Archives for March 2019

NOIA Welcomes Offshore Wind Supply Chain Contracting Forecast

March 29, 2019 by Justin Williams

For Immediate Release: Tuesday, March 26, 2019
Contact: Nicolette Nye, (202) 465-8463, nnye@nullnoia.org

NOIA Welcomes Offshore Wind Supply Chain Contracting Forecast

Washington, D.C. –The National Ocean Industries Association (NOIA) welcomes projected new business opportunities for offshore energy supply companies announced today by the Special Initiative on Offshore Wind (SIOW). Supply Chain Contracting Forecast for U.S. Offshore Wind Power, a white paper released today by SIOW, projects that America’s nascent offshore wind industry presents a nearly $70 billion CAPEX revenue opportunity to businesses in the offshore energy supply chain.

“NOIA has long advocated for all-of-the-above energy and new offshore energy growth in America. Our members look forward to participating in the massive opportunity presented by offshore wind. The report identifies significant opportunities for the supply chain that will build, supply and support the U.S. offshore wind sector. By putting in clear terms the anticipated demand for foundations, towers, cable and services, America’s energy supply and service companies can begin planning to enter this growing market. We're watching a new industry grow right here off our shores and NOIA’s members are excited to be a part of this energy future," said NOIA President Randall Luthi.

ABOUT NOIA

NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of both traditional and renewable energy resources on the nation’s outer continental shelf. NOIA’s mission is to secure reliable access and a fair regulatory and economic environment for the companies that develop the nation’s valuable offshore energy resources in an environmentally responsible manner. The NOIA membership comprises about 250 companies engaged in business activities ranging from producing to drilling, engineering to marine and air transport, offshore construction to equipment manufacture and supply, telecommunications to finance and insurance, and renewable energy.

Op-ed: Seismic surveys provide a safe foundation for offshore energy

March 28, 2019 by Justin Williams

Washington Examiner | Randall Luthi | March 28, 2019

There has been much debate about proposed offshore drilling along the Atlantic Coast. Some people are trying to drive policy decisions by creating unfounded fear about the potential impacts of seismic surveys. Despite claims to the contrary, there is no scientific, peer-reviewed evidence that seismic surveys harm fish or marine mammals. In fact, seismic surveys are safely conducted almost daily around the world. Understanding how they work can help to allay unfounded fears.

Seismic surveys use the same technological principles as an ultrasound in a medical procedure, just on a larger scale. Survey vessels release compressed air, creating sound waves that echo back when they reach solid items in the water column, underwater structures or the sea floor. These echoes are recorded by sensitive instruments on the survey vessels and then analyzed to produce an accurate picture of the ocean floor and what lies below.

Just like any other oceanic noise, these sounds waves may temporarily alter the behavior of marine mammals or fish, but they do not cause injury. Survey vessels seldom cover the same area twice, and fish and marine mammals that may change their direction during a survey pass, return to the area once the vessel has departed.

Recent studies seeking to discredit the safety of seismic surveys are effective clickbait generators; however, they do not reflect real-world operating conditions nor take into account the stringent mitigation measures employed by seismic professionals. Exclusion zones, soft-start procedures, visual observers, and passive acoustic monitoring ensure the safety of marine life. Operations cease, should any marine mammal be sighted near an ongoing survey.

Read the full op-ed here.

Letters: Energy industry committed to offshore safety

March 20, 2019 by Justin Williams

The Advocate | Charlie Williams | March 17, 2019

As you stated in your recent editorial, “Lessons from Deepwater Horizon disaster still resonate nearly a decade later,” next month marks the ninth anniversary of the Deepwater Horizon oil spill off the coast of Louisiana. The accident left a deep imprint on all of us, particularly in the offshore industry. In the days, months and years since, much has been learned and much has changed to improve safety. Sweeping measures were taken to overhaul the industry’s capability to intervene and respond in case of an incident. To prevent incidents from happening in the first place, more than 100 standards have been created or strengthened for safety and environmental management, well design, blowout prevention and spill response — many drawing on lessons learned from Deepwater Horizon. The industry also launched the organization I head, the Center for Offshore Safety

The natural gas and oil industry is constantly evolving its standards and technologies to support our number one priority — the safety of our workers and the environment. We continuously evaluate and measure our own safety performance and focus on areas to further improve. Our industry has partnered with federal regulators and convened joint industry task forces to methodically examine every aspect of offshore operations to identify potential improvements in spill prevention, intervention, safety management and response capabilities. We’ve scrutinized all facets of the offshore drilling process from equipment and operating procedures to subsea well control and oil spill response, and we’ve developed new recommendations and standards that guide operations in both deep and shallow water exploration.

Offshore energy development is safer than ever thanks to these comprehensive efforts. Today’s exploration and production facilities leverage advanced technologies, materials and practices such as advanced well containment systems and response equipment to minimize incidents. The U.S. has established one of the world’s most sophisticated and well-coordinated spill response networks that can respond quickly to incidents and equipment failures.

The Center for Offshore Safety was created shortly after the Deepwater Horizon incident to promote the highest level of safety for offshore drilling, completions and operations. Fully dedicated to safety management and safety culture as recommended in the Presidential Commission report, the center works with independent third-party auditors and government regulators to reinforce the industry's safety culture, support good safety management audit tools and audit practices and ensure operational safety standards are communicated throughout the industry. The Bureau of Safety and Environmental Enforcement has already adopted three of the center's guidelines into its own regulations.

Read the full op-ed here.

Why U.S. offshore wind is finally going big

March 20, 2019 by Justin Williams

Axios | Ben Gemen | March 15, 2019

The stars in the U.S. flag replaced by offshore wind turbines — Illustration: Lazaro Gamio/Axios

HOUSTON — Power from offshore wind is finally poised for liftoff in the U.S.

Why it matters: The U.S. has long been a laggard, but that's poised to change thanks to a convergence of forces that analysts see bringing enough coastal wind online over the next decade to power millions of homes.

Show less

What's happening: A huge energy conference here in the nation's oil-and-gas capital offers a window into what's prompting giant energy companies to plan multibillion dollar investments. It's a story of...

- Atlantic Coast states moving ahead with zero-emissions power procurement policies.

- Oil-and-gas majors expanding their low-carbon power portfolios.

- Technology evolution and falling costs.

The Trump administration supporting the development even as it abandons Obama-era climate programs.

What they're saying: "The missing piece for some time was actually an interest from the states up along the coast to acquire this power from this industry," says Christer af Geijerstam, who heads U.S. wind efforts for the oil-and-gas giant Equinor.

"That's where we have seen the significant shift the last 2–3 years being led by New York and Massachusetts," he tells Axios while at the big CERAWeek by IHS Markit conference.

ICYMI: In December, Equinor was among the winning bidders in a federal auction of development sites that are off the Massachusetts coast.

- This adds to another site in federal waters off New York that it had acquired in 2016.

- They paid $135 million for the Massachusetts site in the Interior Department auction that brought in a record-shattering $405 million.

I asked if Equinor would bid in federal lease auctions in the planning stages off New York and California. He said yes and offered no caveats.

The big picture: IHS Markit's current forecast sees 7 gigawatts of offshore wind coming online in the U.S. by 2030, up from almost nothing today. But that estimate could rise.

- "We will be looking carefully at what the outcome of solicitations in Massachusetts and New Jersey and New York is going to be," IHS associate director Max Cohen says.

Bloomberg NEF already projects 11.4 gigawatts of capacity by 2030. They've upped their estimate thanks to a combination of specific solicitations and long-term targets by state governments in Virginia, New Jersey and elsewhere.

Where it stands: Equinor is among several deep-pocketed companies in the space planning projects. Here are some other players...

- Danish wind giant Orsted bought the U.S. firm Deepwater Wind last year.

- A joint venture between Shell and EDP also had a winning bid in the recent Massachusetts sale. "The U.S. has a magnificent wind resource right next to a large population and highly densely populated areas," Enrique Alvarez Uria of EDP Renewables said at a panel here yesterday. He estimated EDP's effort with Shell could be a $4 billion to $6 billion capital investment.

Vineyard Wind, which is co-owned by Copenhagen Infrastructure Partners and Iberdrola's Avangrid Renewables, snapped up a lease that adds to their plans for a separate project in the region.

Full story here.

NOIA Statement on Gulf of Mexico Lease Sale 252

March 20, 2019 by Justin Williams

For Immediate Release: Wednesday, March 20, 2019
Contact: Nicolette Nye, (202) 465-8463, nnye@nullnoia.org

NOIA Statement on Gulf of Mexico Lease Sale 252

Washington, D.C. – National Ocean Industries Association (NOIA) President Randall Luthi issued the following statement regarding today’s Gulf of Mexico Lease Sale 252:

“Gulf of Mexico Lease Sale 252 allowed the Federal government to check the temperature of the offshore industry in the U.S. Gulf of Mexico in the face of the slow pace of recovering commodity prices. Lease Sale 252 not only reflects the relatively stable oil prices, but also the efforts by the overall industry to cut costs. Much of the cost cutting has drastically affected service companies, as their profit margin remains thin or non-existent. However, the trajectory of this and the past few sales shows stability and helps establish a new normal for the U.S. offshore industry. Companies continue to shore up existing development operations (in both shallow and deep water) in known geologic areas, but are not yet ready for heavy investment in truly new deepwater projects.

"While today’s sale shows that the Gulf of Mexico is still a fundamental basin for energy production and economic growth for the U.S., it also underscores that the Gulf of Mexico is still the ONLY offshore basin available in the U.S. in which U.S. companies may bid. As the global offshore energy recovery heats up, the U.S. must recognize that we are not the only player at the offshore table. Other basins in the Western Hemisphere, including Guyana, Brazil and Mexico (not to mention onshore U.S. production) have become magnets for investment dollars. Part I of a recent IHS Markit report confirms that our current federal fiscal structure has rendered the rate of return for U.S. offshore projects, particularly in deepwater areas, less attractive than rates of return in other regions. Policymakers should take note and find new ways to attract and retain global investment dollars in the U.S. Gulf of Mexico, an area that has a long history as the gold standard of offshore energy production.”

ABOUT NOIA