Hondo drilling delay becoming more expensive
Exxon acquired its federal offshore leases in the Santa Barbara channel more than 11 yr ago, and the company anticipated beginning production from these leases more than 5 yr ago. Numerous delays from federal, state, and local regulatory obstacles, however, have prevented the first barrel from being delivered. These 5 yr of delay have cost the nation over $500 million in payments for alternative foreign crude. Part of the delay, and one of the obstacles, has been getting the necessary approvals and permits for the offshore storage and treating (OST) unit. This OST is basically an oil-treating facility similar to many the company operates, with the exception that the treating facilities are being installed on the deck of a converted tanker, moored near the platform in federal water. Oil produced at the platform will be pipelined to the OST where it will be treated and then stored in the vessel's cargo tanks. The treated crude will periodically be loaded into a shuttle tanker for delivery to refineries. A portion of the gas produced at the platform will be treated on the OST to remove H/sub 2/ and will then be burned as fuel in gas turbines used to generate electricity for the operation.
- OSTI ID:
- 6863678
- Journal Information:
- Oil Gas J.; (United States), Vol. 77:30
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
03 NATURAL GAS
NATURAL GAS PROCESSING PLANTS
PLANNING
OIL WELLS
PETROLEUM REFINERIES
SANTA BARBARA CHANNEL
ASSOCIATED GAS
COMBUSTION
CONSTRAINTS
ECONOMICS
HYDROGEN
MOORINGS
OFFSHORE PLATFORMS
PERMITS
PETROLEUM
POWER GENERATION
REMOVAL
STORAGE FACILITIES
TANKER SHIPS
TIME DELAY
ADMINISTRATIVE PROCEDURES
CHEMICAL REACTIONS
ELEMENTS
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUELS
GASES
INDUSTRIAL PLANTS
NONMETALS
OXIDATION
SHIPS
THERMOCHEMICAL PROCESSES
WELLS
020300* - Petroleum- Drilling & Production
020400 - Petroleum- Processing
030300 - Natural Gas- Drilling
Production
& Processing