• Home

Strategic Location Planning in Offshore Engineering

When considering the oil industry, the first names that come to mind are the likes of Shell and BP who literally operate globally. They are two of the largest companies in the world, regardless of industry, and have the wide logistical base that would be expected of such a multinational company. However, there are literally hundreds of offshore engineering companies around the world, mostly operating on a much smaller scale and implementing their own business model by contracting their services out.

These smaller companies simply do not have the resources to acquire offices and teams in virtually every country with oil reserves. Instead, they acknowledge the global nature of the business and attempt to plan ahead.

Such global planning is of paramount importance in the oil and gas industry. Every company accepts that the resources with which they work are finite, although the current worldwide oil and gas reserves are expected to last long into the foreseeable future. Such predictions are based on how much untapped oil remains around the world rather than in one specific location. This means that what may be a lucrative business area now could become a forgotten former home of oil operations in the near future, particularly in areas that have already been heavily drilled.

As new opportunities for exploration arise, it is important for companies to be ready to place staff and equipment in the relevant areas quickly so that they can be a part of the project for as long as possible. Missed time on a project due to proximity constraints can lead to lost business and lost revenue. Alternatively, a company may already have established where they intend for their core markets to be and will develop presences based around a more encompassing strategy.

One such company that manages to retain its own national identity while opening itself to the possibility of international business is Claxton Engineering. Headquartered in Great Yarmouth, they also boast offices in Aberdeen and Dubai. The Aberdeen office is a no brainer, as it is the epicentre of the UK oil industry. It is the renowned base of operations for all drilling in the British waters of the North Sea and it would be remiss of any company with a strong presence there not to have a local office in Aberdeen. Conversely, the Dubai facility is positioned in such a way that it acts as a central hub for the Middle East, well known as one of the world’s largest oil exporters. Such is Claxton Engineering’s reputation for innovation that their services are literally called upon from around the globe. Their three facilities allow them to be near their core markets without having to juggle staff between facilities or incur expense through the frequent transportation of people or equipment.

What Makes Everything So Expensive

The Role of an Oil Rig Decommissioning Company

The process involved in decommissioning an oil rig is very difficult, costly and time consuming.  When an oil rig needs to be decommissioned a decommissioning company will be contracted in to take care of the work but a lot of people will be wondering what the job entails.  It is a very complex process and it requires companies with skills in decommissioning.  North Sea decommissioning for example, can be very tricky because the conditions there are very harsh.  There can be many difficulties to overcome so it is really important that the company in charge knows what it is doing.

Choosing the Decommissioning Company Carefully

When it comes to oil rig decommissioning, this can take place on land or offshore and where the rig is will determine the process of decommissioning.  North Sea rigs for example are going to take more time, and will probably be more expensive to get the job completed.  Many oil companies will have to think very carefully about the company they choose to take care of the decommissioning and there will be a lot of different factors that are taken into account.  Decommissioning companies with past experience and good reputations will always have more luck when it comes to securing these contracts.

Cost of Decommissioning

One of the biggest things to think about is the cost when it comes to decommissioning.  North Sea oil rigs will usually cost anywhere between thirty and two hundred million pounds to decommission.  The size of the structure will determine how much it actually costs.  The government in the UK provides a rebate for decommissioning costs of up to 75 percent for those who leased the oil field before 1993.

Main Considerations

The main issue for a decommissioning company is the size and weight of the structure that needs to be dismantled.  With the smaller structures weighing up to 10,000 tonnes and larger structures weighing up to a staggering 150,000 tonnes, you can see why there is a lot of work involved.  This steel needs to be cut up and then taken to a base onshore where it will be recycled for other projects in the future.  However the process of actually cutting the rig can take a lot of manpower and quite a bit of time so this will help you to understand why the cost can be so high.

Dealing with Potential Problems

A lot of problems can arise when it comes to oil rig decommissioning.  North Sea conditions can make the job much harder but thankfully there have been numerous advances in technology which have made these jobs easier for those involved.  With many concerns over the environment, decommissioning companies are now working to ensure that oil rig decommissioning is a much more environmentally friendly process.

HPHT Wells - Development for Profits

In the global pursuit to stake the biggest claim on the most oil, companies are turning towards technological advances in pipe and valve strength to further their measures. HPHT (high pressure/high temperature) wells are a source for new exploration in the world of oil drilling. HPHT wells serve as major oil sources in some of the deepest and hottest conditions. With a large amount of water pressing down on HPHT wells at all times, this variety of oil wells are typically under an extreme amount of pressure. Pressures exceeded 10000 psi are not uncommon. Furthermore, it is not uncommon for temperatures to reach 300 degrees Fahrenheit as the well nears the furnace that is the Earth's core. In years past, HPHT wells were an impractical means of accessing oil reserves. The phrase HPHT well was actually only termed in the 1980's, when the process was first conceptualized.

 

Only in the mid to late 1990's had HPHT wells been developed to a point that they were affordable and efficient. Manufacturing well piping and support systems from solid steel helped set a base for such the increase in productivity and safety. Coupled and threaded joint connectors ensure that fittings are snug and precise. Just recently at Claxton Engineering designers have successfully built a well system that is able to sustain pressures exceeding 12,000 psi and the excruciatingly high temperatures that are associated with such extreme depths. The wells are designed for a newly established drilling campaign in the North Sea. Wells and pipelines that utilize high pressure/high temperatures models can be found everywhere throughout the world. The most notable can be found lurking in the Gulf of Mexico and West Africa. These advanced oil wells are meant to turn a mean profit, while protecting against disaster, or loss of product. As we dig deeper and corporations grow greedier, our dependence on oil will grow stronger, and our pocketbooks will continue to grow slimmer.

 

Damages and loses from the most recent oil, at the fault of BP, have not yet been fully repaired. The natural impacts on the Gulf of Mexico are a quite disturbing reality of the matters at hand. The livelihoods of fishermen and the tourist industry have dramatically affected life on the gulf. Increased safety measures in HPHT wells are only built under the guise of saving the planet. In reality, these advances are funded and researched with one matter on the mind, money. Breaking our reliance on a resource that will eventually be depleted will break this vicious cycle of neglectful thought. Investing money in alternative energy sources and practicing a green lifestyle that reduces waste and petro reliance is the only way to effectively change this rather outrageously bold and negative industry.