi canyon blocks 126 and 127.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Clair – is located 47 miles west of Shetland in approximately 140 meters of water and was considered the largest undeveloped resource on the UK Continental Shelf
Operator: BP, Location: Europe(North), North Sea, Scotland
Foinaven Oil – is located in blocks 204/19 and 204/24a, which are operated by BP Exploration. Shell UK Exploration and Production is the co-venturer. These blocks lie some 190km west of the Shetland Islands, in a water depth of between 400 and 600m.
Operator: BP, Location: Europe(North), North Sea, UK
King South – The King South project is a tie-back to the King subsea pump manifold one mile away. Oil will be transported to Marlin through the existing King flow-lines
Operator: BP, Location: America(North), Gulf of Mexico, USA
Tangguh LNG project – BP is operator of the Tangguh LNG project which includes offshore platforms, pipelines and the LNG plant with two production trains
Operator: BP, Location: Asia, West Java, Indonesia
Baku-Tbilisi-Ceyhan (BTC) – The Baku-Tbilisi-Ceyhan (BTC) pipeline exports crude oil from the Caspian to world markets. The 1,768 km route runs from the onshore terminal at Sangachal, near Baku
Operator: BP, Location: Asia, Caspain Sea, Azerbaijan
Block 31 – BP and its co-venturers to develop a series of deepwater oil discoveries in offshore Angola’s Block 31.
Operator: BP, Location: Africa, West og Africa, Angola
Savonette – Savonette will be connected via a 26-inch, 9km subsea pipeline to the Mahogany B platform where the fluids will be processed, and then exported onshor
Operator: BP, Location: America(North), Trinidad and Tobago, Trinidad and Tobago
Cashima Field Development – The Cashima development comprises the Cashima field, discovered in 2001, and the North East Queens Beach field, discovered in 1975.
Operator: BP, Location: America(North), Trinidad and Tobago, Trinidad and Tobago
Red Mango Field Development – The Mango project is the first phase in the development of the Mango field hydrocarbon resources, discovered in 2000 off the South East Coast of Trinidad.
Operator: BP, Location: America(North), Trinidad and Tobago, Trinidad and Tobago
Schiehallion Oil Field – was discovered in 1993, with the semi-submersible drilling rig Ocean Alliance, whilst it was exploring the deep waters of the Shetland Trough in the NW Atlantic. Schiehallion lies in 400m of water and it extends across four blocks.
Operator: BP, Location: Europe(North), North Sea, UK
Horn Mountain NWFX – Horn Mountain (HM) is a single piece truss spar located in Mississippi Canyon Blocks 126-127, approximately 84 mile south of Venice, Louisiana.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Troika – oil field is located 150 miles offshore Louisiana, in the Gulf of Mexico, in Green Canyon 244 unit. It lies in water 2700ft deep.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Dorado – The Dorado development consists of a three well subsea tie-back to the Marlin TLP
Operator: BP, Location: America(North), Gulf of Mexico, USA
Atlantis North Flank – Atlantis North Flank is the first of several options to develop resources in the Atlantis North area.
Operator: BP, Location: America(North), Gulf of Mexico, USA
King Sub-Sea Pump – The King South project is a tie-back to the King subsea pump manifold one mile away. Oil will be transported to Marlin through the existing King flow-lines.
Operator: BP, Location: America(North), Gulf of Mexico, USA
Atlantis – Discovered in 1998, the Atlantis oil field development is the world’s deepest moored semi-submersible production facility
Operator: BP, Location: America(North), Gulf of Mexico, USA
Skarv – combined oil and gas development, with 80% of the reserves gas and the remaining 20% liquids. The resource base consists of hydrocarbons from several different reservoirs
Operator: BP, Location: Europe(North), North Sea, Norway
Rhum – Rhum development is a subsea tieback to the BP-operated Bruce field
Operator: BP, Location: Europe(North), North Sea, UK
Cannonball – The Cannonball field development provides gas for Atlantic LNG Train 4. First production started in 2006 at a rate of ca 800 mmscfd (140mboed) from 3 development wells.
Operator: BP, Location: America(North), Trinidad and Tobago, Trinidad and Tobago




Despite conditional acceptance from the US Department of the Interior, Shell is still required to obtain drilling permits from the US MMS and other agencies, as well as air permits from the Environmental Protection Agency to conduct exploration activities offshore Alaska.

“By approving this exploration plan, we are taking a cautious, but deliberate, step toward developing additional information on the Chukchi Sea,” Salazar said.

So far, the Department of the Interior has approved only one lease sale in the Alaskan Arctic. Back in February 2008, it offered 5,355 exploration blocks covering more than 117,350 square kilometres in the Chukchi Sea between 80-320 kilometres offshore.

The lease sale attracted 667 bids with a total value of nearly $3.4 billion – a record for an Alaskan offshore bidding round. Shell was by far the biggest winner in the auction, while ConocoPhillips paid $506.4 million for 98 blocks.

The Chukchi Sea is believed to hold about 15 billion barrels of recoverable oil and about 76 trillion cubic feet of recoverable natural gas, according to the most recent MMS estimate. But its remoteness poses economic challenges.

While the decision has been hailed by Shell and former Alaskan Governor Sarah Palin, it is far from definite whether the company will actually be allowed to undertake its drilling programme in the region.

In 2008, Shell paid $2.1 billion for leases there during US Outer Continental Shelf Lease Sale 193, which was part of the 2007-12 OCS leasing plan.

Environmentalists and some Inupiat leaders slammed the MMS decision opposing Arctic offshore development.


Shell has now been cleared to drill its three wells during the area’s July-October drilling season considering that their drilling activities will be completely suspended starting August 25, 2010 and the company will remove its vessels from the drilling site during the whale hunts.

The Anglo-Dutch supermajor plans to use one drillship, one ice management vessel, an ice-class anchor handling vessel, and oil spill response vessels. The closest proposed drill site is more than 96 kilometres from shore and 128 kilometres from Wainright, Alas.

Once the whaling season is over, Shell will be allowed to return until October, if ice and weather conditions permit, according to the federal agency.

Published on 13/12/2009

Pipeline Magazine – Dubai


Gee let’s see if there is anyone we know –

Big oil success for Iraq

Published on 20/12/2009

Iraq’s oil production capacity could triple from 2.5 million barrels per day (bpd) to 12 million bpd in six years, Iraq’s oil minister said as the country edges closer to the league of big oil producers.

Baghdad struck deals with Russian firm Lukoil and Anglo-Dutch supermajor Shell over giant fields during the two-day bidding round, which included around 40 prequalified companies on December 11 and 12.

Contracts were also awarded to China’s CNPC and Malaysia’s Petronas, Angola’s Sonangol and Russia’s Gazprom, which follows major deals in recent months with ExxonMobil, Eni and BP setting Iraq to become one of the biggest energy producers next to Saudi Arabia and Russia.

“That is the highest production level of the world’s oil-producing countries,” Dr Hussain Al-Shahristani told reporters last week after awarding seven out of ten contracts in its second post-war auction of oil licences.

The deals, which could ramp up Iraq’s output to 4.7 million bpd in six years, would bring the country $200 billion of revenue, while the companies’ winning contracts would spend about $100 billion to develop the fields.

“Iraq is a very active member of Opec,” Shahristani said. “We will be coordinating with its effort to make sure Iraq and all other countries can maximise the revenues from oil sales.”

Iraq’s proven reserves now stand at 115 billion barrels, below Iran’s 137 billion and Saudi Arabia’s 264 billion. But Iraq’s data dates from the 1970s, before improvements in technology transformed the industry.



GE to supply Aramco with turbomachinery

Published on 27/05/2010

GE-Aramco-signing-turbine-deal_resizeGE signed a corporate procurement agreement (CPA) with Saudi Aramco, which establishes a long-term framework for the supply of GE turbomachinery equipment and services to support the efficient production of oil and gas in the Kingdom. The agreement is designed to streamline and simplify working processes, leading to reduced costs and shorter cycle times for… Continue reading



Monthly Archive for August, 2009

Pipeline Magazine selected as official publication at Opec endorsed IPTC

Published on 30/08/2009

Pipeline Magazine has been exclusively selected as the official publication at the forthcoming International Petroleum Technology Conference (IPTC), taking place in Doha, Qatar. Shortly before the announcement, the Organization of Petroleum Exporting Countries (Opec) gave its endorsement to the landmark event.

Opec, a permanent inter-governmental organisation made up of 12 oil-exporting countries, helps to coordinate and unify petroleum policies, ensuring stabilisation of oil prices in international oil markets.

Its endorsement of IPTC is significant to the success of the multi-disciplinary conference and exhibition.  IPTC will provide the most thorough conference programme available in the oil and gas sector, this year covering 58 technical sessions, four panels and high level plenary; the event is one of the few in the industry which offers an opportunity to participate in such comprehensive discussions.

The theme of the fourth edition of the IPTC, held under the patronage of His Highness Sheikh Hamad Bin Khalifa Al Thani, Emir of the State of Qatar, is “World Energy Challenges: Endurance and Commitment”.  The event, which returns to the Middle East from Kuala Lumpur in 2008 and has now been established as a biennial event is also endorsed by the Organisation of Arab Petroleum Exporting Countries (OAPEC).

The 2009 IPTC exhibition, which runs alongside the conference from 7-9 December, will offer industry professionals from around the world a platform to showcase the latest technology, services and products to a targeted oil and gas audience.

Major international oil giants ExxonMobil, Total and Shell, which are currently building some of the world’s largest energy projects, are taking part in the IPTC exhibition to promote their Middle Eastern and global operations.

Exhibitors and delegates will be given a unique opportunity to learn about Pearl Gas to Liquids (GTL), the world’s largest GTL plant, which will cement Qatar’s position as the GTL capital of the world, as well as the Qatargas 4 Liquefied Natural Gas (LNG) project, which will contribute to achieving Qatar’s vision in becoming the world’s largest LNG supplier.



California legislators have scrapped chances for drilling royalties from a planned offshore project that would be the state’s first new offshore drilling lease in decades.

The project, called Tranquillon Ridge, off Santa Barbara was expected to raise about $100 million annually for 15 years in oil royalty payments to the state after the assembly narrowly passed the bill earlier on Friday.

The well would mark the state’s latest offshore drilling since a 1969 oil spill prompted California in 1994 to enact a moratorium on offshore drilling leases in state waters.

But the measure was later defeated by a 43-30 vote in the assembly and was taken out of a budget bill approved on Friday that seeks to close a $26 billion budget deficit.

US independent oil producer Plains Exploration & Production Co. (PXP), which is interested to operate in the area, said it will use slant drilling from an existing platform in federal waters to get to oil under state waters.

The Houston-based company said it is disappointed and “will continue to monitor developments and evaluate its options” according to a PXP spokesman.

Under the deal, PXP would have to dismantle four offshore platforms and two onshore crude oil processing plants by 2024.

The company was expected to extract about 105 million barrels of oil equivalent in the 15 years that would be allowed.

“This is essentially a one-off,” HD Palmer, spokesman for the California Department of Finance, said in a Reuters report. “This does not open the door in any way, shape or form of any massive expansion of offshore drilling,” Palmer said.

Supporters of the bill, including Governor Arnold Schwarzenegger, said the project would not have violated the moratorium.



Iraq satisfied with Rumaila deal

Published on 23/07/2009A consortium led by UK supermajor BP and China National Petroleum Corp (CNPC) has submitted its initial plan satisfying the Iraqi Oil Ministry requirements for the 20-year development of giant Rumaila oil field in southern Iraq according to reports.

The draft deal, in which the group won rights to develop the country’s largest producing field on June 30 at an energy auction in the Iraqi capital, will pave the way for a final signing of the contract expected in August.

Executives from BP and CNPC met Wednesday in Baghdad with Oil Ministry officials, and council members and lawmakers from Basra province where the field is located, a spokesman for the Oil Ministry said.

“Today, we are 90% satisfied the contract will benefit Iraqis. There’s none of the ambiguity we had feared would stain it,” Besma Al-Selemi, one of three delegates sent to the Baghdad meeting, told Reuters.

BP’s bid was the only contract awarded of eight that Iraq offered to international energy companies, after the state demanded bidders accept much lower payment for work than most participating companies were prepared to accept.

The duo had initially bid the government for a payment of $3.99 for each additional barrel of oil they can produce from the 17 billion barrel Rumaila field, but eventually reduced it to $2 per barrel.

BP and its state-run Chinese partner plans to increase Rumaila’s production from 1.1 million barrels per day (bpd) to 2.85 million bpd.



Iran Tender Process Continues

Iran’s state-owned Pars Oil & Gas Company (POGC) has approved financing terms on a $350 million U.S. drilling job at Phases 9 and 10 of the South Pars gas project and is hoping a new prequalification round will illicit more interest than its first tender last year. The drilling job which POGC itself estimates will cost about $300 million U.S. involves 22 directional development wells with a maximum of 62 degrees deviation and two vertical wells.

Two jack-up rigs will be required and the contract will cover all associated services including engineering, procurement, logistics, coring, perforating and testing. Under the new round which includes response to concerns raised earlier by prospective bidders, the National Iranian Oil Company (NIOC) will be involved in arranging financing and “securing the final approval for insurance coverage from respective export credit agencies”. An official said NIOC in effect will be responsible for providing guarantees for loans arranged by contractors through their respective state insurance agencies.

The two South Pars phases are to produce 2 billion cubic feet per day of gas for domestic consumption and 80,000 barrels per day of condensate for export. Some sulphur and LPG will also be produced for export.

Publication Date: March 2003
Source: Upstream – The International Oil and Gas Newspaper



Offshore oil spill prevention

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Inspector on offshore oil drilling rig

Offshore oil spill prevention is the discipline of reducing the risk of blowouts and oil spills into the environment during offshore drilling operations. Important aspects include prevention, detection, monitoring, containment, and shutdown of spills coming from underwater oil wells.

In the United States, offshore oil spill prevention contingency plans and emergency response plans are federally mandated requirements for all offshore oil facilities in U.S. Federal waters.[1] Currently administered by the Minerals Management Service (MMS), these regulatory functions were ordered on May 19, 2010 to be transferred to the United States Department of the Interior‘s newly-created Bureau of Safety and Environmental Enforcement.[2] Oil spills in inland waters are the responsibility of the Environmental Protection Agency (EPA), while oil spills in coastal waters and deepwater ports are the responsibility of the U.S. Coast Guard.[3]

Unlike the Best Available Technology (BAT) criteria stipulated by the Clean Air Act and the Clean Water Act, the Outer Continental Shelf Lands Act amendments of 1978 stipulated that offshore drilling and oil spill response practices incorporate the use of Best Available and Safest Technologies (BAST).[4] [5] While the Technology Assessment and Research (TAR) Program is tasked with research and development of such technologies through contract projects, human factors are also highly relevant in preventing oil spills. As William Cook, former chief of the Performance and Safety Branch of Offshore Minerals Management for the MMS, expressed it: “Technology is not enough. Sooner or later, it comes face to face with a human being. What that human being does or does not do, often ensures that the technology works as it was intended–or does not. Technology — in particular — new, innovative, cutting edge technology must be integrated with human and organizational factors (HOF) into a system safety management approach.” [6]


  1. ^ “Spill Prevention and Response”. Energy Tommorow, American Petroleum Institute. http://www.energytomorrow.org/Spill_Prevention_and_Response.aspx. Retrieved 2010-06-015.
  2. ^ Straub, Noelle (20 May 2010). “Interior Unveils Plan to Split MMS Into 3 Agencies”. The New York Times. http://www.nytimes.com/gwire/2010/05/20/20greenwire-interior-unveils-plan-to-split-mms-into-3-agen-72654.html. Retrieved 2010-06-15.
  3. ^ “Oil Spills: Emergency management”. Environmental Protection Agency. http://www.epa.gov/oilspill/. Retrieved 2010-06-15.
  4. ^ “MMS Technology Assessment & Research (TA&R) Program”. Mineral Management Service. http://www.mms.gov/tarphome/. Retrieved 2010-06-15.
  5. ^ The use of Best Available and Safest technologies (BAST) during oil and gas drilling and producing operations of the Outer Continental Shelf (OCS). Reston, Virginia: U.S. Geological Survey. 1980.
  6. ^ Cook, William S (1997). “Technology Alone is Not the Answer”. SPE/EPA Exploration and Production Environmental Conference. doi:10.2118/37895-MS. http://www.onepetro.org/mslib/servlet/onepetropreview?id=00037895&soc=SPE. Retrieved 2010-06-15.

External links

  1. U.S.Coast Guard and EPA, Oil Spill Prevention, Control, & Countermeasure Regulations
  2. American Petroleum Institute, Oil Spill Prevention and Response
  3. NOAA, 2002. Oil Spill Prevention and Response: A Selected Bibliography on the Exxon Valdez Oil Spill
  4. Offshore Technology Resource Center. 2001. Comparative Risk Analysis for Deepwater Production Systems



Energy Policy Act of 1992

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The Energy Policy Act (102nd Congress H.R.776.ENR, abbreviated as EPACT92) is a United States government act. It was passed by Congress and addressed energy efficiency, energy conservation and energy management (Title I), natural gas imports and exports (Title II), alternative fuels and requiring certain fleets to acquire alternative fuel vehicles, which are capable of operating on nonpetroleum fuels (Title III-V), electric motor vehicles (Title VI), radioactive waste (Title VIII), coal power and clean coal (Title XIII), renewable energy (Title XII), and other issues. It reformed the Public Utility Holding Company Act and amended parts of the Federal Power Act of 1935 (Title VII).

Among the provisions is Section 801, which directs the United States Environmental Protection Agency to promulgate radiation protection standards for the Yucca Mountain nuclear waste repository. The Yucca Mountain site has been designated by the Federal government to serve as the permanent disposal site for used nuclear fuel and other radioactive materials from commercial nuclear power plants and U.S. Department of Defense activities.

EPACT92 is also far reaching in the impacting electric power deregulation, building codes and new energy efficient products.


// <![CDATA[//

TITLE III–Alternative Fuels

Title III of the 1992 Energy Policy Act addresses alternative fuels. It gave the U.S. Department of Energy administrative power to regulate the minimum number of light duty alternative fuel vehicles acquired in certain federal fleets beginning in fiscal year 2000. Title III includes:

  • Federal Fleet Requirements.
  • State and Alternative Fuel Provider Rule.
  • Private and Local Government Fleet Rule.
  • Alternative Fuel Designation Authority.

TITLE VI–Electric Motor Vehicles

Energy Efficiency Provisions

  • Buildings

Requires states to establish minimum commercial building energy codes and to consider minimum residential codes based on current voluntary codes. This gave impetus to the creation and modification of ASHRAE 90.1/1999, 2001, ASHRAE 90.2, the Model Energy Code etc.

  • Utilities

Requires states to consider new regulatory standards that would require utilities to undertake integrated resource planning; allow the energy efficiency programs to be at least as profitable as new supply options; and encourage improvements in supply system efficiency.

  • Equipment Standards

– Establishes efficiency standards for: Commercial heating and air-conditioning equipment; electric motors; and lamps.

  • Renewable Energy

– Establishes a program for providing federal support on a competitive basis for renewable energy technologies

  • Alternative Fuels
  • Electric Vehicles
  • Electricity

Removes obstacles to wholesale power competition in the Public Utilities Holding Company Act (PUHCA).


External links




Unbelievable! Rigzone took down their technical discussion of BP Macondo after just 5 hours. Flabbergasted. 3:32 AM May 9th via SeekingAlpha

Rigzone has BP Macondo well data and technical discussion of blowout http://soc.li/uHqmUHN 12:43 AM May 9th via SeekingAlpha

NOAA says oil gushing from BP sunken rig 25,000 barrels a day. Deteriorating conditions may result in flow of 50,000 barrels a day. 9:17 AM May 2nd via SeekingAlpha

GAO says Minerals Management Service Alaska regional office incompetent to do environmental impact studies for offshore oil drilling 11:15 PM Apr 9th via SeekingAlpha

  1. MMS remanded program – no sales in the North Aleutian Basin and Beaufort Sea; no additional sales in the Chukchi Sea 9:59 PM Apr 8th via SeekingAlpha
  2. Reuters: Russia’s Energy Ministry has proposed taxing oil companies based on their financial results 9:34 PM Apr 8th via SeekingAlpha

EPA proposing to collect emissions data from the oil and natural gas sector, methane release to be hammered by regs and taxation in 2011. 10:18 PM Mar 24th via SeekingAlpha

Energy czar Salazar testified Dept Interior got 500,000 comments on OCS oil exploration, will read all of them and decide new 5-year plan 4:28 AM Mar 4th via web

Royal Navy on alert in Falklands 11:56 PM Feb 18th via SeekingAlpha

Argentina blockades shipping to Falkland Islands, says UK oil exploration “illegal.” 1:45 AM Feb 18th via SeekingAlpha

State of Texas, US Chamber of Commerce, others sue EPA to block US regulation of greenhouse gas emmissions based on IPCC junk science 1:43 AM Feb 18th via SeekingAlpha

Argentina boarded ship carrying oilfield pipe to Falklands, protests British exploration of continental shelf. 8:28 PM Feb 11th via SeekingAlpha

Just commented on: “Deepwater Gulf of Mexico Continues to Captivate the World’s Oil Majors” http://soc.li/EGAbbBa 11:48 AM Jan 27th via SeekingAlpha

  1. Felix Salmon at Reuters picked up the story of SEC oil reserves rule change. Full article pdf http://www.cwsx.org/21darts.pdf has charts. 7:39 PM Nov 20th, 2009 via web


Comments on BP Strikes Oil, Enhances Exploration Potential in Gulf of Mexico
by James Rickman

  • Is it not remarkable that a huge oil discovery only 250 miles from Houston is made by BP, a British company, in partnership with Petrobras, a Brazilian company? Conoco, the only American company involved, has the smallest stake at 18%. This comes a couple of days after PetroChina announces a $1.8 Billion investment in a to-be-built project in the Canadian Oil Sands. Wake up, America!

    2009 Sep 03 02:27 PM Reply

    +1 -1
  • Uncle: in case you don’t know this, BP’s office is located in Houston and it is staffed by over 75% Americans. So this is a very American operation. Once the platform is installed, it will be staffed by Americans. And, they pay taxes here in America.

    2009 Sep 03 03:13 PM Reply

    +1 0
  • ….BP is also Amoco, one of the original Standard Oils.

    2009 Sep 04 08:53 AM Reply

    0 0
  • Dear Mmarrkk,

    I’m sure they have offices in Houston and employ lots of Americans. After all they are now the largest petroleum producer in the Gulf of Mexico! But BP stands for BRITISH Petroleum and when you buy their stock, you are buying an ADR (American Depositary Receipt). I imagine PetroChina will be opening offices in Calgary and employing lots of Canadians, too, but it will still be a Chinese company. My point being that the American companies appear to be asleep while others are developing major resources right in our backyard.

    On Sep 03 03:13 PM Mmarrkk wrote:

    > Uncle: in case you don’t know this, BP’s office is located in Houston
    > and it is staffed by over 75% Americans. So this is a very American
    > operation. Once the platform is installed, it will be staffed by
    > Americans. And, they pay taxes here in America.

    2009 Sep 04 09:00 AM Reply

    0 -2
  • Uncle Pie: Buy ADRs of BP for your savings, and you benefit too. Oil is international, Exxon (with Shell) explores and produces in the North Sea. Chevron, Apache, Oxy, Anadarko also operate worldwide. It’s only the State-owned cies, like Statoil, Petrobras etc. one should worry about. They only participate after the discoveries, and do not share the initial risks.

    2009 Sep 04 09:48 AM Reply

    +1 0
  • Thanks, Ajax 2000, I’d love to be a shareholder of BP (nice dividend) but I have concerns about their involvement in the former Soviet Union, especially after Shell’s experience with their Sakhalin Island investment. I do own a number of oil company shares, in Canada, China, Brazil, Norway, Australia and France. I don’t own any in the USA because oil production here peaked in 1970, whereas in Canada, for instance, it is not expected to peak until sometime around 2035. And because the American companies are usually not to be found at the forefront of exploration, as BP’s recent discovery reminds us. However as an American citizen it is still dismaying to see our companies bought by, and our resources developed by, oil companies from across the sea. Capital is leaving the US, and, as the economist David Malpass remarked on CNBC the other day, when capital is leaving job growth will not occur. Witness today’s jobs report, over 200,000 jobs lost in the US during August, while 27,000 new jobs were created in Canada.

    On Sep 04 09:48 AM ajax2000 wrote:

    > Uncle Pie: Buy ADRs of BP for your savings, and you benefit too.
    > Oil is international, Exxon (with Shell) explores and produces in
    > the North Sea. Chevron, Apache, Oxy, Anadarko also operate worldwide.
    > It’s only the State-owned cies, like Statoil, Petrobras etc. one
    > should worry about. They only participate after the discoveries,
    > and do not share the initial risks.

    2009 Sep 04 12:07 PM Reply

    0 0
  • BP and Shell are both creating lots of jobs here in the U.S., are were until we hit this little speed bump known as a recession/depression. But no matter where their stocks are housed and their CEO is housed, both have huge presences in the u.s. and employ thousands here in the U.S. So, if jobs are important, they are employing large numbers. And the exporation work is done here in Houston.

    Guess you are worried about Hyundai as well, even if they are building cars in Alabama? Should we change the name? Same employees, same local taxes, payrolls, etc.

    2009 Sep 04 02:30 PM Reply

    0 0
  • Alan von Altendorf is president and managing director of CWSX, L.L.C., an oil & gas exploration consulting firm based in Houston. Their geology and geophysics (“G&G”) team have a 20-year track record of picking successful drilling locations for major international oil companies.
    On Sep 03 02:27 PM Uncle Pie wrote:
    >Wake up, America!

    BP didn’t discover anything. It was Amoco and Transocean.

    2009 Sep 05 12:14 AM Reply

    0 0
  • Steven Ward, a former employee of Amoco Oil Company, is an independent oil analyst specializing in Canadian and Western European oil companies.
    As a former Amoco employee, a second generation employee at that, I still own some Amoco, oops BP that is, shares in a small investment savings account. Amoco had a problem, a serious lack of capital to really go elephant hunting. The fix was to sell to BP, where most of the Americans kept their jobs and then some.
    Amoco at the time had the largest employee and former employee stock ownership in all of the large integrated oil companies, around 28 percent. It was the main reason we were not raided by T. Boone Pickens when he was raiding Phillips and others. He wasn’t welcome and he knew it. Nobody sold their stock, darn near nobody. It was a religous cuilt the stock ownership. But we all knew from the CEO down to the truck drivers we had excessive refining capacity and no oil. BP came along and we all exchanged our shares. It was the right decision based solely on future shareholder value.
    Uncle’s right in the lack of capital investment by some US oil companies. But sometimes a good deal comes along and your survival depends on it.

    2009 Sep 05 11:34 AM



BP Strikes Oil, Enhances Exploration Potential in Gulf of Mexico

by: James Rickman September 03, 2009

British Petroleum (BP) reports it has discovered a new oil reserve potentially reaching 3 billion barrels in the deepwater Tiber Prospect area in the Gulf of Mexico section known as Keathley Canyon block 102 (located 250 miles southeast of Houston, Texas). The oil reserve was struck at over 33,000 feet. The exact size and commercial value has not yet been determined but it will take several years to any begin production.

BP has an over 62% working interest in the Keathley Canyon block while Brazilian state-controlled Petrobras (PZE) owns 20% and U.S. oil gaint ConocoPhillips (COP) owns 18%. BP will need to extract the oil, typically recovering about 25% to 40% of the reserves in place.

At the low end BP estimates the Keathley Canyon find could represent 6% of its 12.56 billion barrels of proved reserves at the end of 2008. The company confirms it was its second major discovery in the emerging Lower Tertiary play in the Gulf of Mexico, where it currently produces over 400,000 barrels of oil equivalent a day.

The find enhances the potential in the Gulf of Mexico reviving interest in other exploration in the area, including at Royal Dutch Shell Plc’s (RDS.A) Great White field.

BP shares jumped on the news to trade up 3.7%, and 1.45% on the DJ Stoxx European oil and gas sector index.

The Gulf of Mexico is of strategic value to Western oil majors as oil rich-countries such as Saudi Arabia, Venezuela and Russia reserve their richest fields to be developed by their state-owned oil companies.

The Gulf of Mexico is especially attractive because it offers high profit margins building on relatively low taxation compared to countries such as Russia and Nigeria, and because of the low political risk.

About the author: James Rickman



BP’s Tiber Oil Discovery

Is BP’s New Giant Oil Field Too Little, Too late?

By Keith Kohl
Thursday, September 10th, 2009

At first glance, the BP’s latest discovery in the Gulf of Mexico came at the right time.

After all, the IEA just increased their forecast for global oil consumption in 2010. According to their report this morning, world oil demand is expected to rise by 1.3% to 85.7 million barrels per day next year. If you’re counting, that’s an increase of nearly half a million barrels per day over their previous estimates.

Meanwhile, OPEC members converged this week and decided to keep oil quotas unchanged. No shock there, especially considering oil prices have been holding steady between $65 and $75 per barrel.

However, BP’s new discovery in the Tiber prospect isn’t as rosy as it seems.

Let’s assume (for now, at least) that BP is correct in predicting this new field is the same size as their other discoveries in the Gulf of Mexico. That comes out to about 3 billion barrels of oil in place.

Try not to make the same mistake that other, overexcited people have with this discovery. If anything, it’s proof of how far we need to go to continue pumping crude. In order to reach the discovery, Transocean drilled a well to a depth of 35,000 ft. That makes this the deepest well drilled to date in the oil and gas industry.

Believe me, it’s not an easy feat to extract this oil. It’s not as simple as setting up a rig on Texas soil and drilling until you hit pay dirt. Some of you may recall the technological difficulties involved in developing offshore oil and gas.

There are a few other problems, too. For starters, the Gulf of Mexico hasn’t exactly been the least volatile area when it comes to oil and natural gas production. BP will be on their toes whenever we enter a hurricane season. One storm has the power to completely shut-in production, and that’s not to mention the potential damage to the infrastructure itself.

And then there’s the problem of time. The real question is how long we’ll have to wait for BP to begin pumping oil from this field. I’ve heard projections between three and seven years being thrown around. Either way, BP isn’t shouldn’t be expecting this production for quite some time.

Of course, by then we’ll be needing that oil more than ever before.

Until next time



Tiber Oil Field – Wikipedia, the free encyclopedia

The Tiber Oil Field is a deepwater offshore oil field (defined as water depth 1300 feet (400 m) to 5000 feet (1500 m)) in the Gulf of Mexico, discovered by



Energy Policy Act of 2005

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Jump to: navigation, search

The Energy Policy Act of 2005 (Pub.L. 109-58) is a bill passed by the United States Congress on July 29, 2005, and signed into law by President George W. Bush on August 8, 2005, at Sandia National Laboratories in Albuquerque, New Mexico. The act, described by proponents as an attempt to combat growing energy problems, changed US energy policy by providing tax incentives and loan guarantees for energy production of various types.

General provisions

  • Under an amendment in The Recovery Act of 2009, Section 406, authorizes loan guarantees for innovative technologies that avoid greenhouse gases, which might include advanced nuclear reactor designs (such as PBMR) as well as clean coal and renewable energy;
  • Increases the amount of biofuel (usually ethanol) that must be mixed with gasoline sold in the United States to 4 billion gallons by 2006, 6.1 billion gallons by 2009 and 7.5 billion gallons by 2012;[1]
  • Seeks to increase coal as an energy source while also reducing air pollution, through authorizing $200 million annually for clean coal initiatives, repealing the current 160-acre cap on coal leases, allowing the advanced payment of royalties from coal mines and requiring an assessment of coal resources on federal lands that are not national parks;
  • Authorizes subsidies for wind and other alternative energy producers;
  • Adds ocean energy sources including wave and tidal power for the first time as separately identified, renewable technologies;
  • Authorizes $50 million annually over the life of the law for biomass grants;
  • Contains provisions aimed at making geothermal energy more competitive with fossil fuels in generating electricity;
  • Requires the US Department of Energy to study and report on existing natural energy resources including wind, solar, waves and tides;
  • Authorizes the Department of the Interior to grant leases for activity that involves the production, transportation or transmission of energy on Outer Continental Shelf lands from sources other than gas and oil (Section 388);[2]
  • Requires the U.S. Department of Energy to study and report on national benefits of demand response and make a recommendation on achieving specific levels of benefits and encourages time-based pricing and other forms of demand response as a policy decision;
  • Requires all public electric utilities to offer net metering on request to their customers;
  • Requires the DOE to designate National Interest Electric Transmission Corridors where there are significant transmission limitations adversely affecting the public. The Federal Energy Regulatory Commission may authorize federal permits for transmission projects in these regions.
  • Prohibits the manufacture and importation of Mercury Vapor lamp ballasts after January 1, 2008.
  • Provides tax breaks for those making energy conservation improvements to their homes;
  • Provides incentives to companies drilling for oil in the Gulf of Mexico;
  • Exempts oil and gas producers from certain requirements of the Safe Drinking Water Act;
  • Extends daylight saving time by four to five weeks, depending upon the year (see below);
  • Requires that no drilling for gas or oil may be done in or underneath the Great Lakes;
  • Requires that Federal Fleet vehicles capable of operating on alternative fuels be operated on these fuels exclusively (Section 701.)
  • Sets federal reliability standards regulating the electrical grid (done in response to the Blackout of 2003);[3][4][5]
  • Nuclear-specific provisions:[6]
  • Extends the Price-Anderson Nuclear Industries Indemnity Act through 2025;
  • Authorizes cost-overrun support of up to $2 billion total for up to six new nuclear power plants;
  • Authorizes a production tax credit of up to $125 million total per year, estimated at 1.8 US¢/kWh during the first eight years of operation for the first 6.000 MW of capacity;[7] consistent with renewables;
  • Authorizes loan guarantees of up to 80% of project cost to be repaid within 30 years or 90% of the project’s life [1];
  • Authorizes $2.95 billion for R&D and the building of an advanced hydrogen cogeneration reactor at Idaho National Laboratory[2];
  • Authorizes ‘standby support’ for new reactor delays that offset the financial impact of delays beyond the industry’s control for the first six reactors, including 100% coverage of the first two plants with up to $500 million each and 50% of the cost of delays for plants three through six with up to $350 million each for [3];
  • Allows nuclear plant employees and certain contractors to carry firearms;
  • Prohibits the sale, export or transfer of nuclear materials and “sensitive nuclear technology” to any state sponsor of terrorist activities;
  • Updates tax treatment of decommissioning funds;
  • A provision for the U.S. Department of Energy to report in one year on how to dispose of high-level nuclear waste;
  • Directs the Secretary of the Interior to complete a programmatic environmental impact statement for a commercial leasing program for oil shale and tar sands resources on public lands with an emphasis on the most geologically prospective lands within each of the states of Colorado, Utah, and Wyoming.[8]

In Congressional bills an “authorization” of a discretionary program is a permission to spend money, while an “appropriation” is the actual decision to spend it; none of the authorizations above will mean anything if the money is never appropriated.

Tax reductions by subject area


Congressional Budget Office (CBO) cost estimate

The Congressional Budget Office review of the conference version of the bill estimated the Act will increase direct spending by $2.2 billion over the 2006-2010 period, and by $1.6 billion over the 2006-2015 period. In addition, the CBO and the Joint Committee on Taxation estimated that the legislation would reduce revenues by $7.9 billion over the 2005-2010 period and by $12.3 billion over the 2005-2015 period. The CBO noted that the bill could have additional effects on discretionary spending, but did not attempt to estimate those effects.


  • The Washington Post contended that the spending bill is a broad collection of subsidies for United States energy companies; in particular, the nuclear and oil industries.[14]
  • Texas companies in particular benefit from the bill. This criticism is heightened by the fact that President George W. Bush, the House Majority Leader (Tom DeLay), and the Chairman of the House Energy & Commerce Committee (Joe Barton) were all from Texas. The fact that the bill passed 66-29 with some support from Democrats for the bill has not calmed this criticism (a Philadelphia Inquirer editorial on July 28, 2005, suggested Congress had a “let’s pass it and claim we did something” attitude).
  • Speaking for the National Republicans for Environmental Protection Association, President Martha Marks said that the organization was disappointed in the bill: it did not give enough support to conservation, and continued to subsidize the well-established oil and gas industries that don’t require subsidizing.[15]
  • The bill did not include provisions for drilling in the Arctic National Wildlife Refuge (ANWR) even though some Republicans claim “access to the abundant oil reserves in ANWR would strengthen America’s energy independence without harming the environment.”[16]
  • Senator Hillary Rodham Clinton made the bill an issue in the 2008 Democratic Primary by criticizing Senator Barack Obama’s two votes supporting the bill, calling it the “Dick Cheney lobbyist energy bill.”
  • This bill exempted fluids used in the natural gas extraction process of Hydraulic fracturing from protections under the Clean Air Act, Safe Drinking Water Act, and CERCLA. The proposed Fracturing Responsibility and Awareness of Chemicals Act would repeal these exemptions.

Legislative history

The Act was voted on and passed twice by the United States Senate, once prior to conference committee, and once after. In both cases, there were numerous senators who voted against the bill. John McCain, the Republican Party nominee for President of the United States in the 2008 election voted against the bill. Democrat Barack Obama, the current President of the United States, voted in favor of the bill.

Provisions in the original bill that were not in the act

Preliminary Senate vote

June 28, 2005, 10:00 a.m. Yeas – 85, Nays – 12

Conference committee

The bill’s conference committee included 14 Senators and 51 House members. The senators on the committee were: Republicans Domenici, Craig, Thomas, Alexander, Murkowski, Burr, Grassley and Democrats Bingaman, Akaka, Dorgan, Wyden, Johnson, and Baucus.

Final Senate vote

July 29, 2005, 12:50 p.m.[17] Yeas – 74, Nays – 26






How BP’s Deepwater Horizon oil find was originally reported in September 2009

Posted by Edward Harrison on 30 May 2010 at 3:21 pm

Deepwater Horizon rigBelow are a few media reports from September 2009 discussing the BP Gulf of Mexico Tiber Oil Field find when it originally hit the newswires. This was the deepest oil and gas well in human history, going to a depth of 35,000 feet. Exploratory drilling began in March 2009. Deepwater Horizon did not commence until September 2009. Only the second story from Bloomberg hints at the “volatility” related to the find and the need for “caution.”

This was a giant field and the third biggest find in the US after Prudhoe Bay, also a BP find and the older Spraberry Trend in West Texas. Ostensibly, quelling oil “volatility” ie reaping profits from oil price spikes is the impetus behind these kinds of risky projects. But, this field could not have been found or developed without the advent of deepwater drilling. BP used the Deepwater Horizon rig that was also used just months later for the deepwater drilling in nearby Macondo Prospect in Mississippi Canyon where tragedy struck.

BP Press Release:

BP announced today a giant oil discovery at its Tiber Prospect in the deepwater US Gulf of Mexico.

The well, located in Keathley Canyon block 102, approximately 250 miles (400 kilometres) south east of Houston, is in 4,132 feet (1,259 metres) of water. The Tiber well was drilled to a total depth of approximately 35,055 feet (10,685 metres) making it one of the deepest wells ever drilled by the oil and gas industry. The well found oil in multiple Lower Tertiary reservoirs. Appraisal will be required to determine the size and commerciality of the discovery.

“Tiber represents BP’s second material discovery in the emerging Lower Tertiary play in the US Gulf of Mexico, following our earlier Kaskida discovery,” said Andy Inglis, chief executive, Exploration and Production. “These material discoveries together with our industry leading acreage position support the continuing growth of our deepwater Gulf of Mexico business into the second half of the next decade.”

Tiber is operated by BP (NYSE: BP), with a 62 per cent working interest with co-owners Petrobras (NYSE: PBR/PBRA, 20 per cent) and ConocoPhillips (NYSE: COP, 18 per cent).

Transocean Press Release:

Transocean Ltd. (NYSE: RIG) announced that its ultra-deepwater semisubmersible rig Deepwater Horizon recently drilled the deepest oil and gas well ever while working for BP and its co-owners on the Tiber well in the U.S. Gulf of Mexico. Working with BP, the Transocean crews on the Deepwater Horizon drilled the well to 35,050 vertical depth and 35,055 feet measured depth (MD), or more than six miles, while operating in 4,130 feet of water.

This impressive well depth record reflects the intensive planning and focus on effective operations by BP and the drilling crews of the Deepwater Horizon,” said Robert L. Long, Transocean Ltd.’s Chief Executive Officer. “Congratulations to everyone involved.”

These achievements are the latest in Transocean’s history of world and other records dating back to the 1950s. In 2005, the ultra-deepwater drillship Discoverer Spirit set the record for the longest Gulf of Mexico oil and gas well at 34,189 feet, MD. Most recently, the Transocean jackup GSF Rig 127 drilled the industry’s longest extended-reach well in 2008 while working for Maersk Oil Qatar AS at 40,320 feet MD with a 35,770-foot horizontal section. The well was drilled offshore Qatar in 36 days and was incident-free.

Transocean also holds the current world water-depth record of operating in 10,011 feet of water set while working for Chevron in the U.S. Gulf of Mexico.

The Deepwater Horizon, placed into service in 2001, is a dynamically positioned ultra-deepwater semisubmersible rig capable of working in water depths of up to 10,000 feet.


BP Plc’s “giant” oil discovery beneath the Gulf of Mexico shows the lengths producers are having to go to replace dwindling reserves because many of the world’s largest fields remain off-limits.

Restricted access to deposits in the Middle East, Russia and Venezuela and advances in technology have spurred a shift toward harder-to-access reserves that would once have been unreachable. BP has pushed back the frontiers of exploration in North America in the past. It discovered Alaska’s Prudhoe Bay field, still the biggest oil field in the U.S., in 1969…

Caution Urged

It could be years before any oil is pumped given the challenges posed by BP’s latest discovery, Stephen Schork, president of the Schork Group, said in an interview with Bloomberg Television yesterday.

Tiber lies in a geological formation known as the lower Tertiary, a layer of rocks created 24 million to 65 million years ago.

“It is a huge discovery, but there is a long time to go,” Aymeric de Villaret, a Paris-based analyst at Societe Generale, said in a phone interview.

Tiber was drilled 250 miles (400 kilometers) southeast of Houston in 4,132 feet (1,259 meters) of water, reaching almost 31,000 feet beneath the seafloor. Transocean Ltd., the world’s largest offshore driller, used the Deepwater Horizon semi- submersible rig for the discovery. BP, which hasn’t disclosed the project’s costs, plans more wells to assess the find.

‘Quell Volatility’

“This BP oil, we are not going to see probably for another five or six years,” Schork said. “As long as the perception is that there’s oil in the pipeline, it will help quell volatility as we go forward.”


The Guardian:

BP has reopened the debate on when the “peak oil” supply will be reached by announcing a big new discovery in the Gulf of Mexico which some believe could be as large as the Forties, the biggest field ever found in the North Sea.

The strike comes days after Iran unveiled an even larger find of 8.8bn barrels of crude oil, and the moves have encouraged sceptics of theories which say that peak production has been reached, or soon will be, to hail a new golden age of exploration and supply.

BP, already the largest producer of hydrocarbons in the US, said its “giant” Tiber discovery in 4,100ft (1,250m) of water was particularly exciting because it promised to open up a whole new area.

Shares in BP were up 4% to 539p in afternoon trading, making it the biggest riser in the FTSE 100 despite the company saying much more drilling appraisal work was needed before Tiber’s commerciality could be guaranteed.

“Tiber represents BP’s second material discovery in the emerging lower tertiary play in the Gulf of Mexico, following our earlier Kaskida discovery,” said Andy Inglis, chief executive of exploration and production. “These material discoveries, together with our industry-leading acreage position, support the continuing growth of our deepwater Gulf of Mexico business into the second half of the next decade.”

Analysts agreed that the find appeared to be very significant. “Any time an oil major uses the word ‘giant’ you have to sit up and take note. Kaskida confirmed the western limits of the lower tertiary play and this extends the limits even further,” said Matt Snyder, a Gulf of Mexico specialist at oil consultancy Wood Mackenzie.

Fadel Gheit, an equity analyst who follows the oil sector for the Oppenheimer brokerage in New York, said the discovery was a “big feather in BP’s cap and reaffirms their leading position in the deep water Gulf of Mexico”.


BP said in a statement on Wednesday that it had made the “giant” find at its Tiber Prospect in the Keathley Canyon block 102, by drilling one of the deepest wells ever sunk by the industry.

Further appraisal will be required to ascertain the size of volumes of oil present, but a spokesman said the find should be bigger than its Kaskida discovery which has over 3 billion barrels of oil in place.

Estimates of recoverable reserves range from around 20 percent of oil in place.

“Assuming reserves in place of 4 billion barrels and a 35 percent recovery rate, BP’s proven reserves .. would rise by 868 million barrels — equivalent to 4.8 percent of the group’s 18.14billion barrels of proven reserves,” Aymeric De-Villaret, oil analyst at Societe Generale said in a research note.

The Ledger:

Nearly seven miles below the Gulf of Mexico, oil company BP has tapped into a vast pool of crude after digging the deepest oil well in the world.

The Tiber Prospect is expected to rank among the largest petroleum discoveries in the United States, potentially producing half as much crude in a day as Alaska’s famous North Slope oil field.

The company’s chief of exploration on Wednesday estimated that the Tiber deposit holds between 4 billion and 6 billion barrels of oil equivalent, which includes natural gas. That would be enough to satisfy U.S. demand for crude for nearly one year. But BP does not yet know how much it can extract.

“The Gulf of Mexico is proving to be a growing oil province, and a profitable one, if you can find the reserves,” said Tyler Priest, professor and director of Global Studies at the Bauer College of Business at the University of Houston.


Finds like Thunder Horse, Tiber, and Kaskida fit BP’s high-risk, high-return strategy to a T. “We don’t do simple things,” Inglis says. “We are prepared to work at the frontier and manage the risks.” BP wants to do big projects of a billion barrels or more because that’s the only way to replace the huge volumes that it produces, and large scale translates into high returns. Unlike ExxonMobil and Royal Dutch Shell, which have substantial refining and marketing operations, BP is largely an exploration and production company. BP wants to be a first mover and get the choice deals ahead of everyone else. And BP stands out as a high roller among the majors. Witness TNK-BP, the company’s turbulent though lucrative joint venture with a group of Russian oligarchs who forced the ouster of the venture’s expatriate CEO last year. Then there’s BP’s lonely decision a few weeks ago to become the first big oil company to return to Iraq while ExxonMobil and Royal Dutch Shell balked at the Iraqis’ tough terms.

BP’s approach to finding new oil and gas involves big but calibrated gambles. Exploration wells in the deepwater Gulf of Mexico, for example, take months to drill and cost up to $200 million to bring onstream. With an overall exploration budget of $600 million to $1 billion per year, BP goes to great lengths to make sure it is taking the right risks.


Gulf of Mexico Deepwater

The Gulf of Mexico business unit is operated from Houston, Texas.



My Note –

so, where is Macondo on that list?

Is it called something else?

– cricketdiane


Merger with BP

An abandoned Amoco station.

A BP in Lake Villa, Illinois using the Amoco name.

On August 11, 1998, Amoco announced it would merge with British Petroleum (BP) in the world’s largest industrial merger. Originally, the plan was for all US BP service stations to be converted to Amoco while all overseas Amoco service stations were to be converted to BP. But by 2001 BP announced that all Amoco service stations would either be closed or renamed to BP service stations, including the remaining stations still bearing the “Standard” name. However, BP rebranded its gas as “Amoco Fuels”, including “Amoco Ultimate”. By 2008, the “Amoco Fuels” brand had been mostly discontinued in favor of “BP Gasoline with Invigorate.” In addition, few BP stations continue operation under the Amoco name. Most were either converted to BP, demolished and replaced with BP-style stations, abandoned, or switched to competitor brands.

[edit] Logo

Original Standard Oil of Indiana “torch & oval” logo used from 1946 thru 1960.

The first Indiana Standard logo was unveiled in 1926 after a competition. The logo featured a circle, representing strength, stability, and dependability, with the words “Standard Oil Company (Indiana)” in red. The inner circle represents the cycle of service to customers. The word Service was written in the inside of the circles. In addition, the logo also had a torch with a flame, symbolizing progress. This logo appeared on gas station buildings. The roadside sign was a blue rectangle saying “STANDARD SERVICE” in white block letters.

Concurrently, American Oil introduced in 1932 a logo which was the first to bear the name “Amoco”. It featured an ellipse divided into three sections horizontally; the top and bottom were red, and the middle had a black background with white lettering. This logo was used in the northeastern U.S.

A new logo was developed by Indiana Standard and introduced in 1946. It combined the Standard torch with the Amoco oval. The oval colors were, from top to bottom, red, white, and blue. The new logo was called the “Torch and Oval (T&O).” In parts of the country where the company could not use the name “Standard”, the logo read “Utoco” or “Pan-Am”. When the “Pan-Am” name was replaced by “Amoco”, it marked the first time the torch and oval was used with the Amoco name. The red and black logo continued to be used in the northeast and maps distributed by Amoco in the late 1950s through 1960 showed both logos.

In 1961, the torch and oval was redesigned with a flatter oval and a more contemporary torch design with the logo bearing the Standard or American name in the U.S. and the Amoco name outside the U.S.

1960s Standard logo. Logo bore the “AMERICAN” name outside the Indiana Standard marketing area.

The next updated logo in 1971 enhanced the previous one. It featured a blue bottom and a sleeker-looking torch. In addition, the word “Standard” become italicized and thicker. This was used by Midwestern station owners who had the option of using the Amoco name (more familiar in the East and South) or using the more familiar Standard name. Owners used it up until they were converted to BP or another brand.

Standard logo with slogan.

The final Amoco logo simply changed the name on the logo to “Amoco”. The logo featured the familiar torch and divided ellipse.

Currently, BP still employs the Amoco name, albeit under another logo. BP currently uses the logo under the main BP helios logo. The italicized word “Amoco” is shown after red, white, and blue horizontal stripes, taken from the divided ellipse of the former Amoco logo. This logo existed prior to the acquisition, and was used primarily on pumps and service station canopies. Since the merger, the black background has been replaced with green, to symbolize the new parent company.

Although a few Amoco stations still use their former logo, most have since been converted to the BP livery. In St. Louis, Missouri, near the highest point of the city, the largest Amoco sign in the world, both before and after the company’s demise, still stands. It stands at the intersection of Clayton Road, Skinker Boulevard, McCausland Avenue, and Interstate 64/U.S. Highway 40. It is visible up to 2 miles away on the interstate. Most surviving BP stations are kept so BP can continue holding the trademarks for Amoco and Standard.

BP station with “torch and oval” Standard sign in Durand, Michigan

In May 2008, United States BP stations mostly discontinued use of the “Amoco Fuels” logo as BP introduced its new brand of fuel, “BP Gasoline with Invigorate”. The only remaining usage of the Amoco name is the brand of BP’s highest grade, 93-octane “Amoco Ultimate”.


On March 16, 1978, the very large crude carrier Amoco Cadiz ran ashore just north of Landunvez, Finistère, France, causing one of the largest oil spills in history. More than a decade later, Amoco was ordered to pay $120 million in damages and restitution to France.

On October 21, 1980, an explosion at an Amoco plant in New Castle, Delaware, killed six people, caused $46 million in property damage, and eventually led to the loss of 300 jobs.[6]

In the 1980s and 1990s, six former Amoco chemical engineers at the firm’s Naperville, Illinois research campus developed a deadly form of brain cancer. Researchers who conducted a three-year study of the cancer cluster determined that the cancer cases were workplace-related, but they could not identify the source of the workers’ ailments. In June 2010, BP demolished Building 503, where the workers had worked, because according to a company spokesperson, the building was “underused,” and “required upgrades the company deemed too expensive.” Heirs of one of the cancer victim workers won a $2.75 million suit against BP Amoco in 2000.[7]



Macondo Prospect

From Wikipedia, the free encyclopedia

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Macondo field
Country: United States
Region: Gulf of Mexico
Location: Mississippi Canyon
Block(s): 252
Offshore/onshore: offshore
Operator: BP
Partners: BP (65%)
Anadarko (25%)
MOEX Offshore 2007 (10%)
Field history
Discovery: 2010
Estimated oil in place: 50 million barrels (~6.8×10^6 t)

The Macondo Prospect (in Mississippi Canyon Block 252, abbreviated MC252) is an oil and gas prospect in the Gulf of Mexico which was the site of the Deepwater Horizon drilling rig explosion in April 2010 that led to a major, ongoing oil spill in the region.


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The name Macondo is the same name as the fictitious cursed town in the novel “One Hundred Years of Solitude” by Colombian nobel-prize winning writer Gabriel Garcia Marquez.[1] Oil companies routinely assign code names to offshore prospects early in the exploration effort. This practice helps ensure secrecy during the confidential pre-sale phase, and later provides convenient names for casual reference rather than the often similar-sounding official lease names denoted by, for example, the Minerals Management Service in the case of federal waters in the USA. Names in a given year or area might follow a theme such as beverages (e.g., Cognac), heavenly bodies (e.g., Mars), or even cartoon characters (e.g., Bullwinkle), but usually have no geological or geographical significance to the prospect itself.


The prospect is located in Mississippi Canyon Block 252 of the Gulf of Mexico. BP is the operator and principal developer of the oil field with 65% of interest, while 25% is owned by Anadarko Petroleum Corporation, and 10% by MOEX Offshore 2007, a unit of Mitsui.[2] The prospect may have held 50 million barrels (7.9×10^6 m3) producible reserves of oil.[3]


A regional shallow hazards survey and study was carried out at the project area by KC Offshore in 1998. High resolution, 2D seismic data along with 3D exploration seismic data of the MC 252 was collected by Fugro Geoservices in 2003. The prospect was initially acquired by BP at MMS Lease Sale #206 in March 2008[4].

Mapping of the block was carried out by BP America in 2008 and 2009.[5] BP secured approval to drill the Prospect from MMS in March 2009 without MMS requiring use of an acoustic blowout preventer actuation alternative. An exploration well was scheduled to be drilled in 2009.[2]

On 7 October 2009 the Transocean Marianas semi-submersible rig commenced drilling, but operations were halted at 4,023 feet (1,226 m) below the sea floor on 29 November 2009, when the rig was damaged by Hurricane Ida.[6] The Transocean‘s Deepwater Horizon rig resumed drilling operations in February 2010.[2]

Deepwater Horizon explosion and blowout

An explosion on the drilling rig Deepwater Horizon occurred on April 20, 2010. The Deepwater Horizon sank on April 22, 2010, in water approximately 5,000 feet (1,500 m) deep, and has been located resting on the seafloor approximately 1,300 feet (400 m) (about a quarter of a mile) northwest of the well.[7][8][9]

Following the rig explosion and subsea blowout, BP started a relief well using Transocean’s Development Driller III on May 2, 2010. The relief well could potentially take up to three months to drill. BP started a second relief well using Transocean’s GSF Development Driller II on 16-May-2010.[10]

Starting from May 17, some oil and gas is collected through the riser insertion tube tool inserted to the blowout well. The oil is being stored and gas is being flared on the board of drillship Discoverer Enterprise.[10]

See also

Griffitt, Michelle. “Initial Exploration Plan Mississippi Canyon Block 252 OCS-G 32306” (PDF). BP Exploration and Production (New Orleans, Louisiana: Minerals Management Service). http://www.gomr.mms.gov/PI/PDFImages/PLANS/29/29977.pdf




Nalco Holding Company
Industry Chemicals and Water Treatment
Founded 1928
Headquarters Naperville, Illinois, United States
Key people Herbert Kern (founder), Wilson Evans (co-founder), Erik Fyrwald (CEO)
Revenue $3.9 Billion (2007)
Owner(s) Blackstone Group
Employees 11,500
Website [1]

Nalco Holding Company NYSENLC (formerly Ondeo Nalco) supplies water treatment and process improvement services, chemicals and equipment programs for industrial and institutional markets. These products and services are marketed in some cases to prevent corrosion, contamination and the buildup of harmful deposits. In other applications they are used in production processes to enhance process efficiency and improve customers’ end products.

Nalco currently serves more than 70,000 customers employing over 11,500 employees operating in over 130 countries.

Among its products is Corexit which is an oil dispersant and is widely being used in the Deepwater Horizon oil spill


The company was founded in 1928 in the United States as the National Aluminate Corporation formed from the merger of Chicago Chemical Company and the Aluminum Sales Corporation. [1] In 1959 it changed its name to Nalco Chemical Company and was publicly traded on the New York Stock Exchange under that name from 1964 until a French company, Suez, purchased it in 1999. After a name change to Ondeo Nalco Company then another change in ownership in 2003, the Company went public again, returning to the New York Stock Exchange in late 2004 under the name Nalco Holding Company.

In 2007, Nalco achieved sales of more than US$3.9 billion.

Exxon Mobil Ties

Nalco has had ongoing ties to Exxon. In 1994, Nalco and Exxon Chemical Company announce the formation of Nalco/Exxon Energy Chemicals, L.P. to provide products and services to all facets of the petroleum and natural gas industries. Then in 2001, NALCO, which then was called “Ondeo Nalco,” strengthened its leadership role in the petroleum industry when Nalco/Exxon Energy Chemicals, L.P. became became part of the company through redemption of Exxon Mobil stock in the joint venture. Today, Daniel S. Sanders, who previously was president of Exxon/Mobil Chemical Company, a subsidiary of Exxon Mobil, serves on the company board of directors.[2]


External links



My Note –

Doing a google search with these terms –

Macondo gross resource potential


2010 Anadarko Investor Conference – Slide 1

File Format: PDF/Adobe Acrobat – View as HTML
Mar 2, 2010 Resource Targets and 3 – 4 Appraisal Wells. HEIDELBERG. Appraisal. HEIDELBERG. Appraisal. VITO. Appraisal. VITO. Appraisal. MACONDO. MACONDO



Jan 11, 2010 The Federal Energy Regulatory Commission, or FERC, is an independent agency that regulates the interstate transmission of natural gas, oil,

FERC: Federal Regulation and Oversight of Energy – Electricity

FERC regulates, monitors and investigates electricity, natural gas, hydropower, oil matters, natural gas pipelines, LNG terminals, hydroelectric dams,


My Note –
Starting a new post this one is unweildy – and rebooting computer maybe.
– cricketdiane