NOIA ANNUAL MEETING

BSEE OCS TECHNOLOGY CONCERNS/INITIATIVES

Joe Levine BSEE

Washington DC April 11, 2014

Technology Policy Committee BSEE Update

Presentation Overview

BSEE Research Program Research Drivers Deepwater Operations Plan (DWOP) Technology Concerns Questions?

BSEE Research Program

Established in the 1970's to Address offshore oil and gas safety and environmental concerns Foster advancements in scientific and technical knowledge

Program focus Operational safety Pollution prevention Renewables

Over 800 projects have been funded

BSEE Research Program

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1977-2013 Cumulative Spent: $99.4 Million

BSEE Research Program

Focus Areas

Air Quality Arctic Drilling Decommissioning Deepwater Geotechnical Materials Production Human Behavior

Pollution Prevention Structures Hydrates Production Measurement Mooring and Anchors Metocean Renewables (wind) Pipelines

Research Drivers OCS Risk Management

Data Gaps •Near Miss •Leading/Lagging •Standards

Human Behavior (SEMS) •Process safety •Competency •Contractors

Regulatory Initiatives •Safety •Political concerns

Environmental Concerns •Arctic • Deepwater

New Technology •Equipment durability •LCM •Failure reporting •Shearing •RTM •HPHT

Geologic Uncertainty •Downhole operating envelope • 400°F • 30,000 psi + • Fluid composition

DWOP Technology

30 CFR 250.286 – 295 DWOP needs to be submitted for

Development projects using nonconventional completion or production technology, regardless of water depth (250.287)

DWOP needs to include New technology information (250.292(n)) Alternate compliance procedures and departure list (250.292(o))

DWOP New Technology Approval Mechanisms

§250.141 May I ever use alternate procedures or equipment? You may use alternate procedures or equipment after receiving approval if it is equivalent in regards to safety and environmental protection

§250.142 How do I receive approval for departures? We may approve departures to the operating requirements

What Does The New Technology Approval Process Look Like?

New idea (operators/manufacturers) DWOP to BSEE (operator) Conditions of Approval for DWOP (BSEE)

Protection of people/environment Barriers Failure mode/risk assessments

What can go wrong/fail? Mitigations for failures

New technology implementation (operator) Outcome

Notice to Lessees & Operators (BSEE) Engineering standards (operators/manufactures/BSEE) Regulations (BSEE)

DWOP Technology

During past 18 years, 410 projects encompassing 1300 DWOP have been approved by BSEE Many examples of new technology exist which were first approved in DWOP

Facilities – TLP, SPAR, FPSO, mini TLP’s Polyester moorings Floating production system riser Horizontal trees MPD (test/pilot projects) Dual gradient Subsea booster pumps HPHT well completions (2 approvals to date)

Current Areas of Interest

Ice forecasting and monitoring (ongoing) Chukchi & Beaufort

Scour Evaluating grounded ice features in Beaufort (pipelines, wellheads)

Low temperature effects on drilling equipment Seals, lubricants, embrittlement

Qualifying cranes for Arctic service API RP 2N – Planning, Designing, and Constructing Structures and Pipelines for Arctic Conditions

Arctic

High Pressure High Temperature (HPHT) > 350°F or 15,000 psig

Current Area of Interest

As more operations take place in HPHT environments BSEE needs additional information on

New materials capable of withstanding extreme conditions Effect of H2S/CO2 in HPHT wells on materials Effect of HPHT on specific types of downhole equipment

Tubulars Packers Electronics Cements

New Material Current Area of Interest

New oil field materials continue being proposed for use on OCS Some materials have been used in aerospace and medical industries but not in the “Oilfield”

Nickel Based Alloys (i.e. Inconel, MP 35N) R5 Grade Steels

Not having a solid oilfield track record results in higher risk

No available standards or specifications BSEE needs

Basic material property data (laboratory testing) Material data testing procedures Evaluation tool for permit/plan reviews

Corrosion Current Area of Interest

Need optimal material mechanical property data for corrosion resistance (e.g., hydrogen embrittlement, stress corrosion cracking) when used subsea

Hardness, yield strength, ultimate tensile strength Bolts/fasteners on critical drill-through equipment (e.g. LMRP, H4 connectors, risers) Data needs to be applied consistently throughout industry standards (e.g. API 6A, 16A, 16F…)

Real Time Monitoring (RTM)

Current Area of Interest

Multiple government bodies apply some form of RTM

NASA Mission Control National Weather Service FAA Air Traffic Control USCG Vessel Traffic Services USGS Earthquake Early Warning System

Oil & Gas RTM

Allows for remote participation in well planning/monitoring BSEE Project #707- RTM completed 1/23/14 How should BSEE use RTM – BOP testing, cementing, casing pressure testing….??

Booth, 2011

Booth, 2009

Shear Ram Performance

Current Area of Interest

BOP shear certification tests 250.416(e) requires independent third party verification that blind shear rams installed in the BOP can shear any pipe in the hole under MASP BSEE internal audit of 416(e) submittals identified non-standard testing & reporting procedures

BSEE and Argonne National Labs conducted an evaluation of OEM shear ram facilities and identified non-standardized manufacture testing Industry currently developing JIP on shear methodology and qualification test procedures

Failure Reporting

Current Area of Interest

BSEE is interested in how a failure reporting system can be used to minimize safety & environmental RISK for “Critical Equipment” (Subpart H proposed rule) Any failure reporting system should allow for

Anonymous entry into data base Feedback to regulatory bodies, industry & OEM Analysis/knowledge sharing Product improvement Maintenance schedule optimization to minimize failure

Offshore Energy Safety Institute (OESI) project

Life Cycle Management (LCM)

Current Area of Interest

BSEE is interested in developing a LCM approach in our regulations for key pieces of safety equipment (Subpart H proposed rule) LCM to include

Design, fabrication, installation, repair, maintenance, operation, failure reporting/analysis, design modification

BSEE is working with API on developing an LCM standard, API Q3

Questions, Comments, Concerns?

Joseph.levine@bsee.gov

703-787-1033

Website: www.bsee.gov

http://www.bsee.gov/Research-and-Training/Technology-Assessment-and-

Research/