[HN Gopher] Why we should leave old oil rigs in the sea, and why...
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       Why we should leave old oil rigs in the sea, and why we don't
        
       Author : MichelBen
       Score  : 55 points
       Date   : 2021-01-27 13:42 UTC (9 hours ago)
        
 (HTM) web link (theconversation.com)
 (TXT) w3m dump (theconversation.com)
        
       | Pick-A-Hill2019 wrote:
       | Ok - I get the 'artificial reef is good' aspect but leaving the
       | topside structures in place?
       | 
       | No way is that environmentally safe to do (imo). I've been on a
       | few rigs over the years and the Topside structures are heavily
       | contaminated with various petrochemicals.
       | 
       | By the time you have decontaminated it sufficiently for it not to
       | be toxic to marine life and doing it at sea with all of the added
       | costs and complexities vs. a full cap and off-shore decommission?
       | Uhmm no, the sums don't add up.
       | 
       | Factor in the the added (admittedly pennies per tonne) value of
       | the the scrap metal and the benefits of just leaving it there are
       | head scratching.
       | 
       | Being fair - perhaps a properly capped well with the jacket left
       | as an artificial reef might make sense, although the chances of
       | it being snagged or snapped in the decades to come by a passing
       | vessel probably outweighs the slight benefits of leaving it there
       | for marine life to inhabit it.
       | 
       | I'm assuming that the proposal in TFA includes the costs of
       | ensuring that all of that rusting infrastructure is properly
       | decontaminated before it slowly corrodes and drops down to the
       | sea bed but the article doesn't seem to mention that.
       | 
       | The costs of ensuring that the topside structure (the 'oil rig'
       | bit that sticks out of the water) is properly decontaminated at
       | sea to a level that would be safe(-ish) for marine life? Yeah, I
       | think HN correctly spotted the smell of bs in the authors'
       | proposal.
        
         | OldHand2018 wrote:
         | The article includes a link to the US program for turning rigs
         | into reefs [1]. You should read that link. To start, the rig
         | must be a good candidate for acceptance into the program (which
         | includes contamination - or lack thereof) and the operator must
         | generally "donate" half of the money they would save to the US
         | state that will be accepting the rig to pay for the costs
         | involved in maintaining the rig as a reef.
         | 
         | [1] https://www.bsee.gov/what-we-do/environmental-
         | focuses/rigs-t...
        
         | Triv888 wrote:
         | > I've been on a few rigs over the years and the Topside
         | structures are heavily contaminated with various
         | petrochemicals.
         | 
         | I bet that is nothing compared to what leaked from the well..
        
       | tda wrote:
       | Maybe one day we figure out how to reuse the foundation/jacket
       | for a huge windmill, that would be a win. And enough space to add
       | an offshore High Voltage Station
        
       | simonebrunozzi wrote:
       | I'm surprised that all these oil rigs are not used by
       | libertarians to start new micronations.
        
         | yostrovs wrote:
         | Why only libertarians? You can have communists living on these
         | rigs in utopia as well.
        
           | Mountain_Skies wrote:
           | There's no reason why communists couldn't make an attempt but
           | historically micronations have been much more of a
           | libertarian thing than a communist one. Communists seem to be
           | much more into either changing the economic system of an
           | entire country or founding communes within a existing country
           | than being into making ocean platforms into a new communist
           | nation.
        
         | Ancapistani wrote:
         | They're not far enough out to be in international waters.
        
         | InitialLastName wrote:
         | It happens on occasion, and those "libertarians" often very
         | quickly realize how valuable government infrastructure can be.
        
           | Mountain_Skies wrote:
           | That or a nearby government decides it doesn't want some new
           | nation that might cause them trouble nearby so they invade.
           | It's happened at least once when the newly formed Republic of
           | Minerva was invaded by Tonga. Without a military of their
           | own, Minerva had no way of preventing even a small nation
           | like Tonga from taking over.
        
         | [deleted]
        
       | kabes wrote:
       | Bit of topic, but that video in the article of these 2 boats
       | lifting the entire oil rig is the coolest thing I've seen this
       | month.
        
         | megablast wrote:
         | It's so great, that you don't even link to it:
         | https://www.youtube.com/watch?v=nWsl-6P09eM
        
         | robocat wrote:
         | The Shell promo video is longer and has more details:
         | 
         | https://www.youtube.com/watch?v=D5xXmEHPFp8
        
         | zackangelo wrote:
         | I helped build and worked on a similar vessel, the VB10K [0].
         | We originally built it just for this purpose (decommissioning)
         | after a bunch of hurricanes toppled oil rigs between 2005-2008.
         | 
         | [0] https://gcaptain.com/interesting-ship-versbar-heavy-lift-
         | ves...
        
         | cesis wrote:
         | It's actually a single ship not 2.
         | 
         | https://en.m.wikipedia.org/wiki/Pioneering_Spirit_(ship)
        
           | tda wrote:
           | And because of this ship it is easy to see how expensive
           | topside removal must be. The vessel costed some 2.5B or so.
           | Recovering that in a few dozen decommissionings means a Hugh
           | price. And don't forget the operational cost of a crew of a
           | few hundred, easily adds up to a few 100k/day. Then the
           | topside, probably full of toxic flame retardants and asbestos
           | needs to be dealt with.
        
           | glup wrote:
           | I want to grow up and be this ship.
        
           | n3k5 wrote:
           | This page has a picture that shows the vessel's layout more
           | clearly:
           | 
           | https://deltamarin.com/references/pioneering-spirit-
           | pieter-s...
        
       | taylorfinley wrote:
       | This piece felt pretty one-sided, and given that it advocates for
       | reducing costs to the petrochemical industry I was curious about
       | the author and his potential motivations for writing this piece.
       | 
       | I found it informative that on his linkedin profile he describes
       | himself as a "Chemical Engineering Consultant."
        
         | mc32 wrote:
         | It sounds like it, but it's not the industry that pays
         | directly, but the government.
         | 
         | That said the question is are the habitats created, on balance,
         | better than any of the drawbacks of leaving the systems in
         | place?
         | 
         | What happens when the structures partially collapse or
         | completely collapse? Do they create dangers either to well
         | heads, vessels, ecosystems ?
        
       | korethr wrote:
       | If I understand this correctly the obligation to remove these
       | structures from internetational law that the UK has agreed to.
       | ISTM that the point of this law is to protect the ecosystems of
       | the waters -- it seems to be operating on the assumption that
       | leaving these structures in the ocean causes them to remain a
       | disruption to the ecosystem. A sort of, you made your mess, now
       | clean up after yourself, rationale.
       | 
       | But if leaving these structures in the ocean causes them to to
       | become marine habits and is actually a net positive on the marine
       | ecosystem, then the goals of this policy are at odds with its
       | actual effects.
       | 
       | So now I wonder how hard it is to go back to OSPAR with evidence
       | that leaving the structures in place is a good thing and getting
       | the policy changed to allow that. Hopefully the OSPAR convention
       | is less dysfunctional than the US Congress?
        
       | smackay wrote:
       | It's a long flight across the North Sea for migrating birds and
       | the platforms have provided a rest stop and no doubt saved many
       | birds from a watery grave - the gas flares have probably killed
       | many more but that's another matter.
       | 
       | My brother was meteorologist out on the rigs for a while and he
       | said that one morning after a storm he went outside and the heli-
       | deck was completely packed with Golden Plovers (Pluvialis
       | apricaria). There was not a square centimetre left exposed.
       | Another time, in a force 12 gale, he watched a Lapwing (Vanellus
       | vanellus) just outside the control room window flying for 20
       | minutes without making any headway against the wind. Not sure if
       | it made it onto the platform.
        
       | robbrown451 wrote:
       | It's odd that they say it only creates 35 jobs. Then why is it so
       | expensive? Seems like if it is so expensive, that will create, if
       | not jobs, lots of person-hours of work, which is effectively
       | jobs. Ok, so the jobs may be out of the country, such as
       | manufacturers of equipment, but still. It takes labor to make it
       | happen, and that is jobs.
       | 
       | I'm not one to advocate for doing things just to create jobs, but
       | that statement seemed disingenuous.
        
       | noja wrote:
       | "Decommissioning the UK's offshore oil and gas infrastructure
       | will cost the taxpayer PS24 billion"
       | 
       | errr... what?
       | 
       | Why is the entity that installed the platform there not
       | responsible for that cost?
       | 
       | This article reads very much like a paid piece.
        
         | qw3rty01 wrote:
         | It wasn't quite clear in the article, but the government isn't
         | paying to remove the platforms, rather the cost of removing the
         | platforms can be written off on taxes, so they (all the oil
         | companies combined) would be paying 24bn less in taxes than
         | they otherwise would have.
        
           | hanniabu wrote:
           | I think the better question is why it costs $24B...
        
             | a1369209993 wrote:
             | Actually, if we're really talking about a tax writeoff, the
             | cost of removing the platforms would be much greater than
             | 24BPS - specifically, if would be enough that, if the
             | income used to pay for it were included in the company's
             | taxable income, the marginal income tax _alone_ would be
             | 24BPS.
        
             | obmelvin wrote:
             | I certainly think you are asking a fair question, but I
             | also think it is understandable that such operations would
             | be considerably expensive. The equipment to remove oil rigs
             | is not cheap [0] and I would assume the demand for such
             | ships is high. Also, I can imagine that a rushed
             | decommission can lead to various ecological disasters that
             | would then cost more to clean up than a proper decommission
             | (+ the added environmental damage)
             | 
             | [0] https://www.youtube.com/watch?v=xsnW5CHrpQ8 - "How Do
             | You Move an Oil Rig? With This Enormous $200M Ship"
        
               | Judgmentality wrote:
               | I agree with the sentiment of your argument.
               | 
               | I also agree with OP that $24 billion is a ridiculous
               | amount of money assuming it isn't mostly graft. If the
               | oil company had to pay for this operation entirely with
               | its own money, with bankruptcy-threatening fines for
               | failure to comply with strict independent oversight, I
               | bet they could do it for 10% of that cost.
               | 
               | This comment is purely speculation based on my loose
               | understanding of corruption in the construction industry.
               | I am not familiar with petroleum engineering and could be
               | wrong as I am quite obviously guessing.
        
               | nitrogen wrote:
               | How does that $24bil compare to oil revenue? Big numbers
               | aren't scary if they are contextualized by even bigger
               | numbers.
        
               | Judgmentality wrote:
               | You're missing the point. It's like the $10,000 toilet
               | seat covers the US military paid for. I'm not saying they
               | can't afford it. I'm saying it's graft.
               | 
               | https://www.washingtonpost.com/business/capitalbusiness/t
               | he-...
        
               | nitrogen wrote:
               | Paying $10k for one toilet seat might be graft. We have
               | to ask what the engineering specs were. $10k for an ISS
               | toilet seat might be reasonable. And that $10k might be
               | buying something else they don't want on the budget,
               | which is near enough to graft as makes no difference.
               | 
               | But paying $1mil for many toilet seats probably isn't
               | graft if you run 10,000 profitable paid toilets.
               | 
               | Until someone can successfully decomission a fleet of oil
               | rigs for way less than $24bil, we don't know if it's a
               | good price or not, but especially if it's a small
               | fraction of the overall lifetime value of the oil
               | produced, it might not be a big deal.
        
               | Gwypaas wrote:
               | That's a small vessel in the grand scheme of things, and
               | only works for floating platforms, which can be towed if
               | time is not an issue. For fixed installations let me
               | introduce you to the completely crazy Pioneering Spirit.
               | 
               | https://www.youtube.com/watch?v=D5xXmEHPFp8 - Dismantling
               | a platform in the North Sea
               | 
               | https://en.wikipedia.org/wiki/Pioneering_Spirit_(ship)
        
             | wizzwizz4 wrote:
             | PS24 billion, or about $33 billion.
        
           | noja wrote:
           | That sounds... fair? Like a normal expenditure (it doesn't
           | sound like tax avoidance).
        
         | serjester wrote:
         | BP was owned by the British government up until 1987. Maybe
         | it's their rigs from back in the day?
         | 
         | Private companies are usually required to have insurance to
         | cover decommissioning their assets in the event of bankruptcy.
         | I'd be very surprised if Britain wasn't directly involved in
         | the operation of these.
        
         | throwaway2048 wrote:
         | If its anything like how it works in most other oil and gas
         | sectors, they transfer the well infrastructure to shell
         | companies for next to nothing when they are at or near the end
         | of their useful production life, that then promptly go
         | bankrupt.
         | 
         | Now the big companies don't have to pay for clean up, magic.
        
           | noja wrote:
           | That only works once. If the other side expects shenanigans,
           | then the company can prepay the cleanup cost somehow, either
           | as an ongoing tax, as upfront fee, or as an insurance pool
           | that you pay into. There are probably hundreds of ways of
           | structuring it.
        
             | throwaway2048 wrote:
             | Except there is zero political will to ensure such a fund
             | is either extant, or properly funded.
             | 
             | This story has repeated itself a lot.
        
             | specialist wrote:
             | TIL: There's a million (or so) abandoned well heads in
             | North America. Suggesting the trick happened more than
             | once.
        
         | ghouse wrote:
         | Privatize the gains (assets), socialize the losses (or the
         | liability)
        
       | demarq wrote:
       | rig will rust and finally give in to the forces of the ocean,
       | taking the habitat with it.
        
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