Sunday, September 8, 2024

UK To Force “Green” Energy on North Sea Oil & Gas Platforms – Watts Up With That?

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Guest “You can’t fix stupid” by David Middleton

H/T “rhs” for this Fox News article:

UK could force oil, gas platform companies to convert rigs to green energy or face shut down: reports

North Sea Transition Authority targets 2030 deadline to design platforms for green energy solution

 By Greg Wehner Fox News

Published March 28, 2024

Oil and gas rigs in United Kingdom waters of the North Sea could be forced to convert over to green energy or low-carbon fuels, or either face closure or getting banned from opening new platforms, in an effort to reduce emissions, according to reports.

The Telegraph reported there are currently over 280 oil and gas platforms in UK waters, which produce about 3% of the total CO2 emitted by the country per year.

The same rigs, though, produce nearly half of the UK’s energy.

[…]

Fox News

Why can’t the media use the words “platforms” and “rigs” correctly?

These are “rigs”:

A drilling rig drills wells. It is moved onto a location to drill wells. Drilling rigs then move on to the next project. The notion of powering drilling rigs with “green energy” is exceptionally stupid. (See The Solar-Powered Oil Field… An Adjustocene Fable). Offshore drilling rigs are usually powered by diesel engines. Here’s the Transocean Deepwater Invictus for an example:

Power & Machinery

Main Power 6 x HHI HiMSEN H32/40V V-type diesel engines rated 7,000 kW,720 rpm, each driving 1 x 8,125 kVA AC generator

Emergency Power One Caterpillar 3516B V-type diesel engine rated 1,780 kW, 1,800rpm driving 1 x AC generator

Power Distribution 3 x Siemens NXPlus C Plus, 11 kV Switchboards with AKA Advanced Generator Protection

Transocean

When oil & gas discoveries are made, production platforms are installed.

These are “platforms”:

Since production platforms are generally fixed structures (unless moved by hurricanes or subsea mudslides), they can be hooked up to the onshore power grid, however it is far more cost effective to power them with diesel and/or natural gas powered generators. The natural gas often comes from the production stream. The notion of powering production platforms with “green energy” is still fairly stupid, but actually possible.

The Green Hostage Crisis

Nearly half of the UK’s energy production comes from North Sea oil & gas platforms. Forced electrification of the platforms could result in a 3% reduction in the UK’s CO2 emissions. Holding 50% of your energy production hostage for a 3% reduction in CO2 emissions… Ron White would say:

Keeping the Lights On: UK Regulators Meet With North Sea Producers on Brownfield Electrification

The North Sea Transition Authority has previously said failure to invest in platform electrification could threaten future production rights.

February 21, 2024

By Trent Jacobs

UK regulators met recently in Aberdeen with oil and gas producers and technology suppliers to discuss strategies to enhance the electrification of the nation’s offshore platforms.

Power generation accounted for almost 80% of UK offshore oil and gas emissions in 2022—or about 2 mtpa. On the whole, the upstream industry represents a 3% share of all UK greenhouse gas emissions, according to the North Sea Transition Authority (NSTA).

The authority has previously voiced concerns that the domestic industry must intensify its efforts to achieve the government’s goal of halving emissions from oil and gas production by 2030.

“Platform electrification is a key step on the road to net zero. The North Sea has long been a testbed for pioneering technologies and right now we need innovative solutions to crack the significant challenge of electrification, cut emissions, and accelerate the transition,” Bill Cattanach, the head of supply chain for NSTA, said in a statement.

[…]

Despite a consistent reduction in total emissions by the UK industry since 2020 and a nearly 50% reduction in flaring over the past 4 years, the NSTA has stressed the urgent need for action. Last year, it warned all UK North Sea operators that future production rights might be contingent on their commitment to field electrification.

[…]

Journal of Petroleum Technology Part One

How does the North Sea Transition Authority envision oil field electrification?

Piece of cake… On paper.

What happens when governments make economically illiterate demands?

Wood Mackenzie presented analysis at last year’s SPE Offshore Europe conference suggesting that with 80% of UK North Sea resources already extracted there is likely less than 600 million BOE remaining—leaving little to no economic case for electrification projects at many sites.

Additionally, a report from Offshore Energies UK (OEUK) predicted that up to 180 of the nearly 280 offshore platforms in the UK North Sea will cease production by the end of the decade due to natural declines. The trade group’s study further noted that 20 fields ceased production last year, while only two new fields were brought online.

Journal of Petroleum Technology Part Deux

Who else thinks that the NSTA would actually prefer to see the premature abandonment of North Sea oil and gas fields, rather than the electrification thereof?

What electrification demand is next?

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