Veterans and Offshore Drilling - Vets4Energy U.S. will require 12 percent more energy in 2040 and...
Transcript of Veterans and Offshore Drilling - Vets4Energy U.S. will require 12 percent more energy in 2040 and...
Veterans and Offshore Drilling Why care, what it entails, and is it safe.
Meeting begins at 3:00 PM Eastern
Offshore Oil and Natural Gas
Briefing
Erik Milito Director, Upstream & Industry Operations
American Petroleum Institute
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The U.S. will require 12 percent more energy in 2040 and more than 60 percent of it will be met by oil and natural gas
Source: EIA
Qua
drilli
on B
TU
31.9%
2012
2.8% 6.0%
1974 3.3% 3.7% 3.5%
2040
Most energy analysts agree that sustaining even modest economic growth worldwide for the next several decades will require massive new investments in oil and natural gas
US Natural Gas Marketed Production
Top 10 Natural Gas Producing Countries - 2012
World Dry Gas Production in 2012 was 118 Tcf. The US accounts for over 20% of World natural gas production.
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U.S. Crude Oil Production Has Skyrocketed
Jan 2010 to Jan 2014 +2.6 million barrels per day +50%
Peaked in 1970
Source: EIA
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2006 2007 2008 2009 2010 2011 2012 2013 2014
US Crude Oil Net Imports and Production
Crude Oil Net Imports U.S. Crude Oil Production
Projected
Millions Barrels per Day
Source: EIA Short Term Energy Outlook - December 10, 2013
Projected Economic Benefits of Expanded Atlantic Access
National Economic Impacts Job Creation by 2035 280,000
Total Increase in Capital Investment $194 Billion
Total Increase in GDP/Year by 2035 $23 Billion
Energy Production by 2035 1.34 MMBOE/D
Cumulative Government Revenue $51 Billion
Cumulative State Government Revenue $19 Billion
Bonus Bids Lease Date Area Leases Awarded Bonus Bids
233 Aug 28, 2013 Western Gulf 53 $102 million
227 Mar, 20, 2013 Central Gulf 320 $1.2 billion
229 Nov 28, 2012 Western Gulf 116 $133 million
222 June 20, 2012 Central Gulf 454 $1.7 billion
218 Dec 14, 2011 Western Gulf 191 $337 million
213 March 17, 2010 Central Gulf 446 $920 million
210 August 19, 2009 Western Gulf 155 $111 million
208 March 18, 2009 Central Gulf 328 $690 million
207 August 20, 2008 Western Gulf 319 $487 million
206 March 19, 2008 Central Gulf 615 $3.677 billion
224 March 19, 2008 Eastern Gulf 36 $64.7 million
193 February 6, 2008 Alaska- Chukchi 486 $2.662 billion
205 October 3, 2007 Central Gulf 682 $2.813 billion
204 August 22, 2007 Western Gulf 274 $287.1 million
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Royalties and Rentals Oil Royalties Natural Gas Royalties Rentals
2001 $ 2,062,099,728.48 $ 3,968,160,116.67 $ 188,455,045.00
2002 $ 1,632,638,228.21 $ 2,114,977,575.45 $ 153,303,576.33
2003 $ 1,243,694,450.82 $ 3,165,079,394.48 $ 245,963,858.75
2004 $ 1,194,196,781.74 $ 3,301,702,291.61 $ 214,303,045.22
2005 $ 2,118,772,810.28 $ 3,247,098,867.72 $ 223,544,134.53
2006 $ 3,271,073,374.50 $ 3,160,028,663.49 $ 224,006,816.08
2007 $ 3,661,800,666.66 $ 2,592,331,832.61 $ 200,993,254.55
2008 $ 4,885,461,310.24 $ 3,067,191,883.14 $ 237,074,433.14
2009 $ 3,091,723,788.99 $ 1,290,806,313.38 $ 233,146,675.43
2010 $ 2,983,660,809.16 $ 595,177,485.15 $ 245,645,026.79
2011 $ 5,102,402,377.22 $ 875,239,840.35 $ 223,243,632.40
2012 $ 5,216,309,404.25 $ 483,634,710.08 $ 228,022,724.29
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Potential Upstream Oil and Natural Gas Job Openings by Occupation, 2010-2030
*Includes baseline projected growth and replacement requirements Source: IHS Global Insight, “Employment Outlook for African Americans and Latinos in the Upstream Oil and Natural Gas Industry,” November 2012.
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Oil and gas industry jobs pay well (average annual wages)
Source: U.S. Quarterly Census of Employment and Wages, 2011.
Outer Continental Shelf Lands Act • Data Collection • 5-Year Leasing Program • Lease Sales • Safety and Environmental Regulation • Revenue System
• Bonus Bids • Rentals • Royalties
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5-year OCS Leasing Plan Development
January 2015 – Department of the Interior released the Draft Proposed Program for 2017-2022.
2015-2016: Opportunities for public comment Written Comment in the Record Hearings Throughout the Country
Safe and Environmentally Responsible Operations
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Government Regulations BSEE Final Drilling Safety Rule
• Establishes new casing installation requirements; • Establishes new cementing requirements; • Requires independent third party verification of blind-shear ram
capability; • Requires independent third party verification of subsea BOP stack
compatibility; • Requires new casing and cementing integrity tests; • Establishes new requirements for subsea secondary BOP
intervention; • Requires function testing for subsea secondary BOP intervention; • Requires documentation for BOP inspections and maintenance; • Requires a Registered Professional Engineer to certify casing and
cementing requirements; and • Establishes new requirements for specific well control training to
include deepwater operations. Safety and Environmental Management Systems
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Government Regulations The United States Coast Guard Rulemaking on operations and equipment on MODUs Voluntary Incident reporting for MODU dynamic
positioning systems Rulemaking on testing and training requirements for
lifesaving and firefighting equipment on MODUS and floating production facilities.
Memorandum of Agreement with BSEE on MODUs and SEMS/SMS
Proposed reorganization of its management of offshore inspections to provide for a single point of responsibility
New proposed SEMS Rule for entities under USCG jurisdiction
Center for Offshore Safety
Our Mission... Promote the highest level of safety for offshore drilling, completions, & operations by effective leadership, communication, teamwork, utilization of disciplined safety management systems & independent third-party auditing & certification.
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Industry Standards
4th Edition Std 53 Blowout Prevention Equipment Systems for Drilling Operations 2nd Edition Std 65-2 Isolating Potential Flow Zones During Well Construction 1st Edition RP 96 Deepwater Well Design and Construction 1st Edition Bul 97 Well Construction Interface Document Guidelines 1st Edition RP 17W Recommended Practice for Subsea Capping Stacks 1st Edition API Spec Q2 Specification for Quality Management System Requirements for Service Supply Organizations for the Petroleum and Natural Gas Industries 4th Edition API Spec 16A Specification for Drill-through Equipment 2nd Edition API RP 17H Remotely Operated Tools and Interfaces on Subsea Production Systems
Subsea Well Control & Containment
Containment Companies
(MWCC/HWCG)
Must provide flexible & adaptable systems to contain the
well subsea & provide subsea production capability via subsea equipment, risers, & containment vessels that will safely capture,
store and offload the oil
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Oil Spill Response Organizations (OSROs) Oil Spill Response Tools:
•Oil spill response plans •Oil sensing and tracking •Dispersant use and application •In situ burning •Mechanical recovery capabilities •Shoreline protection and cleanup
Oil Spill Preparedness and Response
Coexistence of Military and Oil and Gas
Long history of collaboration between government agencies and industry
Memorandum of Agreement in place
Drilling Window Program in place
Previous activity in military training areas
Lease stipulations and hold harmless clauses
Next Steps Needed
Department of the Interior • Approval of Seismic Surveys • 2017-2022 Leasing Program that Includes the Atlantic
and the Eastern Gulf of Mexico Congress • Pass Revenue Sharing Legislation • Pass Legislation That Creates Opportunities for the
Atlantic and Eastern Gulf of Mexico
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National Security
General Martin Dempsey, Chairman of the Joint Chiefs of Staff:
“An energy independent [U.S.] and net exporter of energy as a nation has the potential to change the security environment around the world – notably in Europe and in the Middle East. And so, as we look at our strategies for the future, I think we’ve got to pay more and particular attention to energy as an instrument of national power. And because it will very soon in the next few years potentially become one of our more prominent tools.”
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Veterans and Offshore Drilling
Capt. James McCormick, USA (ret.) Program Director, Vets4Energy
www.Vets4Energy.com Facebook.com/Vets4Energy