Analysis: U.S. offshore drillers still reeling from spill

11 March, 2011 - (Reuters) - Oil drilling in the deepwater Gulf of Mexico is still stuck in neutral even after U.S. regulators last month issued the first new drilling permit since the deadly 2010 Macondo well blowout.

Nearly a year after BP Plc's mile-deep Macondo well ruptured in April 2010, triggering an explosion aboard the Deepwater Horizon drilling rig that killed 11 people, executives at the high-profile CERAWeek energy conference in Houston marked few reasons for optimism about a recovery of drilling in the Gulf.

"The deepwater drilling moratorium has been lifted in name only," said John Hess, chief executive of Hess Corp, referring to U.S. regulators' move on February 28 to approve a permit for Noble Energy Inc to drill about 70 miles off the Louisiana coast.

The Obama Administration imposed a temporary ban on drilling at depths greater than 500 feet shortly after the BP disaster. The moratorium was officially lifted last October, but Noble has received the only deepwater permit since then.

Noble Chief Executive Charles Davidson said at the conference that regulators need to approve permits for more wells, new ones as well as ongoing drilling projects like the Noble well that was interrupted by last year's ban.

"One permit does not make a deepwater industry," Davidson said. "We have to do more than just these few wells that were drilling before the moratorium."

At CERAWeek, BP's chief executive made his first post-Macondo conference appearance to issue an apology to his industry colleagues and a warning that such disasters are not a one-in-a-million occurrence.

"One company's calamity quickly becomes every company's concern," Dudley said.

Big offshore producers like Royal Dutch Shell, Chevron Corp and Anadarko Petroleum Corp need no such reminders, as deepwater drilling remains largely idle.

The Gulf of Mexico is key factor in U.S. energy supply, providing about 30 percent of U.S. domestic oil production and 13 percent of its natural gas production.

Nexen Inc's CEO Marvin Romanow, who hopes to see permits issued for its Appomattox project in second quarter for appraisal drilling, said he is confidant of new permits since Noble's well was approved.

"It's clear they're committed to doing their work, doing everything they need to do, and moving to granting licenses to drill," Romanow said.

"We've been in the deep water of the Gulf of Mexico for 10 years. It's not a short-term game," he said.

Offshore industry frustration over drilling delays is mounting, said Gary Adams, U.S. oil and gas leader at consultancy Deloitte.

"The term I heard was that the Gulf of Mexico was on life support," Adams said.source: www.reuters.com

SSE scraps impractical Kintyre offshore wind farm

Scottish and Southern Energy (SSE) has scrapped plans for a 378MW wind farm located two kilometres off the west coast of the Kintyre peninsula in Scotland, after initial surveys revealed poor wind resources and strong opposition from local communities.

The utility announced last week it had stopped work on the Kintyre offshore wind farm project, but insisted it will continue with plans for a 690MW sister project 13km off the west coast of the Isle of Islay.

"Initial site survey work and consultations relating to the wind farm planned to be developed 2km off the west coast of Kintyre have identified a number of factors that have led SSE to decide not to proceed further with the development of this site," the company said in a statement. "These include: the wind resource, the proximity to Campbeltown Airport and local communities, and the impact on recreational sailing in the area."

Feedback from a series of public exhibitions showed 72 per cent of people were either against, or strongly against the Kintyre project. By comparison, nobody was against proposals for the Islay project and 60 per cent were in favour.

SSE now plans to submit an application to the Scottish Government to develop the Islay wind farm at the end of 2013, although it notes that there will be a number of challenges resulting from difficult weather and seabed conditions, which it predicts will apply to many of the Round 3 and Scottish Territorial offshore wind farms.

Colin Hood, chief operating officer at SSE, insisted the utility remains committed to the offshore wind sector, despite the decision to scrap the Kintyre project.

"Having assessed the wind resource, listened to the concerns of local residents, businesses and other stakeholders, and having regard to the impact on Campbeltown Airport and the recreational sailing community, we believe our decision to halt the development of the Kintyre site is the responsible course of action to take," he said.

He added Islay has "massive potential" to contribute to the government's renewable energy targets and said he expected the industry will have developed technology to cope with many of the challenges expected for Round 3 projects by the time it is built.

"Our proposed timetable for developing [Islay] will allow time for the innovative development of the offshore technology and construction techniques necessary to build a wind farm in such a challenging environment."

The news came as SSE yesterday announced that a new joint venture backed by the company has been named as the preferred bidder to acquire the Skykon Campeltown wind turbine plant, which is currently trading in administration. The facility is expected to be used to produce turbine towers for SSE's offshore wind developments.
source: www.businessgreen.com

Jobs created by Cumbria offshore wind farm

A total of 60 new technician jobs are being created by a new offshore wind farm off the coast of Cumbria.

It is envisaged all the new jobs at the Walney Offshore wind farm will be filled by local people.

Work began on the 52 turbine Walney One project in March.

The technicians will be responsible for the operation and maintenance of the turbines, and based in Barrow. The wind farm has already created about 100 local jobs.

The wind farm is expected to make its first contribution to the National Grid before Christmas.

It should generate power for more than 320,000 households - more than the whole of Cumbria.

More than 100 turbines make up the wind farm, situated 9.3 miles (15km) west of Barrow-in-Furness.

Danish company Dong Energy and SSE (Scottish and Southern Energy) are behind the project, which is being built in two stages, each consisting of 51 turbines.

A second wind farm is also being built about 6.2 miles (10km) off Walney Island, called The Ormonde Offshore Wind Farm.

It will have 30 turbines and is being built and operated by Vattenfall, a Swedish energy company.

Once both projects are complete, at the end of 2011, they will together produce enough renewable energy for about 445,000 households.
source: http://www.bbc.co.uk

Feds powerless to halt offshore drilling alone

Canada's natural resources minister has been warned by officials in his department that the federal government would be powerless to unilaterally halt offshore drilling projects in areas where regulatory oversight is shared with the provinces, Postmedia News has learned.

For now, the limit on federal powers applies only off the coasts of Newfoundland and Nova Scotia. But documents obtained exclusively by Postmedia News also reveal the federal government has entered into "informal" discussions with other provinces with coastal waters where oil exploration could one day take place, including Quebec, British Columbia, New Brunswick and Prince Edward Island.

The documents suggest the federal government could run into jurisdictional battles with the provinces if it sought to impose a national moratorium on offshore drilling, as the administration of U.S. President Barack Obama did in the wake of this summer's massive oil spill in the Gulf of Mexico.

A blowout at BP's Macondo well on April 20 unleashed the biggest oil spill in history. In late May, Obama suspended the issuance of new deepwater-drilling permits and shut down all such drilling under way in the Gulf. BP sealed the well in July, but only after it had spewed more than 4 million barrels of crude oil.

The U.S. government finally lifted the moratorium last month, while at the same time announcing tough new drilling rules.

Internal emails show that, as the Gulf disaster unfolded, the office of Natural Resources Minister Christian Paradis -as well as the Prime Minister's Office -took a keen interest in how Canada might handle a spill on the same scale.
source: www.montrealgazette.com

Offshore Wind Power: Cleaner, Cheaper, More Jobs Than Oil

A recent report from the U.S has found that focusing investments in that country on offshore wind power would be cost effective, generate more jobs and be better for the environment and ocean than offshore oil and gas exploration and development.

The study from Oceana says offshore wind can generate nearly 30% more electricity than offshore oil and gas resources combined while costing around USD $36 billion less than offshore oil and gas production. Additionally, approximately three times as many jobs per dollar invested could be created than in fossil fuel production.
New Jersey, Virginia and South Carolina could supply 92%, 83% and 64% respectively of their current electricity generation requirements with offshore wind. In each state, wind energy could provide more power than the states currently get from fossil fuels.

On the Atlantic Coast alone, the United States could install at least 127 gigawatts of wind power, creating between 133,000 and 212,000 jobs annually - more than triple the jobs that new offshore oil and natural gas development is expected to create.

The U.S is yet to install any offshore wind farms and Europe is currently the leading supplier of offshore wind turbines. Oceana points out that building a domestic manufacturing base would allow related investment to stay within the nation's shores and also allow the U.S. to become an offshore wind technology exporter.

An interesting aspect of the study is that it is based on conservative assumptions for offshore wind and generous assumptions for offshore oil and natural gas.

The group also says a small fraction of U.S. renewable energy resources is enough to provide power for the nation the country several times over.

Oceana is the largest international organization focused solely on ocean conservation.
source: www.energymatters.com.au

Ireland and offshore wind jobs potential

Ireland is missing out on job creation by not fully capitalising on its offshore wind potential, according to NOW Ireland.

Failing to follow the lead of the German and other EU governments and use Ireland's natural offshore wind resources as a driver of jobs and export growth means Ireland is losing out on creating new employment streams, according to NOW Ireland president Michael McBennett, who was speaking during an industry-led trade mission to the German town of Cuxhaven in Bremerhaven last week.

Cuxhaven is home to a cluster of offshore wind supply chain companies that are now directly employing in excess of 1,700 people after two years.

According to NOW Ireland, offshore wind developers here are in the process of planning in excess of 2,500MW of clean wind power projects in Irish waters. About one-third of this will be needed to meet Ireland’s 2020 energy targets, with the remainder set to become the core of Ireland’s renewable exports.
Irish Sea potential

The Irish Sea is seen as a key development zone, with substantial projects also planned for UK waters. The offshore lobby group has identified the potential of both Irish and UK projects as being a key driver to create jobs in Irish ports.

Speaking during the trade mission, McBennett said: “Governments around Europe have recognised the opportunity that this sector offers. A small town such as Cuxhaven, which suffered from significant unemployment, was identified as being an ideal base for development as a supply chain cluster. The Lower Saxony government allocated part of its port facilities as an offshore wind centre of excellence, which has resulted in significant direct investment. The same is happening in ports throughout the UK and the same could happen in Arklow, Dublin, Bremore, or Killybegs.”

The NOW Ireland trade mission included representatives from Enterprise Ireland, IDA, Forfás, Invest NI and the Construction Industry Federation, in addition to members of the Irish offshore sector.

“The main purpose of this journey was to show what is achievable. With political will, with leadership, these projects can and do take off. Our wind resource is considerably better than that of Germany. What has been created here is due to the determination of national and regional government in Germany to put in place a regime which takes advantage of the renewable resources which are here,” added McBennett.
Delegation host

The NOW Ireland delegation was hosted by Dr Klaus Weber of Strabag Wind, one of the key companies in the Cuxhaven cluster. He said that companies such as his are looking to Ireland, among other countries, as a potential venue for investment.

Following discussions with German supply chain companies, McBennett said such firms will not locate in Ireland unless the offshore projects exist.

“There needs to be some sense that the Irish offshore industry is going to fulfil the undoubted potential it has before supply chain companies such as Strabag Wind locate here. In the last six months the UK, thanks to their positive attitude to offshore wind, have seen announcements by multinationals such as Siemens, Clipper, Multibrid, Iberdrola and others bringing thousands of jobs in manufacturing. Ireland badly needs these jobs and we could have them,” he added.

NOW Ireland will be holding its third annual conference – Offshore Wind Energy in Ireland – From Policy to Reality – on 14 October at the Burlington Hotel, Dublin. For further details, visit NOW Ireland.source: www.siliconrepublic.com

Rising crude oil gives boost to offshore service providers

Drilling and offshore service providers, such as Great Ship and Dolphin Offshore, expect a revival in demand for services as the price of crude oil has stabilised in the range of $70 to $80 per barrel.

Explorations at high costs became unviable when Brent, the benchmark crude oil price, crumbled from a high of over $145 per barrel in July 2008 to just $34 per barrel in December 2008 due to the economic slowdown.

Many oil producers shelved their plans for exploration as the economic downturn coincided with the drop in oil prices. This led to the global supply of assets like rigs and platform supply vessels (PSVs) exceeding the demand for them.

According to industry analysts, the average charter rates for jack-up rigs of 300-foot water depth has dropped to $136,000 (over Rs 63 lakh) a day from a high of over $200,000 (over Rs 93 lakh) a day in mid-2008. The charter rate for PSVs of over 2,000 dead weight tonne has dropped to $5,600 (over Rs 2.61 lakh) a day now from $42,000 (nearly Rs 20 lakh) a day a year ago.

In addition, West Asia is expected to see an investment of $16 billion (nearly Rs 75,000 crore) for the development of oil fields by such countries as Iran, Qatar and Abu Dhabi.

“With oil steady at over $70 (over Rs 3,200) a barrel and with the credit crisis easing out, demand would be back to an extent,” Great Ship Managing Director Ravi K Sheth said. Great Ship is a subsidiary of India’s largest private shipping company Great Eastern Shipping.

“Demand usually has a six-month lag. So, the real impact would be seen if oil prices sustain at these levels till then,” he added. Great Ship is currently operating two rigs and has chartered out 14 vessels, with 14 more vessels on order for supply.

“Globally, the utilisation level for rigs would pick up in 2010 and this would eventually help get better rates for these assets,” said Ramesh Singhal, chief executive officer of Navi Mumbai-based i-Maritime shipping consultancy. The global utilisation levels for rigs have dropped to 80 per cent from 87 per cent a year ago. In India, there are 47 rigs deployed by Indian as well as international service providers currently.

Apart from rigs, the demand for other offshore services is also expected to pick up.

“We expect restoration of offshore works overseas,” said Satpal Singh, managing director and chief executive officer of Dolphin Offshore, which executes offshore projects on a turnkey basis. It provides all three dimensions of marine constructions, including diving services, marine operations and topside fabrication service for making platforms.

Due to the downturn, some of the recent contracts with Indian oil producers were executing at rates 15-20 per cent lower than the normal budget. India’s two largest rig and offshore service providers Aban Offshore and Great Offshore were not available for comment.

source: www.business-standard.com

First turbine erected at Thanet offshore wind farm

European energy company Vattenfall has erected the first of 100 Vestas V90 turbines at the 300MW Thanet offshore wind farm off the Kent coast.

Vattenfall finished the erection of the turbine last Wednesday (December 9) at dawn.

The Thanet Offshore Wind Farm, located 12 kilometres off Foreness Point on the Kent coast, has been under construction since 2008 and all 100 wind turbines are due to start generating electricity in the second half of 2010.

Offshore works began in April 2009, with the Sea Jack offshore construction vessel putting in the monopile foundations for each of the wind turbines planned for the site (see this NewEnergyFocus.com story).

David Hodkinson, head of development at Vattenfall Wind Power in the UK, said: "The erection of the first wind turbine at Thanet is a fantastic achievement and we now look to make good progress towards completing the project in 2010.

"We really appreciate the continued high levels of public support from people and businesses in Kent and we would like to acknowledge the incredible efforts our suppliers, including turbine supplier Vestas, have put in to help us reach this important milestone."

Capacity
On completion, the wind farm will comprise of 100 Vestas V90 wind turbines and have a total capacity of 300MW. Vattenfall claims that this is sufficient to supply approximately the equivalent of 240,000 homes per year with clean energy.

Last month, the European Investment Bank (EIB) announced that Thanet was one of six wind farms under consideration for a share of £300 million funding to help connect it to the mainland via a series of high voltage cables (see this NewEnergyFocus.com story).

The wind farm will be located in water depths of 20-25m and cover an area of 35km2. Each turbine will be up to 115m tall at its highest point, with a minimum clearance above sea level of 22m. The distance between turbines is set to be approximately 500m along rows and 800m between rows.

source: newenergyfocus.co

Offshore energy plans scrutinized

September 05, 2009

The waters around the Cape and Islands are awash with ideas for harnessing renewable energy. From a tidal project in Muskeget Channel east of Chappaquiddick Island to ocean-based wind turbines, it is difficult to escape hope-infused plans for a green, energy-filled future.

But over the next month, the action comes onshore during a series of public hearings and conferences on how to mold those dreams into reality. "There's no point in asking someone to evaluate someone else's fantasy," Kitt Johnson, chairman of the Edgartown Energy Advisory Committee, said this week.

In stark contrast to the traditionally slow pace of getting regulatory approval for projects — it can be like "watching grass grow," Johnson said — the Cape and Islands will see a flurry of activity in the offshore renewable energy arena this fall.

On Tuesday, the Ocean Advisory Commission, which includes several Cape and Islands politicians and planners, will meet in Boston to discuss the state's draft ocean management plan. Released in July, the draft plan lays out where ocean projects should and should not be located.

Public hearings follow on the Cape and Vineyard mid-month for anyone who wants to comment on the plan's contents.

On Sept. 17 in Hyannis, the second annual Ocean Energy for New England Conference, hosted by the Marine Renewable Energy Center at the University of Massachusetts in Dartmouth will be held for those interested in planning for projects and the policies that make them possible.

And an Oct. 15 conference in Fall River on renewable energy technology will include information on the type of underwater turbines being considered for the Muskeget Channel project.

The conferences and the state's decision to designate areas off the Cape and Islands for renewable energy development are helpful in getting the public involved, Johnson said.

A final version of the state's ocean management plan is scheduled to be released Jan. 1. An area southwest of the Elizabeth Islands and Nomans Land — a small island three miles off Martha's Vineyard — appears appropriate for up to 170 wind turbines, according to the draft plan.

And, in Muskeget Channel there is enough tidal flow in some areas to generate electricity, said John Miller, director of the Marine Renewable Energy Center.

The renewable energy center is working with Edgartown as the town collects more data on the Muskeget Channel area in exchange for the opportunity to install a permanent stand to test technologies, Miller said. The center, he said, hopes to expand the testing area 30 miles to the south. The National Offshore Renewable Energy Innovation Zone would give researchers a location to test tidal, wave and wind-energy generation technology.

"People need to become more familiar with the technology ... how underwater turbines operate and how they might look," said Mark Forest, chief of staff for U.S. Rep. William Delahunt, D-Mass., who has supported the Marine Renewable Energy Center and more planning for ocean waters.

While Delahunt is often painted as strictly an opponent of the proposed Nantucket Sound wind farm, he has long called for a "time-out" on all such projects until proper federal and state planning can take place, Forest said.

Although generally pleased with the state's draft ocean management plan, local officials are watching closely to ensure state officials consider islanders' concerns.

"The big thing in our minds right now is the definition of 'community benefit,'" said David McGlinchey, executive director of the non-profit Vineyard Energy Project.

The term, a requirement for commercial and small-scale wind turbine projects built in the waters off the coast, is not clearly defined in the draft plan, McGlinchey said.

Next door on Nantucket, officials, who have worked with Edgartown on the Muskeget Channel project, have a broader array of concerns.

The omission from the plan of Nantucket's planning agency raised early alarm bells, said Andrew Vorce, director of the Nantucket Planning and Economic Development Commission.

While assurances by state officials that the island commission will have a voice in local developments are welcome, the waters around Nantucket are largely excluded as the site of potential projects because of bird habitat, Vorce said.

"The mapping of sea duck habitat is a concern for us," he said.
source: www.capecodonline.com

Tsakos Energy Navigation to Present At Jefferies Shipping and Offshore Services Conference

Fri Sep 4, 2009

ATHENS, Greece, Sept. 4, 2009 (GLOBE NEWSWIRE) -- Tsakos Energy Navigation
Limited (TEN or the "Company") (NYSE:TNP) today announced that members of the
management team will be presenting at Jefferies Shipping and Offshore Services
Conference in New York City on September 9, 2009. TEN will present at the
conference on Wednesday, September 9th at 2:45 p.m. EDT.

ABOUT TSAKOS ENERGY NAVIGATION

TEN's pro forma fleet consists of 52 vessels of 5.6 million dwt. TEN's
operational fleet consists of 47 vessels all of double-hull design. TEN's
newbuilding program includes three DNA-aframax crude carriers and two suezmax
tankers totaling about 631,000 dwt.

TEN's balanced fleet profile is reflected in 27 crude tankers ranging from VLCCs
to aframaxes and 24 product carriers ranging from aframaxes to handysize;
complemented by one LNG.

FORWARD-LOOKING STATEMENTS

Except for the historical information contained herein, the matters discussed in
this press release are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from those
predicted by such forward-looking statements. TEN undertakes no obligation to
publicly update any forward-looking statement, whether as a result of new
information, future events, or otherwise.

CONTACTS: Tsakos Energy Navigation, Ltd.
George Saroglou, COO
+30210 94 07 710
gsaroglou@tenn.gr

Cubitt, Jacobs & Prosek Communications
Investor Relations
Thomas J. Rozycki, Jr.
+212 279 3115 (x208)
trozycki@cjpcom.com

Capital Link, Inc.
Marketing Advisor
Nicholas Bornozis
+212 661 7566
nbornozis@capitallink.com


source: www.reuters.com

Is Massachusetts set to block offshore wind development?

The state of Massachusetts could be poised to block current proposals for a major offshore wind farm in its waters after the state government released a new development plan designed to strictly define what can be built in its oceans

A senior official said the new rules would prohibit a proposed offshore wind farm in its current form.

Mandated by the State's Oceans Act of 2008, the plan would require developers of ocean-based projects to avoid areas that are considered ecologically important. The Act required a plan to be put in place by the end of this year.

The draft plan would introduce new environmental considerations for those wishing to construct projects in the 75 per cent of state waters that are under general management. Projects would have to get the approval of local coastal towns, and of the relevant regional planning agency, before they could go ahead.

The introduction of the plan is likely to require a revamp of existing proposals for wind farms in the Buzzard's Bay area off the Massachusetts coast, according to an interview given by state energy and environmental affairs secretary Ian Bowles.

"The big wind farm for Buzzard's Bay will not be able to go forward as it was proposed," he warned, adding that liquid natural gas projects built off the coast would also have to be careful about where they constructed pipelines. " We've got about 12 different categories of special, sensitive, unique resources and those vary area to area and depend on where that species or resource might appear."

The move comes at a crucial time for offshore wind power in the US. The Obama has signalled its support for the development of offshore wind resources and last month the Department of the Interior issued five leases for offshore wind project exploration in New Jersey and Delaware, opening the door for offshore wind farms on the eastern seaboard.

source: www.guardian.co.uk