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Forums target drilling safety

Gulf of Mexico, News Articles, Oil & Gas Industry No Comments

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The head of a new federal agency that oversees the offshore oil and gas industry is hosting the last of eight fact-finding forums about deepwater drilling safety reforms in Lafayette next week.

Michael Bromwich, director of the Bureau of Ocean Energy Management, Regulation and Enforcement, hosted forums along the Gulf coast, Alaska and California.

The final forum takes place at 9 a.m. Monday at The Hilton Lafayette, 1521 W. Pinhook Road.

Bromwich’s forums are the latest in a series of hearings and information-gathering events since the April 20 explosion that killed 11 workers on the Deepwater Horizon platform in the Gulf of Mexico.

Original Article

Director Bromwich to Host Final Forum in Lafayette, LA to Discuss Deepwater Drilling Safety

Gulf of Mexico, News Articles, Oil & Gas Industry No Comments

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THE BUREAU OF OCEAN ENERGY MANAGEMENT,

REGULATION AND ENFORCEMENT

Office of Public Affairs

Media Advisory

Office of Public Affairs                                               News Media Contacts:

For Immediate Release                                                Nicholas Pardi

September 3, 2010                                                     (202) 208-3985

Director Bromwich to Host Final Forum in Louisiana to Discuss Deepwater Drilling Safety, Containment and Spill Response

Experts from Academia, Industry and Environmental Organizations

to Give Presentations

WASHINGTON, D.C. The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEM) today announced that Director Michael R. Bromwich will hold the final in a series of eight fact-finding forums in Lafayette, La. on September 13, 2010.  The forums are designed to collect information and views about deepwater drilling safety reforms, well containment, and oil spill response, which Director Bromwich will consider in evaluating whether to recommend any modifications to the scope or duration of the deepwater drilling suspensions announced by Interior Secretary Ken Salazar on July 12, 2010.

During this forum, Director Bromwich will be briefed by panels of experts from academia, the environmental community and the oil and gas industry on technical issues related to deepwater drilling and workplace safety, well containment, and oil spill response.  The forum also will provide an opportunity for input from federal, state and local leaders on these same issues.

The forum will be open to the public.  Members of the public will be encouraged to submit comments via forms provided at the forums, by mail or online.

What:                          Forums on Offshore Drilling

Who:                           Bureau of Ocean Energy Management, Regulation and

Enforcement Director Michael R. Bromwich

When/Where:             September 13, 2010: Lafayette, La.

The Hilton Lafayette

1521 West Pinhook Rd.

Lafayette, La. 70503

Doors open at 8 A.M., event begins at 9 A.M.

NOTE:  All media will be required to provide government-issued identification and press credentials at the registration area.  Members of the media may begin arriving at 8 A.M., all cameras must be pre-set no later than 8:30 A.M.

Energy Department Blocks Disclosure of Road Map to Relieve Critical U.S. Energy-Water Choke Points

News Articles, Oil & Gas Industry, Washington No Comments

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The research program, known as the National Energy-Water Roadmap and ordered up by Congress as part of the 2005 Energy Security Act, was meant to provide lawmakers and the executive branch two studies of the impending collision between energy and water, and what to do about it.

The first, completed by a team of federal scientists in December 2006 and made public a month later, described the serious consequences the nation is already encountering as the United States encourages more energy production, the second largest user of water. But it gave scant consideration to water supplies, which are in retreat in most regions of the country.

Meanwhile the second and final report that Congress commissioned, a comprehensive research agenda to better understand the nation’s energy-water choke points and begin developing real world solutions, has been held out of public view for more than four years.

22 Rewrites

Michael Hightower, an energy systems analyst at Sandia National Laboratories and a co-author of the report, said the first draft of the study on research needs was delivered to the Energy Department in July 2006. Energy Department reviewers have since called for 22 rewrites, the last of which was delivered in May 2009, Hightower said.

Since then the five-member team that co-authored the study has not had any communication about the report with the two primary reviewers, Samuel F. Baldwin, chief technology officer in the DOE Office of Energy Efficiency and Renewable Energy, and Nicholas B. Woodward in the DOE Office of Science.

“I don’t know why they are holding up the report,” said Hightower in an interview with Circle of Blue. “I can only conclude we don’t know how to write or they don’t like the report. I think we have done a nice job in collecting the data. Maybe the quality is in question.”

Neither Baldwin nor Woodward responded to email messages from Circle of Blue. Ebony Meeks, an assistant press secretary, offered this explanation by email and did not respond to follow-up questions: “When developing a comprehensive technological road map it is imperative that all the data is thoroughly reviewed for accuracy and concurred upon by the multiple participating programs. We plan to release the road map as soon as possible.”

A National Water-Energy Conference Without Key Research

The report’s release couldn’t come soon enough for the agency, and the nation. Over the last five weeks, in its Choke Point: U.S. series, Circle of Blue has thoroughly explored the ever more fierce contest between the nation’s insatiable demand for energy, and the tightening supplies of fresh water.

Water & Energy Reports

Energy Demands on Water Resources Report to Congress on the Interdependency of Energy and Water

Overview of Energy-Water Interdependencies and the Emerging Energy Demands on Water Resources

Among the primary conclusions reached in Choke Point: U.S. is that the nation has not yet recognized the significance of the collision between energy demand and water supply to the economy or the environment. The Road Map report was intended to be a vital step toward closing that information gap.

The Energy Department’s decision to prevent the report’s public release could also prove embarrassing. September 26 is the start of the four-day Water/Energy Sustainability Symposium in Pittsburgh, the second annual national conference co-hosted by the Energy Department to “highlight proven and innovative solutions to complex water/energy challenges.” The Pittsburgh conference is the second in a row that could occur without the principal national study that outlines the research priorities. Last year’s conference took place in Salt Lake City.

It is not at all clear why the Energy Department has apparently iced the Road Map. Calls last week to the Senate Energy and Natural Resources Committee, which played an important role in securing funding for the Road Map, received no response.

TAFT, CALIFORNIA, AUGUST 2010: Covering a stretch of the Central Valley as large as New Jersey, arid Kern County is one of the nation’s most important agricultural and oil producing regions. Oil producers inject 1.3 billion barrels of water into the ground to produce 162 million barrels of of oil a year. During a severe drought in the region, the oil industry received 8.4 billion gallons of water a year – as much as it needed – from the network of aqueducts and canals that carry water from Sierra Nevada rivers and reservoirs.

Photo © Ronnie Smith / Circle of Blue 2010

TAFT, CALIFORNIA, AUGUST 2010: Covering a stretch of the Central Valley as large as New Jersey, arid Kern County is one of the nation’s most important agricultural and oil producing regions. Oil producers inject 1.3 billion barrels of water into the ground to produce 162 million barrels of of oil a year. During a severe drought in the region, the oil industry received 8.4 billion gallons of water a year – as much as it needed – from the network of aqueducts and canals that carry water from Sierra Nevada rivers and reservoirs.

But a number of clues are contained in a March 2007 Sandia National Laboratories paper that summarized the Road Map’s contents. The paper, prepared by Hightower and three colleagues—Ron Pate, Chris Cameron, and Wayne Einfeld—makes clear that any number of executives in the coal, nuclear, oil, solar thermal, and biofuels industries, and their allies in Congress, could be unhappy about the report’s conclusions. The Sandia paper essentially asserts that the United States quickly needs to reconsider and realign much of its energy production policy and water management practices in order to avoid dire shortages of water and potential shortfalls in energy. None of the big energy production or large water use sectors will be left untouched, the paper indicated.

Few Energy and Water Use Sectors Untouched

“The U.S. energy infrastructure depends heavily on the availability of water, and there is cause for concern about the availability of that water as we look toward future demands on limited water resources,” the authors wrote. “As future demands for energy and water continue to increase, competition for water between the energy, domestic, agricultural, and industrial sectors could significantly impact the reliability and security of future energy production and electric power generation,” they added: “It may not be possible in many areas of the country to meet the country’s growing energy and water needs by following the current U.S. path of largely managing water and energy separately while making small improvements in freshwater supply and small changes in energy and water-use efficiency.”

For instance, the authors raised concerns about U.S. energy policy that is encouraging construction of more coal-fired and nuclear power plants, which use millions of gallons of water an hour, without consideration for where they would be built. The thermo-electric generating sector currently accounts for half of the 400 billion gallons of water withdrawn daily from the nation’s rivers and lakes, principally to cool the plants. The same power plants consume more than 3 billion gallons of water a day, principally through evaporation.

Infographic: Water Use Per Mile Driven: Bio-fuels vs Fossil Fuels

Water Use by Transportation Fuels: Gallons of H20 per Mile Driven Infographic. Infographic designed by Kalin Wood. Note: light green denotes biofuels, grey denotes fossil fuels.

Infographic designed by Kalin Wood / reportage by Aubrey Ann Parker and Clyde Rastetter.

Water Use by Transportation Fuels: Gallons of H20 per Mile Driven Infographic. Click image to see to full infographic details.

The Energy Information Administration, a unit of the Department of Energy, forecast a nearly 50 percent increase in the demand for electricity between 2005 and 2030. A portion will be filled with energy from the wind and solar photovoltaics, which use virtually no water. Most of the rest will come from new thermoelectric plants.

The Sandia authors noted that new technologies are needed to enable the plants to use coolants other than fresh water, including wastewater from municipal treatment systems, seawater, produced water from mining and drilling operations, and agricultural runoff. In addition, the authors said, U.S. policy encouraging the development of pollution control systems that capture climate-changing emissions and store it deep underground, so-called carbon capture and sequestration, increases water consumption at plants 40 percent to 90 percent.

Advanced Energy Initiative Did Not Consider Water Use

The paper recommends integrating into Congressional and federal policymaking for energy production new requirements for taking into account whether enough water is available for new thermoelectric plants. “The large growth in certain regions of the country of electric power demand and alternative transportation fuel feedstock and refining demands,” the Sandia authors wrote, “suggests that water availability regionally or locally may not be able to support the high growth rate in energy development expected without significant improvements in both energy and fresh water use efficiency.”

The Sandia authors raise similar concerns about rising demand for water to satisfy the nation’s appetite for transportation fuels. In January 2006, President George W. Bush introduced the Advanced Energy Initiative to reduce oil imports and increase national security. One facet of the initiative is to replace 30 percent of the nation’s current gasoline needs with domestically grown and refined biofuels by 2030. This will require production of about 60 billion gallons of ethanol per year by 2030, with over two-thirds needing to come from cellulosic-based feedstocks like switchgrass and wood wastes.

IMPERIAL VALLEY, CALIFORNIA, AUGUST 2009: The All American Canal, the main water conduit from the Colorado River into the Imperial Dam, flows through the Imperial Valley, Calif. The desert area uses most of its allocated river water for agricultural purposes.

Photo © Brent Stirton/Reportage by Getty Images for Circle of Blue

IMPERIAL VALLEY, CALIFORNIA, AUGUST 2009: The All American Canal, the main water conduit from the Colorado River into the Imperial Dam, flows through the Imperial Valley, Calif. The desert area uses most of its allocated river water for agricultural purposes.

Another facet of the initiative is to encourage production of biodiesel and transportation fuels from tar sands and oil shales in the arid West.

Very clearly, the Sandia authors indicate, the Bush administration did not consider where the water would come from to produce these alternative fuels. “Virtually every alternative transportation fuel being considered will require more water than current petroleum refining,” said the Sandia paper. “A major national scale-up of production capacity and use of nonconventional alternative transportation fuels to meet future domestic fuel demands could significantly increase water demands and impacts.”

Producing a gallon of gasoline, said the authors, takes about 1.5 gallons of water. Every one of the alternatives promoted in the Advanced Energy Initiative takes more water, from two to six times as much water as petroleum production and refining needs to produce a gallon of fuel. Producing ethanol from irrigated corn fields takes 1,000 gallons of water to produce a gallon of fuel. Producing biodiesel from irrigated soybean fields takes 6,500 gallons to produce a gallon of fuel.

Very clearly, the national alternative fuels plan that relies heavily on producing ethanol raises significant issues about water supply. “Among the issues with the future expansion of biofuel production will be to assure that the availability, use, and sustainability of water and land resources is appropriately managed,” the Sandia paper counseled, “to avoid adverse impacts while not putting undue constraints on the transition toward more biomass-based energy and products industries.”

Planning Needed

Of all the research and policy recommendations summarized in the Sandia paper, and repeated in the Road Map report, perhaps the most significant is the call for linking energy policy and production with water supply and use. The Sandia paper concluded, “As these two resources see increasing demand and growing limitations on supply, energy and water must be recognized as highly interdependent critical resources that need to be managed together in a more integrated way to provide reliable energy and water supplies and sustain future national growth and economic development while maintaining the health of ecosystems and the environment.”

“We need to come up with strategies so we have a sustainable future,” said Hightower. “As it is now in the United States, water is managed by the water group and energy is managed by energy companies. We’ve got to look at the energy infrastructure and the water infrastructure together.

“That’s what we’ve identified as a need in the Road Map report. Hopefully we’ve done something good for the country. Although we’re in trouble with the DOE.”

Original Article

Blog: Fire Doesn’t Support Calls for the Moratorium

Washington No Comments
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EnergyTomorrow.Org: A fire on an offshore platform in the Gulf of Mexico created a media furor yesterday. Several of the initial news reports contained inaccuracies that tended to exacerbate America’s heightened awareness of–and sensitivity to–offshore drilling. The reaction was predictable: Politicians demanded answers, and environmental groups called on the government to keep the drilling moratorium in effect.

As we’ve stated before on this blog, the oil and natural gas industry believes no accident is acceptable. Offshore workers are trained in the proper way to manage operations and are drilled in safety precautions. We’re thankful that all 13 crew members on the platform are accounted for.

The Mariner Energy platform fire was an industrial accident that should not be compared to the Deepwater Horizon. “There was no blowout, no explosion, no injuries, no spill,” according to Patrick Cassidy, the company’s director of investor relations. (The New York Times)

Furthermore, the fire occurred during routine platform maintenance while crew members were cleaning and painting. It was not caused by any drilling or production operations. By mid-afternoon yesterday, the fire had been extinguished.

Also, the automatic safety valves worked swiftly to shut-in the oil and natural gas to protect the environment.  A U.S. Coast Guard official yesterday said, “The company monitors each of these wells, and their data showed there’s no flow.” (The New York Times)

Is the Mariner Energy fire a sufficient reason to continue the drilling moratorium? Absolutely not.

America’s energy reality remains unchanged. The demand for oil and natural gas will continue to grow in the coming decades. The United States must produce more of its own domestic resources to fuel economic growth and improve U.S. energy security.

Original Blog Post

Successes in shale to be shared

Haynesville Shale, Oil & Gas Industry No Comments

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As predicted several years ago, water has become a critical limiting factor as the natural gas industry expands from one shale play to the next, according to Gary Hanson, director of the Red River Watershed Management Institute at LSU-Shreveport.

Hydraulic fracturing is required in all of the gas shale plays and it is crucial that industry continues to work with northwest Louisiana communities and voluntarily use predominantly surface water or the Red River Alluvial Aquifer instead of the limited Carrizo-Wilcox groundwater for fracing.

“By addressing our water concerns in a proactive manner and allowing development to proceed in a responsible way, we are a model to other areas of the country where unfortunately, fear, instead of facts, is driving resistance to shale gas development,” Hanson said.

As a result of Louisiana’s success, Hanson has been invited to several water and energy venues in the Southwest and on the East Coast to share the story and lessons learned. In one of the sessions set next month in Pennsylvania, Hanson will be joined by Lt. Gov. Scott Angelle, state conservation Commissioner Jim Welsh and Mike Mathis of Chesapeake Energy.

Other conferences will be in Houston, Pittsburgh and Baltimore. The Baltimore event in October, sponsored by the Water Research Foundation, is pulling together experts to evaluate water quality concerns related to hydraulic fracturing. One of the speakers will be Robert W. Puls, director of research for the Environmental Protection Agency’s Ground Water and Ecosystem Restoration Division.

“It is a real honor to be asked to participate in this expert workshop formed to evaluate hydraulic fracturing and gas shale development,” Hanson said.

As an example of what other area’s of the nation are facing, Hanson notes in the Marcellus Shale, which stretches into Pennsylvania and New York, poor groundwater aquifers exist and major river systems are being used for well stimulation.

New York has a drilling moratorium in place, and “well-meaning groups have incited the public to a point that regulators and scientists, whom I have spoken with, say it is basically impossible to get out objective facts about gas well drilling and hydraulic fracturing. Their greatest concerns are landscape change, excessive water use and fears that fracing may contaminate their drinking water and environment. Facts, not fear, should drive the development efforts,” Hanson said.

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In south Texas, the Eagle Ford play is drawing a lot of interest from the oil and gas industry. It extends 250 miles from southeast of Austin to the Mexican border.

In much of the play, existing deep water wells are being utilized for drilling and stimulation because it’s too expensive to drill water wells. In areas near the border, no groundwater exists, so limited surface water is used. Also, encounters with Mexican drug runners and human traffickers make it dangerous for water transfer specialists to work there.

“Caddo, Bossier, DeSoto and Webster parishes, as well as the Red River Waterway Commission, Sabine River Authority, city of Shreveport, Metropolitan Planning Commission and LSUS should be commended for their efforts to preserve and protect our water resources here in northwest Louisiana,” Hanson said.

The state’s Legislature and Department of Natural Resources acted in a proactive manner by developing groundwater legislation here in Louisiana about six years before the Haynesville boom started. Recent water policies, including the newly adopted surface water use law, are being driven by the Haynesville activity.

However, DNR’s approach shows “institutions that are typically considered rigid and inflexible can in fact become flexible and adaptive with the right leadership,” Hanson added. “In an unprecedented manner, but typical of his hands-on management style, Scott Angelle (interim lieutenant governor) has chaired numerous and lengthy Ground Water Commission meetings throughout the state. This has given Louisiana residents, statewide, the opportunity to attend and have their water concerns heard.”

Original Article