Frontier Deepwater

It is good to see that some of the big NGOs are beginning to take note of our messaging. Perhaps US regulators will also get serious about properly managing our massive (but extremely challenging) High Pressure, High Temperature resources in ultra-deep water. The risk for subsea blowout is too great and the potential for stranding billions of barrels in the Lower Tertiary Wilcox play too shocking to ignore. Hopefully, it won’t take a Macondo-like loss of well control on one of the HPHT Wilcox reservoirs to force a change to DRY TREE technology that will actually increase profitability for the Wilcox Operators. #highpressurewells #drillingrisks #subseawells #subseacompletions #deepwaterdrilling #deepwateroil #deepwaterfielddevelopment #corporatedecisionmaking #sustainabledevelopment #oilandgas #oil&gascompanies #environmentalrisks #responsibleenergy #resourcemanagement #POLLUTIONRISK #responsibleresourcemanagement #EPA #BSEE #BOEM #offshorepollution #offshorepermitting #DWOP #Macondo #Macondodisaster #Horizondisaster #DeepwaterHorizondisaster #ALARP #EPAfailure #sustainableprofitability #HPHT #deepwaterwellblowout #blowout #blowoutrisk #SierraClub #OceanConservancy #Greenpeace #NRDC

We found an error in the MP4 version of our presentation at SPE's Startup Village that was posted previously (on slide no. 8, "pounds" was intended to be stated for CO2 emissions instead of "tons" - while millions of pounds of CO2 is still lot of unnecessary emissions, this is a big difference and an important correction). That erroneous post/video is now replaced with this version. The error was pointed out by one of our team members. Please let us know if you have any questions (like wanting to understand the many ways that the Movable Wellbay changes the game for ultra-deepwater field development globally)... and, please SHARE this correction! #highpressurewells #drillingrisks #subseawells #subseacompletions #deepwaterdrilling #deepwateroil #deepwaterfielddevelopment #corporatedecisionmaking #sustainabledevelopment #oilandgas #oil&gascompanies #environmentalrisks #responsibleenergy #resourcemanagement #POLLUTIONRISK #deepwaterwellblowout #responsibleresourcemanagement #EPA #BSEE #BOEM #offshorepollution #NRDC #offshorepermitting #DWOP #Macondo #Macondodisaster #Horizondisaster #TheHorizondisaster #DeepwaterHorizondisaster #ALARP #EPAfailure #sustainableprofitability

Last week, Frontier’s EVP, Chuck White, was in New Orleans to compete with 9 other companies in SPE’s Startup Village. While we did not win, we got some positive feedback from our participation and good questions from the members of the competition’s 5-judge panel. A slideshow of our presentation is available on request. Perhaps the most important questions from the panel and Chuck’s answers are paraphrased here: 1.    If you could have one new member join your team what would they be? a.    The quick answer, “A billionaire!” – meaning an experienced, visionary oil & gas investor who would promote and adopt Frontier’s dry tree concepts for deployment and “RESCUE” of any of the handful of massive, ultra-deep Wilcox fields that have failed financially due to field development concepts that depend on extremely costly and unproven ultra-high pressure subsea drilling, completion, and well tieback systems. Of course, we also need a top-notch, fully engaged salesperson! 2.    Isn’t your technology very capital intensive? a.    The quick response was that Frontier’s technology does not cost money – IT SAVES the Operators/field owners billions of dollars and increases recovery/revenue by billions of dollars. However, it seems that this question came from a mistaken perception that Frontier would build and sell our patented “movable wellbays” to be installed on various kinds of floating platforms (be they semisubmersibles, spars, TLPs, or even barges). Our presentation makes it clear that Frontier intends to generate revenue by LICENSING its technology to others to use to their great advantage. Frontier will provide tech support to those adopting our technology, but we will not be building/selling any hardware. Our research and articles have documented with clarity the fact that the subsea concepts chosen for development of the ultra-deep Wilcox play are financial failures. The path to success depends on concepts that support proven dry tree technology for direct access to the well bore 24/7/365. Frontier has cracked the code, allowing dry trees to be core to the development of ultra-deepwater fields - especially these huge high-pressure lower tertiary discoveries. We encourage top management and their project organizations to seriously consider a technology that opens the way to a safer, less risky, less costly, less polluting, and more profitable future. #highpressurewells #drillingrisks #subseawells #subseacompletions #deepwaterdrilling #deepwateroil #deepwaterfielddevelopment #corporatedecisionmaking #sustainabledevelopment #oilandgas #oil&gascompanies #environmentalrisks #responsibleenergy #resourcemanagement #POLLUTIONRISK #deepwaterwellblowout #responsibleresourcemanagement #EPA #BSEE #BOEM #offshorepollution #NRDC #offshorepermitting #DWOP #Macondo #Macondodisaster #Horizondisaster #TheHorizondisaster #DeepwaterHorizondisaster #ALARP #EPAfailure #sustainableprofitability

Since US oil industry regulators must be VERY concerned about the increasing pollution and risks involved with subsea developments of ultra-high pressure reservoirs in ultra-deep waters of the US Gulf of Mexico, Frontier Deepwater is excited to be chosen as ONE of the TEN tech ventures selected to present at SPE’s ATCE Startup Village. Our highly experienced team of professionals is committed to addressing the critical industry goal of sustainable profitability. Subsea developments for massive, ultra-high pressure reservoirs in ultra-deep waters of the Gulf of Mexico brought shocking costs, risks, pollution, and financial failures. Corporate leaders, regulators, and NGOs need to understand how Frontier Deepwater’s technology enhances profitability and safety while reducing environmental impact. The Startup Village provides a great stage for showcasing our innovations to key stakeholders, regulators, and potential clients. We believe exposure here can lead to valuable partnerships, investments, and collaborations. Feedback from industry experts can help refine messaging to increase market awareness. This opportunity marks Frontier Deepwater as a leader in tackling our industry’s most pressing challenges. #highpressurewells #drillingrisks #subseawells #subseacompletions #deepwaterdrilling #deepwateroil #deepwaterfield #deepwaterfielddevelopment #projectprofessionals #corporatedecisionmaking #sustainabledevelopment #oilandgas #oil&gascompanies #environmentalrisks #responsibleenergy #resourcemanagement #POLLUTIONRISK #responsibleresourcemanagement #EPA #BSEE #BOEM #offshorepollution #offshorepermitting #DWOP #Macondo #ALARP #EPAfailure #sustainableprofitability

In another special OTC session, Chevron’s Subsea Wellhead specialist noted that ANCHOR features a unique wellhead system that has undergone rigorous testing and qualification. Even though Chevron was financially scorched when attempting to push traditional Tension-Leg Platform concept to extreme an water depth for their BIG FOOT TLP project (in which the multitude of failures were actually due to project management errors), he proudly stated that the ANCHOR project was forced to adopt unproven innovations in subsea technology so that ANCHOR can handle more extreme pressures and temperatures than ever before (i.e., up to 20Ksi pressures and temperatures over 350F). He also emphasized the project’s difficult nature, taking place in a harsh, deepwater environment. After decades of bottom tier project performance with tens of billions of dollars in overruns and many years of delays burdening Chevron’s portfolio, this project team is excited that corporate leaders held to the “supply chain model” for a subsea-hub scheme on an extremely challenging ultra-deepwater HPHT Wilcox reservoir that has required innovation to deploy 1st-of-kind technology. Perhaps a renewed passion for innovative bureaucratic processes & procedures means Chevron will avoid the disastrous financial losses of BIG FOOT or even worse the trauma of a MACONDO. #highpressurewells #drillingrisks #subseawells #subseacompletions #deepwaterdrilling #deepwateroil #deepwaterfielddevelopment #projectmanagement #WorldOil #corporatedecisionmaking #sustainabledevelopment #oilandgas #oil&gas #environmentalrisks #unsustainable #responsibleenergy #resourcemanagement #EPA #BSEE #BOEM #offshorepollution #offshorepermitting #Macondo #blowout #DeepwaterHorizon #ALARP #OTC #OTC2024

OTC'24 follow up... In another big opening for OTC week in Houston, the Project Director for Chevron’s ANCHOR field was tasked with declaring success for the 1st-of-kind 20,000psi ANCHOR project that was sanctioned late in 2019 with a budget target of $5.7B (which excludes the almost $2B invested into exploration, appraisal, pre-FEED, and pre-qualification for HPHT subsea well systems). The budget only indirectly includes Chevron’s earlier $831M commitment to TransOcean for 5yrs of service by TO’s 1st-of-kind 20Ksi rated MODU, the Deepwater Titan. As the Project Director exclaimed, the company’s commitment was “a real leap of faith”! Moving beyond the fact that Chevron is risking billions of dollars (and, per BP’s Macondo experience, possibly tens of billions of dollars and corporate survival) on new, unproven HPHT wells systems technology, the Project Director proudly declared that one of the keys to impending success was developing “a passion to continuously innovate and to simplify” processes and procedures”… not a passion for technical competence and innovation, but processes and procedures! This is a true reflection of the fact that Facilities/Projects Departments in the majors have become grand bureaucracies that, unfortunately, wield incredible corporate decision-making power. Amazingly, Chevron fast-tracked to FID for ANCHOR after drilling only 2 appraisal wells (much fewer and faster than average for the HPHT Wilcox discoveries) and the project team seems to have managed their way through the COVID Pandemic to keep the challenging project on schedule and within budgeting parameters. So, after investing almost 5 years and over $5B on development, Chevron has managed to safely complete 1 well of the 7 wells planned for Phase I of Anchor. Even though they plan to complete the 2nd well and start production before the end of the year, this means that they have only begun the most dangerous phase of this 1st-of-kind 20Ksi project. We can remind that the average time to complete a multi-zone HPHT LT Wilcox well is 3+ months (total D&C time ~1 year) and we all remember that BP’s MACONDO blowout disaster occurred on a just-completed well. #highpressurewells #drillingrisks #subseawells #subseacompletions #deepwaterdrilling #deepwateroil #deepwaterfielddevelopment #projectmanagement #WorldOil #corporatedecisionmaking #sustainabledevelopment #oilandgas #oil&gas #environmentalrisks #unsustainable #responsibleenergy #resourcemanagement #EPA #BSEE #BOEM #offshorepollution #offshorepermitting #Macondo #blowout #DeepwaterHorizon #ALARP #OTC #OTC2024

WORLD OIL's April/OTC issue provides a good summary of the work our Frontier Deepwater team did researching industry performance and the amazing opportunities available to companies willing to adopt the correct field development technology for the challenging HPHT Lower Tertiary reservoirs of the Wilcox play. See attached for access & insights. One thing that’s important to remember is that billions of barrels of oil were announced as being discovered in a handful of LT Wilcox reservoirs in the first two decades of this century that were subsequently abandoned by the Operators because they were determined to be non-commercial… BASED ON the highly risky, expensive subsea-hub schemes that were obviously inappropriate for those complex, multi-zone HPHT reservoirs. As a result, those abandoned mega-discoveries are still available to enrich any perceptive player that can see the right path forward. Some of the ultra-deepwater LT Wilcox reservoirs were actually sanctioned and seen to be serious financial disappointments because they were developed with the subsea-hub concept that fits the modus operandi of the big Operators’ Field Development / Facilities Department’s leadership – not because the development plans incorporated the safest, least costly, most appropriate technology. Amazingly, the company boards and stockholders have not held those corporate apparatchiks responsible for the loss of value… and, folks, we’re talking about tens of billions of dollars of loss and missed opportunity here! #highpressurewells #drillingrisks #subseawells #subseacompletions #deepwaterdrilling #deepwateroil #deepwaterfield #deepwaterfielddevelopment #projectprofessionals #corporatedecisionmaking #sustainabledevelopment #oilandgas #oil&gascompanies #environmentalrisks #unsustainable #responsibleenergy #resourcemanagement #responsibleresourcemanagement #EPA #BSEE #BOEM #offshorepollution #offshorepermitting #DWOP #Macondo #ALARP #EPAfailure

After we published the last of our six WORLD OIL articles a year ago comparing ultra-deepwater WET v. DRY tree production systems, we followed up with a summary of the detailed field operations study in MARINE PROFESSIONAL in April of this year. Since then, we shared these articles with the leadership at BSEE & BOEM, asking them to clarify their strategy for ensuring that leaseholders of discoveries on the Gulf of Mexico’s ultra-deepwater frontier are actually practicing/employing the ALARP and AHARP principles of sustainable resource exploitation. As a reminder, ALARP (As Low As Reasonably Practical) relates to hazards and environmental risks while AHARP (As High As Reasonably Practical) relates to optimizing recovery of America’s precious energy resources. The professionals and leadership in BSEE & BOEM are highly capable and committed to working closely with leaseholders to enable extremely costly and challenging development of ultra-deepwater discoveries in the massive High-Pressure, High Temperature (HPHT) Lower Tertiary Wilcox play. The agencies’ staffs have little to no time available to assess alternatives to what the leaseholders say is needed to make their assets commercially viable… so, it is understandable that the staff members and leaders don’t read articles in the world’s leading energy magazines to learn what “practical” options exist. After months of slow responses, representatives of these agencies finally acknowledged that there are no policy documents clarifying strategy and practices to be applied when reviewing/approving the Conceptual Plans and DWOPs leaseholders must submit. BSEE has been willing to approve field development plans based on subsea technologies that are at least an order of magnitude more dangerous than what is practical. The BOEM is willing to approve those same plans even though it is clear that the subsea schemes being approved will leave billions of barrels of oil stranded in the Wilcox play. Thus, we must conclude that these government agencies are not imposing the ALARP and AHARP principles of sustainability. Even if one is willing to ignore the much higher risk for a Macondo-style environmental disaster, Frontier’s research has also revealed that the big subsea-hub (WET) field developments in the LT Wilcox are necessarily much more polluting than DRY tree options EVERY DAY of the field’s life. So, it seems that the EPA should be involved in a joint approval process to ensure that reasonable measures are applied to protect the region’s long range economic and environmental health. For those interested in learning more, Frontier can provide a relatively detailed summary of the work reported in the articles mentioned above. #drillingrisks #subseawells #subsea #deepwaterdrilling #deepwaterfielddevelopment #sustainable #environmentalrisks #energyresources #resourcemanagement #responsibleresourcemanagement #EPA #BSEE #BOEM #offshorepollution #offshorepermitting #DWOP #Macondo #ALARP