Oil exploration plan raises concerns

[Zelda]

Oil exploration plan raises concerns

The Island Newspaper, Ambergris Caye, Belize Vol. 20, No. 19 May 13, 2010

Recently, word hit the media that “oil and gas from onshore and offshore blocks in Belize will be explored, drilled and brought into production, through a joint venture agreement between Princess Petroleum Limited of Belize and the Treaty Energy Corporation of Houston, Texas, a growth-oriented energy company in the oil and gas industry .

According to reports Princess received one of 17 concessions from the government of Belize to explore for oil and natural gas. As part of the joint venture, Treaty will have the right to explore for oil and gas on a total of 2,000,000 acres. The concession consists of 1,800,000 acres of off shore exploration, and 200,000 acres of onshore exploration.

Based on initial findings, Treaty is targeting a 10,000 acre area in the south central part of Belize to place its first well. This site is located off the southern highway which provides quick access to ports in Punta Gorda and Belize City.

Treaty intends to start drilling its first well no later than July 1, 2010. Other groups are starting to come to Belize to explore the offshore area that Treaty believes will produce huge wells that could produce thousands of barrels per day based on information supplied to Treaty by its satellite surveys. Most of the offshore areas in Treaty’s concession are in shallow water and many locations showing hydrocarbon deposits have small land formations, which would make it very economical to drill in terms of offshore drilling costs.

http://www.sanpedrosun.net/10-193.html

[PaulS]

aw man, why can't they just leave us alone.

[Zelda]

well, Paul... there's this little thing called Peak Oil.

basically, it means... we're on the downward slope of the amount of fossil fuels left to EASILY extract.

therefore, they have to go after smaller and smaller underground reserves.

and Belize is almost at the bottom of the barrel, reserve-wise.

basically, THAT means,... no, they ain't gonna leave us alone.



Optimistic estimations of peak production forecast the global decline will begin by 2020 or later, and assume major investments in alternatives will occur before a crisis, without requiring major changes in the lifestyle of heavily oil-consuming nations. These models show the price of oil at first escalating and then retreating as other types of fuel and energy sources are used.

Pessimistic predictions of future oil production operate on the thesis that either the peak has already occurred, that oil production is on the cusp of the peak, or that it will occur shortly. As proactive mitigation may no longer be an option, a global depression is predicted, perhaps even initiating a chain reaction of the various feedback mechanisms in the global market that might stimulate a collapse of global industrial civilization, potentially leading to large population declines within a short period. Throughout the first two quarters of 2008, there were signs that a global recession was being made worse by a series of record oil prices.

http://en.wikipedia.org/wiki/Peak_oil

[Miss Kenni]

Well, we could hope that the Gulf catastrophe would slow things down worldwide, but I think we'd all be disappointed. Fingers are already thoroughly pointed at the US' MMS in connection with the Gulf spill, and it is looking likely that MMS needs to own up to a share of the blame.

Does Belize even have such a department? And if it does, how qualified would it be to vet such plans?

[Zelda]

an interesting, (if a bit oddly written) piece:

When Joe followed up on his application to explore for oil in Belize he was told that his application could not be found but if he wanted to pursue exploring for oil in Belize, he had to apply to Belize Oil and Gas Exploration Limited. Joe knowing that he did find oil in Belize, he followed the instruction he was given only to be told that he had to pay a fee of $10 million dollars to be able to expolre for oil in Belize and prove, to Belize Oil and Gas Exploration Limited, that he had the necessary equipment to carry out such an exploration for oil in Belize.

http://www.belizelandowners.com/

also of interest:

Most of Belize’s 8,867 square miles of territory and much of the waters offshore have been allocated out in petroleum concessions to 18 different companies with a range of foreign shareholders from as close as the USA and as far off as Taiwan and even a local casino.

Belize Natural Energy (BNE) has one of those 18 contracts, and it remains the only company producing and exporting oil from Belize, since it found oil in Belize.

*********

The 18 companies with petroleum contracts in Belize are:

BCH International Inc
BelGeo Ltd
Belize Natural Energy
Blue Creek Exploration Ltd.
Island Oil Belize Ltd.
Miles Tropical Energy Ltd.
Northern Spirit Resources Inc.
OPIC Resource Corp.
Perenco Limited,
PetroBelize Ltd.
Princess Petroleum Ltd.
Providence Energy Belize Ltd,
RSM Production Corp.,
SOL Oil Belize Ltd.
Spartan Petroleum Corp.
US Capital Energy Belize Ltd.
West Bay Belize Ltd.
ZMT International Inc.

Companies have up to 8 years to explore for oil, and 25 years to undertake production and pump oil commercially out of the ground. If no oil is found within the eight-year exploration phase, the contract “self-terminates” meaning it is no longer in effect

http://www.belize.com/articles/oil-expl ... elize.html



and here's some background from the NYT, an article I've had bookmarked for years:

Touched by Oil and Hope in Belize

By SIMON ROMERO - Published: February 21, 2006 -

http://www.nytimes.com/2006/02/21/busin ... wanted=all

from TREATY's webssite:

Treaty has completed, as part of its due diligence, a satellite survey of the entire concession. Satellite imaging coupled with specific scientific technology and experienced engineering analysis can identify areas containing hydrocarbon deposits.

http://www.treatyenergy.com/flashsite/i ... 0&fn_id=28

I read this as... there's going to be rigs dotting the CAYES... ("small land formations")

[Zelda]

it is looking likely that MMS needs to own up to a share of the blame.

yup yup yup...

The Minerals Mismanagement Service

May 24, 2010 - by Faiz Shakir, Amanda Terkel, Matt Corley, Benjamin Armbruster, Zaid Jilani, and Alex Seitz-Wald

<snipped>

Meanwhile, following calls from the Center for American Progress, the Obama administration has announced it will establish an independent commission to investigate the disaster. The probe will investigate "industry practices" and potential negligence on the part of BP and the other companies involved, but it will also investigate the Minerals and Management Service (MMS), a deeply troubled federal agency that for years was the "handmaiden of industry."

Housed in the Department of the Interior, MMS is tasked with collecting $13 billion a year from energy companies, while also policing them to ensure safety and environmental rules are followed. These conflicting functions have created a "cozy" relationship between industry and regulator and led to an explosive scandal under President Bush, in which regulators used drugs and had sex with industry representatives while flouting federal law. Salazar vowed to clean up the agency, saying in February, "There's a new sheriff in town." Nevertheless, the institutional culture created under the Bush administration has proved difficult to change.

The New York Times reports today that despite President Obama's moratorium on permits for offshore drilling following the BP spill, "at least seven new permits for various types of drilling and five environmental waivers have been granted, according to records." Interior Department officials said that "the moratorium was meant only to halt permits for the drilling of new wells" and "not meant to stop permits for new work on existing drilling projects."

Obama acknowledged the unhealthy relationship between industry and regulator, saying, "It seems as if permits were too often issued based on little more than assurances of safety from the oil companies. That cannot and will not happen anymore."

http://pr.thinkprogress.org/

[Miss Kenni]

I'm pretty sure that 2 of those 7 permits are for the relief wells that are supposed to be the permanent end to the current spill -- in a couple of months, and provided we have no Gulf hurricanes before then ... The other 5 were a bit of a shock.

I also gleaned a clue as to some of the "difficulties" in getting an accurate measurement of the spill from a CNN interview featured on Crooks & Liars with BP managing director Robert Dudley:

There is an imprecision around the measurement around that crude oil, which I've used the analogy that it is a little bit like popping a soda can rushing out with lots of gas and oil. There's lots of gas in this crude. The rate is unclear. We are measuring and producing some of that today.

I'm a little puzzled by that, and have asked the oil guys on the other Forum for clarification, but it sounds to me like BP wants to count only the crude oil as the "spill" and not the gas. I'm also left wondering what must/should/can be done about the gas, if it doesn't just get cleaned up along with the oil ...

[Miss Kenni]

OK, clarification was provided and says that the natural gas will evaporate on its own, leaving residue that will combine with the oil, so that no separate cleanup is necessary.

[PaulS]

I wonder what effect a petition against it would have?

It would affect a lot of people's income when an oil spill disaster occurs within Belize waters.

I mean when, not if it occurs because you know it's only a matter of time, right.

[Rigrat]

OK, clarification was provided and says that the natural gas will evaporate on its own, leaving residue that will combine with the oil, so that no separate cleanup is necessary.

Well not really. Methane is one of the worst greenhouse gases. Methane is CH4, eventually it will degrade into water by oxidisation of the Hydrogen atoms and also Carbon Dioxide. The trouble is that this happens right at the edge of the atmosphere which is the very last place you need Carbon Dioxide.

[Rigrat]

I wonder what effect a petition against it would have?

It would affect a lot of people's income when an oil spill disaster occurs within Belize waters.

I mean when, not if it occurs because you know it's only a matter of time, right.

Not really. Disasters such as this are incredibly rare, and they get more and more unlikely with every disaster.
More damage is done to the reef by tourists and fisherman than you would get in decades of oil drilling

[woodsman]

Well, we could hope that the Gulf catastrophe would slow things down worldwide, but I think we'd all be disappointed. ..

I looked around as we were doing our twice monthly feed run to SPL and everybody's still driving like they used to. I'd also bet that very few people started turning off unnecessary lights and come Christmas the houses will be all lit up like every year. Air conditioners and furnaces will run like they used to and houses will be built without any regard for providing passive cooling and heating.

I have a pretty good premonition when people will wake up though - it will be well past the time when it's already too late...

[Miss Kenni]

I looked around as we were doing our twice monthly feed run to SPL and everybody's still driving like they used to.

Yes, I see way too many gas-guzzlers around here, too -- most shockingly, sitting in line for the McD drive-thru (a line that often extends all the way around the building and protrudes into the parkinglot passageway between the grocery store and the bank; that's why I see it, trying to get from one to the other, I'm not IN the line). The only time within my memory span when any significant number of people in the US reduced their gas consumption (driving less, switching to more fuel-efficient vehicles) was when the price stayed at or above $4/gallon for a while. The market reacted by bringing the price down, and elected politicians rightly fear that they won't be re-elected if they keep the price that high through taxes.

Considerations are a bit different in Belize -- the little Honda Fit I drive here in Florida wouldn't make it over the speedbumps on the Western Highway, much less through the lakes on Trapiche Road (it's so low, it scrapes on parking-space stops here). And I can't even imagine trying to get a hybrid repaired, in Belize ...

Rig, is it even possible, much less practicable, to do anything about the evaporating methane? If so, what would it entail? Kenni

[PaulS]

I wonder what effect a petition against it would have?

It would affect a lot of people's income when an oil spill disaster occurs within Belize waters.

I mean when, not if it occurs because you know it's only a matter of time, right.

Not really. Disasters such as this are incredibly rare, and they get more and more unlikely with every disaster.
More damage is done to the reef by tourists and fisherman than you would get in decades of oil drilling

This would have more credibility if it was backed up with an example, otherwise it remains a knee-jerk statement.

[Rigrat]

What like a knee jerk statement that an accident was only a matter of time?

Ok how about some actual facts. There has already been 13 wells drilled offshore Belize that resulted in zero environmental damage to the reef. Yet you only have to go to San Pedro and take a snorkel trip to see the huge damage to the reef done by tourists. Or take a snorkel trip out of Hopkins, and see the trash and broken coral and hundreds of thousands of conch shells to see the damage done by fishermen.

The huge majority of oil rigs get retired after forty to fifty years of operation, without ever seeing anything coming close to the Mississippi canyon disaster.