Thursday, February 19, 2015

Blast at California Exxon Refinery Hikes Gasoline Prices. No Evidence of Foul Play Yet, Just Unsafe Maintenance and Process Conditions that the Refinery Workers have benn Complaining about, including the hiring of Contract Workers.






Published in Oil Industry News on Thursday, 19 February 2015

Graphic for Blast at California Exxon Refinery Hikes Gasoline Prices in Oil and Gas News

An explosion and fire ripped through a gasoline processing unit at an Exxon Mobil Corp refinery near Los Angeles on Wednesday, leaving California with the threat of higher gasoline prices.

Investigators were trying to determine the cause of the blast in Torrance, California, which occurred shortly before 9 a.m. PST (12 p.m. ET). Four contract workers were injured and sent to Long Beach Medical Center for evaluation. Exxon said late on Wednesday that three of the workers had been released.

The company said it was operating units that had not been affected by the explosion at its 155,000 barrel-per-day refinery.

Torrance Fire Captain Steve Deuel said a small ground fire that followed the explosion had been quickly extinguished. He said firefighters and refinery crews also contained a gasoline leak that had been caused by the blast.

Deuel said there was no evidence of foul play.
The California Department of Industrial Relations opened an investigation into the blast, agency spokeswoman Julia Bernstein said.

The workplace safety agency issued an order forbidding Exxon Mobil from operating the 100,000-barrel-per-day fluid catalytic cracker, a central gasoline-producing unit, until the investigation has been completed, Bernstein said.
The department said the shutdown of the unit could last up to six months. It is the second refinery shutdown in recent days.

The price of gasoline in Los Angeles surged to its highest level in about 18 months after the explosion on fears that local supply would tighten in the coming weeks. Shorter supply could mean higher pump prices just as Californians and other U.S. motorists are benefiting from a slump in crude oil prices.

The fluid catalytic cracker is the facility’s main gasoline producing unit. Tesoro Corp recently shut its nearby 240,000-barrel-per-day refinery in Martinez after United Steelworkers union members walked out.

The two events sent February deliveries of California gasoline, known as CARBOB, as high as 40 cents above futures.

On the New York Stock Exchange, Tesoro shares rose 5 percent to close at $87.09. The company has three California refineries and may benefit from the incident. Exxon Mobil's shares closed down 2.2 percent at $91.01 on the NYSE.

TAKE PRECAUTIONS
Torrance Mayor Patrick Furey said in an interview with local television station KNBC that people who live near the refinery should take precautions.

"The most important thing is to shelter in place, stay indoors, no outdoor activity, turn the air conditioners off, keep the windows closed," Furey said.
A structure at the refinery was visibly damaged, and smoke curled around twisted metal. The air near the blast site smelled of sulfur and chemicals.

The South Coast Air Quality Management District dispatched inspectors to take air samples for analysis, said agency spokesman Sam Atwood.

The agency issued a health advisory urging children, the elderly and people with respiratory or heart conditions to stay indoors if they could see or smell smoke and for otherwise healthy people to avoid strenuous activity outdoors if they could see or smell smoke.

Cory Milsap, an electrical contractor at the plant, said many workers were sent home after the explosion. The refinery occupies 750 acres (300 hectares) and has 650 employees and 550 contractors.

“All I heard was a loud sound ... All I saw was smoke and people running, so I made sure I got out of there,” Milsap said.

Giselle Monreal, a neighbor who lives across the street from the facility, said the blast shook the ground like an earthquake, knocking a 52 inch (132-cm) flat-screen television off its stand and shattering a window in her garage.
Torrance is a residential suburb about 20 miles (30 km) south of Los Angeles. The North American operations for Toyota Motor Corp and Honda Motor Co Ltd are based there.

The city had a population of more than 147,000 in 2013, according to a U.S. Census Bureau estimate.
Surrounding areas were not evacuated, but nearby schools kept students and staff indoors immediately after the explosion as a precaution, Fire Captain Deuel said.

Exxon was looking into the cause of the explosion, according to Gesuina Paras, a public and government affairs adviser at the company.

Trade publication OPIS, citing an unidentified source, reported that an electrostatic precipitator (ESP), which reduces fluid catalytic cracker particulates, exploded as contract workers were doing maintenance on the nearby fluid catalytic cracking unit, or FCC.

"Contractors working on the FCC to fix the expanders," the source said, adding that an injection of ammonia on top of the flue gas stream caused a pressure buildup, which resulted in the ESP unit explosion.

The unit could take up to a year to replace, the source said.

The United Steelworkers walked out of 11 facilities, including nine refineries accounting for 13 percent of U.S. production capacity, after negotiations on a national contract stalled on Feb. 1. One of the central issues, according to the union, is employee safety.

Torrance has not been involved in the walkouts.

Striking refinery workers said Wednesday's blast underscored concerns the United Steelworkers has about safety standards at refineries and chemical plants nationwide.
Source: www.reuters.com

Safety Milestone for Petrofac



Published in Oil Industry News on Wednesday, 18 February 2015


Graphic for Safety Milestone for Petrofac in Oil and Gas News
The end of 2014 saw Petrofac’s Offshore Capital Projects (OCP) business reach 5 million man-hours without any recordable lost-time incidents on the Satah Al Razboot (SARB) package 3 project, offshore Abu Dhabi.

Located on an artificial island about 120 km off the north-west coast of Abu Dhabi, SARB 3 is OCP’s largest EPC project to date.

“Safety is not only a core value within OCP, it is a fundamental reflection of our performance and the quality of our leadership” says OCP Managing Director, Yves Inbona.  Unless of course it affects profits. 

Abu Dhabi Marine Operating Company (ADMA-OPCO) awarded Petrofac the engineering, procurement, installation and commissioning (EPIC) contract in April 2013. The scope of work primarily includes drilling utilities and accommodation facilities on two artificial islands, four flare platforms, two riser platforms, associated bridges, and one single point mooring.

Petrofac will also deliver 200 km of well fluid, gas injection, water injection, oil offloading and flare pipe lines, 55 km of subsea composite cables and installation of free issue Umm Lulu 20 inch pipeline from Zirku Island to the nearest artificial island, SARB South. Current overall project progress stands at about 60%.

Also, Petrofac has said that construction of the new technical training centre for ADMA-OPCO has been completed. The centre, which is covered under a variation of the SARB 3 contract, will provide training opportunities for up the 240 UAE students a year. Trainers from Petrofac were mobilized to deliver a 12-month training programme which started in January 2015.
Source: www.offshoreenergytoday.com

/________________________________________________/

Injured oil worker of Petrofac is airlifted to hospital



AN OIL worker had to be airlifted to hospital yesterday with head and arm injuries after an accident onboard a platform.

Shetland Coastguard was called to the Beryl Alpha at around 8.15am to take the man to Aberdeen Royal Infirmary (ARI) after an accident in the workshop. The coastguard helicopter arrived at ARI shortly after 11.30am with the Petrofac worker. His injuries were not thought to be life-threatening.

The platform, which lies 220 miles north-east of Aberdeen, is owned by Mobil North Sea. A spokesman for the company said: “An incident occurred this morning on the Beryl Alpha at around 8am.

“The man had been working in the workshop and sustained arm injuries and a few grazes to his face. His wife has been informed. We will be carrying out a full investigation to determine what happened.”

A spokeswoman for the Health and Safety Executive (HSE) said it had been made aware of the incident and would be carrying out initial inquiries.

/____________________________________________/



Unions set to strike after rejecting Petrofac deal

| Written by Neil Riddell
The Ocean Endeavour formerly known as the Kristina Katarina at Victoria Pier two years ago. The cruise liner has been chartered by Petrofac to accommodate Shetland Gas Plant workers. She is expected to arrive in Lerwick next week - Photo: Ian Leask The Ocean Endeavour formerly known as the Kristina Katarina at Victoria Pier two years ago. The cruise liner has been chartered by Petrofac to accommodate Shetland Gas Plant workers. She is expected to arrive in Lerwick next week - Photo: Ian Leask DISGRUNTLED construction workers at Shetland's new gas plant are planning industrial action from Friday after rejecting an offer from site contractors Petrofac.

It follows talks in recent days aimed at resolving a dispute over accommodation and travel arrangements for workers involved in building Total's new £800 million plant at Sullom Voe.

Further strikes by the 800 Unite and GMB union members affected by the site arrangements are scheduled for Friday 31 January and Friday 7 February.
Unions had warned of safety concerns because workers sharing bunk beds with colleagues were not getting enough sleep – prompting Petrofac to offer those workers a room of their own.
It had also offered a financial package for those who are unhappy at travelling between Lerwick and Sullom Voe every day.
That would have included a retrospective lump sum dating back to the start of 2013 and an additional sum from now until the project is completed.
Petrofac claims that for those who began work in January last year and aimed to stay until the end of June it would mean an additional £5,500 on top of their salary.
But at a mass meeting on Tuesday, Unite and GMB members rejected the offer that had been recommended by union organisers.
“The workforce have rejected the offer that was put forward by management,” Unite representative John Taylor said.
“There will be a 24 hour stoppage this Friday, next Friday... and the Friday after that.”
He said the unions remained open to further talks if Petrofac is willing to up its offer. But no talks are planned at present.
“Petrofac have made their position clear,” said Taylor, “ that if any industrial action took place the offer was withdrawn from the table, therefore there is no meeting planned.
“[There was] a very strong feeling among the workforce. I would say 85-90 per cent [were] in favour.”
A Petrofac spokesman said the company was “surprised and disappointed” and was “now considering our options”.
“We explain to the workers at three points before they begin work on the project that they will be required to share rooms,” the spokesman said, “and they all sign a disclaimer agreeing to do so.
“Having said that, we take their welfare very seriously and had made a very generous offer that was accepted by the full time union officials and the shop stewards.”
Cruise ship the Ocean Endeavour is en route to Lerwick from the Canary Islands to house gas plant workers, though Petrofac says that is to cope with greater numbers on site rather than related to the dispute.
Lerwick Port Authority confirmed the cruise ship was to berth in the harbour for six months. It will be at Victoria Pier initially, but may need to move if the berth is required for other vessels.
Formerly known as the Kristina Katarina, the ship had previously come to Shetland under a Finnish company that operated cruises. It had been expected in Lerwick for more cruises this summer but its new owners have instead made the 193-cabin vessel available for charter. 
The LPA said it had been advised by Petrofac that the three floating accommodation barges already in Lerwick will be departing at different stages between May and August.

Offshore Rig Count to Rise. It Reflects a Long-Term Effort and Billions Already Invested



Published in Oil Industry News on Thursday, 19 February 2015


Graphic for Offshore Rig Count to Rise in Oil and Gas News
While U.S. drilling on land has fallen along with the price of crude, the risky and expensive drive to pull oil from the depths of the Gulf of Mexico is showing little evidence of a slowdown.

Oil rigs working in the Gulf will increase by more than 30 percent this year compared with 2014, according to data from Wood Mackenzie, an industry consultant. 

At the same time, the number of land-based rigs has fallen by a third since October, bearing the brunt of industry-wide cutbacks that have shed tens of thousands of jobs in the U.S.

The reasons are two-fold. The rise in deep-water drilling stems from years of planning and billions of dollars already invested, and the payoff can be considerable. Anadarko Petroleum Corp.’s Lucius platform can handle as much as 80,000 barrels a day from the six wells that feed into it, an output that would take hundreds of onshore wells to reach, according to John Christiansen, a company spokesman.

“The economic life of these projects is in the decades,” said Fadel Gheit, an analyst for Oppenheimer & Co. in New York. “You’re going to milk this cow for another 30 years, so you don’t care what the price of milk is today.”

Large oil producers including Anadarko, BP Plc, Chevron Corp. and Royal Dutch Shell Plc are continuing to invest offshore even as shrinking profits force them to cut back on spending. BP has 10 rigs active in the Gulf of Mexico, which it says is a company record.

By contrast, in the oilfields of Texas, Colorado and North Dakota, producers are scrambling to rein in drilling as oversupplies have cut crude prices by more than half since June.

Last Steps
It’s a different calculus for prolific deep-water wells, which can produce far greater quantities of crude over a longer time span than a typical onshore well. The new wells are the latest step in a long-term development plan where much of the investment -- in pipelines, platforms and subsea processing systems -- already has been made.

“When you’re 90 percent complete, you’re not going to stop,” Gheit said.
Gulf of Mexico production will jump from 1.4 million barrels per day in 2014 to an average of 1.58 million barrels per day in 2016, a 13 percent increase, according to Wood Mackenzie projections. The growth in deep-water will add to total U.S. output, which is projected to grow by 14 percent over that period as rising efficiency continues to push shale production up despite declines in drilling.

‘Mega Projects’
Deepwater oil developments are so enormous they are referred to within the industry as “mega projects,” featuring platforms that can cost as much as $2 billion, wells that cost about $300 million to drill, and a system of pumps and processing equipment along the seafloor that can add another $100 million, Sandeen said.

“These aren’t onshore projects where you’re going to produce from a well for a few years,” said Jackson Sandeen, a senior research analyst covering the Gulf of Mexico for Wood Mackenzie. “These are 30 to 40 year projects where a slight bump in the road in the short term is not really going to affect the project in the long term.”

The jump in rig activity in the deep Gulf of Mexico isn’t focused on exploration wells, where companies seek to confirm that oil prospects exist. Oil giants are cashing in on previously confirmed discoveries by drilling wells into reservoirs that have already proven to be productive, and where they already have platforms built or under construction.

Falling Rates
New projects, however, aren’t likely to get started unless oil prices rise to around $75 for a sustained period, said Brian Youngberg, an analyst for Edward Jones in St. Louis. That’s leaving a fleet of brand new rigs entering the market with fewer prospects for contracts.

The rental rates for deep-water drilling rigs, which last year cost more than $500,000 a day to operate, have already fallen to $400,000 a day as fewer companies plan new projects, said Cinnamon Odell, senior rig analyst for industry consultants IHS Inc.

The costs of deep-water wells during a time of low oil prices is drawing some companies into partnerships to share costs as they push ahead on existing projects. BP, Chevron and ConocoPhillips earlier this year said they would collaborate as they drill Gulf of Mexico wells in 24 jointly held offshore leases. As part of the deal, BP sold Chevron half of its equity interests in the Gila and Tiber fields. The three companies also have joint ownership interests in exploration blocks east of Gila, known as Gibson, where they plan to drill in 2015.

By combining financial resources amid low crude prices, the companies are increasing the likelihood that they can find and develop new oil in the Gulf, which remains the most attractive offshore oil region in the world, Youngberg said.
Source: www.bloomberg.com

PLANT WORKER KILLED COLLEAGUE A DAY AFTER THE VICTIM DID A CHAIR PRANK BY YANKING IT FROM UNDER HIM




FEBRUARY 19, 2015

FRANCONIA, PENNSYLVANIA. (AP)

Police say a worker at a suburban Philadelphia meat rendering plant has been charged with fatally stabbing a colleague a day after the co-worker yanked a chair out from under him as a prank.

Thirty-two-year-old Peter Atem has been charged with first-degree murder in the Wednesday death of 25-year-old Danny Vazquez. Vazquez was killed at the MOPAC plant in Franconia Township. His last words were: "Tell my wife I love her."

Police say witnesses saw Atem stab Vazquez. It wasn't clear Thursday if Atem had hired an attorney.

Police say they found Atem hiding in a shed with self-inflicted stab wounds, along with a note that said "See you in hell.  Life for life." He was taken to a hospital, where he had surgery. He remained hospitalized Thursday.

DEPUTIES RESPOND TO 52 CRASHES/SLIDE-OFFS IN OTTAWA CO., MICHIGAN. IT HAS BEEN THAT KIND OF A WINTER.













FEBRUARY 19, 2015




GRAND HAVEN TOWNSHIP, Mich. (WOOD)




As of noon Thursday, deputies in Ottawa County had responded to 52 crashes and slide-offs.




Most of the incidents happened along US-31 and south along I-196 in Zeeland and Holland Townships.




Authorities shut down southbound US-31 between Lake Michigan Drive and Pierce Street for about a half hour Thursday morning following a chain reaction crash.



Traffic had slowed down for a wrecker that was blocking a portion of the road in order to pull out a school bus that had slid in the ditch.




A southbound semi-truck was stopped for the wrecker when it was rear-ended by another vehicle. The driver of the car was taken to the hospital with non-life threatening injuries.




Traffic was at a standstill due to that crash when a second crash involving five cars occurred due to white-out conditions. Two people were taken to an area hospital with non-life threatening injuries.




In all, there were a total of three separate crashes involving nine vehicles. About ten cars slid off the road to avoid the crashes.



In a separate incident on 96th Avenue near Quincy Street in Holland Township around 7 a.m., three people — two of them children — sustained minor injuries and one serious injuries. A 35-year-old from Zeeland headed north on 96th swerved after a southbound vehicle turned left into a driveway in front of her. The northbound driver lost control of her car and struck a second southbound vehicle, pinning its driver in.




The driver of that second southbound vehicle, a 54-year-old from Hudsonville, had to be extricated by firefighters and was hospitalized with serious injuries.



The driver of the northbound vehicle sustained minor injuries and sought her own treatment. Her two passengers, ages 6 and 8, also sustained minor injuries.




The driver who turned left into the driveway was not involved in the collision and was therefore not hurt, but is believed to be responsible for the crash. It was not immediately clear whether that driver, a 53-year-old from Allendale, was cited or with what.




CARELESS DRIVER FLIPS TRUCK ON EVERETT TURNPIKE, NH WHEN HE HITS A SNOW BANK




FEBRUARY 19, 2015

MERRIMACK, NEW HAMPSHIRE

A Merrimack man was uninjured after crash this morning just south of the Exit 11 Everett Turnpike onramp in Merrimack, according to the New Hampshire State Police.

A state trooper was sent to the turnpike for a report of a rollover at around 7:15 a.m. on Feb. 19, 2015. He spoke with the driver of the pickup, who is 20 and was uninjured after the crash, according to the report.

“(The driver) stated that he was looking to his left as he was attempting to merge onto the Everett Turnpike by way of the Exit 11 on ramp when he drifted into the snow bank,” according to Sgt. Bryan Trask. “Upon drifting into the snow bank, (the driver’s) truck rolled over and came to rest upside down in the travel lane.”

The trooper investigated the crash and “determined that the cause of this crash was due to (the driver) failing to maintain his proper lane of travel and maintain control of his vehicle.” The driver was not injured after the crash. The vehicle was towed from the scene and the highway was restricted to a single lane for about an hour.

Three hours before, there was an accident involving a tractor-trailer truck on the turnpike, according to state police.