Sign in
Why are you using WhatsApp?
We have the only messenger dedicated to the industry right here!
Newsfeed, Jobs, Chat, Vendor Network, Crew Creator and Location Services
Subscribe to our mailing list to receive trending oil and gas news!
California said it would increase the amount of natural gas stored at a Los Angeles-area facility that suffered a devastating leak six years ago, its latest loosening of environmental rules to shore up energy supplies.
In a 4-0 vote, the California Public Utilities Commission (CPUC) approved a plan to boost the capacity of SoCalGas' Aliso Canyon underground storage facility to 41 billion cubic feet (bcf) of gas, it said in a statement.
That is about 20% more than allowed previously, but less than the 68.6 bcf the CPUC considered in a rival proposal.
After years of restricting the growth of fossil fuel infrastructure, California has increasingly looked to natural gas for power generation this year after drought and wildfires left it with few other options to keep the lights on.
The state has a goal of producing all of its electricity from clean sources by 2045. But U.S. states like California and Texas have faced notable challenges to their electrical grids in recent months, and worldwide power crunches have forced other countries to ramp up output of coal and other fossil fuels to maintain power.
The decision to increase the amount of gas held at Aliso Canyon was necessary to maintain reliability, the CPUC said.
But it comes as many in the state have pressed to close the facility outright. The state's biggest underground storage field experienced a massive months-long leak in 2015 and 2016.
Methane fumes from the leak forced thousands of residents in the Los Angeles neighborhood of Porter Ranch to relocate for months, and many said they suffered health problems stemming from the disaster.
"We continue to move forward on planning how to reduce or eliminate the use of Aliso Canyon, and to ultimately reduce our reliance entirely on such natural gas infrastructure as we transition to a clean energy economy," CPUC Commissioner Martha Guzman Aceves said in a statement.
Environmental group Food & Water Watch called the decision "dangerous."
SoCalGas, a division of Sempra Energy, said Aliso Canyon helps prevent power outages when supplies are tight.
"With projections for higher than normal natural gas prices nationwide and repair work on an interstate pipeline limiting natural gas supplies to our region, SoCalGas storage facilities, including Aliso Canyon, will play a key and essential role in delivering reliable energy and keeping energy prices stable for Southern Californians this winter," the company said in an emailed statement.
Gas supplies have been tight in Southern California for years due to pipeline limitations and reduced availability of Aliso Canyon, resulting in curtailments to power generators and higher prices for consumers.
Hydropower's contribution to electricity is set to fall to just 5% in 2021, from a five-year average of 12%, while renewables like wind and solar are expected to rise to 37%, government data shows.
Gas-fired power plants, meanwhile, will provide about 45% of the power generated in the state this year, up from the five-year (2016-2020) average of 41%, according to the U.S. Energy Information Administration (EIA).
Over the summer, Governor Gavin Newsom said extreme drought and wildfires put California's power grid in a "state of emergency" and ordered energy agencies to take action.
State agencies have responded through various steps, including spending $196 million to install four 30-MW gas turbines at two sites in Northern California, keeping a Redondo Beach gas-fired plant open through 2023, and asking the federal government to allow some gas-fired plants to operate without pollution restrictions for 60 days.
Source: Reuters
Join our mailing list here
We are #1 on Google and Bing for the "Largest Mobile Energy Network"
Come join our community!
Download the Rig Lynx app here
Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023. Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.” Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.” Updated Guidance As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023. First Quarter 2023 Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023 Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico. The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin. The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL). Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee. “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling. Source: Dolphin Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Why are you using WhatsApp?
We have the only messenger dedicated to the industry right here!
Newsfeed, Jobs, Chat, Vendor Network, Crew Creator and Location Services
Subscribe to our mailing list to receive trending oil and gas news!
Comments (0)