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Overview of issues that
determine the oil fight
The age of ‘extreme oil’
….and extreme costs



US Dollars per
    barrel
Deepwater Horizon Disaster




  “The oil industry’s Chernobyl”
The Arctic Battle has begun
Big Oil – crossing the 'line in the ice'
A unique world – on the front line
Big Oil profiting from climate change
Arctic oil or bust for Big Oil
Shining the spot-light on Shell’s Arctic drilling plans
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
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
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
Relief well drilling operation




Need more than one rig to stop a
blow-out
Fundamental issues for New Zealand
•   Isolation of deep sea rigs from main petroleum infrastructure
•   No well capping solutions other than relief well drilling
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
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.”
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
It’s time to back the winners
…however
Oil & coal companies buy politicians…
… and politicians pay oil & coal companies
So our ultimate aim – fossil fuel extinction!

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Climate Campaigning

  • 1. Overview of issues that determine the oil fight
  • 2. The age of ‘extreme oil’
  • 3. ….and extreme costs US Dollars per barrel
  • 4. Deepwater Horizon Disaster “The oil industry’s Chernobyl”
  • 5. The Arctic Battle has begun
  • 6. Big Oil – crossing the 'line in the ice'
  • 7. A unique world – on the front line
  • 8. Big Oil profiting from climate change
  • 9. Arctic oil or bust for Big Oil
  • 10. Shining the spot-light on Shell’s Arctic drilling plans
  • 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
  • 14. Relief well drilling operation Need more than one rig to stop a blow-out
  • 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
  • 19. It’s time to back the winners
  • 21. Oil & coal companies buy politicians…
  • 22. … and politicians pay oil & coal companies
  • 23. So our ultimate aim – fossil fuel extinction!