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Bye Bye, Rigs
Topic Started: Jul 11 2010, 08:13 AM (962 Views)
George K
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Finally
First rig sails away over drilling ban

Diamond Offshore announced Friday that its Ocean Endeavor drilling rig will leave the Gulf of Mexico and move to Egyptian waters immediately — making it the first to abandon the United States in the wake of the BP oil spill and a ban on deep-water drilling.

And the Ocean Endeavor's exodus probably won't be the last, according to oil industry officials and Gulf Coast leaders who warn that other companies eager to find work for the now-idled rigs are considering moving them outside the U.S.

Devon Energy Corp. had been leasing the Endeavor to drill in the same region of the Gulf as BP's leaking Macondo well, which has been gushing crude since a lethal blowout April 20.

But Diamond announced Friday it will lease the rig through June 30, 2011, to Cairo-based Burullus Gas Co., which plans to send the Endeavor to Egyptian waters immediately.

Devon is one of three companies that has cited the deep-water drilling ban in trying to ease out of contracts to lease Diamond rigs. Diamond, a drilling company, said it expects to make about $100 million from the deal, including a $31 million early termination fee it recovered from Devon.

Larry Dickerson, CEO of Houston-based Diamond, signaled that other of his company's rigs could be relocated, too.

"As a result of the uncertainties surrounding the offshore drilling moratorium, we are actively seeking international opportunities to keep our rigs fully employed," Dickerson said. "We greatly regret the loss of U.S. jobs that will result from this rig relocation."

It was unclear how many U.S. jobs could leave with the Ocean Endeavor, but typically more than 100 workers are on the rig at any given time, doing everything from drilling to cooking meals. Onshore, a network of businesses supplies the rigs with groceries, equipment, uniforms and drilling materials.

"It's not unusual for an energy service company to have 1,000 vendors that they buy from or purchase services from," noted Rep. Kevin Brady, R-The Woodlands. As a result, Brady said, the economic damage from the moratorium stretches far and wide.
Fearing for investment

Brady and other oil-patch lawmakers have been pressing President Barack Obama to end the six-month moratorium he imposed on 33 deep-water projects May 27 after the explosion of the Deepwater Horizon rig that was drilling a well for BP.

Obama said the ban was needed to allow time for new safety standards to be implemented and a commission to investigate the cause of the April 20 blowout at BP's Macondo well.

Although the administration on Thursday lost its second bid to keep the ban in place while it appeals a federal court's decision to strike down the moratorium, federal regulators plan to try again with a revised version soon.

Dan Pickering, a financial analyst with Tudor, Pickering Holt & Co. Securities, said the legal uncertainties surrounding the ban - and the administration's plan to issue a new, revised moratorium - ensure that no companies will resume deep-water drilling in U.S. waters anytime soon.

"Are you really going to spend $5 million … getting ready to drill a well that someone would then probably block you from drilling?" Pickering said.
Lawmakers complain

Pickering added that prospects are high that a dozen rigs ultimately could leave the Gulf of Mexico because of the ban.

Brady said the rig owners are searching for revenue - even if it means relocating to get it.

"There are two types of rigs in the deep-water Gulf today: those that are leaving the country and those that want to, because with this moratorium hanging over their heads, they simply can't go back to work," Brady said. "I'm afraid this is the first of many rigs and many American jobs to leave the Gulf."

Once the rigs relocate, it could be a minimum of five to 10 years before they return, predicted Rep. Pete Olson, R-Sugar Land.

"We cannot afford to lose these jobs or the energy they provide," Olson said. "President Obama should allow this moratorium to remain lifted and let Americans get back to work."
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Mikhailoh
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If you want trouble, find yourself a redhead
Hopefully we will now open up ANWR. But I won't hold my breath.
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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1hp
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Fulla-Carp

Well, this is certainly moving the liberals towards the end goal of "weaning America off of foreign oil"..........Not!

I still fear that we are heading towards third world status. The east coast only seems to have escaped electricity supply problems last week due to the economic downturn (which had reduce electrical demand). If we were going gangbusters, like we were a few years ago, demand would have exceeded supply (or the delivery of the supply is more appropriate). With the above drilling ban, I fear we are headed back to lines at the gas pumps one day in the not too distant future, which will further kill the economy.
There are 10 kinds of people in this world, those that understand binary and................
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Jolly
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Geaux Tigers!
Let 'em sit in the heat for awhile. And the dark.
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Dewey
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HOLY CARP!!!
Well, I'm relieved. I thought this was a thread about rigatoni.
"By nature, i prefer brevity." - John Calvin, Institutes of the Christian Religion, p. 685.

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John D'Oh
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MAMIL
Dewey
Jul 11 2010, 12:24 PM
Well, I'm relieved. I thought this was a thread about rigatoni.
I thought maybe Mel Gibson had died.
What do you mean "we", have you got a mouse in your pocket?
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Mikhailoh
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If you want trouble, find yourself a redhead
WHOOO HOOO! VIVA ESPANA!!!!!!!

Sorry. Wrong thread. :lol2:
Edited by Mikhailoh, Jul 11 2010, 12:57 PM.
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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jon-nyc
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Cheers
Mikhailoh
Jul 11 2010, 08:18 AM
Hopefully we will now open up ANWR. But I won't hold my breath.
It'll happen when gas his $6-8 a gallon.
In my defense, I was left unsupervised.
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Phlebas
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Bull-Carp
1hp
Jul 11 2010, 09:20 AM
Well, this is certainly moving the liberals towards the end goal of "weaning America off of foreign oil"..........Not!

I still fear that we are heading towards third world status. The east coast only seems to have escaped electricity supply problems last week due to the economic downturn (which had reduce electrical demand). If we were going gangbusters, like we were a few years ago, demand would have exceeded supply (or the delivery of the supply is more appropriate). With the above drilling ban, I fear we are headed back to lines at the gas pumps one day in the not too distant future, which will further kill the economy.
I agree with what you said, but I think one of the reasons the East Coast dodged a bullet was because one of the hottest days was on a holiday.
Random FML: Today, I was fired by my boss in front of my coworkers. It would have been nice if I could have left the building before they started celebrating. FML

The founding of the bulk of the world's nation states post 1914 is based on self-defined nationalisms. The bulk of those national movements involve territory that was ethnically mixed. The foundation of many of those nation states involved population movements in the aftermath. When the only one that is repeatedly held up as unjust and unjustifiable is the Zionist project, the term anti-semitism may very well be appropriate. - P*D


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jon-nyc
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1hp
Jul 11 2010, 09:20 AM
With the above drilling ban, I fear we are headed back to lines at the gas pumps one day in the not too distant future, which will further kill the economy.
No, the amount of oil supplied by deepwater drilling is just too small. Besides, the only way to create gas lines is through price controls.
In my defense, I was left unsupervised.
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1hp
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Fulla-Carp

Quote:
 
Quote:
 
Jul 11 2010, 09:18 AM

Hopefully we will now open up ANWR. But I won't hold my breath.


It'll happen when gas his $6-8 a gallon.


At that point it will be way too late. It takes years to ramp these things up. Without a solid, dependable and affordable supply of energy the economy will tumble - hard. And the only consolation will be that many of us will be able to walk around with smug expressions, and declare "It's Obama's fault".

There are 10 kinds of people in this world, those that understand binary and................
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jon-nyc
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Cheers
You're operating under the false premise that ANWR production will ever be large enough to have a material impact on the market price of oil.

It won't be. Sarah Palin is lying to you.


(in all fairness, its not likely Sarah Palin understands this, so it probably isn't justly called lying)
In my defense, I was left unsupervised.
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Renauda
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HOLY CARP!!!
1hp
Jul 12 2010, 10:47 AM
Without a solid, dependable and affordable supply of energy the economy will tumble - hard.
:wave: We're open for business. But you knew that already since the US is investing billions into heavy oil and bitumen production and transportation here.
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1hp
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Fulla-Carp

Quote:
 
You're operating under the false premise that US offshore production will ever be large enough to have a material impact on the market price of oil.


No, I'm operating under the premise that the US needs a comprehensive energy plan, which includes offshore drilling. They are all pieces of the puzzle. Unfortunately Obama is following in the footsteps of Bush and Clinton, and is sticking his head in the sand on this. One could say that we are planning for energy failure.
There are 10 kinds of people in this world, those that understand binary and................
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jon-nyc
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Cheers
I would agree with that (for now at least), but that's a very different statement than "the only consolation will be that many of us will be able to walk around with smug expressions, and declare "It's Obama's fault"."
In my defense, I was left unsupervised.
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1hp
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Fulla-Carp

Short term memory - Obama is the last one to touch this, so it's his fault. :smokin:
There are 10 kinds of people in this world, those that understand binary and................
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jon-nyc
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If he hasn't addressed by 2017, I'll blame him too.

He's certainly made the right noises with respect to nuclear, and expressed a willingness to expand offshore drilling before Macondo made it politically undoable. But he's too close to the coal and corn industries to get this right, IMO.
In my defense, I was left unsupervised.
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1hp
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Fulla-Carp

He (Obama administration) has tried to shut down Yucca Mountain. This is a big problem that needs solving before nuclear can move forward again - where to store all the waste. For good, or bad, Yucca Mountain addressed this issue. I doubt anyone will find a place that is not controversial. So to claim to be pro nuclear without solving the waste storage, is not being pro-nuclear.

You're expecting him to win a second term ???? :eek:
There are 10 kinds of people in this world, those that understand binary and................
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jon-nyc
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Cheers
Was it Obama or Harry Reid? (that's a question, not a challenge)
In my defense, I was left unsupervised.
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jon-nyc
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1hp
Jul 12 2010, 03:04 PM
You're expecting him to win a second term ????
Yeah, I predict the GOP will nominate a kook and blow their opportunity.
In my defense, I was left unsupervised.
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1hp
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Fulla-Carp

Quote:
 
Was it Obama or Harry Reid? (that's a question, not a challenge)


Well, that's a good question. The most recent news seems to point to Reid being involved, but it is not clear if he is the driving force behind the attempt to close it.


Lawmakers seek to halt Yucca shutdown

........................In a draft copy obtained Tuesday, Sensenbrenner contends that three nominees who were confirmed faced "intense pressure" from Sens. Barbara Boxer, D-Calif., and Harry Reid, D-Nev., at their confirmation hearing in February.

William Magwood, George Apostolakis and William Ostendorff were asked by Boxer, the chairwoman of the Senate Environment and Public Works Committee, whether they would "second guess" the Department of Energy's decision to withdraw the repository application. Boxer told them the question came from Reid, the Senate majority leader.


.........................The Obama administration has said it no longer wanted to move ahead with it and has established a commission to recommend alternatives.







What is interesting is that the parties that are challenging the shutdown are states that have piles of nuclear waste waiting to go to storage.

DOE appeals on Yucca decision



.............................Chu called for the NRC to dismiss the application. The DOE appeal was supported by the state of Nevada.

In a series of competing filings, the states of Washington and South Carolina, the Nuclear Energy Institute, Aiken County in South Carolina and Nye County urged the NRC to reject the appeal.

The federal government operates the Savannah River reservation in South Carolina and the Hanford reservation in Washington where nuclear waste has been stored in anticipation of final disposal in Nevada. State and local officials there have taken a lead in challenging the Yucca Mountain shutdown.




One little hint though, from the above article:


.............The filings plunge the Yucca project deeper into legal waters as the Obama administration tries to unravel a program that was authorized by Congress almost 30 years ago. In a campaign pledge that helped him win Nevada in 2008, President Barack Obama said he would scrap the effort.



Obama in his effort to gain votes!

There are 10 kinds of people in this world, those that understand binary and................
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Renauda
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HOLY CARP!!!
Shutting down the Yucca Mountain project is nothing short of irresponsible idiocy. There are few places on the planet better suited for secure and safe nuclear waste storage than Yucca.
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jon-nyc
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Renauda
Jul 12 2010, 06:54 PM
Shutting down the Yucca Mountain project is nothing short of irresponsible idiocy. There are few places on the planet better suited for secure and safe nuclear waste storage than Yucca.
Indeed. But the locals have NIBYISM and their senior senator is the senate majority leader.
In my defense, I was left unsupervised.
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OperaTenor
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Pisa-Carp
Renauda
Jul 12 2010, 06:54 PM
Shutting down the Yucca Mountain project is nothing short of irresponsible idiocy. There are few places on the planet better suited for the illusion of secure and safe nuclear waste storage than Yucca.
FIFY, NNTTM


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Renauda
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HOLY CARP!!!
I wholly disgaree OT and since you fubarred my statement I have no intention of thanking you. BTW, since the world cannot disinvent nuclear technology do you have an acceptable alternative to the Yucca project?

No, I didn't think so.
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