"Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.

[Douglas Buckland + 6,308]

11 minutes ago, Rob Plant said:

Yeah like Wombat!😂

Noooo....! Wombat is the smartest person on the planet and is known by the title, ‘He-man, Master of the Universe’, so okay for him to let us know that he is a rated expert.

[wrs + 893]

6 hours ago, Douglas Buckland said:

You are seems that you may be confusing the term ‘rig’ with an offshore production platform. The term ‘rig’ is colloquially applied to MODU’s (Mobile Offshore Drilling Units....aka drilling rigs).

These rigs never produce oil except during a well test, and that ‘production’ is flared off.

When a drilling rig goes off contract, the drilling contractor will ‘stack’ the rig unless it is immediately moving to another contract. He will either ‘hot stack’ or ‘cold stack’ the rig. Hot stacking is with a skeleton crew who run and maintain the equipment and the rig in anticipation of a new contract shortly. Cold stacking is essentially mothballing the rig. Needless to say, hot stacking is preferred as it maintains the asset and key members of the crew, it also saves costs when the rig is put back to work.

In any case, ANY large piece of steel, resting in saltwater and open to the elements will deteriorate quickly unless it is properly maintained.

So I guess it's platforms that are being discussed.  Sorry for the confusion.  In any case, the production equipment is being shut down probably forever in many cases.

[Douglas Buckland + 6,308]

17 minutes ago, wrs said:

So I guess it's platforms that are being discussed.  Sorry for the confusion.  In any case, the production equipment is being shut down probably forever in many cases.

Can’t really just ‘shut them down forever’. The wells would need to be P&A’d (plugged and abandoned) then the structures removed. Expensive!

[wrs + 893]

32 minutes ago, Douglas Buckland said:

Can’t really just ‘shut them down forever’. The wells would need to be P&A’d (plugged and abandoned) then the structures removed. Expensive!

RIght, they will eventually be P&A according to this guy.  He says they just aren't worth the maintenance because of the low levels of production.  I would guess that they are like stripper wells on land.  He said they were the inner shelf ones, I think in relatively shallow water.  Here is the sequence of posts

Offshore shut-ins spreading like wildfire..... Brutal.

Am I right in thinking turning those wells back on will be a big deal?

Offshore.... yes. A lot of these are going to have major implications. Especially the old shelf crap. That stuff will never come back online. This is creating a HUGE P&A bubble. Many of these companies are not going to be able to afford to plug all these wells and abandon the facilities.

 

 

Edited April 27, 2020 by wrs

[Douglas Buckland + 6,308]

If you think that the shallow shelf stuff is going to be a ‘P&A bubble’, wait until the LTO crowd is forced to P&A their unperforming wells! Where will they get the money for it? Is the taxpayer going to be on the hook again?

[Jan van Eck + 7,558]

On 4/27/2020 at 11:01 AM, Douglas Buckland said:

If you think that the shallow shelf stuff is going to be a ‘P&A bubble’, wait until the LTO crowd is forced to P&A their unperforming wells! Where will they get the money for it? Is the taxpayer going to be on the hook again?

But of course.