Shell-arctic-2014

Yea the prime rib was good after being 3 r 2 weeks late for crew change.

could be 2015 rather than this summer for Shell, it seems.

Federal appeals court may halt Shell’s plans to “drill, baby, drill”

A three-judge panel ruled that the U.S. Interior Department erred when granting the oil giant Arctic leases

Jason Bittel, OnEarth.org
Sunday, Jan 26, 2014 03:00 PM CET

A federal appeals court decision handed down this week may further complicate Royal Dutch Shell’s plans to drill in the Arctic this summer—plans that were already complicated by the fact that the oil giant had a disastrous Arctic outing in 2012, demonstrating that it’s difficult and dangerous to drill for oil in a place with extreme cold, turbulent seas, and no nearby disaster assistance.

A three-judge panel of the 9th U.S. Circuit Court of Appeals ruled Wednesday that when the U.S. government sold leases to Shell back in 2008—during the final days of the Bush administration—it did a spectacularly bad job of assessing the amount of oil available in Alaska’s Chukchi Sea and the potential environmental impact of removing it.

For $2 billion, the Interior Department sold Shell the rights to drill for oil over nearly 30 million acres of the sea floor, estimating that there were 1 billion barrels of recoverable oil in the lease areas. Native Alaskan tribes and environmental groups, including NRDC (which publishes OnEarth), fought the leases on the grounds that 1 billion barrels was an extreme understatement. The three-judge panel agreed Wednesday, calling the estimate “arbitrary and capricious”.

The case now goes back to U.S. District court in Alaska for further review, which has the potential to seriously jam up Shell’s Chukchi plans for the foreseeable future. The attorney representing Shell told Reuters: “It’s unlikely that the government could authorize drilling activities on leases the court says were improperly awarded.” In other words: Shell will likely have to take its massive drilling rigs and go home, at least for another summer.

The stakes couldn’t be higher. When Shell started drilling in the Chukchi Sea in 2012, it marked only the sixth well ever sunk in the area. Equipment failures and accidents, culminating with the drill vessel Kulluk running aground in spectacular fashion, showed that Shell wasn’t ready for the rough conditions, and the company decided not to try again last year. But it filed a plan to resume efforts in July.

http://www.salon.com/2014/01/26/federal_appeals_court_may_halt_shells_plans_to_drill_baby_drill_partner/

Bollocks bollocks bollocks

It’s not an injunction, It’s a ruling against the DOI, Not those that purchased the leases. And are actively working to drill on them.

looks like they turned the Discoverer into a big floating box there in Korea. I came across this instagram pic a few days ago from when they floated her some months ago. Flashy new propeller too … hope it gets her to AK!

Shell shelves plan to drill in Alaskan Arctic this summer
Anglo Dutch oil giant’s new chief executive slashes exploration and development spending as profits fall 71%

Shell has announced plans to slash its exploration and development spending from $46bn (£27.8bn) to $37bn this year and has ditched plans to drill in the Alaskan Arctic this summer.

The decision to shelve drilling off Alaska this summer will delight environmentalists and is the latest setback for the Anglo Dutch oil giant in the far north.

It follows a US court ruling that the department of the interior had failed to consider all environmental impacts of the exploration in the Chukchi and Beaufort seas when it gave Shell permission to drill.

“This is a disappointing outcome, but the lack of a clear path forward means that I am not prepared to commit further resources for drilling in Alaska in 2014,” Van Beurden said. “We will look to relevant agencies and the court to resolve their open legal issues as quickly as possible.”

Greenpeace Arctic oil campaigner Charlie Kronick said: "The company has spent huge amounts of time and money on a project that has delivered nothing apart from bad publicity and a reputation for incompetence. The only wise decision at this point is for Mr. Van Beurden to cut his company’s losses and scrap any future plans to drill in the remote Arctic ocean.

“Shell’s Arctic failure is being watched closely by other oil companies, who must now conclude that this region is too remote, too hostile and too iconic to be worth exploring.”

How about trying next time with a purpose-built Arctic drillship instead of a 1966-built converted bulk carrier and a wok pan?

[QUOTE=Tups;129562]http://www.theguardian.com/business/2014/jan/30/shell-shelves-alaskan-arctic-drilling-oil[/QUOTE]

Shell’s Johnson must really be red and sore right now!

OW!

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[QUOTE=Tups;129562]How about trying next time with a purpose-built Arctic drillship instead of a 1966-built converted bulk carrier and a wok pan?[/QUOTE]

Shell already has two of them. NOBLE BULLY I & II except they were not completed to be able to work in the Arctic. Instead they pour hundreds of millions into that POS antique DISCO and decide to scrap their other Arctic class rig which is actually the better of the two. WHAT RUBES & BUFFOONS!

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Well, I must say that while this is a big announcement, it isn’t an earthshattering one. With it being one February the day after tomorrow, the equipment would have to be getting close to being ready to go very soon and there was no real indication of that coming together. We don’t even know if the repower of the DISCO is completed or how far off that is?

Of course, that is big is all the equipment Shell has on hire for 2014 especially the AIVIQ. What on earth are they going to do with this stuff for another year? Is TOR VIKING and FENNICA on hire still? The supply boats must all be working in the GoM but the ARCTIC CHALLENGER is sitting at a shipyard in Bellingham and Shell must be paying for it each day. Did AIVIQ ever get a job to do or it still in Everett keeping a dock from drifting out into Port Gardner Bay? Why did they not build a vessel with a more multipurpose function? How much does Shell have to fork over to ECO every month? Bechya it is at least $4M.

While the Bullies are strengthened for operation in ice (DNV ICE-05), I wouldn’t call them “Arctic drillships” as they don’t have the ability to actually operate and drill in ice-infested waters without aggressive ice management. Of course, the ice conditions in the Chukchi Sea are not that difficult during the autumn drilling season (when I was there in 2012, the ice was not thick enough for walking), but having an “overkill” Arctic drillship would have not hurt as the whole world was watching.

As for contracted vessels, the CEO of Arctia Offshore said that Shell’s decision not to drill this year does not affect the charter of Fennica and Nordica. It’s up to Shell where and how (or if) the icebreakers are utilized. I guess it’s the same for Tor Viking II, but I’m not sure about Aiviq.

Speaking of Arctic drilling, what is SDC doing in these days?

Watch. Shell will blame it all on aggressive environmentalists and crazy American courts.

[QUOTE=Tups;129604]While the Bullies are strengthened for operation in ice (DNV ICE-05), I wouldn’t call them “Arctic drillships” .[/QUOTE]

but the original intention of the design was for a ship to drill in the Arctic during summer and GoM in winter. They are so small because they were supposed to be able to transit the Panama Canal to save transit time but someone forgot there are bridges over the Canal that ships need to go beneath and the derricks are too high! Then with all the inevitable weight gains all up high it was discovered that the narrow beam (105’) didn’t allow the ships to pass damage stability and they had to be sponsoned even before they were even delivered!

SHEER WILE E. COYOTE GENIUS AT PLAY THERE!

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[QUOTE=c.captain;129650]but the original intention of the design was for a ship to drill in the Arctic during summer and GoM in winter. They are so small because they were supposed to be able to transit the Panama Canal to save transit time but someone forgot there are bridges over the Canal than need to go beneath! Then with weight gains all up high it was discovered that the narrow beam (105’) didn’t allow the ships to pass damage stability and they had to be sponsoned even before they were even delivered!

SHEER WILE E. COYOTE GENIUS AT PLAY THERE![/QUOTE]

That is something I have never understood about the Bully or Globetrotter class is the length being basically 200 feet shorter than most other drill ships in the deep water class. Plus the Bully’s only having 160 POB capacity. Deck space and bunks are some of the most prime real estate on a drilling rig and they are short on both. Even when the length has nothing to do with being able to pass through the Panama Canal. Panamax size is basically 1000 feet long by 100 feet of width, so length was never the issue just the beam. Unless they wanted them that short for the ice or some other reason it doesn’t make much sense. It dang sure wasn’t for Panama canal transits.

[QUOTE=ChiefRob;129661]That is something I have never understood about the Bully or Globetrotter class is the length being basically 200 feet shorter than most other drill ships in the deep water class. Plus the Bully’s only having 160 POB capacity. Deck space and bunks are some of the most prime real estate on a drilling rig and they are short on both. Even when the length has nothing to do with being able to pass through the Panama Canal. Panamax size is basically 1000 feet long by 100 feet of width, so length was never the issue just the beam. Unless they wanted them that short for the ice or some other reason it doesn’t make much sense. It dang sure wasn’t for Panama canal transits.[/QUOTE]

Negative! It was the shyster Steve Meehen building the ships for uber cheap but billing Shell 1/2 of a “full priced” ship and pocketing the difference which was in the many tens of millions if not hundreds and I am sure Keppel execs getting many fat envelopes stuffed with cash. Shell got suckered royally by Frontier but it is Shell’s fault in the end because they should have done the due diligence and vetted the design by experts (but Shell needs no outside experts because they are the best in the world at everything or so they believe in their fat bloated bobbleheads). Like my momma told me many years ago…SON, STOOPID IS AS STOOPID DOES!

In addition, I do believe there is a correlation between length to beam ratio and stability? A very wide 300’ OSV will be much more stable than a 300’ patrol boat so it goes that a 770’ x 140’ drillship would be more stable than a 770’ x 105’.

[QUOTE=c.captain;129664]Negative! It was the shyster Steve Meehen building the ships for uber cheap but billing Shell 1/2 of a “full priced” ship and pocketing the difference which was in the many tens of millions if not hundreds and I am sure Keppel execs getting many fat envelopes stuffed with cash. Shell got suckered royally by Frontier but it is Shell’s fault in the end because they should have done the due diligence and vetted the design by experts (but Shell needs no outside experts because they are the best in the world at everything or so they believe in their fat bloated bobbleheads). Like my momma told me many years ago…SON, STOOPID IS AS STOOPID DOES!

In addition, I do believe there is a correlation between length to beam ratio and stability? A very wide 300’ OSV will be much more stable than a 300’ patrol boat so it goes that a 770’ x 140’ drillship would be more stable than a 770’ x 105’.[/QUOTE]
The specs on the Bully class show 615’ X 125’ is that 125’ feet of beam after the sponson’s were added? I notice the Globetrotter only shows 620’X105’. Cheap and small I guess someone got what they wanted. I have heard from some people that have worked on both that they are very unstable. I also hear they have a revolving door installed because of some many engineers passing through.

[QUOTE=ChiefRob;129666]The specs on the Bully class show 615’ X 125’ is that 125’ feet of beam after the sponson’s were added? I notice the Globetrotter only shows 620’X105’. Cheap and small I guess someone got what they wanted. I have heard from some people that have worked on both that they are very unstable.[/QUOTE]

yes on the BULLY rigs and spot on correct on the other observations!

The Gusto P10,000 that HHI builds for many different clients are around 750ft x 118ft. It’s a proven design used by many drill companies. If the Bully’s are really 125ft breadth, than it’s got the gusto’s beat.

[QUOTE=tugsailor;127231]I certainly don’t see why Shell would want to send the DISCO anywhere, except straight from Korea to the Chukchi (planning to arrive around the first of July).

Anything they could do in Dutch Harbor could be done 10 times cheaper in Korea. Going a thousand miles out of their way to Dutch Harbor would be a tremendous waste of time and money with increased risks and invite extra scrutiny. If they really want to have the DISCO standing by in Alaska, Port Clarence would be a much better place to do it.[/QUOTE]

Been a bit busy and just getting back to review the comments here, On the face of it you are correct but… When you you bring a vessel into US waters you have to Purge and Clear vessel for US Customs. Due to Extremely short list of bed space and some challenges with Getting flights in and out on time it’s much better and streamlined to conduct this work in NW and essentially impossible to go direct to Op area, Unless it’s on a follow on year when the Assets winter over in NW or other US port.

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[QUOTE=c.captain;127234]Some may notice that I have been on the sidelines throughout this discussion but want to just say that I am hopeful that there will be a new fresh start in 2014 for Shell’s Arctic ambitions. Something does make me believe that they found Jesus after 2012 and it will be different this time out. No matter how cynical I may be about the industry, I want the Arctic to be a success for all of us. The stakes are huge and the potential payoff immense.

To mainecheng, I just want to congratulate you in your new position. Best of luck to you and the Shell team in 2014.[/QUOTE]

Thank you, Writing this after the public decision on 14 Season - I tend to come back and read the updates on a weekly basis. We are still enguaged and working the logistics for a 15 season. While the Alphabet soup group develop a plan.

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[QUOTE=Tups;129562]http://www.theguardian.com/business/2014/jan/30/shell-shelves-alaskan-arctic-drilling-oil

How about trying next time with a purpose-built Arctic drillship instead of a 1966-built converted bulk carrier and a wok pan?[/QUOTE]

Noted, we have 365 days to polish our plan. this has always been on the table. I’m sure we will be looking at all options that we can make work safely.

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[QUOTE=c.captain;129568]Shell’s Johnson must really be red and sore right now!

OW!

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Shell already has two of them. NOBLE BULLY I & II except they were not completed to be able to work in the Arctic. Instead they pour hundreds of millions into that POS antique DISCO and decide to scrap their other Arctic class rig which is actually the better of the two. WHAT RUBES & BUFFOONS!

.[/QUOTE]

We also have the Stena Drill ICE MAX in GOM currently…Problem is application of a DP vessel in water depths less than 400’

[QUOTE=c.captain;129577]Well, I must say that while this is a big announcement, it isn’t an earthshattering one. With it being one February the day after tomorrow, the equipment would have to be getting close to being ready to go very soon and there was no real indication of that coming together. We don’t even know if the repower of the DISCO is completed or how far off that is?

Of course, that is big is all the equipment Shell has on hire for 2014 especially the AIVIQ. What on earth are they going to do with this stuff for another year? Is TOR VIKING and FENNICA on hire still? The supply boats must all be working in the GoM but the ARCTIC CHALLENGER is sitting at a shipyard in Bellingham and Shell must be paying for it each day. Did AIVIQ ever get a job to do or it still in Everett keeping a dock from drifting out into Port Gardner Bay? Why did they not build a vessel with a more multipurpose function? How much does Shell have to fork over to ECO every month? Bechya it is at least $4M.[/QUOTE]

Or operations with ECO is global. Aiviq is just a small piece of that pie. Very small.- I really can not comment on dollar values. We are currently evaluating the status of all assets involved our 14 season. There is still work that can be accomplished w/o moving ahead on a drill plan. only as a guess I’d expect we’ll have some activity in Chckchi this year in some degree. Who and what they are doing is TBD :slight_smile:

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[QUOTE=c.captain;129568]Shell’s Johnson must really be red and sore right now!

OW!

      • Updated - - -

Shell already has two of them. NOBLE BULLY I & II except they were not completed to be able to work in the Arctic. Instead they pour hundreds of millions into that POS antique DISCO and decide to scrap their other Arctic class rig which is actually the better of the two. WHAT RUBES & BUFFOONS!

.[/QUOTE]

Again always a possibility, just doing a google search Gusto has a Ice class Supper Design based on the Gusto platform, I’d say that has just as much validity as anything out there long term. I’d expect that Disco will have some role to play in some capacity through the end of her career here.

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Air Gap. Won’t clear the bridges on the Canal.

[QUOTE=Kingrobby;129671]The Gusto P10,000 that HHI builds for many different clients are around 750ft x 118ft. It’s a proven design used by many drill companies. If the Bully’s are really 125ft breadth, than it’s got the gusto’s beat.[/QUOTE]

But the BULLY’s are short as hell and have virtually no usable deck space for laydown areas plus with only two cranes, there are many areas that are hard to reach and require lifts to be made where the crane operator cannot see a damned thing. NOT WHAT MAKES FOR AN EFFECTIVE DEEPWATER DRILLSHIP! Any newbuild drillship with such poor working deck operations is downright terrible and should be considered a bastard child. Turn them into well intervention/completion vessels and do away with the idea of deepwater exploratory drilling. Of course, for all that Shell is into them for, someone would get their ass handed to them if that was ever made reality. Maybe that has already happened at Shell USA? I certainly hope so!

[QUOTE=c.captain;129664]Negative! It was the shyster Steve Meehen building the ships for uber cheap but billing Shell 1/2 of a “full priced” ship and pocketing the difference which was in the many tens of millions if not hundreds and I am sure Keppel execs getting many fat envelopes stuffed with cash. Shell got suckered royally by Frontier but it is Shell’s fault in the end because they should have done the due diligence and vetted the design by experts (but Shell needs no outside experts because they are the best in the world at everything or so they believe in their fat bloated bobbleheads). Like my momma told me many years ago…SON, STOOPID IS AS STOOPID DOES!

In addition, I do believe there is a correlation between length to beam ratio and stability? A very wide 300’ OSV will be much more stable than a 300’ patrol boat so it goes that a 770’ x 140’ drillship would be more stable than a 770’ x 105’.[/QUOTE]

Shell in personal reflection, has made broad moves to correct the experience gap in the Deep sea and Drilling venue you note. Bully’s had a full list of " what the Heck were they thinking" items The Globetrotter strikes me a workboat on steroids complex. Right tool for Right job application is needed, Not Here’s a tool how to we make it fit this job planning premise.