GOM Employment Could Increase if Admin. Allows -Study

- GOM Employment Could Increase if Admin. Allows -Study

Monday, July 11, 2011
American Petroleum Institute

Almost 190,000 new jobs could be created in 2013 if permitting in the Gulf of Mexico for offshore development returned to levels before the Obama administration's moratorium, a study by Quest Offshore Resources, Inc., says. The study, "United States Gulf of Mexico Oil and Natural Gas Industry Economic Impact Analysis," also projects a 71 percent increase in Gulf development spending to $41.4 billion and a 70 percent increase in economic activity related to Gulf development to $44.5 billion.

"The slow pace of Gulf development since the accident has cost jobs, revenue and energy production," said API President and CEO Jack Gerard. "The study shows what could be accomplished on jobs if project approvals and permits could get back to a normal pace. We've done the necessary work raising the bar on safety. We cannot continue to delay developing energy and hiring people in the Gulf. The disappointing unemployment numbers from the government last week make this more important than ever," Gerard added.

Quest Offshore conducted the study for API and the National Ocean Industries Association. Quest based its forecasts on actual project development data and historical benchmarks of spending for specific equipment and services.

"Total employment related to offshore Gulf of Mexico oil and natural gas industry operations could reach 430,000 jobs in 2013 if the permitting slowdown is reversed," Gerard said. "As large as the jobs numbers are, however, they are just a fraction of all the jobs our industry could create with more forward-looking development policies in all federal onshore and offshore areas. And along with the increased jobs and energy production could come hundreds of billions of dollars of desperately needed additional revenue to the government. Policymakers now debating tax increases on the industry should understand that producing at home more of the oil and natural gas our nation will need is a far better way to help fix our economy and pay down our debt," Gerard said.

Oil & Gas Post

Promote Your Page Too
LINK

Statoil Allows Extra Time for Tenderers to Mature

Statoil Allows Extra Time for Tenderers to Mature

Thursday, March 31, 2011

Statoil

Statoil has decided to allow more time for the tenderers to mature their respective category B rig concepts, which includes an extended front end engineering and design (FEED) phase. The planned award date is set for the fourth quarter of 2011.

Statoil has had an ongoing tender process for the new category B rig type – a semi-submersible designed and equipped for subsea well intervention. The rig will be a highly anticipated contribution to the rig fleet on the Norwegian continental shelf (NCS).
"The decision to allow more time to mature category B is motivated by input from the bidders. We see that an integration of additional services, combined with more time for an in-depth FEED phase, can improve the robustness of the concept," said Statoil's chief procurement officer, Jon Arnt Jacobsen.

"In reality, this is to be regarded as an extension of the bidding process where we according to plan will be able to award the final contract within 2011. Expected delivery from the yard should take place in 2014," Jacobsen added.

The design of the category B service unit is based on the bidders own FEEDs. The rig is designed for year-round well intervention operations for Statoil, providing a full range of heavy well intervention and light drilling techniques – including through-tubing rotary drilling (TTRD), wireline, coil tubing, high pressure pumping and cementing. Statoil is asking for a minimum of one rig of this type for work on the NCS.

"Traditional drilling rigs are not efficient enough for well intervention purposes, so Statoil has developed a new rig type for well intervention in collaboration with industry partners. This rig type will close the gap between light intervention vessels and conventional drilling units. The category B rig with its integrated service lines is expected to reduce well intervention operations costs by up to 40%," Jacobsen said.

The key to maintaining the current production level on the NCS through 2020 is increased recovery from existing fields and fast and effective development of new fields. It is becoming more important to increase drilling activity in mature fields to attain the full potential of the NCS.

"Improved subsea well intervention methods are making vital contributions to increased recovery. Increased recovery is one of the most important contributions to keep up current production level at the Norwegian continental shelf," says Knut Gjertsen, responsible for Operations North field development.