pipeline and natural disasters-are we prepared?

Minerals Management ServiceMinerals Management Service

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


OverviewOverview

Planning and Preparedness Response and Recovery


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


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


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)


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


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


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


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


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


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


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


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

pipeline and natural disasters-are we prepared?

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