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Katrina Damage to Offshore Oil Production
First Hand Account ^ | 9/1/05 | Tomahawk

Posted on 08/31/2005 9:24:19 PM PDT by tomahawk

Insider report on Katrina damage

There are MANY production platform missing (as in not visible from the air). This means they have been totally lost. I am talking about 10's of platforms, not single digit numbers. Each platform can have from 4 to 100+ wells on it. Most larger ones have 20-30 wells in this area, with numerous caisson wells. They are on their sides, on the bottom of the gulf - they will likely be left as reef material, provided we can get permission. MMS regulations require us to plug each of the wells that were on these platforms - HUGE cost now, as the platforms are gone... Hopefully, MMS will grant `abandon in place' status for these wiped out structures.

We also set individual wells as satellites and pipe them back to existing platforms. These stand-alone wells are called caisson wells. 90% of those in the storm path are bent over, rendering them a total loss, We would have to remove the existing bent structure and drill a new well, as bent pipe is basically unusable.

We utilize platforms as gathering hubs. We pipe the raw oil/water to them and then send it on for separation, or separate it there and send finished oil on. Damage to a hub means everything going to the hub is offline indefinitely. There are +/- 15 HUBS missing. MISSING!! As in we cannot find them from the air.

Thus even if the wells feeding the hub are ok, we have nowhere to pump the oil to...

The jackup drilling rigs appear to be in various stages of damage, but most rode the storm out with minimal problems. However, each of them has shifted position.

When we jack the rig up, it is carefully positioned directly over the well slot where we are working. The derrick has rails that allow us to slide it in 4 directions to get the derrick directly over the well or slot. If the rig moves (right/left, or from level to uneven), it has to be jacked back down to the waterline and repositioned with tugboats, then jacked back up. After it is back up and level, the derrick is slid on the 2 sets of rails, and bolted into position over the well or slot again.

Thus we have to reset each of the drilling rigs, which requires getting OUT of the well, tugboats and a move, then getting back into the well. The open hole we have drilled (what is not enclosed in cemented casing) is likely to be lost, and if the wellhead or the casing is bent, then the well will have to be redrilled. This is an exploration setback of at least a month, but we don't yet know the boat situation.

Boats are usually brought into harbor to weather storms. We do not have a boat count yet, but from the initial reports, we may have lost or grounded 30% of the Gulf of Mexico fleet. This means everything will cost more, take longer - repairs, repositioning, everything.

In short, the Gulf area hit by the storm is basically in about the same shape as Biloxi. The damage numbers you have gotten from the government and analysts are, in my opinion, much too low. We are looking at YEARS to return to the production levels we had prior to the storm. The eastern Gulf of Mexico is primarily oil production...

Loss of the MARS platform alone cost us 95,000 barrels a day for a year or maybe more.

YEARS, people. I know what this means - hope everyone else gets it too...

The front page of the Houston Chronicle has a rig beached on Dauphin Island. The legs have been sheared off and derrick is missing – thus it is a total loss. This rig was operating in Main Pass (adjacent to Plaquemines Parish), and thus was blown to Alabama and beached.


TOPICS: News/Current Events; US: Louisiana
KEYWORDS: drillanwrnow; gulf; katrina; oil; screwed
I received this from someone who was in contact with the author, who is on the scene.
1 posted on 08/31/2005 9:24:19 PM PDT by tomahawk
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To: tomahawk

marked


2 posted on 08/31/2005 9:28:13 PM PDT by righthand man (WE'RE SOUTHERN AND PROUD OF IT)
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To: tomahawk

An earlier post here said 20 of 4000 platforms were missing. 5%


3 posted on 08/31/2005 9:28:15 PM PDT by sionnsar (†trad-anglican.faithweb.com† || (To Libs:) You are failing to celebrate MY diversity! || Iran Azadi)
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To: tomahawk

The silence about this has been deafening. I knew when no one was reporting that everything was just fine, that it wasn't.
Is there oil leaking?


4 posted on 08/31/2005 9:28:44 PM PDT by nuconvert (No More Axis of Evil by Christmas ! TLR) [there's a lot of bad people in the pistachio business])
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To: tomahawk
Thanks for the information.

BUMPED and BOOKMARKED.

5 posted on 08/31/2005 9:31:47 PM PDT by Recovering Hermit (Arise! Sir Loin of Beef...)
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To: tomahawk

I think there are over 400 oil platforms off the Gulf cost.


6 posted on 08/31/2005 9:32:03 PM PDT by jveritas (The Axis of Defeatism: Left wing liberals, Buchananites, and third party voters.)
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To: sionnsar

Is it 4000 or 400?


7 posted on 08/31/2005 9:32:48 PM PDT by jveritas (The Axis of Defeatism: Left wing liberals, Buchananites, and third party voters.)
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To: sionnsar

0.5%, not 5%

20/4000 = .005


8 posted on 08/31/2005 9:33:07 PM PDT by MediaMole
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To: tomahawk

Well, obvious questions would be - to what [if any] extent could the damaged equipment be salvaged and/or refurbished for future use, and whether it could be possible in the future to anchor the rigs to the sea floor much more securely.


9 posted on 08/31/2005 9:33:11 PM PDT by GSlob
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To: tomahawk

A friend of mine who used to do work on the Gulf of America's oil rigs said that about 1% of them actually drill (he confirmed the 4000+ rig #) and the other 99% do pumping, refining, storing, processing, etc. If this is so, it might be possible that some are idle and could be moved to active spots where they'd be needed. Sorta like a mothball fleet. Anyone with info beyond what I have able to confirm?


10 posted on 08/31/2005 9:39:18 PM PDT by xrp (Fox News: I wonder if Greta will cover Aruba Missing Teen for all eternity?)
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To: Dog Gone

FYI!


11 posted on 08/31/2005 9:42:43 PM PDT by PhiKapMom (AOII Mom -- Allen in 2008)
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To: tomahawk
Doesn't sound good, but one would think that they would have some kind of disaster recovery plan in place in case this happened. I mean, it's not like it was almost impossible for a hurricane to hit rigs in the gulf, I'd say it was very likely.

Not sure if we know the whole story of what they have in their plans, and I am sure their plans had to be approved by someone other than themselves, like insurance companies and they are almost as anal as federal regulators.
Just a guess......

12 posted on 08/31/2005 9:46:37 PM PDT by b4its2late (He who laughs last thinks slowest.)
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To: sionnsar; All
The below is from a press release from Hurricane Ivan. It may help put this in perspective.

Oil and Gas Production in the Gulf of Mexico Continues to Stabilize; MMS Issues Damage Assessment and Review of Hurricane Ivan

"..MMS estimates that, of the approximately 4,000 structures and 33,000 miles of pipelines in the gulf, 150 platforms and 10,000 miles of pipeline were in the direct path of Hurricane Ivan. This path brought Hurricane Ivan across the shelf and through the waters of the Mississippi River delta, the area most susceptible to underwater mudslides in the gulf.

Hurricane Ivan destroyed seven platforms as indicated in Table 1 and caused significant damage to 24 other platforms, 16 of which remain off production. Of the 16 platforms that remain shut-in, 14 are shelf facilities as indicated in Table 2, and two are deepwater facilities as indicated in Table 3. Any additional damage will be detected with underwater surveys required by the MMS Notices to Lessees (NTL 2004-G18 and NTL 2004-G19). With industry still conducting underwater structural damage assessments, the number of platforms with significant damage could still increase. However, updated projections tentatively have all remaining deep water facilities being back online by April 2005. (See Table 3).."

13 posted on 08/31/2005 9:51:40 PM PDT by Anti-Bubba182
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To: nuconvert; tomahawk
Is there oil leaking?

If there were oil leaking, Green Peace and other environmental groups would be screaming right now.

14 posted on 08/31/2005 9:53:11 PM PDT by Paleo Conservative (France is an example of retrograde chordate evolution.)
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To: tomahawk
I live in flowery branch GA and the gas stations closed ealry for the most part because they ran out of gas.

This is nuts, no gas at the gas station.

15 posted on 08/31/2005 9:55:56 PM PDT by ColdSteelTalon
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To: sionnsar
http://lagic.lsu.edu/metadata/losco/platforms_mms/poggeog3dxmms_faq.html

Here's your platform map, based on 1999 data.

"Abstract:
This is a point data set for the location of over 4300 MMS administered platform structures used for oil and gas production in the Gulf of Mexico. Groups of platform structures connected by walkways form 'complexes.' There are approximately 3700 such complexes in these data."


16 posted on 08/31/2005 9:57:31 PM PDT by alancarp (Will hack code for oil)
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To: MediaMole

Half a percent is not good, and will cause a price rise in oil products. But it shouldn't be devastating.


17 posted on 08/31/2005 10:00:23 PM PDT by Luke Skyfreeper
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To: tomahawk
Look for looters in rowboats.
18 posted on 08/31/2005 10:07:26 PM PDT by Mike Darancette (Mesocons for Rice '08)
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To: tomahawk

Future directional drilling jobs for Baker Hughes. Yeeeaaaah!


19 posted on 08/31/2005 10:15:56 PM PDT by Hardshell
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To: tomahawk
Nobody can accurately predict where oil and gas prices are going. Forbes thinks it is speculation bubble as to why oil prices are so high (remember tulips and dot.coms). Then you have the issue of refinery capacity and distribution. Now add oil coming in from the strategic reserve, and more from Saudi Arabia and Iraqi oil. Throw in Katrina, and predictions becoming meaningless. This report itself could be totally bogus, being circulated by some greedy brokers in New York, who wants to see the bubble get even bigger, so they continue to see six figure commission checks.
20 posted on 08/31/2005 10:19:45 PM PDT by HisKingdomWillAbolishSinDeath (Pray for America like its future depended on it, because it does!)
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To: tomahawk

Read later.


21 posted on 08/31/2005 10:58:40 PM PDT by EagleMamaMT ("Uncle Sugar: Handle it at the border or Uncle Winchester will handle it at the porch." Squantos)
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To: tomahawk

I hope this isn't true, the platforms should have been built and factored in to withstand storms such as this one.

I am retired oil field trash (smile if you say that) who has worked offshore in Alaska. Production platforms there withstood (were designed to) solid ice packs several feet thick (in Cook Inlet) that moved in the 15-20 foot tides at 7-8 knots an hour. In the winter time with the ice breaking up and grinding on the platform legs, it was like a perpetual earthquake, but we were never in any danger'


22 posted on 08/31/2005 11:32:54 PM PDT by Ursus arctos horribilis ("It is better to die on your feet than to live on your knees!" Emiliano Zapata 1879-1919)
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To: tomahawk

Iraq will have to make up the shortfall. We need to send enough machinery and personnel over there to make sure this happens.


23 posted on 08/31/2005 11:39:57 PM PDT by Prince Charles
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To: nuconvert
"Is there oil leaking?"

Not if all the safety equipment was activated before abandoning the platforms.

There are hydraulic shut in valves down hole for each individual well, these are designed to shut in when the hydraulic control pressure is bled off. So, even if not shut off manually, in a catastrophic structural failure, they should have closed off automatically.
24 posted on 08/31/2005 11:42:08 PM PDT by Ursus arctos horribilis ("It is better to die on your feet than to live on your knees!" Emiliano Zapata 1879-1919)
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To: tomahawk
One word: ANWR

Throughout this whole thing, I haven't heard one word about drilling up in ANWR.

It's cold as a bleeping witches tit, but it's up there, and there's no frigging hurricanes.

This should be a rallying point for the Bush administration to push for drilling in ANWR.

25 posted on 09/01/2005 12:38:31 AM PDT by benjaminjjones
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To: benjaminjjones

And all down the Pacific Coast . . . just so we can hear the limo liberals wailing about the "improved" vistas at their beach houses.


26 posted on 09/01/2005 1:56:58 AM PDT by NaughtiusMaximus (The liberals promised to move to Canada but they lied . . . bwaaaaah.)
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To: NaughtiusMaximus
Didn't know there were oil reserves along the Pacific coast.

The tectonic instability might be a factor there.

27 posted on 09/01/2005 2:12:32 AM PDT by benjaminjjones
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To: benjaminjjones
Lots of oil off California - just can't put new drilling locations because it might spoil someone's view... OXY, Unocal and Chevron all started in CA in the late 1800's...
28 posted on 09/01/2005 4:24:20 AM PDT by Grimas
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To: xrp
A friend of mine who used to do work on the Gulf of America's oil rigs said that about 1% of them actually drill (he confirmed the 4000+ rig #) and the other 99% do pumping, refining, storing, processing, etc. If this is so, it might be possible that some are idle and could be moved to active spots where they'd be needed. Sorta like a mothball fleet. Anyone with info beyond what I have able to confirm?

Just because they do different functions does not mean they are idle. They are doing that refining, processing, pumping, compressing, etc. Also they are not useful for drilling, they do not have the equipment. It would be like trying to use a cement mixer to haul gasoline, they are both trucks but incapable of performing the other task.

29 posted on 09/01/2005 8:21:31 AM PDT by thackney (life is fragile, handle with prayer)
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