Pipeline corrosion is a challenging issue for oilfield operators. Growing global energy demand coupled with the relentless depletion of onshore and shallow water resources has driven the push towards the exploration of deepwater and unconventional fields. In many of these areas, sour gas is evident, a condition complicated by high-pressure, high-temperature (HPHT) environments which places severe demands on the corrosion resistance of infrastructure and equipment. Various methods to combat corrosion are utilized within the industry principally corrosion inhibitors and materials selection.

The use of well-planned and structured inspection, maintenance and repair regimes together with robust chemicals management can mitigate much of the impact of corrosive hydrocarbons. However, regulatory and environmental concerns have seen the replacement of some chemical preventative methods to those that are less toxic or perceived as less threatening to the environment.

A critical factor in the choice of preventative methods is that of Capex vs Opex. Chemical inhibitors are Opex intensive requiring frequent maintenance regimes. By contrast, assets with a longer design life may benefit from the use of CRA's (Corrosion Resistant Alloys) which reduce ongoing costs but substantially increasing initial Capex. DW's analysis of the CRA market indicates a growing adoption across upstream and downstream applications with overall spend increasing from $2.5bn in 2010 to $4bn in 2014.

As operators become more involved in corrosion prevention decisions, they face a number of challenges in juggling cost control and problems arising from corrosion. For the future, it seems larger Operators will assume a risk-averse stance on these matters. Adopting a long-term view on corrosion prevention will likely lead to increased utilization of Corrosion Resistant Alloys to reduce overall project costs.

www.douglas-westwood.com

SeaRobotics Corp. announces that Scott Olson has been hired as a Project Engineer in the company's Stuart Florida office.

Olson joins SeaRobotics after serving as chief engineer for Chariot Robotics. He is a project and systems engineer with over 28 years of experience in ocean engineering, project management and marine operations including the design, operation, fabrication and maintenance of marine systems for oil & gas, salvage and scientific applications. He is qualified as a pilot of both manned and un-manned underwater vehicles.

Previously Mr. Olson served as a Project Engineer at Perry Slingsby Systems, an underwater vehicle manufacturer, from 2007 to 2010. Prior to that he was a Systems Engineer at Phoenix International, a deep-sea salvage company with the US Navy from 2002 to 2007, as well as a Systems Engineer/Pilot with Harbor Branch Oceanographic Institution from 1988 to 2002. He graduated with a Bachelor of Science degree from Florida Institute of Technology, Jensen Beach in 1986. He has also completed numerous graduate courses at the University of Maryland in Systems Engineering.

In his new position, Olson will work with new and existing product lines at SeaRobotics including the HullBUG cleaning vehicle as well as projects associated with the design and deployment of subsea fiber optic networks. "We are very excited to have Scott join SeaRobotics," said SeaRobotics president Don Darling, "and we look forward to working with Scott and putting his extensive hands-on engineering experience to work in this very important role."

The Snorre partnership has decided to adjust the schedule for the ongoing Snorre 2040 project by postponing the planned date for DG2 from March 2015 to October 2015.

There is no change in the timing of the final investment decision (DG3) and production start-up (DG4), which are planned for Q4 2016 and Q4 2021, respectively.

The early phase of the project is extended to take full advantage of the improvement potential initiated by Statoil's STEP (Statoil technical efficiency program) program and the current focus on cost efficiency within the industry.

Profitability of a new Snorre C platform is challenging and it is important for the owners to secure quality in design and cost estimates prior to entering into FEED studies.

Snorre 2040 background
– The Snorre oil field has been in production since 1992.

– The field has a complex reservoir, and represents one of the largest IOR (increased oil recovery) potentials on the Norwegian continental shelf.

– When the plan for development and operation (PDO) was submitted, the estimated recovery rate was 25%. Currently 35% of the oil is produced and the estimated recovery rate from existing infrastructure is 47% by 2040. The Snorre partners have an ambition to increase the recovery rate to 54% by installing a new Snorre C platform and importing gas to the field.

– The concept selection was made late 2013, and the new Snorre C platform is currently being matured according to plan towards a final investment decision Q4 2016 and production start-up in Q4 2021.

NYC-based PIRA Energy Group reports that China and India SPR to add Oil in 2015, Mostly in 2H. In the U.S., commercial stocks drew. In Japan, crude runs rose, crude imports were higher and crude stocks built. Specifically, PIRA's analysis of the oil market fundamentals has revealed the following:

China and India SPR to Add Oil in 2015, Mostly in 2H
PIRA assumes in its global supply/demand balances that China and India will each add barrels to their respective SPRs in 2015. The limiting factor is capacity availability. In the case of China major new facilities are not expected until at least the second quarter while in India, after years of delay, the first facility is expected to start operating in 2Q15.

U.S. September 2014 DOE Monthly Revisions
DOE released its final monthly September 2014 (PSM) U.S. oil supply/demand data today. Demand came in at 19.04 MMB/D compared to 19.16 MMB/D PIRA had estimated in its balances. Compared with the weekly preliminary data, total demand was revised down 206 MB/D, with "other" lowered 495 MB/D, primarily due to an upward revision to exports. End-September total commercial stocks stood at 1,144.0 MMBbls versus the 1,140 MMBbls adjusted stock level that PIRA carried in its balances. Compared to the weekly preliminary data, DOE raised total commercial stocks 7.9 MMBbls, with 1.4 MMBbls being crude, and 6.5 MMBbls being products. Relative to year-ago, using final September PSA data, total commercial stocks are higher by 6.6 MMBbls.

Japan Crude Runs Rise, Crude Imports Higher, Crude Stocks Built
Crude runs rose incrementally out of turnarounds. Alignment with our planned turnaround schedules still looks good. Crude imports were higher and crude stocks built. Finished product stocks drew marginally due to draws on gasoline and naphtha. Gasoline demand was higher, as expected, due to the holiday. Gasoil demand was marginally lower, and stocks built modestly. Kerosene demand was slightly higher, but stocks still built a bit.

OPEC Will Let the Market Set Prices for Now
There is just too much supply relative to demand at anything near $100/Bbl Brent. Hence OPEC will let the market set prices for now and see what price the market needs to inevitably balance supply and demand. PIRA believes initially the market needs to see a 6 handle for WTI and the low 70's for Brent. This should slow supply growth and help to rejuvenate demand. The price experiment has been unfolding for some time but now the world will know. It should have some interesting twists and turns.

Let the Market Rule: Why Saudi Arabia Didn't Want to Cut Output
Under current and expected market conditions, cutting output to support price would be self defeating, making the structural imbalance even worse. The oil market has lost its price anchor; so markets will dictate prices.

The Saudi Dilemma
While the global price elasticity of oil demand and supply is extremely low, the price elasticity faced by the Saudis, as a swing producer, is much higher. In fact, if they are required to absorb 100% of the swing in the call on OPEC, the medium term elasticity faced by the Saudis is likely greater than 1 meaning that their export revenue will fall in response to a price increase. Thus in an environment like now, where it is hard to see the Saudis getting cooperation from other OPEC (and/or non-OPEC) members, a decision to cut production will likely prove to be a revenue loser after several years. Of course, the Saudi decision on production volumes will not be based solely on export revenue maximization.

LPG Feedstock Economics in Asia Mixed
Propane's discount to naphtha in Asia improved by $1 to $27/MT in last week's turbulent trade. At these levels propane remains expensive relative to other feedstocks for petrochemical usage. As in Europe, PIRA's spot generic cracking margins indicate that butane is currently the most economic feedstock in NE Asia. Naphtha's cracking economics fell by 5¢ to 32¢ while butane's improved to 41¢. Propane remains at the back of the pack at 31¢/lb ethylene produced.

U.S. Ethanol Production Sets New Record
The week ending November 21, U.S. ethanol manufacture reached 892 MBD, shattering the record 892 set the week ending June 14. The manufacture of ethanol-blended gasoline jumped to a four-week high 8,724 MB/D.

U.S. Ethanol Prices and Margins Soar
U.S ethanol prices and manufacturing margins skyrocketed during November despite record ethanol production. Inventories had gotten extremely low as output had been light for several months when companies shut down for maintenance turnarounds.

The information above is part of PIRA Energy Group's weekly Energy Market Recap - which alerts readers to PIRA's current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

Due to overcapacity in the rig portfolio the suspension periods for COSL Pioneer, Scarabeo 5 and Songa Trym have been extended.

COSL Pioneer. (Photo: Ole Jørgen Bratland/Statoil)

The suspensions are also a result of the failed attempts to mature alternative tasks for the rigs.

"When the rig contracts were signed it was challenging to ensure sufficient rig capacity. Today the activity is facing lower margins, a generally high cost level and subsequent lower profitability. It is therefore more demanding to mature profitable drilling targets," says Statoil procurement head Jon Arnt Jacobsen.

COSL Pioneer, Scarabeo 5 and Songa Trym were initially suspended until the end of the year from 8 October, 5 October and 20 November, respectively. COSL Pioneer will be suspended for an additional seven and a half months. The suspension periods for Scarabeo 5 and Songa Trym will be extended by one and a half months and one month, respectively. The extension period for Songa Trym may be reduced, or avoided, if acceleration of activities is achieved.

"I would like to emphasise that the suspensions are not related to the rig deliveries. We are very pleased with the work they have done for us. These measures are necessary due to the overcapacity of rigs compared to the assignments we are prioritising. This situation is unfortunate, and we are doing what we can to minimise the extent of the suspensions," Jacobsen says.

www.statoil.com

U.S. proved reserves of oil increase for the fifth year in a row in 2013; U.S. natural gas proved reserves increase 10% and are now at an all-time high

• North Dakota proved oil reserves surpass the Gulf of Mexico
• Pennsylvania and West Virginia account for 70% of increase in natural gas reserves

U.S. crude oil proved reserves increased for the fifth year in a row in 2013, a net addition of 3.1 billion barrels of proved oil reserves (a 9% increase) according to U.S. Crude Oil and Natural Gas Proved Reserves, 2013, released today by the U.S. Energy Information Administration (EIA).
U.S. natural gas proved reserves increased 10% in 2013, more than replacing the 7% decline in proved reserves seen in 2012, and raising the U.S. total to a record level of 354 trillion cubic feet (Tcf).

At the state level, North Dakota led in additions of oil reserves (adding almost 2 billion barrels of proved oil reserves in 2013, a 51% increase from 2012) because of development of the Bakken and Three Forks formations in the Williston Basin. North Dakota's proved oil reserves surpassed those of the federal offshore Gulf of Mexico for the first time in 2013. Texas (still the state with the largest proved reserves of oil) had the second largest increase, adding 903 million barrels of proved oil reserves in 2013.

Pennsylvania and West Virginia reported the largest net increases in natural gas proved reserves in 2013, driven by continued development of the Marcellus Shale play, the largest U.S. shale gas play based on proved reserves. Combined, these two states added 21.8 Tcf of natural gas proved reserves in 2013 (13.5 Tcf in Pennsylvania and 8.3 Tcf in West Virginia) and were 70% of the net increase in proved natural gas reserves in 2013. U.S. production of both oil and natural gas increased in 2013: Production of crude oil and lease condensate increased 15% (rising from 6.5 to 7.4 million barrels per day), while U.S. production of natural gas increased 2% (rising from 71 to 73 billion cubic feet per day).

Proved reserves are those volumes of oil and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. An increase in natural gas prices used to characterize existing economic conditions contributed to the reported increase in proved natural gas reserves. For example, the 12-month first-of-the-month average natural spot price at Henry Hub increased from $2.75 per million Btu (MMBtu) in 2012 to $3.66 per MMBtu in 2013.

EIA's estimates of proved reserves are based on an annual survey of domestic oil and gas well operators.
U.S. Crude Oil and Natural Gas Proved Reserves, 2013 is available at: http://www.eia.gov/naturalgas/crudeoilnaturalgasreserves.

Teledyne Marine Systems group, leading providers of undersea vehicles and subsea infrastructure, has announced that SeaBotix, part of the recent Bolt Technology Corporation acquisition by parent company Teledyne Technologies Incorporated, will join the Marine Systems group of companies.

SeaBotix is a world leading manufacturer of innovative and diverse underwater observation class MiniROVs designed to perform a multitude of tasks that include maritime security, search and recovery, hull, pipeline and infrastructure inspection, hazardous environment intervention, aquaculture, sensor deployment, oceanographic research, nuclear applications and more. SeaBotix continues to deliver revolutionary advancements to its diverse portfolio of MiniROV systems that are responsive to demanding professional applications.

"We are excited to have SeaBotix join the Teledyne Marine Systems group of companies." said Vice President and Group General Manager, Thomas W. Altshuler. "We see strong synergy between their innovative remotely operated vehicles and the tethered and autonomous vehicles produced by our existing organization."

SeaBotix will operate under the name Teledyne SeaBotix from their current location in San Diego, California. To learn more about Teledyne SeaBotix visit www.SeaBotix.com.

The recent fall in oil prices not only brings the obvious benefits of a boost to the global economy but also an opportunity to address the eye watering costs of energy subsidies.

The IEA estimated the cost of global fossil fuel subsidies in 2012 was $544bn and renewables $110bn. It has been suggested that the total cost in 2014 could be approaching $1 trillion. Designed to deliver benefits to citizens, petrol and diesel fuel subsidies are mainly found in existing and former producer countries and constitutes a real and growing problem, particularly for some Asian economies. Governments are buying oil at the global market price then selling at below cost, with massive economic consequences and what is more, low prices encourage growing consumption. The reality is that a very small proportion of subsidies reach the really poor. However, cutting off the subsidies causes major local opposition and indeed civil unrest. But the supply of the drug of cheap fuel must ultimately be halted.

So it was refreshing to see Malaysian minister, Hasan Malek announce its government's plan to abolish subsidies for petrol and diesel from today, December 1. This follows on from Indonesia's new president Joko Widodo keeping his election promise and announcing that fuel prices will rise by 30% to tackle the growing budget and current account deficits, a move expected to save the government more than $8 billion in 2015. Their timing is good as the low oil price reduces the impact on their people. The previous Indian government also started to increase prices from January 2013 and central bank Governor Raghuram Rajan recently said that it must take advantage of the low oil prices to reduce the subsidies that contribute to one of Asia's largest budget deficits.

Despite all the well-meaning green rhetoric, history shows that it is high prices that really focus consumers thoughts on energy efficiency and reduce the growth of energy demand. We are witnessing a rare international outbreak of common sense.

www.douglas-westwood.com

As from January 1st 2015, the Exploration and Production Branch of Total will be restructured with five geographical divisions, an Exploration division and five functional divisions. Arnaud Breuillac, President Exploration & Production, stated: "These changes are made with the objective to improve efficiency and adapt to the challenges the Group is facing.

The new organization is as follows:

• Africa division headed by Guy Maurice 

• Americas division headed by Michel Hourcard 

• Asia Pacific division headed by Olivier de Langavant* 

• Europe and Central Asia division headed by Michael Borrell (merge of Northern Europe and Continental Europe – Central Asia divisions) 

• Middle East and North Africa division headed by Stéphane Michel 
• Exploration division headed by Kevin McLachlan 

• Quality Health Safety Societal Security Environment division headed by Pierre Bang ;

• Technical support to operations division and Development division headed by André Goffart 

• Strategy Growth Research division headed by Martin Deffontaines** 

• Corporate Affairs headed by Namita Shah.

Ladislas Paszkiewicz, currently Vice President of Americas division, will be appointed Senior Vice President Mergers & Acquisitions in the Finance Division.

* Until March 1st 2015, Jean-Marie Guillermou will remain Vice President for Asia Pacific division and Olivier de Langavant Vice President Strategy Growth Research division.
** Effective March 1st 2015

Click here to see the biographies 

• An important natural gas discovery has been made in the Orca-1 exploratory well, 40 kilometers off the Colombian coast.
• Repsol participates with 30% in the discovery consortium, operated by Petrobras (40%) and Ecopetrol (30%).
• The well reached a depth of 4,240 meters under 674 meters of water.

Repsol carries out an intense exploration activity in order to outpace its competitors in accelerating the increase of its reserves and production.

Repsol has made a gas discovery in the deep waters of the Colombian Caribbean, 40 kilometers off the Department of la Guajira region coast. The well, named Orca-1, is especially significant as it represents the first hydrocarbon discovery in the deep waters of the Colombian Caribbean Sea.

Repsol currently participates with 30% in the Tayrona discovery consortium, operated by Petrobras with a 40% stake, and Ecopetrol, with the remaining 30%. Repsol joined the Tayrona consortium in 2010, after making an important gas discovery in the adjacent waters in the Gulf of Venezuela.

The Orca-1 well was drilled to a depth of 4,240 meters under 674 of water. The partners will now undertake the expansion phase of technical studies using the results from the well and the seismic information previously acquired in the area to determine the block's gas potential and economical possibilities.

This is the tenth positive exploratory survey carried out by Repsol in 2014. The company has carried out an intense exploration activity that has allowed it to accelerate the increase in its reserves and production and outpace its competitors.

Oman Shipping Company (OSC) has taken delivery of one of the world's most advanced fuel efficient LNG carriers – the Adam LNG.

The 162,000 cubic meters capacity vessel was built by Hyundai Heavy Industries (HHI) in Ulsan South Korea. It will operate worldwide with 25 crew including four Omani cadets.

OSC Acting Chief Executive Officer, Tarik Al Junaidi (left), said the Adam LNG is a powerful demonstration of the Muscat-based company's 'driving commitment to constant innovation' in its fleet which now numbers 43 vessels and is one of the biggest in the Gulf (see factfile). He said the Adam LNG will be offered on the 'open market' to oil and gas companies worldwide.

"This state-of-the-art LNGC offers considerable benefits to customers," he said. "Its innovations mean it is exceptionally fuel efficient, cost effective and environmentally friendly. We have listened to industry and we understand this is what customers want. Our core activity is oil and gas transportation.

The delivery of the Adam LNG, together with the ordering of 11 medium range products tankers, reflects our ambition to grow not only in Oman, and the Middle East, but also worldwide. The arrival of the Adam LNG sees us redouble our efforts to promote our fleet, which is now among the best managed, most advanced, fuel efficient, cost effective, diverse and eco-efficient in the world."

Mr Al Junaidi said key innovations on the Adam LNG included its propulsion system and the design of its aft hull form.
"To slash harmful emissions we have deployed the latest Dual Fuel Diesel Electric (DFDE) technology," he said. "This enables the engine to operate on the lean-burn principle which increases engine efficiency and reduces peak temperatures which cuts Nitrogen Oxide emissions. In addition the ship has been coated with a new low friction paint which reduces fuel consumption by improving the sailing efficiency of the vessel. It does this by reducing the friction resistance of the hull. Furthermore, the design of the aft body hull forms a shape to improve wake pattern and increase propeller efficiency."

OSC chief operating officer David Stockley said another prime benefit OSC can offer customers is in-house management through Oman Ship Management Company (OSMC), a fully-owned subsidiary of OSC. He said the Adam LNG will be managed by OSMC.

"OSMC is a fundamental part of OSC and is growing fast," he said. "In the last year the number of vessels OSMC is managing has increased from 20 to 27 and these include VLCCs, VLOCs, LNG carriers, LPG carriers, product tankers and multi-purpose vessels. OSMC remains absolutely committed to, and passionate about, maintaining the highest international standards of safety, environmental responsibility, quality and cost efficiency. We have still not suffered a lost time accident since we started keeping records in 2009. Moreover, we are rated a 'better operator' by the Tanker Management Self Assessment (TMSA) program. We believe OSMC offers customers a dedicated personal service at great value underpinned by experience and expertise."

Mr Junaidi said a key dimension to OSC's growth plans is the development of the Port of Duqm on the South West coast of the Arabian Sea.

Hoover Container Solutions ("Hoover"), a leading provider of chemical tanks, cargo carrying units and related products and services to the global energy, petrochemical and related industrial end markets, has entered into an agreement to partner with First Reserve, the largest global private equity firm exclusively focused on energy. Financial terms of the transaction were not disclosed.

One of the global industry leaders in oilfield fluids container solutions, Hoover operates worldwide through 15 facilities in North and South America, Europe, Australia, the Middle East and Southeast Asia. The company has a rental fleet of approximately 40,000 stainless steel intermediate bulk containers ("IBCs"), 8,000 cargo carrying units and more than 15,000 slings, GPS asset tracking units and other peripheral equipment.

Hoover was the original manufacturer of stainless steel IBCs approximately 50 years ago and has a history of pioneering and innovating material handling solutions since 1911. Hoover has earned a reputation with its loyal customers for being a high-quality service provider.

Hoover provides customer-driven solutions through a vertically integrated model that includes design, manufacturing, maintenance, certification and cleaning services through the entire life cycle of their products. The company's products are critical to the energy and industrial value chain with a business model that is, in First Reserve's view, generally resilient to market cyclicality.

First Reserve believes Hoover's products are exposed to several favorable macro trends, including the continued demand for oilfield production chemicals, further development of offshore and deepwater oil and gas opportunities as well as the continued investment in North American petrochemical facilities.

Donald Young, CEO of Hoover, commented, "After a thoughtful process, we chose First Reserve as our partner to help support Hoover in its next stage of growth. We expect First Reserve will bolster Hoover's already strong financial position and allow us to accelerate our growth plan as well as continue to introduce innovative products and services to the market."

Neil Wizel, managing director of First Reserve, commented, "We are excited to partner with CEO Donnie Young and his management team to progress Hoover's growth strategy focused on providing the energy, petrochemical and general industrial markets with specialized fluid handling and container solutions. We believe Hoover has demonstrated a strong track record of providing its customers with high-quality products and services and that the company is well-positioned for continued expansion in North America and internationally."

BMT Asia Pacific, a subsidiary of BMT Group, the leading international maritime design, engineering and risk management consultancy, has appointed Joanne Tse as Head of Risk Management based in Hong Kong. The new appointment will help support the regional growth of risk consultancy services - principally in the transportation and construction sectors.

Joanne will be actively involved in developing and managing risk projects for our growing client base. She brings more than 15 years of experience in the rail industry specialising in risk assessment and management, safety assurance, and corporate/enterprise risk management.

Rejoining BMT after three years at Willis Insurance Brokers, Joanne's previous tenure focussed on rail engineering projects involving operational and construction project risks. She delivered insurance, risk management and technical services to 15 railway operators, across Asia and worldwide. Additionally, Joanne led underwriters in providing risk surveys to hotel, resort and casino clients and extended professional coverage to the oil refinery industry.

Joanne is actively involved in the wider risk community. She is currently Vice Chairperson of the IET Hong Kong Management Section Committee and has acted as facilitator for numerous risk identification workshops, as well as providing strategic risk management consultancy to the Hong Kong Government.

As a specialist qualified by The Institute of Risk Management (IRM) in business continuity and crisis management, Joanne is experienced in disaster recovery consulting work in the telecommunication and logistic industries.

Joanne is a Chartered Engineer. She holds a Mechanical Engineering degree from the Hong Kong University of Science and Technology (HKUST) and an MBA from the City University of Hong Kong.

Two new studies released by the National Ocean Industries Association (NOIA) and the American Petroleum Institute (API) show significant potential added energy and economic benefits to the United States if the Eastern Gulf of Mexico and the Pacific outer continental shelf (OCS) were opened to offshore oil and natural gas development. Both studies were conducted by Quest Offshore Inc., which also conducted a study of the Atlantic OCS, which NOIA and API released last year.

"The U.S. oil and gas industry is already a major source of jobs, economic activity, revenue to state and federal governments, and affordable and reliable American energy for American consumers. We can do much more of the same with more access to the OCS," said NOIA president Randall Luthi.

All three areas – the Eastern Gulf of Mexico, the Pacific OCS and the Atlantic OCS — are currently almost entirely off-limits to offshore oil and gas development but could be included in the federal government's next five-year leasing program. If the federal government begins holding lease sales in these regions in 2018, the three studies show that by 2035:

• Pacific OCS development could create more than 330,000 jobs, spur nearly $140 billion in private sector spending, generate $81 billion in revenue to the government, contribute over $28 billion per year to the U.S. economy, and add more than 1.2 million barrels of oil equivalent per day in domestic energy production.
•
• Eastern Gulf of Mexico development could create nearly 230,000 jobs, spur $114.5 billion in private sector spending, generate $69.7 billion in revenue for the government, contribute over $18 billion per year to the U.S. economy, and add nearly 1 million barrels of oil equivalent per day to domestic energy production.
•
• Atlantic OCS development could create nearly 280,000 jobs, spur $195 billion in private sector spending, generate $51 billion in revenue for the government, contribute up to $24 billion per year to the U.S. economy, and add 1.3 million barrels of oil equivalent per day to domestic energy production.
•
• Development in all three study areas — the Eastern Gulf of Mexico, the Pacific OCS, and the Atlantic OCS – could, by 2035, create more than 838,000 jobs annually, spur nearly $449 billion in new private sector spending, generate more than $200 billion in new revenue for the government, contribute more than $70 billion per year to the U.S. economy, and add more than 3.5 million barrels of oil equivalent per day to domestic energy production.
•
"None of the benefits shown in the studies can be realized without actual sales. The key to tapping this amazing economic and energy potential is including lease sales in these areas in the 2017-2022 OCS Oil and Gas Leasing Program," Luthi said.
The studies, fact sheets and state infographics are available at www.noia.org/TapOffshoreEnergy.

With oil prices falling to a four-year low, the development of two frontier basins in northwest Europe, the Barents Sea and the West of Shetland (WoS), is likely to be postponed and further progress will require cost reductions, according to an analyst with research and consulting firm GlobalData.

Both Chevron and Statoil, operators of the WoS Rosebank and Barents Sea Johan Castberg fields, respectively, are continuing to delay their Final Investment Decisions (FIDs) for the projects, which have 240 and 545 million barrels of oil equivalent of recoverable reserves, respectively.

Matthew Ingham, GlobalData's Upstream Analyst covering Europe, states that the sanction of these projects is crucial to permitting the construction of much-needed infrastructure that will provide an export route for the region's hydrocarbons, of which there are thought to be vast reserves.

Ingham says: "The implications of plummeting oil prices will be felt most heavily by the UK and Norway's governments, highlighting the ripple effect of petroleum production on state tax revenues.

"Although Rosebank is currently the only UK field to qualify for the large deepwater oil field allowance, further fiscal allowances may be required for the project to go ahead. As such, it would not be surprising to see further delays in the FID for Rosebank and Johan Castberg to 2016."

Despite this, the analyst notes that oil price volatility is expected to stabilize in the medium-to-long term and the development of the two projects is anticipated to begin, providing there are cost reductions and near field discoveries made in both projects.

Ingham continues: "The latest estimates put total development capital expenditure for Rosebank at $9.68 billion, but cost reductions of around 30% are required for the project to become economically viable. Assuming these reductions can be achieved and the project sanctioned, production seems likely to come on-stream in 2021, three years later than previously anticipated.

"For the Barents Sea project to progress, oil prices must return to levels of around $110 per barrel, if no tax allowances are forthcoming from the Norwegian government, to achieve a full-cycle net present value of $318 million and an internal rate of return of 11.1%. Assuming that Johan Castberg is sanctioned in 2015, Statoil will aim to commence production in 2020, two years behind schedule."

AVEVA has announced the opening of its new office in Aberdeen, further strengthening its growing global network. The office will offer sales and support for all of AVEVA's solut'We have worked with our customers in Aberdeen for many decades,' said Richard Longdon, CEO, AVEVA (photo). 'This office represents our continued commitment to these strategic companies and the wider region. Aberdeen is, and will remain, a key location for the oil & gas industry with the expertise in Aberdeen exported throughout the world.'

The new premises is based at the prestigious Arnhall Business Park, which is home to some of the largest oil & gas companies in Aberdeen including Technip, Subsea 7 and TAQA.

'At AVEVA we put customer service first, recognizing that it's one of the things that gives us a competitive advantage in the marketplace. Having a presence where our clients are based creates stronger relationships and enables us to be more responsive to their requirements,' commented Helmut Schuller, Executive Vice President, Group Sales, AVEVA. 'Aberdeen is a key city servicing the North Sea oil & gas hub, which is estimated to be producing 1.5 million barrels of oil per day into 2020. Some 26% of the city's jobs are in the oil & gas Industry. We are delighted to be part of this vibrant ecosystem and our new office will ensure we are in the best possible position to serve our existing and future customers.'