Offshore Oil Drilling and the Oil Rig Disaster in the Gulf

[JeffreyS]

^Mark my words robot drillers.

[BridgeTroll]

Seems to me hundreds are employed for nearly every operating rig...  With damn good pay... especially for Florida... most do not need a college degree...

http://science.howstuffworks.com/offshore-drilling8.htm

Offshore production platforms may be marvels of modern engineering, but none of that valuable petroleum makes its way out of the wells and into refineries without a great deal of human labor. In fact, larger oil rigs often employ more than a hundred workers to keep the platform running. As many of these rigs are located far from cities and shores, the employees (who range from engineers and geologists to divers and doctors) live for weeks at a time on these huge structures.


There are definitely pros and cons to working on an offshore platform. On the plus side, salary and benefits are usually pretty good, and employees typically enjoy long rest periods when they're not at sea. Employees will work one or two weeks on the oil rig, then spend one or two weeks at home. The downside, however, is that when they're at sea, they work 12-hour days, seven days a week. The weeks away from home can strain workers' home lives, as they spend half the year away from their family.

To help cope with these issues, petroleum companies frequently put a great deal of effort into providing comfortable living conditions for offshore workers. In many cases, quarters are on par with those found on major cruise ships -- featuring private rooms, satellite TV and even gym, sauna and recreation facilities. The food onboard also tends to be above average -- and available 24 hours a day. After all, work on an oil rig continues day and night, with employees working rotating schedules of daytime and nighttime shifts. Helicopters and ships bring in most of the necessary materials for day-to-day life on an oil rig, often through choppy weather conditions.

[Dog Walker]

The oil companies themselves say that the rigs will be built in Texas and Mississippi and towed on site.  So, no construction jobs on shore in Florida.

The oil companies themselves say that they will connect wells on the Florida Gulf Coast to their existing network of pipelines that already serve the Alabama and Mississippi well heads.  So some jobs for pipeline companies out of Texas and Louisiana while the connecting pipeline is being built.  I am sure that there will be some jobs in Florida supplying the pipe laying ships.

Once wells are producing there will be additional jobs in Florida for helicopter pilots to fly crews to the rigs, but the workers will be experienced already and probably from existing oil states, not Florida.

The oil companies themselves, by their published employment figures, show that they are really a very lightly staffed enterprise that has no appreciable impact on a state's employment figures.

Sorry, Jason, no robot drillers.  Offshore drilling is a tough, complicated, highly technical operation that takes skilled humans to do.

So while offshore drilling might eventually have some impact of our state's tax revenues, it's not going to be a job creator in the near or middle term.

[Dog Walker]

BT, forty offshore production platforms (each services several wells) at 100 workers on each platform = 4000 jobs.  Most of these guys are going to live in Louisiana or Texas since that's where their families are now.  They don't commute everyday so don't need to live nearby.

Even if it were 40,000 jobs, that's just not much in a state with a population of 18 million.

There are a lot of arguments for and against offshore drilling, but I just don't see job creation as a good "for" argument.

[BridgeTroll]

The oil companies themselves say that the rigs will be built in Texas and Mississippi and towed on site.  So, no construction jobs on shore in Florida.

The oil companies themselves say that they will connect wells on the Florida Gulf Coast to their existing network of pipelines that already serve the Alabama and Mississippi well heads.  So some jobs for pipeline companies out of Texas and Louisiana while the connecting pipeline is being built.  I am sure that there will be some jobs in Florida supplying the pipe laying ships.

Once wells are producing there will be additional jobs in Florida for helicopter pilots to fly crews to the rigs, but the workers will be experienced already and probably from existing oil states, not Florida.

Could you provide a source for the above?

While you are finding that... here are a list of those jobs no one in Florida will be able to get...  I wonder if these folks might move to Florida to be closer to home... perhaps even spend a buck or two...

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

Crew
[edit] Essential personnel
Not all of these personnel are present on every platform, on smaller platforms workers will be responsible for several areas. The names shown are not industry-wide.

OIM (offshore installation manager) is the ultimate authority during his/her shift and makes the essential decisions regarding the operation of the platform.
Operations Team Leader (OTL)
Offshore Operations Engineer (OOE) is the senior technical authority on the platform
PSTL or Operations coordinator for managing crew changes
Dynamic Positioning Operator, navigation, ship or vessel maneuvering (MODU), station keeping, fire and gas systems operations in the event of incident
2nd Mate - Meets manning requirements of flag state, operates Fast Rescue craft, cargo ops, fire team leader.
3rd Mate - Meets manning requirements of flag state, operates Fast Rescue craft, cargo ops, fire team leader
Ballast Control Operator _ also fire and gas systems operator
Crane operators to operate the cranes for lifting cargo around the platform and between boats.
Scaffolders to rig up scaffolding for when it is required for workers to work at height.
Coxwains for maintaining the lifeboats and manning them if necessary.
Control room operators - Especially FPSO or Production platforms.
Catering crew will include people tasked with performing essential functions such as cooking, laundry and cleaning the accommodation.
Production techs for running the production plant
Helicopter Pilot(s) live on some platforms that have a helicopter based offshore. The helicopter flight crew transports workers to other platforms or to shore on crew changes.
maintenance technicians (instrument, electrical, mechanical)
[edit] Incidental personnel
Drill crew will be on board if the installation is performing drilling operations. A drill crew will normally comprise:
Toolpusher
Roughnecks
Roustabouts
Company man
Mud engineer
Derrickhand
Geologist
Well services crew will be on board for well work. The crew will normally comprise:
Well services supervisor
Wireline or coiled tubing operators
Pump operator

[BridgeTroll]

There are a lot of arguments for and against offshore drilling, but I just don't see job creation as a good "for" argument.

Perhaps... Though all I have heard from the anti drillers is any number of reasons NOT to drill just to see what sticks to the wall.  Damn... virtually every project Faye endorses includes the jobs argument.

Seems to me that could be Floridas bargaining chip.  Hey Chevron... you want to drill off the Florida coast?  Employ 80% of each platform with Floridians and base certain support operations in the state also...

[jaxnative]

Hopefully, the State of Florida will not be as shortsighted and asinine as the bankrupt state of California.

California Says No Thanks to $100 Million; Never Mind to $4 Billion
Governor Schwarzenegger has just vetoed almost $500 million in budget line-item, in order to finalize the state budget. However certain environmental activists convinced the Assembly to deny an offshore oil drilling lease. While the drilling lease narrowly passed in the Senate the proposal eventually stalled in the Assembly. The lease would have provided an injection of $100 million dollars in 2009-2010, and about $4 billion over the next decade; not a bad deal for a state that is quite literally living on borrowed money.

Even after all the spending cuts and state worker furlough days, the state continues to be short on cash. The Assembly’s vote against the offshore drilling lease is troubling because it seems to lack any acknowledgment of California’s dire position both today and in the long term.

Offshore drilling in California would not only provide desperately needed funds to the state coffers but would also create high paying jobs.

www/responsibleenergy.com

[BridgeTroll]

Woah... are you kidding me??

The lease would have provided an injection of $100 million dollars in 2009-2010, and about $4 billion over the next decade;

and

but would also create high paying jobs.

I guess oil drilling provides cash and high pay employment to every state and small country except Florida...

Who knew??

[stjr]

Offshore drilling in California would not only provide desperately needed funds to the state coffers but would also create high paying jobs.

www/responsibleenergy.com

Jaxnative, the web site appears to actually be www/responsibleenergy.org .  And, no surprise their conclusion.  Look who they are according to their own web site:

Because of this general misunderstanding and misinformation CARE was founded in 2005 through cooperative efforts of a group of oil and gas producers in New Mexico who were tired of being beaten up by the media, and of misinformation planted there.

http://www.responsiblenergy.org/about.asp

Real objective and scientific, right?

[stjr]

To put U.S. oil industry jobs in perspective, the following is 2007 data from a study by the American Petroleum Institute ( http://www.api.org/Newsroom/upload/Industry_Economic_Contributions_Report.pdf ), the godfather of the oil and gas industry, about the industry's employment:

Oil well related job categories:

NAICS 211. Oil and gas extraction. Establishments in this subsector operate and/or
develop oil and gas field properties. Such activities may include exploration for crude
petroleum and natural gas; drilling, completing, and equipping wells; operating
separators, emulsion breakers, desilting equipment, and field gathering lines for crude
petroleum and natural gas; and all other activities in the preparation of oil and gas up to
the point of shipment from the producing property. This subsector includes the
production of crude petroleum, the mining and extraction of oil from oil shale and oil
sands, and the production of natural gas, sulfur recovery from natural gas, and recovery
of hydrocarbon liquids. Establishments in this subsector include those that operate oil
and gas wells on their own account or for others on a contract or fee basis.

NAICS 213111. Drilling oil and gas wells. This subsector comprises establishments
primarily engaged in drilling oil and gas wells for others on a contract or fee basis. This
industry includes contractors that specialize in spudding in, drilling in, redrilling, and
directional drilling.

NAICS 213112. Support activities for oil and gas operations. This subsector
comprises establishments primarily engaged in performing support activities on a
contract or fee basis for oil and gas operations (except site preparation and related
construction activities). Services included are exploration (except geophysical surveying
and mapping); excavating slush pits and cellars, well surveying; running, cutting, and
pulling casings, tubes, and rods; cementing wells, shooting wells; perforating well
casings; acidizing and chemically treating wells; and cleaning out, bailing, and swabbing
wells.

Note below that the industry includes as jobs gas station and convenience store employees, almost half of all their "direct" employees!

Job Category Code & Description/Number of Direct Jobs
211 Oil and gas extraction (including NGL extraction) 368,451
213111 Drilling oil and gas wells 87,996
213112 Support activities for oil and gas operations 205,662
2212 Natural gas distribution (private) 108,900
2212 Natural gas distribution (public) 8,654
23712 Oil and gas pipeline and related structures
construction 97,817
32411 Petroleum refineries 70,410
324191 Petroleum lubricating oil and grease manufacturing 9,543
32412 Asphalt paving, roofing, and saturated materials
manufacturing 26,387
4247 Petroleum and petroleum products merchant
wholesalers 103,472
486 Pipeline transportation 39,377
44711, 44719 Gasoline stations 905,803
45431 Fuel dealers 90,817
Total Oil and Natural Gas Industry 2,123,291

So, at best, oil drilling and related support constitutes a maximum of 30% of the industry.  Only about 18% explore and operate wells.  API implies there are about 178 million U.S. jobs, so direct employment in its industry amounts to only 1.2% (almost half of this in retailing) of all U.S. jobs.  Less than 0.4% of U.S. jobs are employed in exploration and production of oil and natural gas.

Below is employment in two of the biggest oil drilling and refining states.  Keep in mind that Texas is the HQ's for most of the large oil companies as well as home to most of the big refineries in the U.S. and that some 40% or more of these jobs may be thousands of gas station and convenience store employees:

Direct Employment - Oil and Natural Gas Industry - Louisiana: 109,003 (4.4% of state total)
Direct Employment - Oil and Natural Gas Industry - Texas:  432,147 (3.2% of state total)

For what it's worth, here is Florida in 2007:

Direct Employment - Oil and Natural Gas Industry - Florida 61,914 (0.6% of state total)

Obviously, we have to assume most of these Florida employees are pumping gas.

Conveniently, the API fails to break down jobs in each state by the job categories.  But, it's clear, offshore drilling is going to have little statistical impact on this state's job prospects.

[civil42806]

To put U.S. oil industry jobs in perspective, the following is 2007 data from a study by the American Petroleum Institute ( http://www.api.org/Newsroom/upload/Industry_Economic_Contributions_Report.pdf ), the godfather of the oil and gas industry, about the industry's employment:

Oil well related job categories:

NAICS 211. Oil and gas extraction. Establishments in this subsector operate and/or
develop oil and gas field properties. Such activities may include exploration for crude
petroleum and natural gas; drilling, completing, and equipping wells; operating
separators, emulsion breakers, desilting equipment, and field gathering lines for crude
petroleum and natural gas; and all other activities in the preparation of oil and gas up to
the point of shipment from the producing property. This subsector includes the
production of crude petroleum, the mining and extraction of oil from oil shale and oil
sands, and the production of natural gas, sulfur recovery from natural gas, and recovery
of hydrocarbon liquids. Establishments in this subsector include those that operate oil
and gas wells on their own account or for others on a contract or fee basis.

NAICS 213111. Drilling oil and gas wells. This subsector comprises establishments
primarily engaged in drilling oil and gas wells for others on a contract or fee basis. This
industry includes contractors that specialize in spudding in, drilling in, redrilling, and
directional drilling.

NAICS 213112. Support activities for oil and gas operations. This subsector
comprises establishments primarily engaged in performing support activities on a
contract or fee basis for oil and gas operations (except site preparation and related
construction activities). Services included are exploration (except geophysical surveying
and mapping); excavating slush pits and cellars, well surveying; running, cutting, and
pulling casings, tubes, and rods; cementing wells, shooting wells; perforating well
casings; acidizing and chemically treating wells; and cleaning out, bailing, and swabbing
wells.

Note below that the industry includes as jobs gas station and convenience store employees, almost half of all their "direct" employees!

Job Category Code & Description/Number of Direct Jobs
211 Oil and gas extraction (including NGL extraction) 368,451
213111 Drilling oil and gas wells 87,996
213112 Support activities for oil and gas operations 205,662
2212 Natural gas distribution (private) 108,900
2212 Natural gas distribution (public) 8,654
23712 Oil and gas pipeline and related structures
construction 97,817
32411 Petroleum refineries 70,410
324191 Petroleum lubricating oil and grease manufacturing 9,543
32412 Asphalt paving, roofing, and saturated materials
manufacturing 26,387
4247 Petroleum and petroleum products merchant
wholesalers 103,472
486 Pipeline transportation 39,377
44711, 44719 Gasoline stations 905,803
45431 Fuel dealers 90,817
Total Oil and Natural Gas Industry 2,123,291

So, at best, oil drilling and related support constitutes a maximum of 30% of the industry.  Only about 18% explore and operate wells.  API implies there are about 178 million U.S. jobs, so direct employment in its industry amounts to only 1.2% (almost half of this in retailing) of all U.S. jobs.  Less than 0.4% of U.S. jobs are employed in exploration and production of oil and natural gas.

Below is employment in two of the biggest oil drilling and refining states.  Keep in mind that Texas is the HQ's for most of the large oil companies as well as home to most of the big refineries in the U.S. and that some 40% or more of these jobs may be thousands of gas station and convenience store employees:

Direct Employment - Oil and Natural Gas Industry - Louisiana: 109,003 (4.4% of state total)
Direct Employment - Oil and Natural Gas Industry - Texas:  432,147 (3.2% of state total)

For what it's worth, here is Florida in 2007:

Direct Employment - Oil and Natural Gas Industry - Florida 61,914 (0.6% of state total)

Obviously, we have to assume most of these Florida employees are pumping gas.

Conveniently, the API fails to break down jobs in each state by the job categories.  But, it's clear, offshore drilling is going to have little statistical impact on this state's job prospects.

Obviously, we have to assume most of these Florida employees are pumping gas.

Raise your hand if you know of anyplace they pump your gas for you?

[mtraininjax]

Palm Beach County, some of the stations near the breakers, offer it, or they used to. I'll have to check and make sure.

[BridgeTroll]

http://www.sun-sentinel.com/news/opinion/sfl-oil-drilling-forum-m101609pnoct16,0,2551541.story

Technology can tap into oil reserves safely

October 16, 2009

When Congress let expire the moratorium on oil and natural gas exploration, the possibilities of new jobs, approximately $1.7 trillion in revenue and energy security were finally within reach. However, a year has passed, and America has yet to reap any benefits.

In Florida, support for offshore development has gained steam, as evidenced by state public opinion polls. Last year's advancement in the House opened the door on this issue and its potential economic benefits. And now, legislative leaders have pledged their support to revisit it next session.

We would do our state good by supporting lawmakers and pro-drilling advocates. According to an ICF International study, Florida could gain 13,142 jobs and $428 billion in revenues through offshore development, helping our state to overcome its nearly 11 percent unemployment rate. Given the benefits, why does the administration continue to delay development?

ICF International estimated that Florida's production from the Outer Continental Shelf could total 19.7 billion barrels of oil and 56.5 trillion cubic feet of clean-burning natural gas â€" providing part of America's energy solution, as our nation attempts to stay competitive in the face of increased globalization.

Through advanced technology, the oil and natural gas industry has reduced its environmental footprint, minimizing the impact on ecosystems and wildlife. The industry finds, develops and delivers oil and natural gas while leaving the Earth nearly untouched â€" a fact all Americans need to remember. With these technological developments, oil and natural gas companies can now access the same amount of reserves with half the number of wells it took 20 years ago.

The government estimates our nation's resources could power 65 million cars for 60 years and heat 60 million households for 160 years. And odds are, more resources lurk below ground. In 1987, the Minerals Management Service estimated approximately 9 billion barrels of oil lay in the Gulf of Mexico, and by 2006, that estimate ballooned to 45 billion.
Every day, industry, business and households across America rely on a steady supply of traditional fuels. Through the safe, clean expansion of drilling, our state can play a major role in contributing to these domestic needs, in part, helping to close the gap between those employed and those searching for work. For the good of our nation, lawmakers must seize the opportunity of an expired moratorium and expand domestic access.

[tufsu1]

Woah... are you kidding me??

The lease would have provided an injection of $100 million dollars in 2009-2010, and about $4 billion over the next decade;

This is the same industry that has told folks in Florida they could inject as much as $2 Billion a year into our state budget....even though Texas sees less than $50 million and Alabama has never seen more than $200 million....something doesn't add up!

[tufsu1]

Raise your hand if you know of anyplace they pump your gas for you?

New Jersey