Watching Government: Fresh look at the US Arctic

A National Petroleum Council committee report that takes a fresh look at the US Arctic’s offshore oil and gas potential won’t be final until early 2019. But a presentation at NPC’s Dec. 4 meeting about what the committee is finding suggested there could be some interesting differences from conclusions reached in a similar study that was released in March 2015.

“The 2015 report has stood the test of time. Its findings and recommendations remain relevant today,” said the committee’s chairman, ExxonMobil Corp. Chairman and Pres. Darren W. Woods. “Perhaps most importantly, since 2015, there has been substantial drilling activity that demonstrates continued advancements in well control and oil spill response technology in Arctic environments.

“In light of these advancements, we will include additional recommendations for specific regulatory changes to enable the use of this technology to promote safe, environmentally responsible, and prudent exploration and development of the US Arctic’s oil and gas potential,” Woods said.

Carol J. Lloyd, an ExxonMobil senior strategy advisor who coordinated the committee’s activities, noted that when US Energy Sec. Rick Perry asked the NPC to take a fresh look at the situation on Aug. 29, he wanted it to consider whether new technology could improve reliability, safety, efficiency, and environmental stewardship in the key areas of US OCS development regulatory burdens.

“Where the 2015 study recommended further study to gain public confidence for well control and exploration technology for further development, in this case, based on the technology demonstrations that have occurred since 2015, we’re going to be making recommendations for regulatory changes directly,” Lloyd said.

“This is not yet the final product. We will be taking the key points in this presentation and convert them to a written report, seeking council approval around the end of February,” she said.

Preinstalled capping stack

Lloyd described how the Russians deployed a subsea isolation device in the Kara Sea north of Siberia. “It was installed on the sea floor and designed for full well shut-in if there was a well control event late in the season—just as if there was a wellhead on the well,” Lloyd said.

“This enabled the BOP stack, which sat on top of it, to be demobilized if there was an early freeze-up, making the well secure.

The following season, the rig could return and enter through the top, just as if there was a wellhead on the well—basically a preinstalled capping stack,” she said.

Eleven such stacks have been deployed around the world since 2015, Lloyd noted. “None have been required for well control events, but they have been positioned to be ready if they’re needed,” she said.