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BP, Total, and Shell to suppliers: cut costs

 

BP, Total and Royal Dutch Shell are asking oilfield service companies to cut project costs by up to 40% in response to the current industry slowdown.  Executives at contractors including Technip, CGGVeritas and Saipem said they responded by reducing the number of drilling rigs in operation by more than 25% and will take oilfield vessels out of service.  The 64% plunge in oil from its July peak to close to $50 a barrel is deterring new investment and leaves the services industry, vulnerable as the order backlog shrinks.

www.ameinfo.com

Remaining eight bodies are recovered Sunday from wreckage of North Sea helicopter crash

 

The sunken wreckage of Super Puma flight 85N gave up the last of its 16 dead yesterday.

Eight bodies were recovered and operations continued to raise the fuselage of the ill-fated helicopter from the seabed 14 miles off Peterhead.

Last night, investigators confirmed the “black box” cockpit recorder had been found. They hope it will help pinpoint the cause of the crash.

Body of last victim in chopper crash found

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The body of the last victim of the North Sea helicopter crash which killed all 16 passengers and crew on board has been found.

The Bond Super Puma was found earlier today by divers from a support vessel off the coast of Peterhead, Aberdeenshire.

All 16 of those who died in the accident have now been found and the black box has been taken to the Air Accident Investigations Branch (AAIB) headquarters in Farnborough to be examined.

Chopper from Canada crash failed critical safety test

 

CTV.ca News Staff

The Sikorsky S-92 helicopter at the centre of the deadly crash off Newfoundland’s coast had failed a critical safety test, says a report in Monday’s Globe and Mail.

According to the newspaper, documents show the helicopter failed a test on its “run-dry” requirement — a safety feature designed to give pilots time to land safely if oil leaks from the main gearbox.

Chevron begins massive Australian offshore project

 

Chevron Corp started its biggest-ever exploration campaign off Australia’s northwest coast, targeting finds that will underpin planned liquefied natural gas-export projects.

The drilling, costing “hundreds of millions of dollars,” will include as many as 10 exploration and appraisal wells this year, Roy Krzywosinski, managing director of Chevron’s Australian unit, said today in an interview. It aims to find more gas to supply the planned Gorgon and Wheatstone LNG projects, he said.

Brazil oil industry still profitable, minister says

 

By Javier Nieto-Remolina

MADRID — Brazil’s energy and mines minister said here that the scale of his country’s current oil production and its expected future output are large enough to make the industry profitable even at current prices.

Edison Lobao, on a trip to learn about Spain’s wind energy model, told Efe in an interview here that at any rate Brazil expects prices to stabilize toward the end of the year at between $60 and $70 per barrel, compared with a price of $52 per barrel for both European and U.S. benchmark crude on Thursday.

A clash of wind, wave energy permits off New Jersey

 

By Sandy Bauers, Inquirer Staff Writer

The three New Jersey wind developers thought they had the whole deal locked up.

After years of study, the Board of Public Utilities had granted each of them not only its blessing, but $4 million apiece for more research.

But then, along came a Seattle businessman, and suddenly the ocean wasn’t nearly big enough to hold them all.

He proposed a wave farm smack in the same spot of ocean the wind guys thought they had dibs on, about 17 miles off Atlantic City.

Exxon's investment plans may be trimmed by its partners

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by Isabel Ordonez

HOUSTON — Despite the economic crisis, Exxon Mobil Corp. is flush with cash and plans to invest at record levels this year — but its partners may have other ideas.

Unlike other major producers like ConocoPhillips, the Irving, Texas, company has not cut capital investment or sought to delay projects as it seeks to increase oil and gas production, which declined 6% in 2008. But Exxon’s hallmark disciplined approach, which it has said will help the company achieve a 2%-3% annual production growth over the next five years, is being challenged by some of its partners’ short-term priorities: saving money and sustaining local economies.

OPEC finally accepts low prices, may not cut production

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OPEC officials Thursday finally accepted worsening economic conditions would keep oil prices low for now, toning down a previous call for higher prices and suggesting the organization may not cut production further as long as prices stayed steady. The statements, which show a conciliatory tone toward oil-consuming nations, came as forecasts for the global economy released this week were gloomier than expected.

On Thursday, the world’s main developed and industrializing nations, the G20 released a package of measures to counter the crisis, including boosting International Monetary Fund resources to $1 trillion.

Moray rescue missions fail to avert sea tragedy

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By Chris Saunderson

Rescue crews had yesterday given up all hope of finding alive eight oil workers missing after a Super Puma helicopter crashed into the North Sea.

It is now almost certain that all 16 people on board the doomed chopper have died, despite the heroic efforts of mercy crews involved in the search.

A search and rescue helicopter from RAF Lossiemouth and Nimrod reconnaissance aircraft from RAF Kinloss were stood down after an intensive search. Both the military aircraft were involved in a massive rescue operation in February when another Super Puma was forced to ditch into the North Sea.

In stark contrast to the elation felt on that occasion when all 18 men on board survived, the crews’ return to their Moray bases this time was tinged with sadness.

RAF spokesman Michael Mulford said the pilot of the helicopter made a may day call at 2pm on Wednesday, and described the silence that followed as “ominous”.

In addition to the two military rescue crews, the search, at its peak, involved up to 20 merchant vessels and two lifeboats. The search area covered 30 square nautical miles.

As the bodies of eight people recovered from the crash site 16 miles off Peterhead were taken ashore, an air accident investigation got underway.

It is believed that efforts are due to begin today to retrieve the black box flight recorder from the wreckage, where the bodies of the eight missing people may also be.

None of the names of those who died have been released, but Grampian Police said that half of those on board were either from Aberdeen or Aberdeenshire. Four others were from Scotland but outwith Grampian, three were from other parts of the UK and one victim is understood to have lived overseas.

Sympathy for the family and friends of those who perished have been expressed across Moray, where the oil industry has overtaken fishing as the main source of employment in coastal communities.

Buckie councillor Gordon McDonald said that the tragedy would be felt particularly hard in his ward, which was heavily reliant on the offshore sector. He said the community would face an anxious wait while those involved in the crash were identified.

“Obviously it’s a grave concern to Buckie,” he said. “We have had tragedy in the past with the fishing industry, but you do not get used to it. Something like this always comes as a body blow to the community.

“The community is very good at rallying around at times like these, and will be giving as much support to they can to any family and friends affected by this tragedy.

“Like the fishing industry, the offshore oil and gas industry is a little village, and it’s likely that most people employed in it will know of or have worked with someone involved.”

Councillor McDonald said it was horrifying that two accidents involving Super Puma helicopters had taken place just a matter of weeks apart. However, he does not believe that the latest tragedy will lead to people looking for work back on shore.

He said: “These have been accidents, and the latest one a very tragic accident. I think people in Buckie are realistic enough to understand the dangers of being out at sea or out on an oil rig, and the families also know the realities of working in those environments.”

Councillor David Stewart, whose ward includes the coastal strip from Burghead to Lossiemouth, said the thoughts of everyone would be with those who have lost loved ones.

He added: “This will be felt in communities all over the North-east. It is a small, close-knit community and although we are used to tragedy right along the coast because of the fishing industry, it’s still very shocking.

“I have a son-in-law, a brother and a nephew who work in the offshore industry, as well as many friends. They all accept that getting on and off the rig by helicopter is just part and parcel of the job, but it must be a very worrying time for all those involved in the oil industry.”

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