# Presentation: 497468

## 2005 Offshore Hurricane Readiness and Recovery ConferenceJuly 26-27,2005

- 2005 Offshore Hurricane Readiness and Recovery ConferenceJuly 26-27,2005

- Chris Oynes
- MMS Regional Director
- Gulf of Mexico Region

## Topics

- The setting  -  GOM as an asset
- Why are we here  - effects of hurricanes
- What is MMS doing
- Challenges  -  do we need to do more

## The Setting  -  Gulf of Mexico as an Asset

## Leases in the Gulf 20 Years

## ~

**Gulf of Mexico Deep Water Oil Production**

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*As of **5/6/05*

**Notes:**
- This chart shows the rise in oil production from the deepwater
Gulf of Mexico (I.e. over 1000’)
- Oil production has tripled in the last 3 years; doubled in the last two.
- We reached a historic milestone in late 1999 when more oil production
was coming from the deepwater than the shallow water area in the Gulf.
We expect it will continue to rise. 

## ~

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**Gulf of Mexico Deep Water Gas Production**

- As of 5/5/2005

**Notes:**
- In natural gas we have also seen a steep rise in production from the deepwater area.
- Natural gas production in deepwater has tripled in the last 3 years; doubled in the last two.
- Total deepwater production is expected to contribute up to 65% of the total GOM OCS production (barrels of oil equivalent) by 2001--- (taken from MMS 99-0016: Gulf of Mexico OCS Daily Oil and Gas Production Rate Projections from 1999-2003)
- So then what about FPSO’s?

## Future of the Gulf

- Total Gas Production

- BCF/day MMS report 2004-065

## Future of the GulfOil Production is Exploding

- Total Oil Production

- Millions of Barrels of Oil per day

## GOM OCS Deepwater Production(Percentage of total Gulf of Mexico)

- GOM OCS Deepwater Production(Percentage of total Gulf of Mexico)

**Oil**

**Gas**

**77%**

**26%**

- (estimated)

## WHY ARE WE HERE?

## Path of Effects

**Notes:**
Of the 4,000 offshore platforms and 33,000 miles of pipelines in Federal waters of the Gulf of Mexico, approximately 150 facilities and 10,000 miles of pipelines with the direct path of Hurricane Ivan.

## Ivan and Deepwater Facilities

## Damage from Hurricane Ivan

- Mobile Offshore Drilling Units
- 4 adrift
- Platforms
- 7 fixed platforms were destroyed
- 31 platforms with serious damage
- Platform rigs
- 1 leaning platform rig from Spar
- 1 missing platform rig from Spar

**Notes:**
Despite the extensive damage in the path of the Hurricane Ivan, there was no loss of life and no significant pollution.

## Reported Pipeline Damage

| Reported Pipeline Damage Due to Natural Hazard |  |  |  |  |
| --- | --- | --- | --- | --- |
| Storm | No. of Reported Pipelines Damaged | Pipelines 16” or Greater in Diameter | No. of Pipelines w/Damage Caused by Mudslides | No. of pipelines w/Damage Caused by Mooring Drag |
| Hurricane Andrew | 448 | 12 | 11 | 0 |
| Hurricane Claudette | 2 | 0 | 0 | 0 |
| Tropical Storm Bill | 1 | 0 | 0 | 0 |
| Tropical Storm Isidore | 2 | 1 | 1 | 0 |
| Hurricane Lili | 112 | 4 | 1 | 0 |
| Hurricane Ivan | 102 | 12 | 21 | 1 |

- Reported Pipeline Damage

## Before Hurricane Lili

**Notes:**
Interestingly one of the two platforms toppled by Lili had been structurally assessed in 1998 and allowed to stay on line and produce for a couple more years but was in the process of being removed before Lili came along.  In fact the well abandonment crew had to demobilize for Tropical Storm Isidore the week preceding Lili and when they returned after Lili there was no platform to be found at the surface. 

## After Hurricane Lili

**Interpretation based on ROV survey**

**Notes:**
That Lili would destroy Eugene Island 275 did not surprise structural engineers involved in the assessment of this platform.  This platform had only marginally exceeded the theoretical waves imposed by a lesser storm in the assessment process.
The MMS is working towards determining the associated risk of all platforms on the OCS through the assessment process and our research efforts.  
Changes in our regulations are in the works to require reporting on the assessment of existing Gulf of Mexico platforms.
The MMS wants to play a key role in the understanding of the risks of loss of life and environmental consequence we face with the Gulf infrastructure.  It is important to know the risk and mitigate unacceptable risk.

## After Hurricane Lili

## Before Hurricane Lili

**Notes:**
Before losing her punch Lili managed to completely topple two platforms and destroy a third leaving a memorable picture of what wave forces can do.  Eugene Island 322 was pushed laterally more than 45 feet by the waves Lili generated and has been seen by many thanks to the Internet. 

##  After Hurricane Lili

**Notes:**
This photo helps the offshore structural engineers make their case when they address clients about risk and assessment.  

## Slide 20

## Slide 21

## Slide 22

## WHAT IS MMS DOING?

## MMS Studies

- Awarded 6 contracts totaling over $600,000
- Studies will examine the impact of Hurricane Ivan on the Gulf of Mexico oil and gas infrastructure
- Will be used in assessing the adequacy of current design standards and regulations

**Notes:**
The MMS has awarded six contacts totaling over $600,000 for studies of the impact of Hurricane Ivan on the offshore oil and gas structures of the Gulf of Mexico.  These studies will assess the actual wind, wave and current formces that were present in Hurricane Ivan, analyze and assess the consequential damage to structures and pipelines, determine the effectiveness of current design standards and pollution-prevention systems and develop recommendations for changes to industry standards and MMS regulations, if needed.  

## NTL No. 2005-G06

- Hurricane and Tropical Storm Evacuation and Production Curtailment Statistics NTL effective May 26, 2005
- Requires operators to submit statistics regarding evacuation of personnel and curtailment of production because of hurricanes, tropical storms, or other natural disasters
- Submittal of MMS Form MMS-132

**Notes:**
On May 26, 2005, MMS issued a Notice to companies in the Gulf of Mexico who lease oil and gas properties, “Hurricane and Tropical Storm Evacuation and Production Curtailment Statistics”.  It provides for the submittal of a report of more detailed information regarding oil and gas production shut-ins.  Operators must submit statistics to the Gulf of Mexico Regional Office regarding evacuation of personnel and curtailment of production because of hurricanes, tropical storms, or other natural disasters.  The MMS GOMR uses this data to notify the news media and interested public entities that monitor shut-in production.  This data is also used to work interactively with the USCG on rescue needs and oil spills.

## MMS Form 132

- Submitted daily by operators who have any shut-in production or evacuation of any facility or rig
-  Form is either emailed or faxed
-  Required to be submitted by 11 a.m.

## Previous Studies

- MMS is reviewing study results on Lili – Stress Engineering report on pipelines
- MMS is reviewing previous studies on Hurricane Andrew

## Challenges for Industry and MMS –Do We Need to Do More??

## Platforms

- WHAT CAN WE DO TO MINIMIZE DAMAGE?
- Is API RP 2A 21st Edition adequate?
- Is the 100 year storm criteria sufficient?
- Should we install platforms in mudslide areas?
- How do we make platform rigs more secure?
- Should MODU’s be removed from the vicinity of high volume facilities prior to a storm event?
- How do you secure your facilities in environmentally sensitive areas?
- Are synthetic mooring systems used on floating facilities adequate?

## MODU’s 

- RIGS ADRIFT ARE NOT ACCEPTABLE!
- Is the API RP 2SK Mooring Designs standard adequate?
- What are the assumptions used in performing risk analysis for mooring near infrastructure?  Are they sufficient??
- Are the current standards for anchors and synthetic mooring systems adequate?
- Are the current storm preparation and evacuation procedures adequate?  Are operators allowing enough time to properly secure and prepare?
- Are the recommended inspection schedules for mooring systems adequate?

## Pipelines

- Are the current design standards adequate?
- Are the storm preparation procedures adequate?
- Should we lay pipelines in mudslide areas?
- Should pipelines be laid only perpendicular to mudslide areas?
- Do we need redundancy built into the major pipeline systems?
- Should lines be hydro-tested tested prior to returning pipelines to service?
- Should all pipelines be buried?

## Future Efforts

- Continue working closely with industry and other federal agencies
- Continue to assess the effectiveness of current design standards and regulations
- MMS expects to act before and after studies completed

## Big Picture – New Reality

- Rising production
- More infrastructure exposure
- Country’s growing dependence on Gulf of Mexico
- Gulf of Mexico is one driver of the markets – press scrutiny is intense

## 2005 HURRICANE SEASON

***DENNIS***

***ARLENE***

***CINDY***

***EMILY***

***BRET***

***2005 HURRICANE SEASON***

- (To Date)