Transcript Restoring Confidence in the Offshore E&P Industry Deepwater Drilling Operations Going Forward September 21, 2010

Restoring Confidence in the Offshore
E&P Industry
Deepwater Drilling Operations Going Forward
September 21, 2010
Safety
The Offshore Industry … a Leader in Safety
 According to BOEMRE and U.S. Bureau of Labor
and Statistics, the offshore industry has a total
recordable incident rate 79% lower than industry at
large
 The Offshore Oil and Gas Industry has been a
leader in defining, managing and promoting safe
operations and has a history of working
collaboratively to continuously improve safety
 From 1980 – April 20, 2010, the offshore
operators have produced 4.7 billion barrels of oil
with a spill rate of only .0001%
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Overview
Committed to Safe And Reliable Drilling Operations
• The Deepwater Horizon incident thus far has
not highlighted problems with current industry
technical standards or regulations; rather
reinforces need for strict adherence
• Industry has focused on improvements in the
areas of prevention, intervention and containment
and response
Well
Containment &
Intervention
Capability
Spill Response
Capability
Safe Drilling
Operations
• Industry has demonstrated compliance with
additional requirements imposed by the Agency
• Industry awareness to prevention is at an alltime high with new secondary measures in place
related to deepwater intervention and
containment
• The Industry is committed to Safe and Reliable
Drilling Operations and is ready to go to work
Industry Drilling
Standards
Restoring Confidence in
Deepwater Drilling
Operations
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Prevention Measures
First and Best Line of Defense
 Inspected drilling rigs to assure safety
 3rd Party certifications of BOPE
 Examined Operating Practices and
Equipment Needs
 Reviewed Technical Standards and
supplemented
 Deepwater Well Design Considerations
 Well Construction Interface Document
 Provided Recommendations to BOEMRE on
Improvements to regulations based upon
proven technology
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Intervention and Containment Measures
New Tools In Place for Deepwater

Established a Joint Industry Subsea Well
Control and Containment Task Force of
experts to address

Identified and secured containment
equipment available immediately –
equipment recently used in Macondo
response

Designed a long term, state-of-the-art
intervention solution: The Marine Well
Containment System

Formed non-profit organization, MWCC,
to respond to incidents
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Oil Spill Response
Industry has Expanded Capabilities

Joint Industry Task Force leveraging lessons
learned from BP to drive improvements

Improved offshore and onshore spill
containment and booming systems which
include

OSVs supporting deepwater operations
equipped with skimmers to respond
effectively to oil in the environment far
offshore; and

higher efficiency shallow water skimmers
introduced to near shore environments
enhancing protection of coastal resources

Improving oil detection technology and
enhanced spill trajectory technology

Expanding spill response expertise
throughout the workforce

Increasing planning with Federal, State, and
Local governments and communities
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Moratorium
The Unintended Consequences
 Significant impact to local and national economy
 Loss of American jobs nationwide due to significant reduction of OCS activity and
offshore energy development
 Relocation of specialty vessels and deepwater drilling rigs to other countries
 Shifting of U. S. operations abroad resulting in relocation of skilled work force from the
region
 Potential to eliminate many responsible large Independent’s from GOM due to liability
issues and enhanced safety regulations
 Anticipated decline of oil and gas production and associated royalties, rentals and
lease sale dollars to U.S. Treasury
 Reduced US energy security and increased environmental exposure with increased
reliance on imported oil and tanker activity
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Counted on to Fuel the Economy of the U.S.
We are Ready to Go Back to Work