Oil companies review their safety policies following Macondo spill

Oil and gas industry executives surveyed by Delotte LLP were about evenly split regarding whether changing US offshore regulations actually will improve drilling safety.

Of 201 executives polled earlier this month, 41% said yes while 42% said no. The rest said they don't know.

Regarding future corporate health and safety policy, 57% said their companies are more likely to review and update HSE policy as a result of BP PLC's Macondo well blowout and the resulting explosion and fire on Transocean Ltd.'s Deepwater Horizon semisubmersible. The accident triggered a massive oil spill in the Gulf of Mexico.

Nearly 60% of those polled said any improvements in drilling safety will come from the industry itself rather than from government regulations or third-party insurance and financing requirements.

Blowout preventers and their cutting power being reviewed

The failed Deepwater Horizon blowout preventer is being examined at a NASA laboratory in New Orleans, National Incident Commander and retired US Coast Guard Adm. Thad Allen said. Basically, the BOP is a large valve at the top of the well designed to close in an emergency.

A number of government agencies are investigating why the Deepwater Horizon BOP failed, contributing to a fatal accident and a massive oil spill in the Gulf of Mexico. BP PLC, which operates Macondo, issued recommendations on BOP design and assurance measures in BP's own investigation report.

The Macondo well was drilled by Transocean Ltd.’s Deepwater Horizon semisubmersible on which 11 crew members died.

Separately, National Oilwell Varco has developed a new blade design for shear rams within the BOP stack. National Oilwell Varco says its new shear ram system is intended to cut through the thickest joints of drill pipe.

BP’s BOP recommendations primarily involve BP establishing minimum levels of redundancy and reliability for its BOP systems. BP also would require drilling contractors to implement an auditable risk management process to ensure BOP systems are operated above minimum levels. The oil company likely will strengthen its minimum requirements for contractors’ BOP testing and emergency systems.

Safety regulators worldwide are reviewing deepwater drilling policies, including BOP regulations.

Surveys show “sea of discontent” with subsea equipment

EnergyPoint Research Inc. reports its oil field service surveys suggest oil companies are significantly less satisfied with equipment available for subsea and deepwater projects than with equipment for surface-based applications.

“As the industry searches for ways to avoid a repeat of the catastrophe in the Gulf of Mexico, it may prove helpful to develop a more thorough appreciation of what drives the lower scores for subsea equipment,” EnergyPoint Research said on June 10.

“Data indicate customers see subsea blowout preventers, wellheads and trees, and riser and flexjoints as particularly lacking,” said EnergyPoint Research, suggesting this dissatisfaction stems in part from rapid growth within the subsea business. “Notably, ratings for subsea BOPs trail those of surface BOPs by material margins.”

Meanwhile, remotely operated vehicles received the highest long-term ratings of any subsea product category EnergyPoint tracked in its survey. The findings stem from more than 5,600 customer evaluations of oil field product suppliers since 2005.

Indeed, ROVs have proved to be the workhorses in dealing with the failed BOP and resulting oil spill in the gulf since the Apr. 20 deepwater Macondo well blowout and resulting explosion and fire to Transocean Ltd.’s Deepwater Horizon semisubmersible. BP PLC operates Macondo on Mississippi Canyon Block 252.

Spilled oil being burned on open water, EPA monitoring

Oil spill response officials are using controlled burns to eliminate some of the crude oil spilled off Louisiana. They say burning crude oil offshore has been effective elsewhere in the past.

Meanwhile, federal officials are monitoring air quality and testing water samples. Officials say it will take some time to measure the effectiveness of the controlled burns in the Gulf of Mexico.

US Coast Guard Rear Adm. Mary Landry said a controlled burn off the coast of Newfoundland in 1993 proved very effective at eliminating oil trapped in special containment booms and set on fire.

The majority of the spill on the gulf’s surface is an oil-water mixture called a rainbow sheen with some areas of emulsified oil. The spill is moving closer to the shore and to Louisiana’s wetlands.

The controlled burn eliminates the emulsified oil, leaving a waxy substance that can be picked up by skimming vessels.

“If we don’t secure this well, this could be one of the most significant oil spills in US history,” Landry said during an Apr. 27 news conference. An estimated 5,000 b/d is leaking from a BP PLC well drilled by Transocean Ltd’s Deepwater Horizon.

An Apr. 20 explosion and fire on the semisubmersible left 11 crew members missing and presumed dead. The semi sank on Mississippi Canyon Block 252 on Apr. 22. Efforts continue to stop the leaking oil.

The controlled burn practice does involve tradeoffs in that it creates air pollution, said Charlie Henry, a scientific support coordinator with the National Oceanic and Atmospheric Administration.

Meanwhile, other scientists say warm water temperatures, strong sunshine, and microbial action will help the oil degrade and evaporate. The spill involves light, sweet crude so it will degrade faster than did the heavy oil spilled from the Exxon Valdez tanker. An API spokewoman says a controlled burn was used on the Valdez spill and was effective.