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November 2001

Vol. 6, No. 16 Week of November 11, 2001

Technology no barrier to developing British Columbia’s offshore

Consultant says facilities could be made secure during earthquakes and storms, but the costs of mitigating the risks raise doubts about economic viability of development

Gary Park

PNA Canadian Correspondent

By There are no technological reasons why oil and natural gas development should not occur off the British Columbia coast, but the economic viability of tapping the reservoirs is another matter, says an environmental report.

Commissioned by the New Democratic Party government before it was resoundingly defeated in last spring's election, the report by Jacques Whitford Environment Ltd. said offshore technology is now at the point where it is possible to lift 30-year government moratoriums on offshore exploration.

“There are no specific design, geo-hazard or environmental issues that would preclude the development of the offshore oil and gas reservoirs,” the 200-page report concluded.

“However, the economic viability of a specific reservoir may be adversely impacted by the costs associated with mitigating the geo-hazard and environmental risks.”

But the consultant insisted the design technologies are “available to provide security to facilities during major earthquake and storm events.”

Storms less intense than in GOM

Despite an offshore environment that can be treacherous — winds up to 110 miles per hour have been recorded at the Queen Charlotte Islands — the report said storms off the British Columbia coast are of lower intensity than those faced by offshore facilities in other parts of the world.

In the Gulf of Mexico, tropical cyclones reaching hurricane force are the major factor behind weather-related shutdowns of rigs, often lasting as long as five to seven days, the consultant said.

The report said much of British Columbia's offshore lease area lies in water that is deeper than 160 feet and in areas where earthquake and tidal wave risks are high.

But it said that drilling technology “has gone through significant advances to extend the reach of offshore exploration and production to greater water depths.”

Advances that can improve efficiency and minimize environmental impact include: Multi-lateral drilling; slimhole and casing drilling; riserless and dual gradient drilling; sophisticated mooring and dynamic positioning; and design improvements to blowout preventers, top drives and mud pumps.

Platforms safer than floating facilities

The Jacques Whitford researchers suggested that because of the province's deepwater and earthquake-prone conditions, it would be preferable to use steel-leg, gravity-based drilling platforms rather than floating production, offloading and storage vessels. They conceded what many scientists and environmentalists have argued, that earthquake risks in British Columbia's offshore are higher than most, but not all, offshore oil and gas areas.

“More extensive investigations would be required than in many locations to identify hazard areas,” the report suggested.

The study was ordered by the New Democratic Party government, despite its strongly held opposition to opening the region to exploration and the claims of environmentalists that oil spills would be inevitable regardless of progress in offshore technology over the last 20 years.

But the findings will now go to a three-member panel, named by the new government to determine whether offshore development can be conducted in an environmentally sound manner.

Those conclusions are to be submitted by Jan. 15, 2002, to Energy Minister Richard Neufeld.

The full Jacques Whitford report is posted on the British Columbia government's Ministry of Energy and Mines Web site at www.gov.bc.ca/em






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