Apache signs to exploit oil and natural gas in southeastern DR

[Dolores]

Energy & Mines Minister Antonio Almonte signed the country’s first oil exploitation contract with Apache Dominican Republic Corporation. The contract had been awarded in November 2019. Almonte announced at the ceremony at the Presidential Palace that the country will receive at least 40% of the profits.

The US oil company seeks to exploit oil and natural gas in the San Pedro de Macorís southeastern basin. The total investment is US$13 million during the first seven years, broken down to US$5 million in the first 4-year exploration phase and then US$8 million for the duration of the second exploration period.

The San Pedro de Macorís basin has an area of approximately 2,535 square kilometers and a depth that varies between 800 and 1,000 meters.

Apache Corporation is a US oil and gas exploration and production company with operations in the United States, Egypt and...

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[chico bill]

$13 million in 7 years won't even move a drill rig from the gulf to San Pedro basin. They don't sound serious.
Maybe they just plan some soundings?

 

[tht]

A couple of the Spanish language news sites state it's 13 million for phase 1 and 2, drilling in phase 3 but no mention of any budget. The English translation don't make that clear. I assume there''s no seismic over the area so will need that, going to take some time an money.

 

[tht]

If the water depth is 800 m ++ it's serious that's deep water.. expensive stuff.

 

[Sailor51]

I'd be concerned with the proximity to potential earthquake zones. Several have occured recently so poking holes and relieving pressure is something to think about. Wouldn't want a disaster like happened in Americas gulf states.
That and who will really profit?

 

[chico bill]

I'd be concerned with the proximity to potential earthquake zones. Several have occured recently so poking holes and relieving pressure is something to think about. Wouldn't want a disaster like happened in Americas gulf states.
That and who will really profit?

I don't think an 8" hole on a pressure capped oil well causes tectonic plates to shift ? Do you have a scientific paper of this phenomenon ?

 

[Ecoman1949]

I don't think an 8" hole on a pressure capped oil well causes tectonic plates to shift ? Do you have a scientific paper of this phenomenon ?

Bill, I think he is alluding to the slumping that has occurred in certain areas in the US after fracing was done on a large scale in already fractured shale structures. I don’t know if any areas in the world where plate tectonics were influenced by fracing. DR geology has naturally fractured areas. I thought that was the reason the former DR government always held back on oil exploration permits. Looks like the new government is taking a cautious approach. Seismic exploration creates risks to certain aquatic species but proper timing can get around that. Fracing technology has improved considerably once the go ahead was given in the US to further develop
existing and new shale gas beds. Given the scale of this DR project, I don’t see any major hurdles from an environmental perspective. The worst scenario would be a blowout and we would be dealing with natural gas which evaporates quickly. It’s more of an explosion hazard than a persistent environmental problem. The last major blowout I responded to on our coast was a well kick and bop failure due to hydraulic problems. The well spewed natural gas for 12 days before the Red Adair team could bring it under control. Just an explosion hazard and no long term effects.

 

[chico bill]

Bill, I think he is alluding to the slumping that has occurred in certain areas in the US after fracing was done on a large scale in already fractured shale structures. I don’t know if any areas in the world where plate tectonics were influenced by fracing. DR geology has naturally fractured areas. I thought that was the reason the former DR government always held back on oil exploration permits. Looks like the new government is taking a cautious approach. Seismic exploration creates risks to certain aquatic species but proper timing can get around that. Fracing technology has improved considerably once the go ahead was given in the US to further develop
existing and new shale gas beds. Given the scale of this DR project, I don’t see any major hurdles from an environmental perspective. The worst scenario would be a blowout and we would be dealing with natural gas which evaporates quickly. It’s more of an explosion hazard than a persistent environmental problem. The last major blowout I responded to on our coast was a well kick and bop failure due to hydraulic problems. The well spewed natural gas for 12 days before the Red Adair team could bring it under control. Just an explosion hazard and no long term effects.

I think there has been a lot of evidence of ground slump from water well draw down in the San Joaquín Valley of California but I haven't heard of slumping from oil well drilling. West Texas would be a good place to look for that.
Some swarm earthquakes in Oklahoma have been blamed on fracking but they haven't made headlines for a while.
Yes oil well blow out in the ocean can be a catastrophe like happened on BP's platform in the Gulf but the recovery of the environment and fisheries beat all forecasts.

 

[Ecoman1949]

I think there has been a lot of evidence of ground slump from water well draw down in the San Joaquín Valley of California but I haven't heard of slumping from oil well drilling. West Texas would be a good place to look for that.
Some swarm earthquakes in Oklahoma have been blamed on fracking but they haven't made headlines for a while.
Yes oil well blow out in the ocean can be a catastrophe like happened on BP's platform in the Gulf but the recovery of the environment and fisheries beat all forecasts.

I always think of the massive amount of money EXXON threw at the VALDEZ spill when natural biodegradation processes actually dealt with most of the residual oil left in the coastal environment. The DR has a few things in its favour should spilled oil ever impact its shorelines. Warm temperatures and open coastlines combined with strong waves and tidal influences can often deal with spill impacted beaches better than we can. Obviously any oil with the potential to
impact tourist beaches would be a priority for containment and cleanup. If the oil they discover is a light crude, that’s feed for the petrochemical industry. You get a good dollar return on that stuff but I suspect there will be pressure to build a refinery in the DR and ship it ashore for gas and diesel production. Any natural gas could be piped ashore to feed electrical generation facilities. The ladies made a fortune in Alaska during the spill. They would fly in, service the cleanup crews on the temporary accommodation barges, and fly back with purses stuffed with hard cash. One of my response team members tried to fly up to assist the US spill response teams. He got bumped off the flight by the ladies. God bless them! It’s an ill spill that doesn’t do somebody some good. 😂😂

 

[tht]

It's not an oil spill yet, Apache is doing fine offshore NE of South America. Most accidents are preventable BP messed up on Macondo.

 

[CDNBear]

Isn't the consensus in the 1st world that we shouldn't look for more oil, because the 1st world have polluted enough?

Thing's may have an different perspective here though.

 

[NanSanPedro]

Isn't the consensus in the 1st world that we shouldn't look for more oil, because the 1st world have polluted enough?

Thing's may have an different perspective here though.

I don't think that's the consensus at all. Until affordable cleaner energy is available for the masses, oil will be required to move the economy. I'm 65 and will not see cleaner energy en masse in my lifetime, however many weeks I have left.

 

[johne]

$13 million in 7 years won't even move a drill rig from the gulf to San Pedro basin. They don't sound serious.
Maybe they just plan some soundings?

Agreeded. BUT, they might be serious about selling bull syte partner shares in the U.S, plenty of ppl looking for "losses" top offset gains made in the market

 

[bob saunders]

Isn't the consensus in the 1st world that we shouldn't look for more oil, because the 1st world have polluted enough?

Thing's may have an different perspective here though.

There is no consensus, only people with an agenda for finding different ways to control people and get rich while doing it. Cleaner air, water, and soil are all worth while pursuits, but we are going to lose need fossil futures for a lot time.

 

[windeguy]

Isn't the consensus in the 1st world that we shouldn't look for more oil, because the 1st world have polluted enough?

Thing's may have an different perspective here though.

In a word, no. Energy is still needed.

 

[CDNBear]

Oh well. Maybe the coronavirus will save the climate then, or we must adapt.

Hope they find something, the DR certainly could need it.

Will the coronavirus kill the oil industry and help save the climate?

Analysts say the coronavirus and a savage price war means the oil and gas sector will never be the same again

www.theguardian.com

 

[windeguy]

Oh well. Maybe the coronavirus will save the climate then, or we must adapt.

Hope they find something, the DR certainly could need it.

Will the coronavirus kill the oil industry and help save the climate?

Analysts say the coronavirus and a savage price war means the oil and gas sector will never be the same again

www.theguardian.com

The climate could be saved if CV19 kills off most of the people. At most it will kill of 0.5% of humans.
Sorry, but that just won't do it. Temporary declines in oil production, while sensational to note, do not reflect the long term energy needs of billions upon billions of people.

 

[Ecoman1949]

The oil industry was on a downturn prior to the pandemic due to decreased demand and a glut of oil on the world markets. The pandemic further decreased the demand. The pandemic will subside and life will return to normal. The demand for oil will inevitably increase. How much no one knows. Some predict that the day of $150 a barrel oil price will never happen again. $50 to $70 will be the new normal. That is actually better for economic development. The oil industry has invested heavily in new more efficient process technologies to enhance their bottom line and reduce their footprint to ensure they have a long viable future. I can’t see a day when they won’t exist. We live in a global village where goods are manufactured and shipped worldwide. The container ship transportation sector uses a phenomenal amount of oil and lubricants annually. Add in other transportation sectors like air, road, and rail transport. All need fuels and lubricants. Now factor in carbon fibre composites for aircraft, cars, etc. All made from oil derivatives by the petrochemical industry. Then there is the need for natural gas to heat our homes, cook our food, and fire our electrical generation plants. Even low end oil products like bunker oil for asphalt are needed to pave and repair millions of miles of road every year. The oil industry is not fading away anytime soon.

 

[CristoRey]

I can’t see a day when they won’t exist. ....The oil industry is not fading away anytime soon.

Unfortunately that day may be coming
(forced down our throats) much sooner
than you think. A few (more recent) generations
have been brainwashed by the "intellects"
and believe our use of oil and gas is killing
the planet. We're all gonna die!!!!!!

 

[NanSanPedro]

Unfortunately that day may be coming
(forced down our throats) much sooner
than you think. A few (more recent) generations
have been brainwashed by the "intellects"
and believe our use of oil and gas is killing
the planet. We're all gonna die!!!!!!

I agree but they are not pragmatic. Like ecodude says, we can't live without it nor will we in the near future. Once they realize that, and they will, their demands/whining will get reduced and they will tackle the next progressive idea du jour.