Global Renewables Market Employed 11m In 2018

Eleven million people were employed in renewable energy worldwide in 2018 according to the latest analysis by the International Renewable Energy Agency (IRENA). This compares with 10.3 million in 2017 As more and more countries manufacture, trade and install renewable energy technologies, the latest Renewable Energy and Jobs Annual Review finds that renewables jobs grew to their highest level despite slower growth in key renewable energy markets including China. The diversification of the renewable energy supply chain is changing the sector’s geographic footprint. Until now, renewable energy industries have remained relatively concentrated in a handful of major markets, such as China, the United States and the European Union. Increasingly, however, East and Southeast Asian countries have emerged alongside China as key exporters of solar photovoltaic (PV) panels. Countries including Malaysia, Thailand and Vietnam were responsible for a greater share of growth in renewables jobs last year, which allowed Asia to maintain a 60% share of renewable energy jobs worldwide. “Beyond climate goals, governments are prioritising renewables as a driver of low-carbon economic growth in recognition of the numerous employment opportunities created by the transition to renewables,” said Francesco La Camera, Director-General of IRENA. La Camera added: “Renewables deliver on all main pillars of sustainable development – environmental, economic and social. As the global energy transformation gains momentum, this employment dimension reinforces the social aspect of sustainable development and provides yet another reason for countries to commit to renewables.” Solar photovoltaic (PV) and wind remain the most dynamic of all renewable energy industries. Accounting for one-third of the total renewable energy workflow, solar PV retains the top spot in 2018, ahead of liquid biofuels, hydropower, and wind power. Geographically, Asia hosts over three million PV jobs, nearly nine-tenths of the global total. Most of the wind industry’s activity still occurs on land and is responsible for the bulk of the sector’s 1.2 million jobs. China alone accounts for 44 per cent of global wind employment, followed by Germany and the United States. Offshore wind could be an especially attractive option for leveraging domestic capacity and exploiting synergies with the oil and gas industry. Source: Esi-Africa.com    

Global Renewables Market Employed 11m In 2018

Eleven million people were employed in renewable energy worldwide in 2018 according to the latest analysis by the International Renewable Energy Agency (IRENA). This compares with 10.3 million in 2017[1]. As more and more countries manufacture, trade and install renewable energy technologies, the latest Renewable Energy and Jobs – Annual Review finds that renewables jobs grew to their highest level despite slower growth in key renewable energy markets including China. The diversification of the renewable energy supply chain is changing the sector’s geographic footprint. Until now, renewable energy industries have remained relatively concentrated in a handful of major markets, such as China, the United States and the European Union. Increasingly, however, East and Southeast Asian countries have emerged alongside China as key exporters of solar photovoltaic (PV) panels. Countries including Malaysia, Thailand and Vietnam were responsible for a greater share of growth in renewables jobs last year, which allowed Asia to maintain a 60% share of renewable energy jobs worldwide. “Beyond climate goals, governments are prioritising renewables as a driver of low-carbon economic growth in recognition of the numerous employment opportunities created by the transition to renewables,” said Francesco La Camera, Director-General of IRENA. La Camera added: “Renewables deliver on all main pillars of sustainable development – environmental, economic and social. As the global energy transformation gains momentum, this employment dimension reinforces the social aspect of sustainable development and provides yet another reason for countries to commit to renewables.” Solar photovoltaic (PV) and wind remain the most dynamic of all renewable energy industries. Accounting for one-third of the total renewable energy workflow, solar PV retains the top spot in 2018, ahead of liquid biofuels, hydropower, and wind power. Geographically, Asia hosts over three million PV jobs, nearly nine-tenths of the global total. Most of the wind industry’s activity still occurs on land and is responsible for the bulk of the sector’s 1.2 million jobs. China alone accounts for 44 per cent of global wind employment, followed by Germany and the United States. Offshore wind could be an especially attractive option for leveraging domestic capacity and exploiting synergies with the oil and gas industry. Source: Esi-Africa.com

Ghana Makes Maiden Appearance At Global Petroleum Show In Canada

West African nation, Ghana, has made its first appearance at the North America’s leading energy event, the Global Petroleum Show (GPS) in Calgary, Canada. The three-day event which is began on Tuesday and ended Thursday, attracted over 50,000 upstream petroleum professionals provided a platform for Petroleum Commission, Ghana’s Upstream Petroleum Regulator to pitch to prospective investors about opportunities that exist in the nation’s upstream petroleum industry. In partnership with the Canada Ghana Chamber of Commerce, the Commission led over 20 Ghanaian companies to explore opportunities and secure the right partnerships with their international counterparts.The Ghanaian Delegation which was led by the CEO of Petroleum Commission, Egbert Faibille Jnr included Head of Gov’t Relations at the Ministry of Energy, Patricia Asaam; Western Regional Minister, Kwabena Okyere Darko; Director, Local Content at the Commission, Kwaku Boateng; and Ghana’s High Commissioner to Canada, Joseph Ayikoi Otoo. Egbert Faibille and the team made a strong case to participants at the GPS to consider Ghana as the ultimate destination for upstream petroleum activities. Several investment opportunities such as farm-in, subsea inspection services, supporting government to develop Western Region as an upstream petroleum hub, revamping Tema Shipyard to support the petroleum industry among others were highlighted at the conference. Although Canada’s industry is currently facing a downturn, the delegation is determined to present Ghana as the preferred destination for Canadian companies seeking to explore alternative regions/areas for their oil and gas activities. The three-day GPS event which ends on Thursday 13th June 2019 is expected to provide participants with a better outlook of Ghana’s upstream petroleum industry.  

Exxon-Sabic Texas Project To Create Nearly 7,000 Jobs

Exxon Mobil Corp. and Saudi Basic Industries Corp. (SABIC) will proceed with construction of a 1.8-million-metric-ton ethane steam cracker complex near Corpus Christi, Texas, that will create more than 6,600 jobs, ExxonMobil reported Thursday. “Building the world’s largest steam cracker, with state-of-the-art technology, on the doorstep of rapidly growing Permian production gives this project significant scale and feedstock advantages,” ExxonMobil Chairman and CEO Darren W. Woods said in a written statement copied to the media. “It is one of several key projects that provide the foundation for significantly increasing the company’s earnings potential.” The project won necessary permits Wednesday from the Texas Commission on Environmental Quality. ExxonMobil and SABIC’s Gulf Coast Growth Ventures (GCGV) joint venture will build the ethane cracker in San Patricio County north of Corpus Christi.  According to the GCGV website, the ethane cracker will supply ethylene to three derivate units: a monoethylene glycol (MEG) unit and two polyethylene (PE) units. The JV expects construction to start during the third quarter of this year, with startup projected for 2022. “SABIC is very pleased to move forward on this third joint venture with ExxonMobil – the first to be operated outside of Saudi Arabia,” Yousef Al-Benyan, SABIC vice chairman and CEO, stated. “This project will not only increase global diversification for our company, but will also continue to create value within our new home of San Patricio County, through creating jobs and supporting economic growth. With this project, we look forward to further building our business presence in the U.S. and serving the communities and customers in the North and South American markets even more effectively.” ExxonMobil stated the project should create 6,000 jobs during the construction phase. In addition, the supermajor noted the facility will require more than 600 permanent jobs, paying $90,000 per year on average, during operations. Four primary engineering, procurement and construction firms – The Wood Group, McDermott & Turner Industries Group, Chiyoda & Kiewit and Mitsubishi Heavy Industries & Zachry Group – will lead project construction. The San Patricio County project is part of ExxonMobil’s broader “Growing the Gulf” series of investments in Texas and Louisiana.” Source: rigzone.com    

Police To Remove Greenpeace Activists Protesting On North Sea Rig

Activists from the environmental group Greenpeace are still occupying a Transocean rig in Scotland, which was contracted by BP for drilling operations in the UK North Sea. Scotland police are beginning attempts to remove the activists occupying the rig and a police helicopter is above the site.  Two Greenpeace activists boarded the Paul B. Loyd, Jr. rig last Sunday just as the rig was set to leave the Cromarty Firth. The action is part of the group’s efforts to stop BP’s drilling plans offshore Scotland. A couple of days later, Greenpeace was served with an injunction order. Greenpeace UK said via its social media accounts on Tuesday that the injunction was served to stop the protest on the Transocean-owned Paul B. Lloyd, Jr. rig. This announcement came shortly after Greenpeace stated that its activists were still on the rig and that they brought in fresh supplies along with new climbers. In a statement on Thursday Greenpeace said that the rig workers had informed the activist that the rig would be lowered 20 meters into the sea to allow the police access by boat. One Greenpeace activist is now in a portaledge attached to the anchor chain in an attempt to thwart the removal efforts. Greenpeace is demanding that “BP immediately end drilling new wells and switch to only investing in renewable energy.” If BP does not do that, Greenpeace says, it should wind down its operations, return cash to investors and go out of business. Rosie Rogers, Senior Climate Campaigner at Greenpeace UK, said: “We are determined to resist removal as long as BP remains determined to drill for oil. BP’s plans are completely and unacceptably at odds with the climate emergency we are facing. If they put half as much effort into investing in renewables as they appear to be putting into removing us from their rig, the world would be looking like a much better place right now.” Furthermore, BBC reported on Thursday that the first two climbers had appeared in court as they were charged with disorderly conduct by scaling the rig in the Cromarty Firth. BBC further reported that the activists were released on bail but under special conditions. Namely, they were ordered to leave Scotland and not attempt to enter the waters of the Cromarty Firth. Greenpeace vowed to stay on the rig “until BP halt their dangerous plans to drill for oil off the coast of Scotland.” At the time of writing this article, Greenpeace’s activists have been on the rig for more than 90 hours. As a response to Greenpeace’s protest on the rig, BP on Monday said: “While we recognize the right for peaceful protest, the actions of this group are irresponsible and may put themselves and others unnecessarily at risk. “We are working with Transocean—the rig’s owner and operator—and the authorities to assess the situation and resolve it peacefully and safely.” In addition, BP said: “We share the protestors’ concerns about the climate. We support the Paris agreement. And we are working every day to advance the world’s transition to a low carbon future.” Following the statement on Monday, BP has not issued any further statements regarding the protest.   Source: offshoreenergytoday.com

Ghana: Fuel Stations Caught Cheating Unsurprising – COPEC

Duncan Amoah, Executive Secretary of COPEC   The Chamber of Petroleum Consumers (COPEC), has said that the Ghana Standards Authority’s revelation that some 10 fuel stations in Accra were shortchanging motorists comes as no surprise to them. The Executive Secretary for COPEC, Duncan Amoah in an interview said the companies must be severely sanctioned to ensure an end to the practice. The Standards Authority on Wednesday after unannounced visits to 65 fuel stations found that 10 of them including top dealers such as Goil, Total and Shell have been allegedly cheating consumers by serving them less fuel. “It is disappointing though but not shocking…We know that some fines had been applied but it looks like the fines have not been deterrent enough to stop these recalcitrant OMCs who decide to just adjust their pump to cheat consumers. So we are asking that the fines be made heavy and deterrent enough so that if you catch a station having adjusted their pumps and cheating consumers, maybe you should give the whole day or the whole week for the same people who bought fuel and were cheated to go back there and fill their tanks for free because this GH¢ 5,000 is woefully inadequate to stop these OMCs from this sort of practice,” he said. The fuel stations found to be cheating by the Ghana Standards Authority are Shell station at the Motorway Extension; Total at McCarthyHill in Accra; GOIL at Mile 11; Frimps Oil at Tetegu junction; GOIL at Galilea; and Frimps Oil on Spintex Road. The rest are Glory Oil on the Spintex Road; Allied Oil at Sakaman; Shell at Amanfrom West and Goodness Energy at Kasoa. Two other companies, Galaxy Oil, Spintex Road and Agapet, Spintex Road were found to have broken the GSA seal without permission. A statement issued by the GSA on Wednesday said the routine checks are part of the Authority’s mandate to enforce the provisions of the Weights and Measures Act 1975, NRCD 326. It said the exercise was mainly to verify the accuracy of fuel dispensing pumps used by fuel dealers as well as inspect and record if the fuel stations have the 10 L visugauges. Also, the exercise was carried out to inspect and ensure that GSA plastic seals on dispensing pumps are not tampered with and to lock the nozzles of dispensing pumps that are under-delivering, as well as to issue out notices of failure if the pumps failed the test for a penalty. Source: citinewsroom.com      

Shell Sells California Refinery For $1 Billion

Shell has struck a deal with refiner PBF Energy to sell it its refinery in Martinez, California, for up to US$1 billion, depending on the closing date, the buyer said in a press release, adding that the acquisition will boost its total throughput capacity to more than 1 million bpd. The Martinez refinery has a capacity of 157,000 bpd. Shell has been trying to sell it for several years, Reuters notes in a report on the news. The supermajor will now fund the turnaround costs for the facility for the first quarter of 2020, estimated at US$70 million, as well as another US$40 million in downtime compensation if the deal does not get finalized by the end of the first quarter of 2020. Shell first tried to sell the Martinez refinery in 2015, at the height of the latest oil price crisis, so it was no wonder it failed to find any buyers quickly. Now M&A conditions have improved significantly as evidenced by the pickup of mergers and acquisitions in the industry, with the highlight of course being Occidental’s acquisition of Anadarko. For PBF Energy, the deal fits with plans for its California refining expansion. The company already has one refinery in the state, in Torrance, which has a capacity of 160,000 bpd. “They wanted the two refinery systems, especially considering that when Torrance goes down they just have that one refinery and they don’t make anything back,” an analyst with Tudor, Pickering, Holt & Co. told Reuters. This seems to be particularly important ahead of the entry into effect of new International Maritime Organization emissions rules. The acquisition, PBF said, will strengthen its position among producers of new-rule compliant fuels. This is an important step for the refiner as the industry is struggling to make refineries compliant with the new, lower-sulfur fuel requirements that will enter into effect next January. Source: Oilprice.com        

Alex Mould Speaks On Why Ghana Is Richer In Natural Resources Yet Poorer

The West African nation, Ghana, is one of the nations in the world endowed with natural resources which could make its citizens richer and be among the category of developed nations like Malaysia, Singapore, Turkey, Brazil among others, yet the story is differently told since the extraction of the resources started. Ghana, for centuries, has been extracting natural resources commonly gold, diamond, bauxite and salt. The recent addition is oil and gas which others call ‘black gold’. Ghana has been extracting oil and gas for almost 12 years now, yet no significant development or improvement has been seen, while other nations have been prosperous and developed with just a single or two natural resource(s) like Malaysia and Brazil. This phenomenon has aggravated many concerned energy experts, developmental economists and ordinary citizens to put pressure on governments and public office holders. The Institute of Economic Affairs (IEA), Ghana, recently published an article titled: ‘Why is Ghana so poor yet rich underneath the soil?’ In the article, they sought to raise very critical issues that need government’s attention and profiled solution on how to maximize our gains from the oil and gas industry. However, Alex Mould, an Energy and Financial expert, has provided much insight into the economics of the upstream oil and gas industry and why Ghana could not fetch more of the proceeds from the oil and gas production. The former Chief Executive of Ghana National Petroleum Corporation (GNPC) argued that, for anyone to call on the Government of Ghana, which is holding all natural resources in the country in trust on behalf of Ghanaians, to ask for more proceeds or stake from the operators and partners of the oilfields, “one needs to appreciate and understand the economics of oil and gas exploration.” He expanded his argument on the note that, to attract any investor into the industry, Ghana and the international oil companies (IOCs) need to agree on a rate of return that commensurates with the risk and which compares to similar projects around the world, for which ‘these investor funds’ are chasing, that is, alternate investments. “We need to be able to agree on the acceptable cost of development, how it is ammortized over a specified period and the annual Operations and Maintenance (O&M) costs. We need to, then, agree on a rate of return and how windfalls are shared, how and when these windfalls are reviewed.” IEA’s article referenced a comment by Professor Paul Collier, the Director of the Center for the Study of African Economies at Oxford University, and at a recent lecture, he stated that, the total cost of recovering a barrel of oil from the ground is about US$10. This includes exploration and other costs. The former Director of Research at the World Bank, former Senior Advisor to Prime Minister Tony Blair on the Africa Commission, Prof. Collier, advised that “the only way poor African countries can turn their oil reserves into prosperity and to develop first-class countries is by collecting the super profits called rents (US$65 – US$10 = US$55 per barrel), investing the rents into the future of their countries instead of allowing ‘foreign investors’ to keep it.” Apparently, Mr Mould held a different view to the assertion by Prof. Collier. He explained that, the US$10 cost is an exaggeration and a simplification which may be related to the operational cost, but “definitely not the complete cost especially in the first 5 years of the project. “Jubilee, which is a world class field, had a development cost of about US$12 a barrel and O&M cost of also about US$12, especially in the first 5 years (the recovery of the development cost was spread over 5 years), thus, making total cost was of about US$24/barrel for the first 5 to 6 years at least,” the Energy expert argued. Additionally, the former GNPC boss said, each year thereafter, there is continuous drilling to sustain production. “Most production profiles fall after 5-10 years. Take, for example, the Eni-operated SGN fields. The production drops from 30,000 to 40,000barrels/day from inception to about 10,000barrels/day after 5 years. “That is why the economics is on the gas predominantly which remains at 170mmSCF over 20 years.” In summing his argument, Mr Mould noted that “you will need the production profile and the development /exploration costs, as well as the annual O&M costs plus the incremental annual development cost over the life of the project, to be able to know the split between government and Partners in Contractor group. “In Ghana, over the life of the field, we approximate almost a 55/45% share respectively.”  

Egypt To Launch Licensing Round In September 2019

Egypt’s Ministry of Petroleum and Mineral Resources plans to launch a new bid round in Q3 for natural gas exploration in the western Mediterranean region, according to an Al Ahram report. The Ministry pointed out to the importance of the seismic survey projects carried out by Egypt in the western Mediterranean and the Red Sea, which opened new horizons for oil companies to explore for gas in these two regions.

Ghana: Price Of Domestic Gas Will Drop Soon – Amin Adam

Ghana’s Deputy Minister for Energy in charge of Petroleum, Dr. Mohammed Amin Adam says the price of domestic gas will soon drop on the markets. According to him, the government is recalibrating domestic gas prices to be able to achieve the target. The decision to recalibrate follows various complaints from businesses about the high cost of the commodity which makes it difficult for their businesses to thrive. While delivering his keynote address at the Ghana mining and Energy Summit in Accra, Dr. Amin Adam said gas prices will be reduced soon. “We are also recalibrating domestic gas prices. We are doing all this because we know that cheaper sources of power are essential for the growth of our economy; essential for your operation as mining companies and essential if we have to accelerate the development of our country for the benefit of our people,” he said. He further assured that the era of the constant power outage is over with various government interventions in place. “We are aware as a government that many business groups have expressed concern about the dumsor matter and we know that in the past, the mining sector faced difficulties mainly from the energy crisis. I want to assure you that as partners in development, the government promises to work assiduously by ensuring that all businesses are safeguarded and not disrupted by energy challenges. We are facing the challenge head-on; Dumsor is a thing of the past,” he added.  Source: citinewsroom.com        

Nigeria: Ikeja Electric Vows To Fulfil Regulator’s Directive

Electricity distributor, Ikeja Electric plans to install approximately 100,000 pre-paid meters under the latest Meter Asset Providers (MAP) initiative. According to The Guardian, the roll out will be implemented from 17 June, covering the Ikorodu business unit. This move is in accordance with a directive from the Nigerian Electricity Regulatory Commission (NERC) to bridge the lingering metering gap, which affects the billing system. To execute the programme, Ikeja Electric has forged a partnership with a meter asset provider, New Hampshire Capital Limited, which will facilitate the provision of the meters to cover three business units including Ikorodu, Abule Egba and Shomolu. Speaking at the launch, Ikeja Electric’s Acting Chief Commercial Officer, Ugo Obichukwu noted that currently over 400,000 of their customers are unmetered. This fact according to Obichukwu, is the reason why the company seeks to cover between 70 to 100,000 customers for phase one of the MAP implementation. He said: “We believe we can meter about 20,000 customers in a month provided we have all our MAPs in place.” Obichukwu further stated that the company has resorted to an online portal for registration platform to ensure efficiency and so far about 14,000 customers have visited the portal with about 5,000 registering for the first step of registration, know your customer (KYC). The power distributor advised customers to take advantage of the various repayment options available on the KYC process, underlining that outstanding balance can be rolled over into the customer’s prepaid account and paid in instalments. Meters procured at different prices The Guardian has gathered that some customers under the Ikeja Electric network have procured meters at different prices. However, Obichukwu refuted the claims that his company has been slow in its implementation of the scheme when compared to other distribution companies. “We have meters already in store. When you sign contract with MAPs, they also source meters either locally or abroad to meet demands, but we are sure to meet our roll out plans,” he added. Meanwhile, chief executive director of New Hampshire Capital limited, Odion Omonfoman noted that their mandate is to finance and provide meters for customers as third party operators as directed by NERC. Omonfoman said their 10-year contract with the power distributor commences with the provision of about 276,000 meters over the next 20 to 22 months, adding that the firm’s target would be to install about 10,000 meters at the peak of operation when it starts by next week.   Source: Esi-Africa.com            

Ghana: IES Kicks Against IEA’s Proposal For New Oil Contracting Model

An Energy Think Tank in the West African nation, Ghana, Institute of Energy Security (IES), believes a proposal by the Institute of Economic Affairs (IEA) asking the country’s President to adopt a new oil contracting model, in which oil companies are paid for each barrel of oil they recover, is not feasible, given the current situation. Executive Director of IES, Paa Kwasi Anamua Sakyi argued that  Iran, Iraq, Bahrain, Saudi Arabia and Qatar, which IEA cited as countries practicing the proposed model, produce their oil onshore while Ghana’s oil exploration activities are taking place offshore. In his view, onshore exploration is not as expensive as offshore exploration, which is more expensive and riskier than the former. “When it comes to referencing a region’s Petroleum Contracting model to Ghana’s or West Africa’s, for example, one must not lose sight of other parameters. “For instance, Iraq, Iran, Qatar and some of the oil producing countries in the gulf are basically extracting oil and gas from onshore, compared to Ghana where all of the country’s oil is produced offshore. The cost of producing a barrel of oil onshore is far lower than it costs offshore. “Again, the countries in the gulf have been in the business of oil extraction for years compared to Ghana. Their oil fields are matured in kind and are, therefore, de-risked. In Ghana’s case, the oil fields are green and associated with risk for lack of data, and so the possibility of hitting a dry-well is high compared to Qatar and the rest,” he added. In an article titled: “Why Ghana is so poor yet rich underneath the soil‘, the IEA noted that other poor African countries would learn from President Akufo-Addo, if he boldly accepts the new deal, as well as benefit from his example and leadership. “This will be a mighty legacy, second to none! Africans are counting on you, Sir,” it said. Paa Kwasi Anamua Sakyi, IES Boss But commenting on the issue, Paa Kwasi Anamua Sakyi thinks the president should not be in a haste to push for this proposed model. According to him, the fact that these countries have produced oil for years gives them some form of leverage when it comes to contract negotiations for their technical capability. He noted that Ghana is still building capacity when it comes to the business of oil exploration and production. “Aside the technical capacity, the gulf states have their own national oil companies, which have built enough financial muscles to compete with foreign oil companies. This equally offers them some form of advantage when it comes to petroleum contracting.” He underscored the need for Ghanaians or the president to remember that the economies of the mentioned Gulf States are stronger than Ghana’s. The IES boss stated that Iran and others “can afford to postpone the recovery of oil, whereas Ghana will be tempted to compromise when it comes to contracting for the sake of dire need of revenues to address economic challenges.” “We may get to where the IEA is proposing one day. Let’s keep on building GNPC’s capacity, in both financial and technical sense,” he concluded.      

Ghana To Assist Guyana Following Oil & Gas Discoveries

Nana Addo Dankwa Akufo-Addo, President of Ghana   West African nation, Ghana, has made available free technical assistance to the South American country, Guyana, following the latter’s discovery of oil and gas resources offshore. Speaking at a State Luncheon held in his honour, on Tuesday, June 11, as part of his official visit to Guyana, President of Ghana Nana Akufo-Addo indicated that Ghana, following the recent discovery by Aker Energy, can now be considered as a significant player in the oil industry, having also commenced the production of oil in commercial quantities since 2011.    Since 2018, there have been several high impact discoveries of conventional oil and gas in Guyana, with US oil giant, ExxonMobil, in February 2019, making its 11th and 12th discoveries. President David Granger, President of Republic of Guyana The President, therefore, told his Guyanese counterpart, President David Granger that “we should explore promptly the possibility of establishing a joint vehicle to assist in the effective, initial management of oil and gas revenues.”  President Akufo-Addo continued, “With our experiences, I believe Ghana is well-equipped to share with you the dos and don’ts in the area, and make available fee-free, quality technical assistance to you. Hopefully, the proper management of the new revenues will help finance the spectacular development of Guyana.”

Trump Administration Sued Over Offshore Safety Rules Rollback

Ten environmental groups on Tuesday sued the Trump administration over recent changes in the Obama-era offshore safety rules put in place in 2016, in the aftermath of the 2010 Deepwater Horizon disaster in the Gulf of Mexico “[The 2016 Well Control Rule] required drilling operators to implement many of the drilling practices and technology upgrades the Deepwater Horizon panels had determined were necessary to improve safety and avoid a similar disaster. [The Bureau of Safety and Environmental Enforcement (BSEE)] obtained substantial public and industry input, and considered a weighty amount of evidence and scientific studies in evaluating and determining the necessity of each provision in the rule for ensuring safety; in fact, it took BSEE nearly six years to finalize this rule given the substantial amount of information before the agency. BSEE ultimately concluded that the rule would reduce the risks of worker deaths and oil spills, and would provide a net cost benefit to both society and to the oil and gas industry,” the environmental groups said in the complaint to the district court for the Northern District of California. As previously reported, the U.S. Interior Department last month said it was rolling back offshore well control rules in what it said was a push to reduce regulatory burden. The oil and gas industry groups have welcomed the rollback, while the environmental groups feel the move is a “hand out” to oil companies and will jeopardize offshore safety. These rollbacks are a step back to the pre-Deepwater Horizon days when the offshore oil industry largely policed itself to disastrous effect. This attempt to roll the dice with offshore safety not only puts workers and our coasts at risk, but violates the law,” said Chris Eaton, Earthjustice attorney. The Bureau of Safety and Environmental Enforcement (BSEE) early in May released “the final improved Blowout Preventer Systems and Well Control regulations.” BSEE has said that the final revised rule leaves 274 out of the Obama-era 342 original Well Control Rule provisions – approximately 80 percent – unchanged. Sixty-eight provisions were identified as appropriate for revision, and 33 provisions were added to improve operations on the OCS, BSEE said at the time. In their lawsuit on Tuesday, the environment groups alleged that the recent Well Control rule changes by BSEE would be “putting workers’ lives, coastal communities, and the environment at substantial risk,” and would increase the likelihood of offshore drilling accidents and oil spills that harm the health of these ecosystems and species. The plaintiffs have sought a court order declaring the changes to the well control rule unlawful, accusing BSEE of retreating from its own 2016 Well Control Rule without “providing any good reason or rational basis” to do so. In their lawsuit, the plaintiffs singled out as defendants the BSEE, and Scott Angelle, who is sued in an official capacity as Director of BSEE; The Department of Interior, and David Bernhardt, the recently appointed Secretary of the Interior. The plaintiffs have alleged that the BSEE May move weakened or substantially rescinded standards on safe drilling practices, containment equipment requirements, blowout preventer shearing requirements, blowout preventer testing and reliability standards, equipment failure, near-miss reporting, and well cementing standards, “giving industry more leeway to police itself,” and with, the lawsuit reads, sole justification to eliminate “unnecessary burdens on stakeholders.” “BSEE failed in issuing the Partial Repeal final rule to provide any rational justification for the revisions, to acknowledge or explain why it has disregarded its previous factual findings from the 2016 Well Control Rule, or to meaningfully respond to concerns raised by Plaintiffs in comments on the proposed Partial Repeal,” the lawsuit reads. “BSEE had previously found in the 2016 Well Control Rule that each of the provisions now being repealed or revised in the Partial Repeal is an important component of a drilling safety system. BSEE did not explain how repealing these components is consistent with those previous factual findings,” the plaintiffs said, adding:” BSEE asserted in the Partial Repeal that each repeal in the final rule is necessary to reduce undue burdens on industry. E.g., id. at 21,910. BSEE provided no factual support or analysis to support these assertions.” In addition, relaxing safety measures when drilling operations are increasing in new high-pressure, ultra-deepwater environments presents heightened and uncertain risks that BSEE failed to consider, the plaintiffs said. The plaintiffs further said: “The revisions to the safe drilling margin standards, real-time monitoring requirements, surface blowout preventer requirements for floating facilities, and blowout preventer testing interval that BSEE adopted in the Partial Repeal final rule are not logical outgrowths of the vague statements and requests for suggestions in the proposed Partial Repeal. BSEE’s inaccurate assumptions regarding the risks of blowouts, losses of well control, and oil spills caused it to irrationally underestimate the environmental impacts of the Partial Repeal.” In their lawsuit, the environmental organizations have asked that the court, among other things, declares BSEE’s final Well Control Rule as “arbitrary and capricious, an abuse of discretion, and not in accordance with law in violation of the APA, NEPA, and OCSLA,” and to vacate the BSEE’s Partial Repeal final rule. The lawsuit was filed by a coalition of the following organizations: Earthjustice, Sierra Club, Natural Resources Defense Council, and Southern Environmental Law Center on behalf of Sierra Club, Natural Resources Defense Council, Healthy Gulf, Center for Biological Diversity, Defenders of Wildlife, Friends of the Earth, North Carolina Coastal Federation, and South Carolina Coastal Conservation League. Source: offshoreenergytoday.com