An increasing number of these projects use new construction, rather than conversion from the diminishing supply of existing tanker tonnage of suitable size, configuration and quality, for long-term development of major fields. As of the fall of 2002, 23 FPSOs (11 newbuild and 12 conversions) and 5 FSOs (3 newbuild and 2 conversions) were under construction. Notwithstanding the new construction, the ability to maintain these assets on site and in full production over the long term is very important. Where a typical shuttle tanker may have a day rate of $20,000 to $25,000/day and a deep water Mobile Offshore Drilling Unit (MODU) may earn $150,000 to $200,000/day, one day of lost production on an FPSO can easily be valued at $2,000,000.

In Arctic offshore areas where exploration and production of hydrocarbons may occur, a substantial portion lies in water depths less than 50 meters. Currently there are no MODU's which can drill all different well types, production and exploration, over a wide range of water depths from 10 m to 50 m, ice conditions, and facilitate alternative development plans, using wellhead platforms. ConocoPhillips Company, in cooperation with Keppel, Offshore and Marine and Technology Centre, have developed a basis of design and specifications for a Self elevating Arctic Mobile Offshore Drilling Unit (MODU) for use in these water depths capabilities to drill a wide range of wells. Economics require that a new build Arctic MODU be highly productive and operate nearly year-round. The Basis of Design and specifications result in a MODU that would have a wide range of application, be highly productive, and make alternative field development concepts viable. The focus of this paper is to detail major items that impact the size, weight, and configuration of an Arctic MODU. This will result in a conceptual unit design that will be used in determine ice loads, layout, and structural design of the Arctic MODU.

Jack-up drilling units have been used in Arctic open water seasons and areas with very limited icebergs. They have not been used in areas where significant sea ice can move in with high concentrations. These areas have typically been drilled using a floating mobile offshore drilling unit (MODU) although the water depths are typically less than 50 meters. Floating MODU"s in shallow water depths can have significant downtime due to the limited offset in shallow water and typically require placing the well control equipment in a seabed cellar. In these areas, jack-ups can improve both operational safety and efficiency as they have limited weather related downtime.Several studies were carried out to determine the feasibility of using a modern high capacity jack-up MODU"s for exploratory drilling in these areas. This paper will review the studies including structural analysis, ice management approaches, and well control considerations. It will also review the further potential of jack-ups in the Arctic.Studies showed that using a jack-up drilling unit is feasible in shallow Arctic seas such as the Chukchi Sea when coupled with an effective ice management system. The jack-up unit has sufficient ice resistance to withstand interaction with thin early winter ice. Specific designs of jack-ups are capable of taking impact forces from thicker ice floes that may occur during an ice incursion event during the open water season. The maximum floe size during an ice incursion is limited and controlled by the associated ice management system. An ice management system was developed using a combination of satellite imagery, ice management vessels, and ice alert procedures. This system was determined as effective in managing ice to allow the jack-up to operate in the Chukchi Sea area.Environmental and personnel safety is enhanced by the use of a Pre-positioned Capping Device, an in place source control device. The device is independent from the rig"s well control system and provides another level of protection in additional to the jack-up"s BOP.The conclusion, based on structural and ice management studies, is that modern high capacity jack-up drilling units can be an effective way to drill wells during the open water season in shallow waters of Arctic seas including areas in to which sea ice can move. The studies also show that there is potential for use in other areas.

Carbon dioxide (CO2 injection into oil reservoirs is a proven technology that is emerging in Canada as an economic method to increase oil production from mature fields while sequestering CO2 emissions. Two commercial CO2 floods are currently operating in Alberta and Saskatchewan with a number of new projects identified for development. The Alberta and Saskatchewan governments have updated their royalty regulations to promote enhanced oil recovery and the industrial CO2 sources have been identified. The "building blocks" for a CO2 industry are being addressed, including the need for pipeline infrastructure to transport the CO2 from the industrial emission source to the commercial user. In the USA, the use of CO2 for enhanced oil recovery has resulted in the construction of about 2,500 km of pipeline. An ultimate network of about 2,000 km of pipelines for CO2 collection and transport has been proposed for Alberta alone. This paper will overview aspects related to the design and potential routes for a CO2 pipeline backbone system that could develop to collect CO2 supplies from a variety of industrial sources for transportation to commercial markets. Introduction Canada, mainly in the province of Alberta, holds one of the largest reserves of oil in the world. With current technology, the recoverable reserves are estimated(2) to be 53 billion m3. In recent years, Canada was the largest import supplier of crude oil to the USA(1). Saudi Arabia has been the second largest supplier of crude oil to the USA(2). While the oil sands are a major and rapidly growing source of oil in Canada, the oil industry in Canada was founded on light sweet conventional crude oil. Although conventional oil in Canada represents less than 2% of the world oil resource, it has provided the basis for the industry in Canada. Billions of cubic metres of light oil remain in known oil reservoirs in Canada that are currently under production. The primary production levels are declining and new technology approaches are needed to continue economic production. Enhanced oil recovery via CO2 injection in conventional light oil pools is a well developed technology that has been practiced in the USA for more than 40 years. Canada, and the province of Alberta in particular, have many light oil pools that are suitable for enhanced oil recovery using CO2 injection. Alberta is also fortunate in that oil sands projects, refineries, petrochemical plants, and natural gas processing plants produce large amounts of CO2 with the purity required for use for Enhanced Oil Recovery (EOR). To achieve the economic, environmental, and social benefits of enhanced oil recovery with CO2 injection, the technology needs to be demonstrated in the specific oil pool and the CO2 needs to be transported to the injection point. This paper will describe the unfolding plan to achieve the benefits of new clean energy from the use of CO2 for EOR in Alberta and Western Canada. CO2 Enhanced Oil Recovery in Canada In Canada, commercial use of CO2 for EOR is limited to only two projects.

To meet the urgent worldwide demand for safer ocean transport of oil within the realistic economic constraints of the shipbuilding and operating industry, naval architects and marine engineers confront a major challenge. This paper examines several tanker design alternatives as well as the restrictions imposed by both U.S. and international rule makers. The benefits of double-bottom/double-hull construction, based on an analysis of comprehensive grounding accident data, are discussed, and measures to limit the outflow of oil in the event of a spill are examined. Improved officer and crew training, more precise and up-to-date navigation/position-keeping systems, enhanced maneuvering capability with collision-avoidance sonar, and better shore-based traffic management of tank ships are among the author's recommendations to achieve the goal of safer transportation of oil at sea.