11. Success in first year of the battle
• Shell mess up big time in the first year!
• Over 3 million people have signed up to
protect the Arctic
• Shell plans under review by US Government
• Globally agreed oil drilling ban possible within
3 years
12. Deep Sea Drilling in
New Zealand
•Most well blow-outs occur during
exploration drilling
•Deepest Taranaki production well
is 120 metres deep
•Deepest new permit area is 3,100
metres deep
•Deepwater Horizon was 1,500
metres deep
13. Technical issues
•Isolated and challenging far-offshore environments
•High pressure and temps of oil reservoirs
•High pressure and low temps of deep sea
•Poor well design
•Casing cement failure
•Unexpected pressure anomalies in the well
•Drill crew misreading pressure anomalies
•Poor management of drilling mud pressure
•Inadequate diversion of a ‘kick’ on the drilling rig
•Undetected shallow gas pockets
•Failure of the Blow Out Preventer at the seafloor
•Inadequate well integrity diagnostics
15. Fundamental issues for New Zealand
• Isolation of deep sea rigs from main petroleum infrastructure
• No well capping solutions other than relief well drilling
16. Economic Impact
•Deepwater Horizon costs - 37 billion US$ and climbing
•No International Oil Rig Spill Liability Treaty
•Impact on New Zealand fishing industry
•Impact on New Zealand tourism industry
•Impact on ‘Clean and Green’ international reputation
17. Need an Energy Revolution!
• “By 2050, around 95% of
global electricity will be
produced from
renewable sources”
• “By 2050, 80% of global
primary energy demand
will be covered by
renewable energy
sources.”
18. New Zealand’s Economic Direction?
2011 global renewable electricity
investment higher than fossil fuels
Projected to reach 1.7 trillion US$ by
2017
PWC Clean Economy Report estimate NZ
can capture 7.5 - 22 billion NZ$ of global
market by 2025