New research from the University of Southampton has devised a new method to more accurately measure gas bubbles in pipelines.

The ability to measure gas bubbles in pipelines is vital to the manufacturing, power and petrochemical industries. In the case of harvesting petrochemicals from the seabed, warning of bubbles present in the crude that is being harvested is crucial because otherwise when these bubbles are brought up from the seabed (where pressure is very high) to the surface where the rig is, the reduction in pressure causes these bubbles to expand and causes ‘blow out’. A blow out is the sudden release of oil and/or gas from a well and issues with the blow out preventer were key in Deepwater Horizon oil spill (also known as the Macondo blowout) in the Gulf of Mexico in 2010.

Currently, the most popular technique for estimating the gas bubble size distribution (BSD) is to send sound waves through the bubble liquid and compare the measured attenuation of the sound wave (loss in amplitude as it propagates) with that predicted by theory.

The key problem is that the theory assumes that the bubbles exist in an infinite body of liquid. If in fact the bubbles are in a pipe, then the assumptions of the theory do not match the conditions of the experiment. That could lead to errors in the estimation of the bubble population.

Now, a team led by Professor Tim Leighton from the Institute of Sound and Vibration Research at the University of Southampton, has devised a new method, which takes into account that bubbles exist in a pipe. Professor Leighton and his team (Post-doctoral research fellows Kyungmin Baik and Jian Jiang) were commissioned to undertake the work as part of an ongoing programme to devise ways of more accurately estimating the BSD for the mercury-filled steel pipelines of the target test facility (TTF) of the $1.4 billion Spallation Neutron Source (SNS) at Oak Ridge National Laboratory, Tennessee, USA one of the most powerful pulsed neutron sources in the world (www.sns.gov).

The research, which is presented in the Royal Society journal ‘Proceedings of the Royal Society A’, explores how measured phase speeds and attenuations in bubbly liquid in a pipe might be inverted to estimate the BSD (which was independently measured using an optical technique). This new technique, appropriate for pipelines such as TTF, gives good BSD estimations if the frequency range is sufficiently broad.

Professor Leighton says: “The SNS facility was built with the expectation that every so often it would need to be shut down and the now highly radioactive container of the mercury replaced by a new one, because its steel embrittles from radiation damage. However, because the proton beam impacts the mercury and generates shock waves, which cause cavitation bubbles to collapse in the mercury and erode the steel, the replacement may need to be more often than originally planned at full operating power. Indeed, achieving full design power is in jeopardy.

“With downtime associated with unplanned container replacement worth around $12 million, engineers at the facility are considering introducing helium bubbles, of the correct size and number, into the mercury to help absorb the shock waves before they hit the wall, so that the cavitation bubbles do not erode the steel. Oak Ridge National Laboratory (ORNL) and the Science and Facilities Research Council (Rutherford Appleton Laboratory, RAL) commissioned us as part of their programme to devise instruments to check that their bubble generators can deliver the correct number and size of bubbles to the location where they will protect the pipelines from erosion.

“This paper reports on the method we devised half-way through the research contract. It works, but just after we designed it the 2008 global financial crash occurred, and funds were no longer available to build the device into the mercury pipelines of ORNL. A more affordable solution had to be found, which is what we are now working on. The original design has been put on hold for when the world is in a healthier financial state. This has been a fantastic opportunity to work with nuclear scientists and engineers from ORNL and RAL.”

1. The 1.4 billion dollar Spallation Neutron Source (SNS) at Oak Ridge National Laboratory (ORNL), Tennessee, is the most powerful pulsed neutron source in the world. It fires a beam of protons using a linear accelerator hundreds of metres long, into 20 tonnes of pumped liquid mercury. Specialised neutron instruments (funded by the U. S. Department of Energy and other institutes) are built in a circle around the source to catch the beams of neutrons and use them to probe the internal structures of materials, such as test aircraft wings, forensic samples and biomedical products.

2. The University of Southampton is celebrating its 60th anniversary during 2012.

Her Majesty Queen Elizabeth II, granted the Royal Charter that enabled the University of Southampton to award its own degrees in the early weeks of her reign in 1952.

In the six decades to follow, Southampton has risen to become one of the leading universities in the UK with a global reputation for innovation through academic excellence and world-leading research.

API President and CEO Jack Gerard said the administration’s report on idle oil and natural gas leases is a political ploy designed to distract American voters from the administration’s failed energy policy.

“Once again, the administration is trotting out claims about idle leases to divert attention from the fact it has been restricting oil and natural gas development, leasing less often, shortening lease terms, and going slow on permit approvals—actions which have undermined public support for the administration on energy. It is also increasing or threatening to increase industry’s development costs through higher taxes, higher royalty rates, and higher minimum lease bids.

“It’s absurd to contend the industry pays the government billions of dollars every year in bonus bids and rents to leave land idle. It develops leases as expeditiously as it can – often in the face of inordinate delays the administration’s own policies create. The administration is being willfully misleading when it identifies leases as idle when companies are seeking approvals of plans or permits or fighting lawsuits. Just last week, the administration finally approved drilling on leases out in Utah after a four year permitting delay. From 2009 through 2011, the industry spent $600 billion to explore and drill for oil and natural gas in the United States, activity which accounted for three percent of all jobs created during that period.

“The oil and natural gas industry explores its leases as quickly as possible, paying rent and other fees as it does so, and returns tracts to the government that do not contain economically recoverable amounts of oil and natural gas.”

API represents more than 500 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America’s energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.

The agreement does not involve any change of stakes in the production licence (PL 036D).

“Statoil is interested in good area solutions. We therefore find it natural that Marathon, as the biggest operator in the area, gets to optimise the values for the licensees,” says Jannicke Nilsson, Statoil’s head of operations North Sea West.

Thanks to this transfer of operatorship a rig that was planned to be used for the Vilje South development will be available for other Statoil drilling jobs.

Portfolio management is a priority area in Statoil’s strategy, and the Norwegian continental shelf emerges as an area where such focus may add value.

In recent years Statoil has carried out several transactions and signed joint venture agreements to position Statoil as a financially robust, technology-focused upstream company.

This includes the agreement to sell assets to Centrica, the acquisition of Hess’ stake in the Snøhvit field, and the purchase and sales agreement with Total on the Valemon and Hild fields, which are under development.

The agreement with Marathon takes effect on 1 September 2012 subject to the approval of the Ministry of Petroleum and Energy.

The Vilje development includes two subsea wells tied in to the Alvheim production vessel.

The Vilje development includes two subsea wells tied in to the Alvheim production vessel. The field is located some 20 kilometres north-east of the Marathon-operated Alvheim field.

Coming on stream on 1 August 2008 Vilje is expected to produce 21 000 barrels of oil per day in 2012.

An investment decision for Vilje South development has been made in the licence. First oil is expected at the end of 2013.

The licensees in PL 036D are Marathon Oil Norge AS (46.90 percent interest), Statoil Petroleum AS (28.85 percent) and Total E&P Norge AS (24.24 percent).

Energy efficient electric propulsion, reliable power distribution systems for two deepwater pipeline installation vessels to be built by Daewoo in South Korea

 ABB, the leading power and automation technology group, recently won an order worth $18 million from Daewoo to supply energy efficient propulsion and electrical power systems for two new deep sea pipeline installation vessels that will build oil transport infrastructure off the coast of Brazil. The order was booked in the first quarter.

South Korean shipyard Daewoo Shipbuilding and Marine Engineering (DSME) will build the vessels. The end customer, a joint venture between French oil service company Technip  and Brazilian company Odebrecht Oil & Gas, will use the vessels to connect subsea wells with floating installations in depths of up to 2500 meters along the coast of Brazil for oil company Petrobras.

Wärtsila Ship Design developed the new VS 4146 PLV design with a solid tension capacity of 550 metric tons, and designed for optimal fuel consumption and flexible pipe laying operations. ABB’s delivery will help the vessels use less fuel while operating at the highest levels of efficiency.

ABB will supply drives, motors and generators, medium voltage switchgear, transformers and softstarters that will provide energy efficient propulsion and a reliable power distribution system on board.  In addition, ABB will take full project responsibility and do complete engineering for its own scope of supply. The diesel electric propulsion system will significantly reduce fuel consumption compared to traditional diesel mechanical systems. The heart of the propulsion system is ABB's propulsion drives, which are designed for optimized control of the propulsion motors, contributing to reduced fuel consumption and lower emissions.

“ABB’s oil and gas industry expertise, proven marine solutions and subsea experience address the needs of the growing subsea installation service market,” said Veli-Matti Reinikkala, head of ABB’s Process Automation division. “Our environmentally friendly, energy efficient solutions and solid power infrastructure systems help both oil companies and their suppliers ensure the reliable and efficient operation of their vessels from their very first day in service.”

The two identical vessels will be delivered in 2014.

Excelerate Energy® L.P. is moving forward with the development of the first floating liquefaction facility in the United States utilizing its Floating Liquefaction Storage Offloading vessel (FLSO™) technology. The Lavaca Bay LNG project will be located in Port Lavaca, situated between Galveston and Corpus Christi on the Texas Gulf Coast, and will be designed to export liquefied natural gas (LNG) to markets worldwide by 2017.

Excelerate Energy’s FLSOcomprises 3 million tonnes per annum (MTPA) of production capacity, 250,000 cubic meters (m³) of LNG storage, and a fully integrated gas processing plant. With this gas processing capability, the FLSO can accommodate a wide range of gas compositions at its inlet making it well suited for virtually any application near shore or offshore. For those situations where gas processing is not required due to presence of existing processing facilities or where pipeline quality gas is used as the feedstock, the processing equipment can be removed and liquefaction capacity increased to 4 MTPA.

The FLSO will measure 338 meters in length, with a breadth of 62 meters. Front End Engineering and Design (FEED) is in an advanced phase and Excelerate is now entering into discussions with potential off takers and natural gas suppliers as well as investors and potential sources of finance to take the project forward. Excelerate Energy expects FEED to last until the end of 2012, and following its completion and successful permitting project delivery will take approximately 44 months from final investment decision (FID).

In its initial phase, the Lavaca Bay LNG project will consist of one permanently moored FLSO with multiple connections to the onshore natural gas grid in South Texas. The project will be designed with the potential for expansion and the addition of a second FLSO over time for a total production capacity of up to 8 MTPA. Excelerate Energy expects to begin the export authorization and Federal Energy Regulatory Commission (FERC) permitting immediately, and is in the process of completing its site-specific final front-end engineering design (FEED) effort.

“Excelerate Energy applies the same philosophy to its liquefaction vessel design as it does to its regasification vessel fleet – essentially using proven technology in an innovative way to provide more efficient and timely solutions to the LNG industry,” stated Rob Bryngelson, Excelerate Energy President and CEO. “Port Lavaca provides us with the unique opportunity to further capitalize on our position as a market leader in floating LNG solutions.”

Excelerate Energy selected Port Lavaca for the site of the facility because of its direct access to the highly liquid south Texas natural gas market, access to the Atlantic Basin through the Gulf of Mexico, and potential access to the Pacific basin with the widening of the Panama Canal. The facility will interconnect to the region’s existing pipeline system in order to obtain natural gas and liquefy it onboard the vessel. The Port Lavaca location being developed by Excelerate Energy has previously received FERC approval as an LNG import facility, which should facilitate the permitting process.

BG Group has announced its fifth consecutive Tanzania gas discovery with the Mzia-1 exploration well located in Block 1, offshore southern Tanzania.

Mzia-1 is BG Group’s first discovery within the deeper Cretaceous section and opens an extensive new play fairway within the Group’s offshore acreage in Blocks 1, 3 and 4, to complement the now proven Tertiary fairway.

Preliminary evaluation of the results indicates 55 meters of natural gas pay in good quality sands.  An extensive logging program has been completed, including the acquisition of pressure data and gas samples.

Significantly, the well has de-risked a number of adjacent Cretaceous prospects, which could form part of a future Mzia hub. These prospects are expected to be tested in a future appraisal program to be defined following incorporation of data from this new well and 3D seismic.

The new resources proven by Mzia and the potential of adjacent prospects are currently under evaluation. Prior to drilling Mzia-1, BG Group had estimated mean total gross recoverable resources approaching 7 trillion cubic feet of gas from the four previous discoveries drilled in Tanzania.

Mzia-1 is approximately 45 kilometers offshore southern Tanzania in a water depth of 1 639 meters It is some 23 kilometers from the Jodari-1 discovery and is part of the 2012 three-to-four well exploration program.

Following the imminent completion of operations at Mzia, the Deepsea Metro-1 will relocate to Block 3 for the drilling of the next exploration prospect, Papa-1.

BG Group as operator has a 60% interest in Blocks 1, 3 and 4 offshore Tanzania, with Ophir Energy plc holding 40%.

Statoil (OSE:STL, NYSE:STO) and Rosneft have signed a cooperation agreement.  The companies have agreed to jointly explore offshore frontier areas of Russia and Norway and to conduct joint technical studies on two onshore Russian assets.

The agreement also envisages Rosneft’s acquisition of participating interests in selected Statoil projects.

Helge Lund, CEO, Statoil, President-elect of the Russian Federation, Vladimir Putin and Eduard Khudainatov, CEO, Rosneft. Photo: Courtesy of prime minister press office ©

 Rosneft president Eduard Khudainatov and Statoil president and CEO Helge Lund signed the agreement, in the presence of the President-elect of the Russian Federation Vladimir Putin and Deputy Prime Minister Igor Sechin.

“This cooperation agreement is an important milestone in Statoil’s exploration activity in Russia. The agreement secures a long term collaborative position with Rosneft in large, prospective frontier areas in the Barents Sea and the Sea of Okhotsk. By building on both companies’ competence and experience, this agreement is a significant step further in the industrial development of the Northern areas, says Helge Lund, CEO of Statoil.

Under the agreement, Statoil and Rosneft will set up joint ventures, with Statoil holding 33,33% in each. The partners will jointly explore the Perseevsky license in in the Russian part of the Central Barents Sea and three licenses - the Kashevarovsky, Lisyansky and Magadan-1 - north of Sakhalin island in the Sea of Okhotsk. The four offshore licenses cover an area of more than 100,000 square kilometers, equaling approximately 200 blocks on the Norwegian continental shelf.

“We aim for early access at scale in new and promising basins, positioning us for high impact exploration. This agreement is at the core of our strategy, supporting our long term growth ambitions,” says Lund.

Statoil will fund the initial exploration necessary to determine the commercial value of the four licenses.

In addition the two companies will conduct joint technical studies on two onshore Russian assets. At the North-Komsomolskoye field in West Siberia Statoil can contribute with experience and competence from both Brazil and the Norwegian continental shelf to unlock the potential of this significant non-producing greenfield. At the shale oil play in the Stavropol area in southwestern Russia Statoil can bring its unconventional experience from the US to the benefit of this proven, unappraised play.

The cooperation agreement also provides Rosneft with an opportunity to acquire interests in selected Statoil exploration licenses and assets in the North Sea as well as in the Norwegian sector of the Barents Sea.

The companies have agreed on a program to exchange and further develop technology and competence relevant for arctic offshore and unconventional exploration and production.

Information about the licenses

All these licenses offer access to large areas of potentially prospective frontier acreage with a phased exploration work program in each license. At the outset, the overall license obligations are comprised of 2D seismic and six exploration wells for the four frontier exploration blocks. In case of success additional wells will be drilled.

Barents Sea

The Perseevsky license is in the Russian part of the Central Barents Sea, approximately 350 kilometers from Barents Island. The license covers 23,000 square kilometers in water depths of 150-250 meters. 5,500 line kilometers of 2D is to be acquired by 2016, 1,000 square kilometers of 3D by 2018 and a first exploration well is to be drilled by 2020.

Sea of Okhotsk

The three licenses - Kashevarovsky, Lisyansky and Magadan-1 - cover 79,000 square kilometers in the northern part of the Sea of Okhotsk, north-east of the island of Sakhalin, in water depths between 70 and 350 meters where the ice free period is from July to December.

The Kashevarovsky license: 2,000 line kilometers of 2D seismic is to be acquired from 2014 to 2016. The first exploration well should be drilled before 2019.

The Lisyansky license: 2,000 line kilometers of 2D seismic is to be acquired from 2014 to 2018, and first exploration well is to be drilled by 2017.

The Magadan-1 license: 1,000 line kilometers of 2D seismic is to be acquired by 2014 and first exploration well is to be drilled by 2016.

Onshore

The North-Komsomolskoye discovery is a significant non-producing greenfield in West Siberia.

The Stavropol shale oil license is a shale-oil play in the Stavropol region in southwestern Russia.

GE Energy (NYSE: GE)  has announced that it is investing $10 million in the development of a new Oil & Gas Training Facility to support and advance training and development for its customers and employees. Training at the facility will focus on customer, technical and leadership skills aimed to meet the changing needs and growing global demand for drilling technologies.

Scheduled to open in the fourth quarter of 2012, the 50,000-square-foot facility will be GE’s premier oil and gas training facility in the U.S. The company also is creating approximately 100 new technical jobs in Houston to support the growth of GE’s Drilling Systems business, which is headquartered at the same location.

Located at GE’s Drilling Systems Technology Center, the new facility will continue to drive competitiveness in the region and reinforces Houston’s claim to the title of “energy capital of the world.”

“Despite tough economic times, Houston has demonstrated an unwavering economic strength—due in no small part to the energy leadership and innovative manufacturing found throughout this region,” said John Krenicki, vice chairman, GE and president and CEO, GE Energy. “Today’s announcement emphasizes our continued commitment to investing in solutions that power the world, as well as in opportunities that drive American competitiveness.”

Krenicki announced the new investment following a keynote address to local business and community leaders at a breakfast co-hosted with Greater Houston Partnership. His address, and the subsequent panel discussion, focused on what’s working in Houston’s dynamic energy and manufacturing sectors and the critical role of innovation to ensure continued growth.

“The new Oil & Gas Training Center is a key part of our strategy to meet the growing global demand in drilling technology,” said Chuck Chauviere, general manager, drilling, GE Oil & Gas. “At GE, safety is a top priority and the continuing development of a safe, well-trained workforce is the key to the industry’s success. Through this investment, we are continuing our commitment to deliver world-class internal training programs and innovative solutions to meet our customer’s needs every day.”

GE’s Drilling Systems Technology Center employs more than 600 people and exports approximately 70 percent of the products manufactured on-site. The facility features an enclosed high bay area used to fully assemble, test and certify blowout preventer stacks before deployment and a test-and-design laboratory used for thermal, strength and endurance testing for GE’s drilling technologies.

The investment represents another milestone in GE’s 100+ year history in Houston. Today, GE has nine business units employing approximately 6,000 people in 30 locations across the Greater Houston area, helping to build, power, move and cure the world.

GE Economic Impact in Texas

GE works to bring together the best people and technology to help solve the world's toughest challenges. GE’s presence, operations and impact in Texas extends far beyond just the Greater Houston Area. A new study has quantified GE’s economic impact across the state, showing that the company directly and indirectly contributes $5.6 billion per year to the state’s economy; this translates to $15.3 million each day.

Commissioned by GE and conducted by independent consulting firm Tripp Umbach using 2010 data, the study shows that $1 out of every $230 in the Texas economy is supported, in part, by GE’s presence. In fact, GE helps support more than 25,900 jobs in Texas, both directly and indirectly. With more than 8,200 direct employees, for every one job, our work supports an additional 2.13 jobs in the state or one out of every 546.

The study also demonstrates GE as a vital member of the Texas community. GE employees have volunteered more than 23,000 hours to community service, and the company has overall contributed nearly $4 million to local non-profit and community organizations.

With the reserves-production ratios of developed nations such as the United States and Canada reaching alarming levels, and Middle Eastern resources depleting rapidly, there is widespread concern over crude oil future fuel replacement, according to a new report by natural resources expert GBI Research.

The new report* shows that while natural gas was not considered a utility in crude oil production’s glory days, the depletion of conventional crude oil reserves and regulatory emissions charges have started shifting consumption towards cleaner and more plentiful natural gas. This will therefore create a steady increase in gas demand.

New advancements in technologies such as LNG infrastructure and processes such as the liquefaction and regasification of natural gas have expanded gas’s possible uses, while the momentum of technological breakthroughs and efforts in this direction is being led by successes in exploration evidenced by an abundance of freshly-found reserves.

Difficulties associated with storage and transportation is currently inhibiting the growth of the natural gas market. Infrastructural limitations in logistics and transportation cause variations in natural gas prices across various regions. While an effective transportation infrastructure has been in place to transport crude oil for many years, this has not been the case with natural gas, which relies extensively upon liquefaction and regasification when faced with insufficient pipeline infrastructure. Pipelines also hold limitations in regards to terrain and distance. Offshore logistics via the LNG method provide a simpler and more efficient process while supporting cross-continental transport, but can be a cost-intensive operation owing to expensive logistics and tanker construction.

However, discoveries of natural gas in offshore Western Australia have created excellent business opportunities due to the proximity of the resources to emerging economies in the Asia Pacific, causing the LNG industry to explode. The huge consumer base, rapidly increasing demand and short distance to end-use markets make these new gas findings perfectly placed. Australia is consequently expected to emerge as a leader in global LNG production 2017. Energy giants such as Royal Dutch Shell are planning to build liquefaction terminals on Western Australian shores to feed both the domestic markets and nations, such as China, India and Taiwan, demonstrating its financial commitment to the newly discovered reserves.

Though the global energy scenario is embracing natural gas, the fossil fuel shift is continuing only gradually, as global economies have long been accustomed to utilizing crude oil. A total shift would happen only over decades, and demand the extensive rejuvenation and revamping of fuel consumption infrastructure. However, natural gas is still anticipated to emerge as a promising commodity over the coming years.

*Natural Gas Industry to 2017 - Depleting Conventional Crude Oil Reserves and Emerging Technologies in Gas Consumption Infrastructure Driving the Industry

Sembcorp Marine’s subsidiary PPL Shipyard has secured a US$208 million contract to construct a Pacific Class 400 jack-up drilling rig for Perisai (L) Inc, a wholly-owned subsidiary of Perisai Petroleum Teknologi Bhd, with an option to construct an additional unit of a similar specification jackup rig for delivery in the second quarter of 2015. The price for the option rig is US$210 million with adjustment to certain cost escalation.

The Pacific Class 400 jack-up drilling rig is PPL Shipyard’s proprietary design. This design is well established and is an enhanced version of PPL Shipyard’s acclaimed and successful Pacific Class 375 design series, of which 27 units are now operating worldwide. The Pacific Class 400 rig represents the latest generation of high specification jack-up rigs that are capable of operating in water depths of 400 feet and drilling to depths of 30,000 feet. The rig’s maximum drill centre is cantilevered at 75 feet aft and it has a derrick hook load capacity of 1,500,000 lbs. The rig is equipped with full hotel services for a complement of 150 men on board in 1-man cabins and 2-men cabins. This unit is scheduled for delivery end July 2014.

Dr. Benety Chang, Deputy Chairman of PPL Shipyard said “We are very pleased that Perisai has chosen the Pacific Class 400 design as its maiden jack-up drilling rig design. We have complemented several companies in growing their rig fleet and in expanding their business into the offshore oil and gas sector. We hope to contribute to our partners’ long-term success and sustainable growth in the industry.”

“We would like to thank Perisai for their confidence in entrusting their first unit to PPL. The proprietary ownership of this design gives us the flexibility to customise turnkey solutions to suit our client’s and the field operator’s requirement as the needs arise.”

“This unit represents the 8th unit of the Pacific Class 400 series since the launch in 2010.”

En. Izzet Ishak, the Managing Director of Perisai Petroleum Teknologi Bhd said “The construction of the jack-up drilling rig represents a significant moment for the Perisai Group. We are excited by this new class of asset as it represents our entry into the offshore drilling segment specifically in Malaysia and broadly in the Asia Pacific region. This construction will provide our customers with access to a technologically advanced latest generation drilling rig. The rig’s high specification matches industry best standards with regard to, amongst others, water and drilling depths and load handling capacity of drill pipes. This, together with the extensive and illustrious history of PPL Shipyard, provides Perisai with added confidence as it enters into this new and exciting segment of operations.”

The contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of Sembcorp Marine for the year ending December 31, 2012.