pipeline and natural disasters-are we prepared?

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Pipeline and Natural Disasters-Pipeline and Natural Disasters-

Are we Prepared? Are we Prepared?

Restoring Trust in Pipeline SafetyA Conference for all Stakeholders

November 2, 2006Alex Alvarado

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OverviewOverview

Planning and Preparedness Response and Recovery

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GOM Pipeline InfrastructureGOM Pipeline Infrastructure

33,900 total miles of pipelines

In 2001 and 2002 MMS approved 2,049 and 2,017 miles respectively-record years

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Pipelines ApprovedPipelines Approved(Updated October 21, 2006)(Updated October 21, 2006)

0

500

1000

1500

2000

2500

1990 1992 1994 1996 1998 2000 2002 2004 2006

Segments Miles

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GOM ProductionGOM Production

GOM production to continue to increase during the next decade (deepwater)

GOM provides 30% oil and 22% gas of US supply

Pipeline technology has kept up with increased water depths– World deepest installation & operation is in

GOM at 7,570 ft (November 2003)

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Planning and PreparednessPlanning and PreparednessMMS focus

– Evacuate workers• Release of MMS contract helicopters

– Protect environment from oil spills• Ensuring compliance with safety equipment

requirements and maintenance

– Continuity of Operations Plan (COOP)• MMS has a COOP that has been implemented

several times

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Planning and PreparednessPlanning and Preparedness

Industry focus– Evacuate workers– Protect environment

• Empty oil storage tanks

• Secure wells and pipeline systems

– Protect company assets – Develop hurricane season operation plans to

implement response and recovery

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Planning and PreparednessPlanning and Preparedness

Based on recent experiences MMS and Industry will need to further improve response plans– Hurricane Katrina & Rita most demanding

response experienced – MMS met with USCG on April 13, 2006 to

discuss improvements to MMS COOP • CG liaison officer at MMS COOP • MMS to accompany CG while conducting C-130

aircraft flyover after storm landfall

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Response and RecoveryResponse and RecoveryMMS

– Implement COOP • Set up office in Houston• Pipeline Office has worked in 4 different buildings

– Assess damage and identify area of storm impact– Issue guidance (NTL) to inspect, assess, repair, and

return to pipelines to service– Worked with industry in the reporting and

permitting • Big demand for information on extent of damage • Worked with industry to ensure safety and

environmental protection during repairs, modifications, decommission and replacement of damaged pipelines

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Response and RecoveryResponse and RecoveryIndustry

– Damage assessment• Initially very difficult due to onshore impacts

– Communications, fuel, impacts to personnel

– Implement response and recovery plans• Companies implemented post storm pipeline

inspection and integrity plans – One fatality

– No significant pollution incidents

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Response and RecoveryResponse and RecoveryIndustry-Cont

– Shut-in oil production is 324,445 BOPD (5/3/06)

• 21.63 % of the daily oil production (1.5 MMBOPD)• 11% shut-in as of June 2006

– Shut-in gas production is 1.295 BCFPD (5/3/06)

• 12.95% of the daily gas production (10 BCFD)• 7% shut-in as of June 2006

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2006 Offshore Hurricane Readiness 2006 Offshore Hurricane Readiness and Recovery Conference and Recovery Conference

November 1-2, 2006Hilton New Orleans Riverside Hotel

Co-sponsored by Offshore Operators Committee and MMS

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SummarySummary

Over all industry is doing a good job in planning, response, and recovery– One fatality– No significant pollution incidents

Hurricane Katrina & Rita most difficult hurricane response and recovery

Repairs still on going and will continue through this hurricane season and into next year