American Oil and Gas Reporter - January 2012 - 20

IndustryDigest
Leasing Program. It offered 3,913
unleased blocks covering more than 21
million acres, which the bureau
compares with the size of South
Carolina. The blocks are between nine
and 250 miles offshore, in water depths
ranging from 16 to 10,975 feet.
According to BOEM, new lease terms
include escalating rental rates to
encourage faster development and
include shorter lease terms for shallower
water. BOEM also has increased its
minimum bid requirement from $37.50 to
$100 an acre. Lessees must comply with
a series of environmental stipulations,
including requirements that operators
protect biologically sensitive features as
well as marine mammals and sea turtles,
and must employ trained observers to
ensure compliance and restrict operations
when conditions warrant.
Sale statistics for Western Sale 218 are
available at: http://www.boem.gov/Oiland-Gas-Energy-Program/Leasing/Regio
nal-Leasing/Gulf-of-MexicoRegion/Lease-Sales/218/Western-Plannin
g-Area-Lease-Sale-218Information.aspx. r

Federal Report Suggests
System Safety Approach
For Offshore Drilling
WASHINGTON-Companies
involved in offshore drilling should take
a "system safety" approach to
anticipating and managing possible
dangers at every level-from ensuring
well integrity to designing blowout
preventers that function "under all
foreseeable conditions," according to a
report from the National Academy of
Engineering and the National Research
Council.
The Department of Interior sponsored
the report released in December by the
two National Academies members'
Committee on the Analysis of Causes of
the Deepwater Horizon Explosion, Fire,
and Oil Spill to Identify Measures to
Prevent Similar Accidents in the Future.
The report also recommends "an
enhanced regulatory approach (that
combines) strong industry safety goals
with mandatory oversight at critical
points."
Erik Milito, group director of

upstream and industry operations for the
American Petroleum Institute, says
industry already has made significant
improvements in its capability to prevent,
contain and respond to an oil spill.
"Through API's standards process and
the Center for Offshore Safety, the
industry is leading the way in applying
the best elements of the most successful
safety programs, including independent
auditing and certification by third
parties," Milito responds to the National
Academies report.
He mentions that API is completing
two new documents under its Standards
Program to enhance deepwater
operations.
The National Academies report
maintains "lack of safety management,"
failure by federal regulators to exercise
effective oversight, and "misplaced trust"
in the ability of BOP systems to act as
fail-safe mechanisms contributed to the
Macondo accident. "BOP systems
commonly in use . . . are neither designed
nor tested to operate in the dynamic
conditions that occurred during the
accident," the report holds. "BOP systems

CASING RUNNING TOP TO BOTTOM
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ͻCasing Sizes: 41/2 " - 18 5/8 " +

20 THE AMERICAN OIL & GAS REPORTER

4110 - 56 Avenue NW, Edmonton, AB Canada T6B 3R8
+1.780.490.5185 volantproducts.ca

http://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexica-Region/Lease-Sales/218/Western-Planning-Area-Lease-Sale-218-Information.aspx http://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexica-Region/Lease-Sales/218/Western-Planning-Area-Lease-Sale-218-Information.aspx http://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexica-Region/Lease-Sales/218/Western-Planning-Area-Lease-Sale-218-Information.aspx http://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexica-Region/Lease-Sales/218/Western-Planning-Area-Lease-Sale-218-Information.aspx http://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexica-Region/Lease-Sales/218/Western-Planning-Area-Lease-Sale-218-Information.aspx http://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexica-Region/Lease-Sales/218/Western-Planning-Area-Lease-Sale-218-Information.aspx http://www.volantproducts.ca http://www.volantproducts.ca

American Oil and Gas Reporter - January 2012

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