Category Archives: Offshore

MORENA DISTRICT Catalina Offshore Products owner Dave Rudie just announced that the local seafood wholesaler has unveiled its own house brand of premium canned tuna featuring sustainable and locally harvested hook-and-line wild-caught Eastern Pacific bigeye and yellowfin, processed and packed in the U.S. The products Catalinas Choice Solid Pack Tuna in Olive Oil and Catalinas Choice Smoked Solid Pack Tuna in Olive Oil help Catalina Offshore maximize its intake of fresh fish while celebrating San Diegos history as the Tuna Capital of the World. Available for retail in its on-site fish market as well as wholesaled to restaurants, schools and hospitals, the canned tuna spotlights former professional tuna fisherman turned fishmonger Tommy Gomes, a native of San Diego who is Catalina Offshores beloved spokesperson. [EaterWire]

LIBERTY STATION Grand food hall Liberty Public Market is commemorating its first year as a local culinary destination with a celebration this Saturday, March 18 and Sunday, March 19 that includes a golden ticket prize and multiple giveaways. Through Friday, March 31st, buy a golden chocolate bar from one of the markets tenants, which will each have a mini prize inside, and potentially uncover a special Golden Ticket for a prize valued at $500. Additionally, market vendors will be offering freebies, samples and prizes this weekend. Beginning at 11 a.m. on Saturday, March 18 and Sunday, March 19, Stuffed! will be giving away free Wham sliders to the first 50 guests while Mama Made Thai, Pasta Design and Le Parfait Paris will be among the food tenants serving up complimentary bites starting at 2 p.m. on Saturday, March 18. [EaterWire]

DOWNTOWN With locations at The Headquarters, La Jolla and Irvine, Puesto is toasting to five years as a brand with a birthday party on Sunday, April 9 from 10 a.m. to 1 p.m. in the open-air courtyard of The Headquarters. The Mexican eatery will be offering up complimentary tacos and aguas fresca and the free family-friendly event will include face painters, balloon artists and jumpy houses. [EaterWire]

Originally posted here:

Catalina Offshore Launches Canned Tuna Line - Eater San Diego

Sami Grover Published: March 16, 2017

In the last decade or two, offshore wind farms have gone from a rare sight to a major player in the worlds energy mix. In the U.K., in particular, the coastline is now dotted with vast arrays of turbines which make up a whopping 5 gigawatts (GW) of capacity in total. Theres another 6GW or so of capacity in the rest of Europe. And recent developments suggest the industry is hitting record low prices well ahead of its stated goals, suggesting that further rapid expansion may be on the cards.

Meanwhile, the U.S. has just five operational offshore turbines, totaling 30 megawatts (MW) of capacity.

While clean energy advocates and activists have welcomed the spread of large-scale offshore wind and they continue to hold out hope for a similar expansion in the U.S. eventually there are still question marks about what, exactly, the impacts of offshore wind farms are on the oceans in which they are located.

One article in Gizmodo, for example, highlighted new satellite imagery from NASA showing a surprising and unexpected consequence of offshore wind vast plumes of sediment stretching for many miles from the base of offshore turbines. While the article suggested that the impact of such plumes on fish nurseries and marine life is currently unclear, the very fact that the effect is visible from space suggests that further study is warranted.

Similarly, the impact of large-scale wind farms on wind patterns and localized climate has been a topic of much discussion. While anti-wind energy lobby groups have suggested that widespread deployment could disrupt regional climates and cause unintended consequences, research has largely dispelled these myths and found only minimal, localized changes to temperature or airflow.

But what about more localized impact on marine life? A 2014 paper by University of Maryland Center for Environmental Science researcher Helen Bailey called for ongoing monitoring of potential offshore wind development sites, with a view to both more careful siting of projects, and also identifying ways to minimize harm during construction and operation. Heres how Bailey described the challenge in a press release:

As the number and size of offshore wind developments increases, there is a growing need to consider the consequences and cumulative impacts of these activities on marine species. It is essential to identify where whales, dolphins and other species occur to help avoid adverse impacts and to continue to monitor their response to the construction and operation of wind turbines.

Since the publication of that paper, industry groups and environmentalists alike have been working hard to solve this puzzle. A recent study by the World Wildlife Fund suggests there are plenty of reasons to be hopeful. By deploying a wide range of methods including altering piling schedules, air-filled tubes, hydro-sound dampeners, and even utilizing bubbles as a barrier against underwater sound waves, the research suggested that a drop of even 8 decibels in construction noise could significantly reduce the chance of a decline in North Sea porpoise populations.

Of course, its foolish to talk about the potential negative of impact offshore wind turbines without acknowledging the huge upsides. Given the devastating losses to marine life that we are already seeing due to climate change and ocean acidification, any localized damage caused by wind turbine production should be weighed against the reductions in carbon emissions and other pollutants that are achieved by switching to renewables.

Similarly, its worth noting that some research has suggested that, much like offshore oil rigs, wind turbines also serve as artificial reefs. Whether or not this creates a net positive for marine life or as one long-term study into Swedens largest wind farm has suggested merely means that turbines have a largely neutral localized impact, is another factor worthy of further study.

Given that offshore wind has only really taken off since the turn of the millennium, its perhaps no surprise that there are as many questions as there are answers about the eventual impact on marine life. One thing is certain, however, the longer we allow carbon emissions to grow unchecked, the more trouble we will find our oceans in. So far, offshore wind has proven to be a powerful tool in curbing such emissions, not to mention the mercury that starts out in coal-fired power plants and ends up in our tuna. Making sure that this promising technology meets its full potential will require keeping an eye on its impacts, and continuing to ensure that wind farms are developed as cleanly and responsibly as possible.

Sami Grover is a writer, and creative director at The Change Creation, a brand creation agency that works with entities who make the world better, fairer or truer. Clients include Larrys Beans, Burt's Bees, Canaan Fair Trade and Jada Pinkett Smith/Overbrook Entertainment.

The Weather Companys primary journalistic mission is to report on breaking weather news, the environment and the importance of science to our lives. This story does not necessarily represent the position of our parent company, IBM.

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What Do Offshore Wind Farms Mean For The Oceans? | Weather ... - Wunderground.com (blog)

Yellowfin Yachts popular 36 Offshore has received a fresh set of refinements for 2017, and we got a chance to experience the improvements while running out to the West Hump 25 miles south of Islamorda, Florida, to fish for blackfin tuna.

From calm bay waters to large confused waves atop the high spot out, the Yellowfin twin-step hull performed and handled well.

With a 55-gallon livewell in the transom and an 80-gallon well under the leaning post module, the 36 offers outstanding bait capacity.

Improvements to the 36 includes include a molded-in pocket forward of the chines for a larger multichannel transducer. Yellowfin has also shifted the console forward to effectively enlarge the aft cockpit for more room while fishing.

Theres also new leaning-post option that includes a rigging station and cabinets for tackle stowage. Innovative hardware includes ultra-strong and lightweight titanium cleats and through-hull fittings.

The center console now has a full stand-up head compartment for more personal space and greater room for items such as fishing kites. In addition, backrests convert the forward seating area to a pair of loungers.

Our performance numbers reveal that the 36 jumps on plane in 4 seconds and reaches 30 mph in 9 seconds. Top speed with triple Mercury 350 Verados was 62 mph at 6,000 rpm.

Best fuel efficiency occurred at 3,500 rpm and 31.4 mph with the engines burning 22.4 gph for 1.4 mpg. With the 477-gallon fuel capacity, the Yellowfin 36 offers over 600 miles of cruising range.

To see more new boats, check out the overview below of current center consoles that could become classics.

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Yellowfin 36 Offshore Test - Sport Fishing

Tim Goodhews Persephone of London passing Fastnet Rock lighthouse off the West Cork coast in the Fastnet Race 2015. Photograph: David Branigan/Oceansport

Evidence of a continued resurgence in offshore racing will not be in short supply this season as a new trend appears to suggest a trend away from short inshore races and regattas.

Fixture list congestion could also be linked to the dropping numbers in the latter.

Offshore races involving overnight and sometimes weekend commitments seem to be returning to vogue having previously been dismissed as too time-consuming for crews with limited free time.

Long legs up sections of coast requiring crews to sit-out were often seen as pointless compared to technically pure windward-leeward type courses.

Arguments that offshore racing involved more seamanship as well as valuable delivery miles gained little popular support.

More recently however, the biennial Royal Ocean Racing Clubs (RORC) Rolex Fastnet Race has seen a capacity entry received in record time.

The online booking system sold-out 340 boats in just under five minutes in January.

This fleet is in addition to the other non-IRC handicap boats that are expected to bring the fleet up to almost 400 entries departing from Cowes on Sunday, August 6th.

Included in the safety requirements are mileage quotas for crew-members to complete in addition to sea survival courses.

Demand for the Fastnet Race is serving as a boost for other offshore races and this years Volvo Dn Laoghaire to Dingle Race has now been accepted by the RORC as counting towards requirements and has led the RORC and the National Yacht Club (NYC) to seek a closer partnership.

They will act in an observer capacity this year to look at the Sailing Instructions and Safety aspects and then in 2019, it may well be a RORC race, commented Adam Winkelmann of the NYCs organising committee. Its a couple of months ahead of the Fastnet so we think its an ideal race as a qualifier.

Wicklow Sailing Clubs Volvo Round Ireland Race is already a starred RORC race and entries last year were boosted to 52 boats with strong indications that the fleet will grow significantly towards a supposed maximum entry of 100 boats.

The D2D race is also expecting a bigger turnout this year with Winkelmann predicting at least 30 boats, possibly 35 or more for the race that starts on the evening of Wednesday, June 14th, a new development aimed at limiting the race to two working days off for most crews.

The Race to Dingle is also boosted by the support of the Irish Sea Offshore Racing Association that has nominated the race as its highlight for the season.

However, ISORA chairman Peter Ryan points the finger squarely at congestion in the Irish fixtures list as being the main culprit for the fall off in numbers at local and regional events and regattas.

Theres simply no co-ordination between everyone, unlike many years ago when the ISA held the East Coast conference to decide the following years fixtures list, he told The Irish Times.

Its a point echoed by Winkelmann as well.

I can already see the impact of that congestion, theres just too much on theyre (events) happening in an uncoordinated fashion and the geography is all wrong, said Winkelmann, pointing to the need to move boats from one end of the country to the other in the space of one or two weekends.

branigandavid@gmail.com

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Sailing: Offshore racing continues its resurgence - Irish Times

UPDATE, WRITETHRU 3:54 PM PT: Warner Bros/Legendarys Kong: Skull Island stomped into offshore play this weekend, planting an $81.6M footprint at the international box office. The Great Ape roared on 20,400 screens in 65 markets and ranked No. 1 in most majors including the UK, Korea, Russia, France and Germany. The global cume is $142.6M.

The gorilla also faced off with the Wolverine in most markets as last weeks champ Logan shredded another $70.3M for an overseas cume of $285.6M ($436.6M worldwide). The sophomore offshore frame reps a 56% drop from open with Fox/Marvels well-reviewed R-rated pic tracking nicely versus other X-Men titles.

WB

At least one rival distributor calls it a very good launch considering Logans sharp claws. However, some saw it opening higher, saying its good, not great. That $185M production budget and estimated $136M P&A are casting a cloud on potential profitability, as my colleague Anthony DAlessandro has noted.

While both Kong and Logan should have muscular legs, the hirsute duo will be joined by a Disney-haloed Beauty And The Beast in global play next frame. Different demos, but the anticipated live-action pic is expected to be a monster and is opening in most majors, including China, but not France and Japan. Kong doesnt beat his chest in China and Japan until March 24 and 25, respectively. Those were the top plays on 2014s Godzilla, and Kong has comped well against that film in some markets already.

Logan, which is waiting until June for Japan, is currently in 79 markets with an overall 2nd frame thats 20% bigger than X-Men: Apocalypse and 10% behind X-Men: Days Of Future Past at current exchange rates. With $5.9M in Brazil this session, Logan provided Fox with its biggest second weekend ever in the market. In China, the James Mangold-directed threequel is headed towards a phenomenal $90M. But it did lose some ground this frame to Amblins A Dogs Purpose which overtook the No. 1 slot in its 2nd walk around the Middle Kingdom block.

Universal

In other notable performances, Lionsgates La La Land broke the 30M milestone in the UK this weekend to become bigger than three of the Twilight movies and two of the Hunger Games films. Also, Sonys Resident Evil: The Final Chapter crossed $300M worldwide and Disneys Moana opened in Japan, getting ready to sail across $600M global.

Breakdowns on the above and more have been updated below.

NEW KONG: SKULL ISLAND

Warner Bros

In IMAX, Kong grossed $12.4M globally from 674 screens in 63 markets. Its the 2nd biggest global March opening ever in the format without China. With $4.8M internationally, Kong is the 4th all-time biggest March bow and the 2nd highest sans the Middle Kingdom.

Overall, despite competition from last weeks champ, Logan, Kong ranked No. 1 in most majors including the UK, Korea, Russia, France and Germany. Logan retained No. 1 notably in Brazil.

Looking back, 2005s King Kong minted more than $332M abroad, opening to $83M in a December bow (the UK, France and Korea led markets); and 2014s Godzilla debuted to $103M abroad and finaled at $328.4M overseas led by China, Japan and the UK. Another major offshore comp title is 2013s Pacific Rim which made about 36% of its full $309M overseas gross in China with Russia and Korea also big fans. WB is also pointing to its own Mad Max: Fury Road which in 2015 grossed $225M overseas led by Korea, the UK and Australia.

This weekend, Kong landed on top of Pacific Rim and Fury Road in Europe. In Asia, where the Jordan Vogt-Roberts-helmed movie has resonated with audiences, the regional haul is $27.1M. That includes Vietnam where it scored the biggest opening weekend of all time (the film was partially shot there as well). Despite coming in at No. 2 behind Logan in Brazil, Kong topped comp Godzilla in nearly all Latin American markets. As a region, the Tom Hiddleston/Brie Larson-starrer bested Pacific Rim and Fury Road.

The top offshore market on Skull Island is currently the UK with $7.6M on 1,268 screens and 50% of the Top 5 market share. WB has the action adventure tracking 17% ahead of Godzilla, 59% ahead of Mad Max: Fury Road and triple the opening weekend of Pacific Rim.

Korea opened to $7.3M on 980 screens, more than doubling the opening of Logan and coming in 90% higher than Godzilla. At $6M, Russia bowed 19% bigger than Pacific Rim and 16% over Godzilla. This was a top market on Pac Rim. Mexico opened with $5.6M on 2,691 screens, outperforming Pac Rim by 54% and even with Godzilla. In France, Kong scaled $4M on 541 screens, capturing 33% of the Top 5 films.

In Taiwan, the gorilla saw a 101% increase from Friday to Saturday and ended the weekend with $3.6M on 271 screens, outperforming all comps. Australia has a holiday coming up in several areas and started off with $3.5M on 524 screens. Germany saw $3.2M turn up on the Island with 792 screens generating 40% of the Top 5 and double the start of Pac Rim.

Malaysia gave the ape a $2.6M welcome on 520 screens, topping all comps and making for WBs 2nd biggest opening ever behind Batman V Superman. Its also the top start of 2017. In Brazil, Logan dug its claws into the top spot with Kong at No. 2 on 915 screens for $3.4M. Its 11% ahead of Godzilla there.

Also notable, Vietnam, which figures in the pic, gave Kong the biggest opening weekend of all time with $2.2M on 377 screens. Spain bested Godzilla by 60% with $1.6M on 413 and Italy had the highest per-screen average on 491 for $1.5M.

China and Japan are due next on March 24 and 25, respectively. In the next frame, the major competition comes from another hairy player with Beauty And The Beast debuting day-and-date.

HOLDOVERS/EXPANSIONS LOGAN

20th Century Fox

Despite 14 minutes of cuts and a parental advisory, Logan is nearing $90M in China. The 2nd frame saw it dip to No. 2 as Amblin/Universals A Dogs Purpose benefited from the involvement of Alibaba Pictures locally and the markets love for canines and pawed its way to No. 1 this session. Nevertheless, Logan added $18.6M for an $87.6M cume thats 17% bigger than Days Of Future Past at the same point. That film ended at $116.5M in the Middle Kingdom.

In Brazil, Logan held his grip on No. 1 with a 29% dip for $5.92M and Foxs biggest second weekend ever in the market. The cume there is $18.2M. The UK added $4.9M for $21.1M to date and with a 2nd frame thats 11% bigger than DOFP. Korea dipped 35% for a total $13.2M with Australia now at $11.3M. Russia is another top play with $13.9M to date and running 31% bigger than DOFP and 34% better than Apocalypse.

In total, the current international cume is 1% higher than DOFP and 3.6% over Apocalypse through the same point in release. Next weekend will see increased competition from newcomer Beauty And The Beast while Kong looks to keep beating the drum. Japan bows Logan on June 1.

A DOGS PURPOSE

Universal Pictures

Of that, an estimated $21M comes from China. Thats a 24% increase over last frame and lifts the total in the market to $52M. Released locally by Huaxia, its also the first film from Amblin since Alibaba Pictures took a minority equity stake in Steven Spielbergs company. Under the deal, the production arm of Jack Mas China e-commerce giant will team with Amblin to co-produce and finance films for global and Chinese audiences, and collaborate on the marketing, distribution and merchandising of Amblins movies in the PROC.

Chinese audiences love dogs and movies about dogs Hallstroms 2009 film Hachi: A Dogs Tale (never released theatrically in the U.S.) is very popular there and this film was marketed direct to pet owners both on- and offline. Alibabas Tao Piaopiao is the principal ticketing platform for the film, and the company organized a series of dog adoption activities in cinemas and shopping malls across the country. There were also special screenings with audience members bringing along their pets to watch the movie together. This echoes screenings of The Secret Life Of Pets in Tel Aviv last year which were also attended by furry companions. Word of mouth spread to give the film the highest scores this year on Tao Piaopiao and Maoyan.com.

The modestly-budgeted ($22M before P&A) film has now reached $140.5M worldwide, despite the disturbing video and fallout earlier this year. Universal is distributing in 20 territories and Mister Smith has the rest of offshore. There are three more releases: Trinidad March 15; Russia March 30 and Japan September 23.

LA LA LAND La La Land

Lionsgate

MOANA

Disney

RESIDENT EVIL: THE FINAL CHAPTER Passing $300M worldwide, Screen Gems/Constantins sixth franchise installment delivered $6.5M this weekend from over 4,200 screens in 34 markets. That lifts the international cume to $280.2M for a global total of $306.9M.

SING Illumination and Universals Sing put another $5.7M in the coffers from 39 territories this weekend, for an international total of $309M. Worldwide, the animated pic is now at $577.7M. In the 2nd frame, Russia held at No. 3 for an 11-day total of $13.8M. In China, the pic is No. 6 in week 4 with a 24-day total of $29.4M. Japan releases this Friday to close out the show.

FIFTY SHADES DARKER With another $5.2M in the playroom, Universals S&M fest now has a $255.9M cume in 57 territories. Globally, its cuffed $368.8M. There were no new openings this weekend while Germany continues to show its affinity for Ana and Christian with a total $30.4M to date and a No. 3 hold. Behind Germany in the Top 5 are the UK with $28.4M, France at $23.2M, Brazils $20.6M and Italys $15.8M. Still to come are the UAE on March 23 and Japan on June 23.

HIDDEN FIGURES

Hopper Stone

MISC UPDATED CUMES/NOTABLE

Sony

LOCAL-LANGUAGE

Dharma Productions

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'Kong' King In $81.6M Offshore Bow; 'Logan' Leaps To $437M Global Intl Box Office - Deadline

Source: Drillship Pacific Mistral - Courtesy Offshore Energy Today.

Investment Thesis:

The offshore drilling industry plays an important part in the Oil & Gas supply chain.

Did you know that Oil production from offshore locations accounts for approximately 29% of the global crude oil production in 2015, according to the EIA? This percentage has been nearly constant since 2005. I was not able to find the repartition for 2016, yet. However, It is highly likely that offshore accounts for 28% to 30% as well.

The main locations are in Saudi Arabia, Brazil, Mexico, Norway/UK and the USA and represent a total of approximately 27 Million BOE/d.

The bulk of the crude production is still in the "shallow waters", which are generally cheaper and less technically challenging.

In this area, Oil and Gas producers will need a rig less expensive anchored to the rock floor, called Jack-up.

However, there has also been a move toward "deep waters" and "ultra-deepwaters" projects the past 5 to 10 years. Exploratory drilling in deeper waters and ultra-deep waters is naturally more costly and complex for O & G companies, but technology advancements and the near exhaustion of shallower prospects have forced oil majors to explore increasingly deeper waters, particularly in Brazil, West Africa and in the Gulf of Mexico.

The rigs required to perform the drilling in the "deep waters" segment are called floaters or mainly Drillships and Semi-submersibles. Let's have a look at the Drillships situation here.

A quick review of the Drillship fleet Worldwide as of March 10, 2017.

Note: I have used what has been publicly available on InfieldRigs website and translated to easy-to-read graphs that will help you to understand the situation as we go through 2017. I will update this article every quarters.

Basically, the Drillships segment represents a total of 149 rigs including the ones under-construction as of March 10, 2017. The main categories are as follows:

Excluding the "under-construction" segment we actually have 119 rigs in the market and drilling, ready to drill or waiting to drill. Actually 47.9% of these rigs are working and receiving a day rate from a client. The others are moored, on standby or idle in different states.

Most of these rigs are fairly recent and the average age is 9 years (built 2007).

I have identified 6 different locations where 57 rigs are drilling as of January 1, 2017:

As we can see, North America and more particularly the US Gulf of Mexico, is the main player

together with Brazil they represent approximately 67% of the total drillships contracted. Since the oil crash, West Africa has lost approximately 50% of its drillships fleet.

The middle East and Europe are active both in the jack-ups and Semi-submersibles segments, not really in the deep waters segment.

Brazilian offshore production increased by 58% between 2005 and 2015, making Brazil the second-largest offshore producer in 2015 and probably in 2016 as well. Below a very interesting repartition per location.

This production growth in Brazil was made possible by the expansion of deepwater pre-salt project, which is "deep waters".

Until recently, this field was exclusively owned by Petrobras (NYSE:PBR) (National Oil Company NOC), however, On October 2016, Brazil approved handing Pre-salt oil reserves to Oil Majors such as Statoil (NYSE:STR) or TOTAL (NYSE:TOT) which is expected to boost production.

With production increasing from approximately 41,000 barrels per day in 2010 to a million in mid-2016, Petrobras believes Brazil's pre-salt discovery is one of the world's most important in the past decade. It is believed that reserves of over 50 billion barrels could exist in the basin, nearly four times the current national reserves of roughly 14 billion barrels.

The United States offshore production has been boosted by recent strong production in the Gulf of Mexico.

According to EIA in February 2016:

Between 2008 and 2016, offshore production has grown nearly 19%, with several large projects coming online in 2016 and 2017. The Gulf of Mexico saw a production of 1.728 MBOEd in December 2016, according to EIA (From 0.72 MBOEd in 1982).

West/East Africa segment has seen a huge decline in Deep waters and the actual production of 4.6 MBOEd is set to dip to 2.6 MBOEd by 2030, unless CapEx is restored in this area, according to WoodMcEnzie.

Wood Mackenzie claims planned oil and gas investments in Sub-Saharan Africa over the next five years have been reduced by $100 billion. Major oil company cutbacks account for the bulk of the reductions.

Conclusion:

The deep waters segment is an important segment and investors should not avoid this sector as a long-term investment just because it is experiencing a terrible downturn. Yes, it is struggling but.

As Mark Twain once commented to a reporter "The reports of my death are greatly exaggerated." after "hearing on good authority that it was thought to be dead", offshore drilling is definitely struggling but is far from dead.

The main issue for us all, is to apply the right trading/investing strategy by following closely what is going on. The drillship segment is quite small and easy to follow.

The actual situation is not positive, and the near-term may likely bring more pain. However, It is clear to me that we have reached a bottom though, if oil prices can trade above $50-$60 a barrel in the second part of 2017? Oil prices are of a paramount importance.

Last week, we experienced some serious oil price weakness after the EIA reported a record US stock pile now at 528.4 Mbo. However, it is clear that OPEC and non OPEC will likely continue to cut production despite the US Shale booming again, with a production approaching the 9.2 MBOPD again...

Please read my most recent article about this situation. Click here.

Understanding the industry through simple numbers helps to decide and pinpoint the right timing and the right company. One of my main companies in this sector is Transocean Ltd. (NYSE:RIG) -- the strongest in the drillship/semi-submersible sector by far with a backlog over $11 billion comprising of $7+ billion for the floater segment -- Other such as Noble (NYSE:NE), Ensco (NYSE:ESV), Rowan (NYSE:RDC), Diamond offshore (NYSE:DO) could be also selected as good candidates.

Important note: Do not forget to follow me on the offshore drilling. Thank you for your support.

Disclosure: I am/we are long RIG, ESV, RDC.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I may add NE and DO?

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Offshore Drilling - Part I - Complete Overview Of The Drillships ... - Seeking Alpha

In line with plans to fast-track gas production from South Pars Gas Field in the Persian Gulf, the last offshore platform of South Pars Gas Field's Phase 19 has been successfully installed, the phase's contractor said on Monday. Platform 19B, which weighs 1640 tons, was constructed at an estimated cost of $150 million. It has the capacity to extract 500 million cubic feet (over 14.2 million cubic meters) of natural gas per day, Hamidreza Masoudi was quoted as saying by Shana. According to the official, platform 19B is connected to platform 19A via an 18-inch pipeline will be fully operational by April. "Platforms 19A and 19C with the capacity to extract 14 mcm/d and 28 mcm/d of gas, respectively have already been installed," he added, noting that as soon as the new platform goes on stream, the whole phase will move 56 mcm/d of gas to a refinery located in the Pars Kangan region of Pars Special Energy Economic Zone (PSEEZ) where it will be processed and injected into the national gas grid. Moreover, the phase will produce 75,000 barrels of gas condensate, 1 million tons of liquefied natural gas and 1 million tons of ethane per year. Masoudi said that more than 7.2 million barrels of condensates, worth $1.4 billion, have been shipped to target destinations from Phase 19 during the past year. The official added that Phase 19 was developed by a consortium of Petropars Limited, Petropars Iran and Iranian Offshore Engineering and Construction Company under an engineering, procurement and construction (EPC) contract. According to Masoudi, Phase 19 complies with all health, safety and environment (HSE) protocols ratified by the National Iranian Oil Company. Phase 19 is one of the few South Pars phases designed with advanced equipment for curbing associated petroleum gases that are burned off in flares.

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SP Phase 19B Offshore Platform Installed - Financial Tribune

Hearings starting Monday could determine whether Maryland becomes a leader in the development of offshore wind power in the United States.

The Maryland Public Service Commission will begin what could be two weeks of hearings on proposals from two developers to build wind farms in the Atlantic Ocean off Maryland. The two developers are competing for up to $1.9 billion in subsidies over 20 years, paid for by the state's electricity ratepayers, a crucial financing mechanism for developers to recoup the cost of building the massive wind farms.

The commission is expected to decide whether to move forward with one by May 17.

Offshore wind energy, which is booming in Europe, offers significant potential to replace aging energy infrastructure along the East Coast, create jobs and bolster the economy.

The federal government has leased thousands of acres off the Eact Coast to be developed into wind farms, but the industry has yet to take off in the United States. Wind development has been hobbled largely by its cost as well as regulatory hurdles and opposition from politicians opposed to subsidizing energy, coastal residents worried about views and environmentalists worried about migratory birds.

Only one small offshore wind farm has been installed in the United States, just five turbines off Block Island in Rhode Island. But other projects are in the works off Massachusetts, New Jersey and North Carolinia.

If Maryland successfully becomes one of the first states to establish an offshore wind farm, the project could position the state to be a leader in the industry and serve as a hub for the contractors who could service future offshore wind farms up and down the East Coast.

"The opportunity Maryland has is huge," said Liz Burdock, executive director of the Business Network for Offshore Wind, a national advocacy group. "Where the infrastructure goes into place, where first companies set up, will be the base for where the rest of the industry is served."

Maryland has set a goal of getting a quarter of the state's power from renewable sources by 2020. Of that, up to 2.5 percent must come from offshore wind.

To meet those goals, utility companies such as Baltimore Gas & Electric Co., will be required to buy energy credits from offshore wind farms, solar companies and other renewable energy producers.

To encourage development in offshore wind, state lawmakers in 2013 approved legislation that will allow energy companies to pass on the cost of the offshore wind credits to ratepayers. Under the law, residential power bills could go up $1.50 a month and businesses could pay up to 1.5 percent more, to support an offshore wind project once it is up and running.

The Maryland Public Service Commission will decide how much utilities should pay for the offshore energy credits and from which project, essential determining which might get built.

"Maryland wants to be a leader in renewable energy and wants to have more homegrown renewable energy," said James McGarry, a policy director for Chesapeake Climate Action Network, an environmental nonprofit in Takoma Park. "Offshore wind is potentially the biggest untapped source of homegrown renewable energy."

The two proposals under consideration are from US Wind, a Baltimore-based subsidiary of Italian energy and construction giant Toto Holding SpA, and Deepwater Wind, the Providence, R.I. -based developer of the only wind farm off the U.S. coast.

In 2014, US Wind won a federal auction for the leases of two offshore wind sites off the coast of Ocean City. The company wants to build a 750-megawatt wind farm with 187 turbines on the 80,000-acre site. The project would be built in three stages, with the first capable of creating 250 megawatts of wind power. The first stage could be complete by 2020 and the entire project could be built by 2022.

The first stage of the project would cost about $1 billion, said Paul Rich, US Wind's director of project development. He declined to share the proposed impact to ratepayers' energy bills.

Rich said he thinks the company's "go big" approach is Maryland's best bet for establishing itself as a long-term industry leader.

The plan calls for manufacturing facilities at Sparrows Point in Baltimore County that would be run by contractors who will make the massive turbines and bases they sit on. Rich envisions those facilities becoming the go-to resource for future projects up and down the East Coast.

All told, the project could create 5,000 construction, fabrication, electrical and support jobs, he said.

"We are trying to embrace a vision," Rich said. "This will be the Silicon Valley of industrial activity for the offshore wind industry for the whole East Coast."

Meanwhile Deepwater Wind is proposing a smaller, $720 million project that executives called the "right size" for Maryland.

The Skipjack Wind Farm would be located on a 96,400-acre site about 17 nautical miles northeast of Ocean City, actually in waters off Delaware. The company has proposed building 15 turbines, capable of producing 120 megawatts of energy, with the possibility of adding more turbines in the future. Construction could start in 2020 with the farm operational by 2022.

Deepwater has proposed a price for its energy that would cost residential customers 34 cents a month, said Deepwater CEO Jeff Grybowski.

Deepwater acquired the site's lease last year from utility company NRG Energy. The lease had been among the first granted by the federal government in 2012, but NRG's planned wind farm stalled due to financial constraints.

Deepwater leaders said their more conservative proposal is based on their experience developing the only other offshore U.S. wind farm.

The five-turbine Block Island Wind Farm is capable of producing just a quarter of the energy as the proposed Skipjack Wind Farm and took almost a decade to bring to fruition, said Chris van Beek, president of Deepwater, who discussed the project at an event hosted by Business Network for Offshore Wind in Linthicum Heights last week that also featured a presentation by US Wind.

"The problems we had, we were able to handle them because it was small," van Beek said. "I think we start small and prove to the industry that a wind farm can be built and is possible, and I think that's more important than the size of the project."

The Skipjack project also calls for manufacturing operations at Sparrows Point and several hundred construction jobs.

Both companies would establish operations and maintenance offices in Ocean City.

Regardless of which developer Maryland regulators chose, labor unions say the project could be a lifesaver for trade workers who have struggled to find jobs as manufacturing declined in Maryland.

"The promise is enormous for our ready and willing, skilled ironworking workforce and apprenticeship program," said William Beckman, a representative of the Ironworkers Local 5, in testimony submitted to the public service commission. "We will all thrive with exciting new economic development projects that can revive our great city."

Despite such promise, cost remains a concern among consumer advocates. Maryland People's Counsel Paula Carmody, whose office represents residential utility consumer interests, worries that the projects could end up being more costly and a bigger burden to consumers than projected.

"This is a cost impact what that risk or impact might have on the rates they pay in the future, that's what we're talking about," Carmody said. "What we are taking a look at is the level of uncertainty in those projections."

sarah.gantz@baltsun.com

twitter.com/sarahgantz

View post:

Maryland takes next step toward offshore wind - Baltimore Sun - Baltimore Sun

Hearings starting Monday could determine whether Maryland becomes a leader in the development of offshore wind power in the United States.

The Maryland Public Service Commission will begin what could be two weeks of hearings on proposals from two developers to build wind farms in the Atlantic Ocean off Maryland. The two developers are competing for up to $1.9 billion in subsidies over 20 years, paid for by the state's electricity ratepayers, a crucial financing mechanism for developers to recoup the cost of building the massive wind farms.

The commission is expected to decide whether to move forward with one by May 17.

Offshore wind energy, which is booming in Europe, offers significant potential to replace aging energy infrastructure along the East Coast, create jobs and bolster the economy.

The federal government has leased thousands of acres off the East Coast to be developed into wind farms, but the industry has yet to take off in the United States. Wind development has been hobbled largely by its cost as well as by regulatory hurdles and opposition from politicians opposed to subsidizing energy, coastal residents worried about views and environmentalists worried about migratory birds.

Only one small offshore wind farm has been installed in the United States, just five turbines off Block Island in Rhode Island. But other projects are in the works off Massachusetts, New Jersey and North Carolina.

If Maryland successfully becomes one of the first states to establish an offshore wind farm, the project could position the state to be a leader in the industry and serve as a hub for the contractors who could service future offshore wind farms up and down the East Coast.

"The opportunity Maryland has is huge," said Liz Burdock, executive director of the Business Network for Offshore Wind, a national advocacy group. "Where the infrastructure goes into place, where first companies set up, will be the base for where the rest of the industry is served."

Maryland has set a goal of getting a quarter of the state's power from renewable sources by 2020. Of that, up to 2.5 percent must come from offshore wind.

To meet those goals, utility companies such as Baltimore Gas & Electric Co., will be required to buy energy credits from offshore wind farms, solar companies and other renewable energy producers.

To encourage development in offshore wind, state lawmakers in 2013 approved legislation that will allow energy companies to pass on the cost of the offshore wind credits to ratepayers. Under the law, residential power bills could go up $1.50 a month and businesses could pay up to 1.5 percent more, to support an offshore wind project once it is up and running.

The Maryland Public Service Commission will decide how much utilities should pay for the offshore energy credits and from which project, essential determining which might get built.

"Maryland wants to be a leader in renewable energy and wants to have more homegrown renewable energy," said James McGarry, a policy director for Chesapeake Climate Action Network, an environmental nonprofit in Takoma Park. "Offshore wind is potentially the biggest untapped source of homegrown renewable energy."

The two proposals under consideration are from US Wind, a Baltimore-based subsidiary of Italian energy and construction giant Toto Holding SpA, and Deepwater Wind, the Providence, R.I. -based developer of the only wind farm off the U.S. coast.

In 2014, US Wind won a federal auction for the leases of two offshore wind sites off the coast of Ocean City. The company wants to build a 750-megawatt wind farm with 187 turbines on the 80,000-acre site. The project would be built in three stages, with the first capable of creating 250 megawatts of wind power. The first stage could be complete by 2020 and the entire project could be built by 2022.

The first stage of the project would cost about $1 billion, said Paul Rich, US Wind's director of project development. He declined to share the proposed impact to ratepayers' energy bills.

Rich said he thinks the company's "go big" approach is Maryland's best bet for establishing itself as a long-term industry leader.

The plan calls for manufacturing facilities at Sparrows Point in Baltimore County that would be run by contractors who will make the massive turbines and bases they sit on. Rich envisions those facilities becoming the go-to resource for future projects up and down the East Coast.

All told, the project could create 5,000 construction, fabrication, electrical and support jobs, he said.

"We are trying to embrace a vision," Rich said. "This will be the Silicon Valley of industrial activity for the offshore wind industry for the whole East Coast."

Meanwhile Deepwater Wind is proposing a smaller, $720 million project that executives called the "right size" for Maryland.

The Skipjack Wind Farm would be located on a 96,400-acre site about 17 nautical miles northeast of Ocean City, actually in waters off Delaware. The company has proposed building 15 turbines, capable of producing 120 megawatts of energy, with the possibility of adding more turbines in the future. Construction could start in 2020 with the farm operational by 2022.

Deepwater has proposed a price for its energy that would cost residential customers 34 cents a month, said Deepwater CEO Jeff Grybowski.

Deepwater acquired the site's lease last year from utility company NRG Energy. The lease had been among the first granted by the federal government in 2012, but NRG's planned wind farm stalled due to financial constraints.

Deepwater leaders said their more conservative proposal is based on their experience developing the only other offshore U.S. wind farm.

The five-turbine Block Island Wind Farm is capable of producing just a quarter of the energy as the proposed Skipjack Wind Farm and took more than a decade to bring to fruition, said Chris van Beek, president of Deepwater, who discussed the project at an event hosted by Business Network for Offshore Wind in Lithicum Heights last week that also featured a presentation by US Wind.

"The problems we had, we were able to handle them because it was small," van Beek said. "I think we start small and prove to the industry that a wind farm can be built and is possible, and I think that's more important than the size of the project."

The Skipjack project also calls for manufacturing operations at Sparrows Point and several hundred construction jobs.

Both companies would establish operations and maintenance offices in Ocean City.

Regardless of which developer Maryland regulators chose, labor unions say the project could be a lifesaver for trade workers who have struggled to find jobs as manufacturing declined in Maryland.

"The promise is enormous for our ready and willing, skilled ironworking workforce and apprenticeship program," said William Beckman, a representative of the Ironworkers Local 5, in testimony submitted to the Public Service Commission. "We will all thrive with exciting new economic development projects that can revive our great city."

Despite such promise, cost remains a concern among consumer advocates. Maryland People's Counsel Paula Carmody, whose office represents residential utility consumer interests, worries that the projects could end up being more costly and a bigger burden to consumers than projected.

"This is a cost impact what that risk or impact might have on the rates they pay in the future, that's what we're talking about," Carmody said. "What we are taking a look at is the level of uncertainty in those projections."

sarah.gantz@baltsun.com

twitter.com/sarahgantz

More:

Maryland takes next step toward offshore wind - Baltimore Sun

To read the complete fleet status report of March 10, 2017, click here.

1. Class: Jackups

Year

Built

Spec.

Feet/K feet

Contract

End

Current

Day rate

Location

Rate at 0 revenue

1982/2006

mid 7/17

76

[NDC ZADCO]

UAE

M1161

1980

Early 4/18

62

[Dynamic Drilling/ONGC]

Bareboat chartered

India

B152

1982/2004

Late 11/17

81

[NDC]

UAE

(L1112)

Noble Ed Holt

1981/2003

Late 10/18

38

[Dynamic Drilling/ONGC]

Bareboat chartered

India

L786

1983/1998

[Dynamic Drilling/ONGC]

Bareboat chartered

India

Prospector 5

6/2014

JU 2000E

HS-HE

218

[Total]

UK NS

Sold to SinoEnergy

B 391

1981-2001

[Centrica]

UK NS

4-wells

JU 2000E

HS-HE

113

Swap with C461

[ONE]

NL

Sold to SinoEnergy

3. Prospector Offshore HE-HS Jack-up new build.

Name

Year built

Spec.

Feet/K feet

Contract

End

Information

Prospector 6

Delayed

JU 2000E

HS-HE

Prospector 7

delayed

JU 2000E

HS-HE

Prospector 8

delayed

JU 2000E

HS-HE

Note: The company has the option to delay the delivery of Prospector 6. The three rigs (P6, P7 and P8) are being constructed on a non-recourse basis with no parent company guarantees. They do not figure into the fleet status anymore.

Cold Stacked and Ready Stacked Rigs

Note: Ready stacked includes warm stacked, hot stacked and available (When the status or rig name is marked in blue you can click to get more information).

1981/2002

2011

Cold stacked

M842

M825

The company indicated a backlog of $242 million as of December 31, 2016 (now estimated at $195 million as of March 10, 2017):

Paragon Fleet Status

Commentary:

Paragon Offshore released another depressing FSR after a long silence. As a reminder, the preceding fleet status was released on October 18, 2016.

1 - The company managed to bag a small 4-well contract @$55k/d, in the North See for the JU B 391 in UK with Centrica. Additional backlog is $5 million.

2 - Prospector 1 and C461. Contract runs until mid 2/2018.

Executed rig-swap with ONE, transferring all remaining contracted days from the Paragon C461 to the Prospector 1. Anticipate 6 days off rate in March 2017 for planned upgrades; these days to be added to the end of the contract.

The rest is here:

To read the complete fleet status report of March 10, 2017, click here. - Seeking Alpha