North America

Offshore Network has released an overview on the health, safety and environment (HSE) ecosphere in the Gulf of Mexico, with a primary focus on the challenges and opportunities faced by the region’s oil and gas sector.

With Environmental Resources Management indicating that 94% of health and safety function leaders are reporting increased expectations around health and safety in the years ahead, the HSE market is undergoing intense scrutiny. Operators in the region continue to grapple with some key challenges posed by the region and the nature of the industry including the Covid hangover, getting workers on board, ageing assets and of course evolving stringent regulations – a story kick-started by the events around the Deepwater Horizon disaster.

To combat these, stakeholders are engaging in a range of best practices and deploying new technologies in order to bring their workforce together and mitigate risk for their operations moving forward.

With pertinent issues in this environment set to be discussed at length at HSE GOM 2024 later this year (key topics include: safety culture, process safety, planning & preparation, technology & innovation, and environmental safeguarding) the report provides a refreshing perspective on the market ahead of doors opening in Houston.

Click here to access the free-to-read report

Applicable by a significant master services contract from decommissioning specialist Promethean Energy, wells expert Elemental Energies will be aiding the decommissioning of nine orphaned wells in the Gulf of Mexico.

In February, Elemental Energies provided well management services for the plugging and abandonment of wells in the Matagorda Island area, off the Texas coast.

The five-year contract to decommission orphaned offshore wells in the region was awarded to Promethean by the Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE).

Elemental Energies’ Julie Copland, Head of Decommissioning and Low Carbon, said, “We're thrilled with this award as it marks a significant expansion of our efforts in the Gulf. Our rich history in decommissioning, uniquely equips us to address the Gulf's orphaned wells, applying our expertise to mitigate environmental risks, navigate complex regulations, and reduce the associated OPEX of decommissioning work. This project and partnership is a testament to our commitment to meeting evolving industry standards and safeguarding our environment."

The contract is partially funded by the Bipartisan Infrastructure Law through a US$64mn commitment to address orphaned oil and gas wells on public lands.

Steve Louis, SVP Decommissioning for Promethean Energy, said, “We at Promethean are delighted to have Elemental Energies as a strategic partner, as we work with the federal government and others to deliver these projects of strategic importance to the nation’s environmental stewardship and energy security. Elemental’s well engineering expertise is an important component of our comprehensive wells management capability as an operator of mature assets and their decommissioning.”

Colorado-based company, Gradient Geothermal, has announced it has received funding from the state Energy Office’s Geothermal Energy Grant Program for the execution of a landmark feasibility study in Pierce, Colorado.

The project will aim to test the viability of establishing a thermal energy network for the town of Pierce through heat extracted from local inactive wells. If successful, the project has the potential to transform the energy stability for communities in need while bolstering Colorado’s long-term economic outlook.

During the study, Gradient will analyse if the use of hot water after electric power generation via inactive wells in the Pierce Field can be channelled into a direct use thermal network for Pierce residents.

Dr. Benjamin Burke, Chief Executive Officer at Gradient Geothermal, said, “Gradient Geothermal is excited to help bring geothermal energy and power generation to Pierce Field, Colorado. We have a prime opportunity to bring new life to a mature oil field.

“Pierce can be a world-class ‘geothermal garden’ where both heat and electricity from geothermal power benefit the entire town and provide jobs for a workforce familiar with oil and gas.”

Governor Jared Polis commented, “Geothermal energy, the heat beneath our feet, is an underutilised resource that can save people money on energy and improve air quality. Colorado is already a national leader in low-cost renewable energy, and now with these grants, we are supporting more geothermal energy across the state.” 

Sea1 Offshore is the new name of the international offshore and subsea shipping company following a general meeting held earlier in May.

The formal decision was made in the wake of Kristian Siem’s withdrawal and will be accompanied by a new company logo. The company stated that crew and expertise will be transferred to the new company, even if nine of the company's vessels are taken over by Kristian Siem as part of the transaction.

Apart from this, the company has assured, it will be business as usual, although Bernt Omdal, CEO of Sea1 Offshore, has his eyes set on further growth.

“A more unified ownership structure will help to set a clearer course for the company,” Omdal explained. “We continue to operate all the vessels in our fleet, including the nine that are now owned by Siem. But we have changed the name and are replacing the logos at our offices in Brazil, Australia and Canada, and at the head office in Kristiansand.

“We are witnessing the start of a new upswing,” he continued. “We consider strengthening our fleet with several new construction vessels in order to take a larger part of the market in the offshore energy sector.”

Designed particularly for geothermal energy applications, Halliburton Company's latest product range includes the GeoESP lifting pumps, distinguished with features such as advanced submersible borehole and surface pump technology.

Developed by an in-house service called Summit ESP, these pumps cater to fluids transportation challenges. They are characterised by a unique high-flow inlet design that protects it against solids, minimises power consumption, and effectively tackles scale formation.

Keeping harsh environment in mind, these pumps have been designed with the durability to withstand temperatures up to 220°C (428°F). It is capable of resisting any range of scale, corrosion, and abrasion. With standardised pump dimensions, it is suitable for various geothermal well conditions.

Digital innovation

In another digital innovation to geothermal well management, the Intelevate data science-driven platform generates real-time diagnostics and rich visualisations of 'smart' field data. This system improves well operations, extends system run life, minimises shutdowns, reduces energy consumption, and increases production.

"With increased global focus on low carbon energy sources, we are using our many decades of geothermal production expertise to help our customers maximise safety and improve efficiency. Our GeoESP lifting pumps build upon our current system to minimise power usage and help push the boundaries of what is possible with more complex well designs," said Greg Schneider, Vice President - Artificial Lift, Halliburton.

Organic Rankine Cycle (ORC) systems provider Turboden has collaborated with enhanced geothermal systems company Fervo Energy on advancing the Cape Station project. 

With an anticipated total project capacity of approximately 400 MW, the project is Fervo's largest commercial endeavour in the geothermal industry. Situated in southwest Utah, the project will be a prime source for 24/7 carbon-free energy production. 

Turboden will provide the engineering and procurement of power plant equipment for the initial 90 MW phase of the project. This includes the installation of three generators with six ORC turbines.

Driving energy innovation

"We are excited to collaborate with Turboden on our Cape Station project," stated Tim Latimer, CEO and Co-Founder of Fervo Energy. "With this partnership, the ORC industry enters a new age of scale necessary to meet the skyrocketing demand for around-the-clock clean energy."

Paolo Bertuzzi, CEO and Managing Director of Turboden, said, "Fervo Energy's commitment to advancing geothermal energy aligns seamlessly with Turboden's mission to drive sustainable energy innovation. Together, we are forging a path towards a cleaner, greener future. The success of this project, alongside other initiatives in North America, prompted Turboden to consider establishing a US-based office. This strategic move enables us to leverage the support of Mitsubishi Heavy Industries America, further enhancing our operations and presence in the region.”

The Department of the Interior announced a final rule from the Bureau of Ocean Energy Management (BOEM) that makes the American oil and gas industry accountable to cover decommissioning costs of offshore platforms on the US Outer Continental Shelf (OCS).

This announcement comes as a relief for American taxpayers who had to otherwise bear the brunt of the huge decommissioning liabilities if the oil and gas companies failed to meet them.

Updating 20-year-old regulations, the new law demands financial assurance requirements for the offshore oil and gas industry operating on the OCS. The Government Accountability Office (GAO) found that previous practices followed by industry operators on meeting decommissioning deadlines were not as clearly defined, exposing American taxpayers to bear the cost in the end. 

The final Risk Management and Financial Assurance for OCS Lease and Grant Obligations rule amendments address these concerns and reduce financial risks associated with OCS development by substantially increasing the level of financial assurances that operators must provide in advance.

“The American taxpayer should not be held responsible when oil and gas companies are unable to clean up after their own operations. The Interior Department is committed to ensuring that the federal oil and gas leasing program is implemented fairly, with accountability and transparency,” said Secretary Deb Haaland. “This final rule updates, simplifies and strengthens outdated requirements to ensure that taxpayers are protected and current operators are held responsible for their end-of-lease cleanup obligations on the Outer Continental Shelf.”

“For far too long, the federal government has failed to follow through on measures to ensure accountability for oil and gas companies operating offshore,” said Principal Deputy Assistant Secretary for Land and Minerals Management, Dr Steve Feldgus. “Coupled with our recent announcement from the Bureau of Land Management, the Department is ensuring that we have a modern oil and gas leasing programme that protects taxpayers’ interests.”

“The offshore oil and gas industry has evolved significantly over the last 20 years, and our financial assurance regulations need to keep pace,” said BOEM Director Elizabeth Klein. “Today’s action addresses the outdated and insufficient approach to supplemental bonding that does not always accurately capture the risks that industry may pose for the American taxpayer – like financial health of a company or the value of the assets that the lessee holds.”

Financial health and reserve value

According to the new rules, BOEM will use a credit rating from a Nationally Recognised Statistical Rating Organisation or a proxy credit rating equivalent to access a company's financial strength. The bureau will also consider the current value of the remaining proved oil and gas reserves on the lease compared to the estimated cost of meeting decommissioning obligations. If the lease has significant reserves still available, then in the event of a bankruptcy, the lease will likely be acquired by another operator who will assume the plugging and abandonment liabilities.
Companies without an investment-grade credit rating or sufficient proved reserves will need to provide supplemental financial assurance to comply with the new rule.

BOEM believes that the industry will be required to provide US$6.9bn in new financial assurances to protect American taxpayers from assuming industry decommissioning costs. To provide industry with flexibility to meet the new financial assurance requirements, the bureau will allow current lessees and grant holders to request phased-in payments in a span of three years to meet the new supplemental financial assurance demands.

Infrastructure service provider Core & Main has entered into a definitive agreement to acquire the entire asset range of Kentucky-based, high-density polyethylene (HDPE) pipe distributor Geothermal Supply Company. 

"From the beginning, GSC set out to fill a void in the industry by delivering the highest quality HDPE products and services to help customers achieve success. Joining Core & Main will offer our team continued opportunities to deliver on these goals," said Matt Lile, Owner and Operations Manager of GSC. “I am immensely proud of our progress and growth over the years and eagerly anticipate all we can accomplish as part of Core & Main."

Fusible offerings

GSC's wide base of fusible offerings help in the installation and maintenance of geothermal systems.

"Adding GSC to the Core & Main family will create exciting new opportunities for us in an important and expanding area for HDPE. The GSC team's wealth of knowledge and expertise in the industry fit in well with our existing fusible product offering, and we are confident this will be a positive partnership for both new and existing customers," said Steve LeClair, Chairman and CEO of Core & Main.

"GSC has set an exceptional example with their unwavering commitment to providing top-notch service and building strong customer relationships," said Jack Schaller, President of Core & Main. "We look forward to welcoming them to Core & Main and incorporating their expertise to further strengthen our fusible offerings."