Stronger Offshore Safety Rules Are Looming

- Stronger Offshore Safety Rules Are Looming

Thursday, June 23, 2011
Houston Chronicle
by Jennifer A. Dlouhy

The government is poised to propose new rules that aim to boost the safety of offshore drilling and tighten standards for emergency equipment guarding subsea wells, a top regulator said Wednesday.

The looming rules will build on already broad changes that the Bureau of Ocean Energy Management, Regulation and Enforcement has imposed since last year's Gulf oil spill, agency director Michael Bromwich said in a speech before the World National Oil Companies Congress in London.

For instance, regulators are planning to add teeth to a workplace safety rule they imposed last October requiring oil and gas companies to identify risks at every stage of offshore exploration and take steps to minimize human errors and operational hazards. That rule for the first time is forcing companies in U.S. waters to have safety and environmental management systems like those required in the North Sea.

The rules will require additional safety procedures, training programs and strengthened third-party auditing procedures, Bromwich said. The bureau is also readying new mandates for the blowout preventers, a last line of defense against un-expected oil and gas surges.

"Our goal will be a further set of enhancements that will increase drilling safety and diminish the risks of a major blowout," Bromwich said. "It will address weaknesses and necessary improvements to blowout preventers, as well as many other issues."

The regulations may include mandates governing the design of offshore wells and new standards for cement barriers.

For months, Bromwich has signaled that the new regulations are coming but insisted that they will go through a lengthy federal rule-making process, with time for public comment and guidance from interested stakeholders.

Industry leaders have complained about the shifting regulatory landscape since last year's spill and insisted companies need more certainty to plan investments. Many industry representatives objected to the pace of changes .

Copyright (c) 2011, Houston Chronicle

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Commodity Corner: Oil Plummets on Stronger Dollar

- Commodity Corner: Oil Plummets on Stronger Dollar

Wednesday, June 15, 2011
Rigzone Staff
by Matthew V. Veazey

Crude oil for July delivery plunged Wednesday as fears of an escalating debt crisis in Greece contributed to a stronger dollar.

Oil lost $4.56 to settle at $94.81 after the dollar index, a gauge of the greenback's value against other major currencies, increased by 1.5 percent Wednesday. The euro lost 2.1 percent against the dollar, weighed down by Greek government officials' scrambling to gain support for austerity measures. The government must agree to such measures to address the country's debt crisis in order to qualify for a bailout from the European Union and International Monetary Fund.

Providing a softer landing for oil was a U.S. Energy Information Administration report showing a larger-than-expected decline in crude oil stocks last week. According to the EIA, total oil inventories decreased by 3.4 million barrels to 365.6 million barrels as of June 10. Analysts surveyed by Platts, meanwhile, had projected a 1.9 million-barrel draw.

Front-month crude traded within a range from $94.01 to $99.95 Wednesday.

July natural gas remained flat during midweek trading, ending the day at $4.58 per thousand cubic feet. Milder-than-normal temperatures throughout the Upper Midwest and Northeast are curbing demand for natural gas to generate electricity for cooling in these regions.

Natural gas peaked at $4.605 and bottomed out at $4.52 Wednesday.

The gasoline futures price lost 15 cents to settle at $2.92 a gallon. During Wednesday's session, July gasoline fluctuated from $2.91 to $3.07.

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Statoil Posts Stronger Q1 Profit

Statoil Posts Stronger Q1 Profit

Wednesday, May 04, 2011
Deutsche Presse-Agentur (dpa)

Norwegian energy giant Statoil's first-quarter net income increased 44 percent driven by higher gas and oil prices, the group said Wednesday.

Net income for the quarter was 16.1 billion kroner (3 billion dollars) compared to 11.1 billion kroner in the corresponding business period 2010.

Revenues in the quarter were 151 billion kroner, up 17 percent year-on-year, the state-controlled group said.

Statoil said its average daily oil and gas output was some 1.9 million barrels of oil equivalent per day during the quarter, a 6 percent drop in production year-on-year but in line with its expectations.

The average first-quarter oil price measured in kroner was up 33 percent year-on-year, while the average natural gas price was 20 percent higher measured in the Norwegian currency, the group said.

For 2011, Statoil said it predicted production to be at the same level or slightly below the 2010 level.

The group said it had made important discoveries off Norway and in Brazil, and had received permits to drill two exploration wells in the Gulf of Mexico.

During the quarter the group drilled 10 exploration wells, including three outside the Norwegian continental shelf. Three of the wells resulted in discoveries, Statoil said.

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