The offshore oil industry is 70 years old this year, and industry analyst Matt Simmons says rust is becoming a bigger threat than oilfield depletion. The CEO and founder of investment bank Simmons & Co. International spoke at OTC 2008 this week in Houston. "If the world wants to keep using energy from oil and gas, it will have to rebuild the infrastructure and the cost of doing this could rival the combined cost of the World War II war machine, the post-war Marshall Plan that rebuilt Europe, and the post-war buildout of the U.S. interstate highway system." Simmons said the costs could be enormous--in the $50- to $100 trillion range. Triage needs to happen immediately to prioritize which links in the system are the weakest and need to be repaired or replaced first. Pipelines are old, some dating to World War II. The average age of the drilling rig fleets onshore and offshore is 24 years. Refineries are even older. "No single U.S. state has drawn up a blueprint of how to replace its aging energy infrastructure." Simmons cited infrastructure construction on the drawing board for the Middle East alone is as much as $1.5 trillion. Simmons also said that if and when we start to build back what the energy industry needs, there will be a severe blue-collar personnel shortage that will hamper progress and cause huge cost overruns. "We face a twin challenge," he said. "We need to end our addiction to oil at the same time that we need to rebuild our entire energy infrastructure." --Leslie Haines, Editor in chief, Oil and Gas Investor, email@example.com
2023-11-06 - Air Product’s carbon capture facility is being built at its existing hydrogen production plant and will serve Exxon Mobil Corp. and other customers when it comes onstream by 2026.
2023-11-17 - KBR’s company, Frazer-Nash Consultancy will continue to provide energy generation and distribution technical support in addition to its support contract.
2023-09-14 - The use of green hydrogen in TotalEnergies’ European refineries could reduce CO2 emissions by about 5 million tons each year by 2030.
2023-11-10 - Here is a look at some of this week’s renewable energy news, including an expanded partnership between pharmaceutical company AstraZeneca and RNG producer Vanguard Renewables.
2023-10-30 - TES has awarded Aker Carbon Capture a feasibility study for a capture capacity facility that would transport 400,000 tonnes of CO2 per year to facilities to produce electric natural gas.