Monday, May 6, 2013

Greene's Energy Group Opens New Texas Facilities

Greene's Energy Group, a leading provider of integrated testing, rentals and specialty services, has opened two new facilities in Alice and Pleasanton, Texas, announced Chief Executive Officer (CEO) Bob Vilyus.

These facilities serve Central and South Texas with emphasis on the Eagle Ford Shale. As state-of-the-art facilities, each are outfitted with warehouse and office amenities designed to accommodate the needs of the industry in the region.

The Alice facility is the headquarters for the Greene's Well Testing Services. The facility is comprised of a three-bay warehouse on three acres of land with a wash rack, large conference room, break room and five offices.

The facility in Pleasanton has a five-bay warehouse on ten acres that is equipped with a wash rack, break room, large conference room and five offices and is the base for Greene's Well Testing and Torque and Testing Services.

"Because both facilities are centrally located in South Texas and can easily access the Eagle Ford Shale region, we see a strong growth potential for both facilities," said Vilyus. "As we look to expand to other geographical regions, these facilities will serve as blueprints for future expansions."

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Job Safety Analysis - Meeting New Requirements for Training

The right way to do a Job Safety Analysis or JSA is a hot topic in the oil patch right now. The Bureau of Safety and Environmental Enforcement (BSEE), which already requires them as a part of SEMS, is proposing to require that all offshore workers be trained on SEMS annually. The updated SEMS rules are also expected to require that Stop Work Authority be a part of the JSA process. That proposal is going through its final review by the White House right now, meaning whether it is out in 30 days or 3 months, it is on its way. JSAs are a big subject on land as well because oil and gas companies require them for most well site jobs and they are telling us they are not happy with the quality of JSAs they are seeing.

At PEC, we developed a new JSA class to help industry meet the new BSEE training requirements, as well as the concerns of landside operators. Our goal was to create a JSA class that would be taught by one of our 1,700 PEC instructors authorized to teach SafeGulf of SafeLandUSA nationwide. In researching JSAs, we learned a couple of interesting things. First, the reason companies do JSAs has changed over the years. Second, the problem may not be that workers are untrained on how to do a JSA; it may be that they don't know why they should do a JSA.

For anyone who is not already familiar with JSAs, they are an organized way of analyzing a specific job, determining any hazard that job may present and deciding how to control those hazards. Typically a crew breaks the job down into steps, figures out what could go wrong to hurt someone and then agrees on safety measures to protect everyone on the job. In the PEC training course, we call that the JSA Triangle.

In the oil patch, we use JSAs as a way to give crews ownership of their own safety. Workers who have had to focus on how they do the job and how to protect themselves from incidents are more likely to go home unhurt at the end of the hitch. For that reason, a lot of oil and gas companies require that crews write out their JSAs by hand to make sure they have taken a direct role in addressing the hazards of that particular job.

What we found in our research is that the JSA process didn't start out like that. The concept of breaking tasks down into steps dates back to the assembly lines of the 1920's and then it was a way to figure out how many workers to hire per shift. In the 1930s, engineers started looking at the task step process as a way to improve safety, but it was still a tool that management used to design the assembly line to make it safer. It would be many, many years before industry really paid much attention to what workers thought about their own safety. The big leap forward in job task analysis came in World War II when it was used to help Rosie the Riveter and the other hundreds of thousands of inexperienced factory workers learn their jobs quickly. All of those are valuable uses, but none of them quite fits with today's efforts to empower individual workers to manage their own safety, which is one of the fundamental goals of JSAs in our industry.

We also found was that if the goal is to involve crews in making sure they go home unhurt, a lot of workers aren't getting the message. On online forums, oilfield workers are open in considering JSAs as unnecessary paper work, done to satisfy management back at the home office, not to keep them safe.

Two comments posted online were particularly telling:

"During the safety meeting, we sign about 30 JSAs and (do) not go over…one of them""Do a verbal (JSA), open the book to the correct JSA for the job and leave it there (so) if anyone shows up and asks, I tell them 'it's right there.'"

Interviews with operators and contractors confirm that many workers simply do not see the connection between their safety and doing JSAs properly.

They should. Accident investigations show a direct connection between the way a crew prepares and follows JSAs and incidents. Here are three examples from our research:

July 18, 2006 – Guidepost under pressure breaks, killing floorman; Procedure never discussed in JSA meeting. – MMS investigation of fatal accident V-door guide post failure Chandeleur Block 31, Well No. 1January 19, 2008 – Worker repairing emergency shutdown device swept by wave and drowned; no JSA done because job considered "routine." – MMS investigation of fatal accident North Padre Island Block 969, Platform JAApril 13, 2012- Offshore roustabout falls through well-access opening on deck during decommissioning project; No written JSA and not everyone attended JSA meeting. - Bureau of Safety and Environmental Enforcement Gulf of Mexico OCS Region Safety Alert No. 301

At PEC, we think the lesson here is that training on JSAs is necessary and the requirements coming from the government and individual operators will help our industry improve on its safety record. However, that training has to go beyond rote learning courses that just ask workers to memorize the three elements of a JSA. It needs to focus on why we do JSAs, how to identify hazards correctly and when to stop the job if the JSA is not being followed. Above all, at PEC we try to teach students that, if done correctly, a JSA is the way to make sure everyone understands his or her job and everyone will finish the job safe and sound.

Ken Wells is Director of Special Projects for PEC and can be reached at Ken@pecsafety.com.

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Exillon Well Ahead of Growth Target for 2P Reserves

Onshore Russia-focused junior Exillon Energy reported an update Friday in which the firm highlighted that it was well ahead target when it comes to both production and reserves.

In the statement, Exillon CEO Mark Martin said:

"The three components of our growth strategy are to increase our production, EBITDA and reserves. Our production during 2012 grew by 45 percent, our EBITDA by 137 percent and our 2P reserves by 96 percent.

"Our target was to double our 2P reserves within three years. We have done this in one year."

Exillon reported that its total proved (1P) reserves increased by 56 percent in 2012 to 196 million barrels, while its proved plus probable (2P) reserves almost doubled to 520 million barrels from 265 million barrels at the end of 2011.

At Exillon's ETP II-III field at Timan-Pechora in northern Russia, 2P reserves increased by 110 percent to 107 million barrels. At the firm's EWS I field in Western Siberia, 2P reserves increased 75 percent to 180 million barrels.

Recent acquisitions by Exillon in Timan-Pechora added seven million barrels of 2P reserves, although they also added 95 million barrels of 3P reserves, said the firm.

Exillon said that it plans to drill 24 wells this year, which represents a 50-percent increase on the firm's 2012 drilling activity.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Job Safety Analysis - Meeting New Requirements for Training

The right way to do a Job Safety Analysis or JSA is a hot topic in the oil patch right now. The Bureau of Safety and Environmental Enforcement (BSEE), which already requires them as a part of SEMS, is proposing to require that all offshore workers be trained on SEMS annually. The updated SEMS rules are also expected to require that Stop Work Authority be a part of the JSA process. That proposal is going through its final review by the White House right now, meaning whether it is out in 30 days or 3 months, it is on its way. JSAs are a big subject on land as well because oil and gas companies require them for most well site jobs and they are telling us they are not happy with the quality of JSAs they are seeing.

At PEC, we developed a new JSA class to help industry meet the new BSEE training requirements, as well as the concerns of landside operators. Our goal was to create a JSA class that would be taught by one of our 1,700 PEC instructors authorized to teach SafeGulf of SafeLandUSA nationwide. In researching JSAs, we learned a couple of interesting things. First, the reason companies do JSAs has changed over the years. Second, the problem may not be that workers are untrained on how to do a JSA; it may be that they don't know why they should do a JSA.

For anyone who is not already familiar with JSAs, they are an organized way of analyzing a specific job, determining any hazard that job may present and deciding how to control those hazards. Typically a crew breaks the job down into steps, figures out what could go wrong to hurt someone and then agrees on safety measures to protect everyone on the job. In the PEC training course, we call that the JSA Triangle.

In the oil patch, we use JSAs as a way to give crews ownership of their own safety. Workers who have had to focus on how they do the job and how to protect themselves from incidents are more likely to go home unhurt at the end of the hitch. For that reason, a lot of oil and gas companies require that crews write out their JSAs by hand to make sure they have taken a direct role in addressing the hazards of that particular job.

What we found in our research is that the JSA process didn't start out like that. The concept of breaking tasks down into steps dates back to the assembly lines of the 1920's and then it was a way to figure out how many workers to hire per shift. In the 1930s, engineers started looking at the task step process as a way to improve safety, but it was still a tool that management used to design the assembly line to make it safer. It would be many, many years before industry really paid much attention to what workers thought about their own safety. The big leap forward in job task analysis came in World War II when it was used to help Rosie the Riveter and the other hundreds of thousands of inexperienced factory workers learn their jobs quickly. All of those are valuable uses, but none of them quite fits with today's efforts to empower individual workers to manage their own safety, which is one of the fundamental goals of JSAs in our industry.

We also found was that if the goal is to involve crews in making sure they go home unhurt, a lot of workers aren't getting the message. On online forums, oilfield workers are open in considering JSAs as unnecessary paper work, done to satisfy management back at the home office, not to keep them safe.

Two comments posted online were particularly telling:

"During the safety meeting, we sign about 30 JSAs and (do) not go over…one of them""Do a verbal (JSA), open the book to the correct JSA for the job and leave it there (so) if anyone shows up and asks, I tell them 'it's right there.'"

Interviews with operators and contractors confirm that many workers simply do not see the connection between their safety and doing JSAs properly.

They should. Accident investigations show a direct connection between the way a crew prepares and follows JSAs and incidents. Here are three examples from our research:

July 18, 2006 – Guidepost under pressure breaks, killing floorman; Procedure never discussed in JSA meeting. – MMS investigation of fatal accident V-door guide post failure Chandeleur Block 31, Well No. 1January 19, 2008 – Worker repairing emergency shutdown device swept by wave and drowned; no JSA done because job considered "routine." – MMS investigation of fatal accident North Padre Island Block 969, Platform JAApril 13, 2012- Offshore roustabout falls through well-access opening on deck during decommissioning project; No written JSA and not everyone attended JSA meeting. - Bureau of Safety and Environmental Enforcement Gulf of Mexico OCS Region Safety Alert No. 301

At PEC, we think the lesson here is that training on JSAs is necessary and the requirements coming from the government and individual operators will help our industry improve on its safety record. However, that training has to go beyond rote learning courses that just ask workers to memorize the three elements of a JSA. It needs to focus on why we do JSAs, how to identify hazards correctly and when to stop the job if the JSA is not being followed. Above all, at PEC we try to teach students that, if done correctly, a JSA is the way to make sure everyone understands his or her job and everyone will finish the job safe and sound.

Ken Wells is Director of Special Projects for PEC and can be reached at Ken@pecsafety.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Lundin Reports Dry Well in North Sea

Sweden's Lundin Petroleum reported Friday that its wildcat well 16/1-17, targeting the Jorvik prospect in the North Sea, has come up dry.

The well, located approximately 3 miles east of well 16/1-8 (the Edvard Grieg discovery well), was drilled with the objective of proving petroleum in Pre-Jurassic sandstone and conglomerate rocks.

Liquid samples acquired from the well did show mobile oil in a dense reservoir section. But despite core samples taken from this section that showed oil, Lundin said it has not been possible to establish an oil gradient and the well has been classified as dry.

Lundin, as operator, has a 50-percent working interest in production license PL338, where the Jorvik target is located. Partners include Wintershall Norge, with a 30-percent interest, and OMV, which has a 20-percent interest.

Well 16/1-17 was drilled by the Transocean Winner (DW semisub) rig, which will now proceed to production license 036 D where Marathon Oil Norge is the operator.

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Crude-Oil Futures Settle 42 Cents Higher

Crude-oil futures prices settled at a three-week high Friday amid mixed signals on a sustained economic recovery in the world's biggest oil consumer.

U.S. benchmark crude mustered a modest gain, but ended well below the high of the trading session as market participants weighed fresh data. The Federal Reserve said U.S. industrial production rose 0.7% in February, exceeding economists' forecasts and eclipsing concerns over a sharp drop in consumer confidence and a rise in consumer prices.

The Thomson-Reuters/University of Michigan consumer sentiment index fell to 71.8 in mid-March, its lowest level since December 2011 and down from 77.6 in February. Economists have expected the reading to move up to 78. Also Friday, the Labor Department said the consumer price index in February rose 0.7%, the biggest gain since June 2009, led by higher gasoline prices.

"We are seeing some strong signs, but whether they are strong enough is still up in the air," said Gene McGillian, analyst and broker at Tradition Energy. He noted that oil prices have recovered from two-month lows below $90 a barrel hit early this month, but said it's unclear whether economic and oil-market fundamentals can sustain a further rally.

Light, sweet crude oil for April delivery on the New York Mercantile Exchange settled 42 cents higher, at $93.45 a barrel. That's the highest price since Feb. 20, but well below the session high of $93.84 a barrel.

ICE North Sea Brent for May delivery, in its first day as the front-month contract, settled 86 cents higher, at $109.82 a barrel. Traders said the contract found buyers after front-month prices hovered near the 200-day moving average price, a key indicator for chart-based trading, near $109.40 a barrel in recent days.

News that Norwegian oil producer Statoil shut its North Sea Oseberg oil field on Thursday after a power outage and gas leak also kept Brent supported. Oseberg is expected to supply 3.6 million barrels of crude during April, and analysts said they will be watching developments for signs of any shortfall. The output snag comes as North Sea flows have recovered from earlier operating problems.

U.S. crude oil gained as market participants ignored lofty crude oil stocks and sluggish oil-demand growth. The latest data from the Energy Information Administration show refinery maintenance has slowed crude oil processing to a two-year low and pushed crude oil inventories to more than 40 million barrels above the five-year average. Inventories of 384 million barrels are sufficient to cover more than 27 days of refiner needs, the highest level in 21 years.

Analysts said investors appear to be taking the view that crude inventories will decline when maintenance ends and refineries ramp up output of gasoline and diesel fuel.

Days before a trip to the Middle East, President Barack Obama said it would take Iran a year or more to build a nuclear weapon, an assessment that sets up a potential area of discord with Israel's leader. The president's timelime is longer than the more urgent one usually cited by Israeli Prime Minister Benjamin Netanyahu. The timeline, the first publicly given by Mr. Obama, appeared to be tamping down any expectations for pre-emptive action against Iran while aiming to assure its closest Mideast ally of U.S. support.

Iran had been the second-biggest oil producer in the Organization of the Petroleum Exporting Countries, but international sanctions over its nuclear program have cut flows to their lowest level in 30 years.

April-delivery reformulated gasoline futures settled up 2.25 cents at $3.1638 a gallon after falling 1.9% in the prior four days. April heating oil settled up 0.95 cent at $2.939 a gallon.

Copyright (c) 2012 Dow Jones & Company, Inc.

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DOI: BP Can Bid for US Gulf Oil Leases Despite Suspension

Deepwater Horizon Gulf of Mexico Oil Spill

BP PLC can bid in Wednesday's Gulf of Mexico oil lease sale but won't be granted a contract if a suspension from obtaining new contracts with the federal government is still in force at the time of the award, the U.S. Department of the Interior said.

The notice from the U.S. DoI Thursday highlights how slow BP's recovery has been from the devastating April 2010 Deepwater Horizon accident in the Gulf of Mexico, that resulted in the worst offshore oil spill in the U.S. It also comes as BP is still contesting potentially billions of dollars in civil fines in a court in New Orleans.

BP is one of the biggest producers of oil and gas in the Gulf and one of its most active prospectors. BP sees the Gulf as one of the main drivers of medium- and long-term growth for the company.

In November, the U.S. government's Obama-led administration imposed the temporary ban on BP obtaining new contracts with the government, including oil-drilling leases, citing a "lack of business integrity" that resulted in the 2010 oil spill.

If the suspension has been lifted and the DoI determines that BP is the highest bidder then it will be awarded the lease. If the suspension hasn't been revoked and BP is the highest bidder, it will be disqualified from that position and the next highest bidder will become the highest qualified bidder, the DoI said.

BP declined to comment on whether it would be submitting a bid in the upcoming Gulf round. The bids are opened on March 20; this is followed by an evaluation period which lasts 90 days before the winners are announced. A BP spokesman also declined to comment on what progress was being made to get the ban lifted.

In February, BP Chief Executive Bob Dudley said the company may decide not to bid for oil drilling leases in this March round as the company already holds a large number of contracts in the U.S. Gulf.

"We didn't, as a matter of course, bid on the last round of leases in the Gulf and may not in the next one. We have such a large position in the Gulf of Mexico that it's questionable how much we want to add to that," Mr. Dudley said in February.

The ban doesn't impact current operations and BP continues to receive the permits it requires to drill in the Gulf, where it already has around 700 licenses, Mr. Dudley said.

Since the 2010 Deepwater Horizon disaster, BP continues to incur huge costs from the spill. To date, BP has spent over $24 billion in response, cleanup and restoration costs and in payments of compensation claims made by individuals, businesses and governments.

Copyright (c) 2012 Dow Jones & Company, Inc.

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