First Oil
Welcome to a very full issue of World Oil. Yes, the operable word is “full,” although a few smart-alecks among our readership may deliberately mistake that word for “fool.” Yes, the latter word could refer to the manner in which some of the upstream regulatory issues in the U.S. and UK (and other countries) are being handled by their respective national administrations.
But in all seriousness, despite all the regulatory tomfoolery, the global oil and gas industry continues to rack up impressive achievements in technical innovation. It is our distinct privilege and pleasure to chronicle the constant flow of technical creativity, and this December issue is a fine example. There are no less than eight technology articles covering a wide range of categories, including three in the lead theme, Well Control & Intervention, two covering advancements in Deepwater Technology, and one, each, delving into Digital Transformation, Sustainability, and LNG Technology. And the diversity of companies offering these various technologies is also impressive, with large, medium and niche equipment-and-service firms represented. Yes, upstream R&D is alive and well, despite hostile governmental decision-making.
Rounding out this very full issue are three fine reports by our contributing editors on the Haynesville/Bossier shales, the Far East/Australasia region, and the energy repercussions of the U.S. mid-term elections. Last, but not least, we have the annual expert, informed commentaries from our core group of editorial advisors.
That pesky rig count. Much like the national media calling an election race for a particular candidate, we can now say with certainty that the Baker Hughes U.S. Rig Count will NOT break 800 by the end of 2022. After hitting a 2022 peak of 784 rigs on Nov. 23, the U.S. count has eroded to 776 units on Dec. 16. At this juncture, we cannot envision the count gaining 24 rigs in just two weeks, given its recent behavior. Back on July 29, the U.S. total was already 767, and hitting the 800 mark seemed inevitable. But it took another four months to gain 17 more rigs and hit this year’s peak—hardly an inspiring performance.
As we said previously, there are several reasons for this plateau, including a personnel shortage, high costs for equipment and services (inflation), supply chain problems, fiscal discipline by larger operators, and regulatory uncertainties. We can only hope that next month gets 2023 off to a good start.
China gets serious about deepwater work. According to the South China Morning Post, Chinese authorities are preparing to launch the country’s first ultra-deepwater drillship for worldwide oil and gas exploration. The paper quoted state broadcasting firm CCTV, which said that the vessel will be able to operate in any waters around the globe and drill deeper than 10,000 m (32,800 ft).
The ship was commissioned by China’s Ministry of Natural Resources, and it will be operated by the ministry’s Geological Survey Bureau. This launch comes as China looks to expand its offshore oil and gas development. The ship is being built in the Huangpu Wenchong Shipyard in Guangzhou, Guangdong province, and is expected to be fully operational in 2024. The same shipbuilder is also the builder of most of China’s scientific and exploratory survey ships.
Russian field is site of explosion. What was described by various witnesses as an “Armageddon-like" explosion ripped through an oil and gas condensate field in the East Siberian district of Ust-Kut, in the Irkutsk region on Dec. 18. As reported by numerous media in Western Europe, the explosion sent flames leaping into the sky from a giant blaze at Markovskoye field. The fire raged throughout the night in a gas treatment unit and covered an area of 1,000 m3 (10,765 ft2), with 155 firefighters struggling to bring it under control.
Russia's Ministry of Emergencies in Irkutsk said the fire broke out at a gas treatment unit at Markovsky field around 11 pm, local time. The source of the explosion and resulting fire was believed to be a gas leak. Local reports, not fully verified, said workers were evacuated from their homes in nearby villages and taken to Irkutsk. The Irkutsk regional government claimed that one person was hurt in the incident, but other reports circulating on social media channels estimated that as many as five people were killed.
Discovered approximately 60 years ago, Markovskoye field is operated by Irkutsk Oil Company, which has held the field’s license since 2000. This incident is the latest in a series of fires at commercial and industrial sites scattered throughout Russia, causing officials to believe that these are deliberate acts of sabotage. WO
