US Oil Output May Stall in Late 2015 -IHS
U.S. oil production may stop growing in the second half of this year and could fall in 2016 as low oil prices make the majority of oil wells uneconomic, according to a report released on Tuesday by IHS Inc energy analysts. Global oversupply of oil has knocked 60 percent off prices since June last year, forcing a slowdown in drilling and putting the brakes on a five-year boom that pushed U.S. production to record highs. Production will likely grow in the next few months as oil producers honor contractual obligations and finish work on a backlog of wells that have already been drilled. But growth will halt in the second half of the year if oil prices remain below $60 a barrel, according to the IHS report based on a study of 39,000 oil wells. U.S.
Kuwait, Philippine Sign Contract
Kuwait Foreign Petroleum Exploration Company (KUFPEC), Shell and South China Resources (SCR) signed a contract with the Philippine Energy Department on offshore oil and gas explorations in northeastern Palawan, Philippine. The contract covered an area that exceeds 10 million square km, 30 percent of which is assigned to KUFPEC, 55 percent to Shell and the other 15 percent to SCR. The contract includes exploration and drilling of three oil wells within the next seven years and if oil or natural gas is discovered there, the production contract will be extended for nearly 25 years. (Source: People’s Daily Online)
National Oilwell Expects Offshore Rig Demand to Slow
National Oilwell Varco Inc, the largest U.S. oilfield equipment provider, said orders fell by nearly a quarter in the first quarter and it expects demand for new offshore rigs to slow during the second half of the year. The company's shares fell about 7 percent. Demand for contract drilling is softening as rigs ordered during boom times are being delivered now. Large oil companies are tightening spending after a decade of double-digit increase in budgets as oil prices stagnate and project costs rise.
ACMA Completes Ship Load-Out Assignments
Alan C. McClure Associates (ACMA), a naval architecture and engineering firm, recently concluded load-out projects for both ScanTrans and National Oilwell. “In the case of ScanTrans, we performed ship motion and acceleration calculations to determine how much force the cargo would exert and, therefore, what tie-down measures would be required,” said ACMA President Scott McClure. On National Oilwell’s behalf, McClure noted that ACMA reviewed all of the load-out logistics for the benefit of the equipment provider.
$45M Oil Well Contract for Trinidad
Rowan Companies announced a $45m contract to drill four offshore oil wells in Trinidad and Tobago. The Rowan Gorilla III will soon relocate to Trinidad to begin a one-year term contract. The new contract is with another operator and should extend the rig's stay in the area by about six months to March 2008. The company expects the new contract will generate approximately $45m of drilling revenues. (Source: Caribbean360.com)
Hornbeck Offshore Announces Expansion of Its Board
Hornbeck Offshore Services, Inc. announced that it has expanded the size of its Board of Directors from seven to eight members. Steven W. Krablin has been elected to fill the newly created position and will serve as a Class II director. Class II directors will be up for re-election at the Company's 2006 Annual Meeting of Stockholders. Mr. Krablin meets the independence and financial expertise requirements of the New York Stock Exchange and has been appointed to serve on the Company's Audit and Compensation Committees. From January 1996 until April 2005, Mr. Krablin served as the Senior Vice President and Chief Financial Officer of National Oilwell, Inc.
Shell Arctic Drillship's Close Shave
“While moored off the coast of Dutch Harbor, the Noble Discoverer drill ship drifted toward land and stopped very near the coast. One of Shell’s vessels, the Lauren Foss, then safely towed the Discoverer to its prior mooring position,” Shell spokesman Curtis Smith said in a statement. Francis said a soft seabed that allowed the ship to drag its anchor and winds of up to 35 mph probably contributed to the problem. The area of the island the vessel approached is uninhabited and not far from Dutch Harbor, about 600 miles southwest of Kodiak. The Nobel Discoverer is one of two Shell ships that will drill exploratory oil wells in the Arctic waters of Alaska’s Chukchi and Beaufort Seas.
Aker Kvaerner's Technologies Win OTC Award
Aker Kvaerner's focus on technology has been duly recognized by the 2007 Offshore Technology Conference (OTC). Aker Kvaerner's PowerTracCone Crusher and Aker Kvaerner's SeaBooster technologies have both won 2007 OTC Spotlight on New Technology Awards. The PowerTrac Cone Crusher(TM) (full press release attached) provides a new solution for cost efficient, safe and environmentally sound removal of scale from well completions. Aker Kvaerner's SeaBooster(TM) (full press release attached) increases production rate of oil wells requiring local pressure support by injecting sea water. The OTC Spotlight on New Technology Awards showcases advanced technologies for the offshore oil and gas industry.
Offshore Well Capping Devices Contract for Trendsetter
Trendsetter Engineering Inc. Trendsetter Engineering, Inc. has been awarded the contract by Oil Spill Response Ltd (OSRL) to construct four capping stack toolboxes that would be available for use should an offshore subsea well-control incident occur. These capping stacks are capable of containing subsea oil wells in water depths up to 10,000 feet in the event of a subsea well-control incident. Equipment delivery is expected in 2012. In 2013, OSRL will direct the movement of the equipment from Trendsetter's facility in Houston…
Hurricane Ida Emergency Marine Equipment Supply
Less than 24 hours after Hurricane Ida reached the coast of La., trucks were leaving Tideland Signal’s factory loaded with solar powered marine beacons and fog signals desperately needed to mark the Gulf Coast’s vital offshore oil wells. Emergency spares, sent to replace existing equipment damaged during the hurricane, arrived at coastal staging areas ready for immediate deployment well before the coastal helicopter and workboat fleets were set to depart offshore. Tideland Signal…
Hunting profit flat on weak North Sea, Canada
Energy services firm Hunting posted pretax profit broadly flat on the previous year, but just short of analyst expectations, as a lack of drilling in the North Sea and Canada hit demand for equipment and services. The company, which provides equipment and services for drilling and completing oil wells, reported underlying profit before tax of $196 million on revenue of $1.3 billion, with demand in the Gulf of Mexico and Asia helping offset weakness in Europe and Canada. A Thomson Reuters I/B/E/S poll of analysts had found average estimates for pretax underlying profit of 122 million pounds ($204 million) and revenue of 848 million pounds. By Stephen Eisenhammer
New Technology from Camcon
Camcon Technology unveiled a new technology application designed to increase the volume of oil that can be recovered from the world's reservoirs as well as reduce operating costs. Developed specifically for the oil and gas industry, the Camcon Intelligent Gas Lift configuration is part of Camcon binary actuator Technology (BAT). The application aims to enhance the recovery of oil from reservoirs by introducing gas injection management capabilities to improve extraction flow. Oil fields start their lives with sufficient geo-pressure, allowing for efficient extraction of oil. However, as extraction proceeds and geo-pressure drops, artificial lift has to be employed. It is estimated that up to half the world's oil wells currently require artificial lift.
Transocean to Appoint Miller to Board
Transocean Ltd. Assuming Miller is elected by shareholders at the EGM, the board intends to designate him as Vice Chairman. Transocean explained that Ian C. Strachan, the current Chairman of the Board, will reach 72 years of age before the 2015 Annual General Meeting (AGM). In accordance with the company's Corporate Governance Guidelines, it is anticipated thathe will retire from the board at the end of his term at the 2015 AGM. The board currently expects to recommend that shareholders elect Miller in his place as Chairman at the 2015 AGM. Miller is the Executive Chairman of NOW Inc., a spinoff of the distribution business of National Oilwell Varco, Inc., a supplier of oilfield services and equipment to the oil and gas industry.
Transocean Appoints Jeremy D. Thigpen President & CEO
The CFO of Houston-based National Oilwell Varco Inc. (NOV) is stepping down to become CEO of Transocean Ltd. (RIG), one of NOV’s largest customers. Effective April 22, Jeremy Thigpen will become CEO of Switzerland-based Transocean, which has its main U.S. office in Houston. Thigpen succeeds Ian Strachan, who had been serving as interim CEO since Steven Newman stepped down in February. Strachan, who is also the company's Chairman of the Board of Directors, will retire from the Board at the end of his term at the 2015 Annual General Meeting following approximately 16 years of service.
National Oilwell Varco to Cut 1,500 Norwegian Jobs
National Oilwell Varco Inc., the largest U.S. oilfield equipment maker, said it will cut its Norwegian workforce by 1,500 by the end of this year as low oil prices have reduced investments. It plans to cut 900 permanent jobs and 600 contractors, the firm said in a statement on Wednesday. "The reason for the lay-offs is the big change in the market situation for our industry over the last year with reduced investments and reduced sale of new equipment," it said. "The uncertain market situation also means that we can't say how comprehensive the process of laying off people will be in the longer term". Norway's Statoil said on Tuesday it will cut up to 7 percent of its workforce and a third of its consultants by the end of 2016…
Merger Talks Feed Energy Sector Deal Speculation
Talks that could lead to oilfield services provider Halliburton Co buying rival Baker Hughes Inc may herald increased deal-making in the energy business as companies bet on a protracted drop in oil prices, industry bankers said. Competing service companies including National Oilwell Varco Inc and Weatherford International may also be targets, bankers and lawyers said. In any deal, the incentives will be the same: consolidation would allow them to better weather the downturn and resist pressure from oil producers to slash prices.
Voith Turbo Schneider Propulsion to Equip Escort Vessels with VSP
Oil wells in the North Sea and the North Atlantic are still bubbling with Black Gold. With two new high-performance Voith Water Tractors, the harbor authority of the Shetland Isles (Shetland Island Council) is set to widen its opportunities and will soon be able to unload even larger oil tankers in the harbor of Sullom Voe at affordable cost. In spring 2010, the two new vessels will enter service at the most northern point of Scotland. The two escort vessels will be built in Spain by Union Naval Valencia. With 77 tons bollard pull ahead and 71 tons bollard pull astern, they are in the highest output class for this type of Escort Voith Water Tractors. Each of the two Voith Water Tractors is fitted with two electronically controlled Voith Schneider Propellers size 36R6/255-2.
Offshore Support Businesses Feel Moratorium Pinch
According to a June 19 report from the Houston Chronicle, hundreds of Houston companies that provide specialized equipment and services to the offshore oil and gas industry are worrying about the prospect of the new deep-water drilling ban going forward as planned. Those include not just the giants like Halliburton, Schlumberger and National Oilwell Varco, but also a vast number of small and lesser-known shops. Alexander/Ryan Marine & Safety Co. in east Houston, reported to the Houston Chronicle that it derives 60% of its $35m in annual revenue from the Gulf. It supplies lifeboats, firefighting systems and other safety equipment for offshore drilling rigs and production platforms. (Source: Houston Chronicle)
Petrofac Order Hi-end Offshore Construction Vessel
Service provider to the oil and gas industry, UK-based Petrofac, confirms placement orders to build its new proprietary design Petrofac JSD 6000 deepwater derrick lay vessel, which will be available for construction and installation activities in early 2017. Petrofac inform that the vessel is based on a unique design which integrates the J-Lay, S-Lay and derrick functions and will provide Petrofac with access to high-end turnkey opportunities in the high growth deepwater and SURF markets, and expand access to shallow water EPCI projects.
Offshore:Rolls-Royce to Supply Power for FPSO
Rolls-Royce has won an equipment order in the oil and gas sector to deliver three RB211 turbogensets for the electric power needed on an FPSO to be located in the North Atlantic. This purpose-built vessel has been designed to withstand the severe climate conditions of the White Rose oilfield, 350 km off the coast of Newfoundland. Here, the combination of deep-water environment, powerful ocean currents, wave heights of up to 28.5 m and possible iceberg hazards, dictate against the construction of a conventional production platform in favor of the FPSO, a tanker vessel positioned above the oil wells. Extracted oil will be stored in the vessels' cargo tanks ready for shuttle tankers to transport it to shore.
IRS completes Well Stimulation Vessel Conversion
IRClass, a leading Classification Society and member of IACS, has recently completed the survey and certification of ‘Greatship Ramya’, during its conversion from an Offshore Supply Vessel (OSV) to a Well Stimulation Vessel for Schlumberger under its Single Class. The vessel is now deployed with an Indian Oil Major in the offshore sector. Well Stimulation Vessels are one of the most critical ship types in offshore segment with respect to complexity of processes and equipment reliability as they handle hazardous chemicals under very high pressures (close to 20…
Transocean Steers Clear of BP Punitive Damages
Transocean Ltd. informs it has received a decision by the United States District Court for the Eastern District of Louisiana on phase one of litigation related to the April 20, 2010 Macondo well incident involving the Deepwater Horizon. [Background:a US judge has ruled BP was "grossly negligent" in the lead-up to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. • Contractual indemnity: The Court found that BP's contractual agreement to indemnify Transocean for compensatory damages is valid and enforceable.
Madcon Receives Patent Number
Madcon Corporation has been awarded the U.S. patent number, 6,536,991, for its Structural Composite Retrofit System. Utilizing composite materials, the system provides full structural restoration of damaged or corroded tubular members such as drive pipe casing, conductors, jacket legs and bracing, concrete or steel piling, and risers/pipelines. The system can also be used to upgrade the original design capacity of platform members. Several major offshore owner operators recently installed the Structural Composite Retrofit System from the (-15) to (+60) elevation to rebuild extremely corroded drive pipe casing. The company also has a patent pending on its method to repair damaged or collapsed casing in gas and oil wells.