Go Lean Commentary
Oil is up and down.
Just recently the price per barrel was so low that it was traded on the commodities market for the rock-bottom price of $48. But in 2008, (a familiar year for this commentary), the price was as high as $144 per barrel. That’s wholesale for crude. At the retail level, the price at the low was below $2 per gallon in some US cities; (as reported in this previous blog, a Oklahoma gas station posted a price at $1.99). At the 2008 high, the retail price was over $5.00 in some American cities, like in California.
It could be a dizzying ride, up and down, complete with exhilaration and anxiety, especially for communities with mono-industrial economic engines. Trinidad is one such community. Now Guyana wants to be added to the fray.
This news article speaks of the success of the oil exploration activities undergoing in the waters off the coast of Guyana. This is not just off-shore, but rather within the 200-mile region called the Exclusive Economic Zone. The news article relates as follows:
GEORGETOWN, Guyana (GINA) — Guyana looks to be set to join the group of oil producing nations, as news was made public by ExxonMobil that it has found a deposit of a ‘significant’ amount of oil in the Stabroek Block, some 120 nautical miles offshore Guyana.
It was discovered in one of the two wells it drilled in the Liza-1 site, which realised more than 295 feet of high-quality oil-bearing sandstone. The well was started or “spudded” on March 5, 2015, and the data will be analysed in the coming months to determine the full resource potential.
In the released statement, president of ExxonMobil Exploration Company, Stephen Greenlee, said, “I am encouraged by the results of the first well on the Stabroek Block… over the coming months we will work to determine the commercial viability of the discovered resource, as well as evaluate other resource potential on the block.”
Guyana has been identified by several surveying companies as one of the world’s greatest untapped potential sources for hydrocarbons.
Source: Caribbean News Now – Regional Online News Site – Posted May 22, 2015; retrieved from: http://www.caribbeannewsnow.com/topstory-%27Significant%27-oil-deposit-found-offshore-Guyana-26217.html
Congratulations to Guyana!
There are other countries in the region hoping for similar success. This is just a sample list:
What feature about these aspiring countries, and the existing oil-producing countries, makes oil exploration possible?
The answer is the Exclusive Economic Zone (EEZ), which constitutes additional territory to explore and exploit. Every Caribbean nation, with no immediate neighbor within 200 miles, has this EEZ territory for their benefit; see Appendix A.
How does this process work?
It is simple and it is complicated. This duplicity is part of the heavy-lifting for elevating the region.
This is the guidance from the book Go Lean … Caribbean. It serves as a roadmap – turn by turn directions – for the introduction and implementation of the Caribbean Union Trade Federation (CU). This federation is designed to employ best practices for economics, security and governance. The CU/Go Lean roadmap posits that “Extractions” (Oil and Rare Earths) must be a significant strategy for the Caribbean region to elevate its society. In fact, the roadmap has these 3 prime directives:
- Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
- Establishment of a security apparatus, including emergency management, to protect the resultant economic engines.
- Improvement of Caribbean governance to support these engines, including a separation-of-powers between member-state governments and the CU.
The implementation of the CU allows for the designation of more Exclusive Economic Zones, the consolidation of existing EEZ’s and the technocratic-cooperative administration of “Extractions” within these geographic spaces.
The process of benefiting from the EEZ starts with exploration. This is what Guyana has just concluded. They embarked on a scanning / diagnostic process to map out a geological survey of the subterranean formations under the seabed within their EEZ. First they found ideal indicators, then they drilled wells and “lo and behold” the announcement in the foregoing news article.
Guianan officials are not trained oil explorers. They hired and out-sourced to technocrats or Subject Matter Experts (SME), for both the drilling and the earlier step of geologic scanning. The foregoing article reveals that the drilling was performed by the drilling SME ExxonMobil. But the scanning was done by a different SME, a company branded Petroleum Geo-Services (PGS); see Appendix B & VIDEO.
PGS also works with Trinidad & Tobago, helping to map out the geological surveys for that country’s Ministry of Energy and Energy Industries for further exploration in their EEZ. Trinidad is already an oil-exporting country.
Within the exploration process, there is a step for public bidding. This allows a drilling SME to make financial commitments (and immediate down payments) to the host country for a split of any resultant revenues derived from successful drilling expeditions. Once bids have been accepted by the host country and permits issued, then the exploring entity proceeds to drill test wells, after more detailed analysis and diagnostic mapping. The results are “hit and miss”.
The foregoing news article reports that the exploratory effort in the Guianan EEZ has been made a “hit”.
The Go Lean/CU roadmap designates an enlarged Exclusive Economic Zone for the integrated Caribbean region, for the geographic area of the Caribbean Sea.
An EEZ can have non-standard dimensions (beyond the 200 miles of the coastline) only with approval of the United Nations Convention on the Law of the Seas. (Consider the examples of Denmark, Philippines and Portugal in Appendix A). The confederation of the 30 member-states, the CU, will be the administrator of this EEZ. Step One / Day One of the roadmap calls for awarding contracts for oil exploration and other extractions in the EEZ – this is what the Go Lean book describes as one of the methods for financing the CU start-up; this is how to Pay For Change (Page 101).
The Go Lean roadmap details a series of community ethos, strategies, tactics, implementations and advocacies to foster development, administration and protections in the Caribbean EEZ. The following list applies:
|Community Ethos – Deferred Gratification||Page 21|
|Community Ethos – Economic Principles – All Choices Involve Costs||Page 21|
|Community Ethos – Economic Principles – Economic Systems Influence Individual Choices||Page 21|
|Community Ethos – Economic Principles – Voluntary Trade Creates Wealth||Page 21|
|Community Ethos – Economic Principles – Consequences of Choices Lie in the Future||Page 21|
|Community Ethos – Economic Principles – Job Multiplier||Page 22|
|Community Ethos – Security Principles – Whistleblower Protection||Page 23|
|Community Ethos – Security Principles – Intelligence Gathering||Page 23|
|Community Ethos – Security Principles – “Crap” Happens||Page 23|
|Community Ethos – Governing Principles – Lean Operations||Page 24|
|Community Ethos – Governing Principles – Return on Investments||Page 24|
|Community Ethos – Governing Principles – Cooperatives||Page 25|
|Community Ethos – Ways to Impact the Future||Page 26|
|Community Ethos – Ways to Impact Research & Development||Page 30|
|Anecdote – Pipeline Transport – Strategies, Tactics & Implementations||Page 43|
|Strategy – Alternative Energy: Harness the power of the sun, winds and tides in the EEZ||Page 46|
|Strategy – Agents of Change – Technology||Page 57|
|Tactical – Fostering a Technocracy||Page 82|
|Tactical – Separation of Powers – Extractions (Mining, Materials & Drilling) Administration||Page 83|
|Anecdote – “Lean” in Government – Environment Regulations & Permits||Page 93|
|Anecdote – Caribbean Energy Grid Implementation||Page 100|
|Implementation – Ways to Pay for Change||Page 101|
|Implementation – Start-up Benefits from the EEZ||Page 104|
|Implementation – Ways to Develop Pipeline Industry||Page 107|
|Implementation – Ways to Improve Energy Usage – Deploy Wind Turbines in EEZ||Page 113|
|Advocacy – Ways to Foster Cooperatives||Page 176|
|Advocacy – Ways to Impact Extractions – Oil Mitigation Plan||Page 195|
|Advocacy – Ways to Improve Emergency Management||Page 196|
|Advocacy – Ways to Foster Technology||Page 197|
|Advocacy – Ways to Improve Fisheries – Model of Alaska EEZ||Page 210|
|Advocacy – Ways Impact Trinidad & Tobago – Oil Boom to Expire without new Exploration||Page 240|
|Advocacy – Ways Impact The Guianas – Guyana’s Societal Challenges||Page 241|
|Appendix – North Dakota Oil Boom Economic-Societal Effects||Page 334|
|Appendix – Cape Cod Wind Farm – Model for Caribbean EEZ||Page 335|
Oil is good; oil is bad! The Go Lean roadmap asserts that the world’s energy needs are undeniable – constant demand – and that the oil-producing economies do have prospects of prosperity (Trinidad & Tobago is no longer considered developing / Third World). The Caribbean sorely needs the empowerments in this roadmap to explore and exploit “oil” in the modern economy. The region also needs mitigations and security measures in the roadmap to guarantee environmental protection.
Oil prices are cyclical – constantly up and down. It is difficult to manage certainties in governance without certainties in revenues. Thusly, the Go Lean roadmap calls for economic diversifications; this is apropos for tourism-service economies as well. There is much at stake when communities “miss the mark” on the diversity quest: fight and flight. The “fight” has been consistent in oil-producing Trinidad with security incidents big and small; big as in Martial Law declaration and terrorist threats; small as in constant crime and employment insecurities. The flight consequence has been consistent in Trinidad; they have experienced one of the highest societal abandonment rates in the region where 70% of the college-educated population have fled.
Guyana is encouraged to take heed from Trinidad.
The CU/Go Lean roadmap is designed to bring the long-awaited economic diversity and efficiency to the Caribbean. The goal is to optimize Caribbean society, allowing us to better compete globally and present more favorable options for our youth to prosper here in their homeland.
Oil exploration and production requires heavy-lifting to derive full benefits for the community; and mitigate accompanying risks. Welcome to the CU technocracy.
Now is the time for all of the Caribbean, the people, business, institutions and governments, to lean-in for the efficiencies and diversities described in the book Go Lean … Caribbean. 🙂
Download the free e-Book of Go Lean … Caribbean – now!
Appendix A – Exclusive Economic Zone
An Exclusive Economic Zone (EEZ) is a sea zone prescribed by the United Nations Convention on the Law of the Sea over which a state has special rights regarding the exploration and use of marine resources, including energy production from water and wind. It stretches from the baseline out to 200 nautical miles (nmi) from its coast. In colloquial usage, the term may include the continental shelf. The term does not include either the territorial sea or the continental shelf beyond the 200 nmi limit. The difference between the territorial sea and the exclusive economic zone is that the first confers full sovereignty over the waters, whereas the second is merely a “sovereign right” which refers to the coastal state’s rights below the surface of the sea. The surface waters, as can be seen in the map, are international waters.
Generally, a state’s EEZ extends to a distance of 200 nautical miles (370 km) out from its coastal baseline. The exception to this rule occurs when EEZs would overlap; that is, state coastal baselines are less than 400 nautical miles (740 km) apart. When an overlap occurs, it is up to the states to delineate the actual maritime boundary. Generally, any point within an overlapping area defaults to the nearest state.
A state’s Exclusive Economic Zone starts at the landward edge of its territorial sea and extends outward to a distance of 200 nautical miles (370.4 km) from the baseline. The Exclusive Economic Zone stretches much further into sea than the territorial waters, which end at 12 nmi (22 km) from the coastal baseline (if following the rules set out in the UN Convention on the Law of the Sea). Thus, the EEZ includes the contiguous zone. States also have rights to the seabed of what is called the continental shelf up to 350 nautical miles (648 km) from the coastal baseline, beyond the EEZ, but such areas are not part of their EEZ. The legal definition of the continental shelf does not directly correspond to the geological meaning of the term, as it also includes the continental rise and slope, and the entire seabed within the EEZ.
The following is a list of the largest Exclusive Economic Zones; by country with a few noticeable deviations:
|Country||EEZ Kilometers2||Additional Details|
|United States||11,351,000||The American EEZ – the world’s largest – includes the Caribbean overseas territories of Puerto Rico and the US Virgin Islands.|
|France||11,035,000||The French EEZ includes the Caribbean overseas territories of Guadeloupe, Martinique, Saint Martin, Saint Barthélemy and French Guiana.|
|Australia||8,505,348||Australia has the third largest exclusive economic zone, behind the United States and France, with the total area actually exceeding that of its land territory. Per the UN convention, Australia’s EEZ generally extends 200 nautical miles (370 km) from the coastline of Australia and its external territories, except where a maritime delimitation agreement exists with another state.The United Nations Commission on the Limits of the Continental Shelf confirmed, in April 2008, Australia’s rights over an additional 2.5 million square kilometres of seabed beyond the limits of Australia’s EEZ. Australia also claimed, in its submission to the UN Commission on the Limits of the Continental Shelf, additional Continental Shelf past its EEZ from the Australian Antarctic Territory, but these claims were deferred on Australia’s request. However, Australia’s EEZ from its Antarctic Territory is approximately 2 million square kilometres.|
|United Kingdom||6,805,586||The UK includes the Caribbean territories of Anguilla, Bermuda, Cayman Islands, Montserrat, Turks & Caicos and the British Virgin Islands.|
|Canada||5,599,077||Canada is unusual in that its EEZ, covering 2,755,564 km2, is slightly smaller than its territorial waters. The latter generally extend only 12 nautical miles from the shore, but also include inland marine waters such as Hudson Bay (about 300 nautical miles (560 km; 350 mi) across), the Gulf of Saint Lawrence and the internal waters of the Arctic archipelago.|
|Japan||4,479,388||In addition to Japan’s recognized EEZ, it also has a joint regime with Republic of (South) Korea and has disputes over other territories it claims but are in dispute with all its Asian neighbors (Russia, Republic of Korea and China).|
|Brazil||3,660,955||In 2004, the country submitted its claims to the United Nations Commission on the Limits of the Continental Shelf (CLCS) to extend its maritime continental margin.|
|Mexico||3,269,386||Mexico’s EEZ comprises half of the Gulf of Mexico, with the other half claimed by the US.|
|Micronesia||2,996,419||The Federated States of Micronesia comprise around 607 islands (a combined land area of approximately 702 km2 or 271 sq mi) that cover a longitudinal distance of almost 2,700 km (1,678 mi) just north of the equator. They lie northeast of New Guinea, south of Guam and the Marianas, west of Nauru and the Marshall Islands, east of Palau and the Philippines, about 2,900 km (1,802 mi) north of eastern Australia and some 4,000 km (2,485 mi) southwest of the main islands of Hawaii. While the FSM’s total land area is quite small, its EEZ occupies more than 2,900,000 km2 (1,000,000 sq mi) of the Pacific Ocean.|
|Denmark||2,551,238||The Kingdom of Denmark includes the autonomous province of Greenland and the self-governing province of the Faroe Islands. The EEZs of the latter two do not form part of the EEZ of the European Union.
|Papua New Guinea||2,402,288|
|Marshall Islands||1,990,530||The Republic of the Marshall Islands is an island country located near the equator in the Pacific Ocean, slightly west of the International Date Line. Geographically, the country is part of the larger island group of Micronesia. The country’s population of 68,480 people is spread out over 24 coral atolls, comprising 1,156 individual islands and islets. The land mass amounts to 181 km2 (70 sq mi) but the EEZ is 1,990,000 km2, one of the world’s largest.|
|Portugal||1,727,408||Portugal has the 10th largest EEZ in the world. Presently, it is divided in three non-contiguous sub-zones:
Portugal submitted a claim to extend its jurisdiction over additional 2.15 million square kilometers of the neighboring continental shelf in May 2009, resulting in an area with a total of more than 3,877,408 km2. The submission, as well as a detailed map, can be found in the Task Group for the extension of the Continental Shelf website.
Spain disputes the EEZ’s southern border, maintaining that it should be drawn halfway between Madeira and the Canary Islands. But Portugal exercises sovereignty over the Savage Islands, a small archipelago north of the Canaries, claiming an EEZ border further south. Spain objects, arguing that the SavageIslands do not have a separate continental shelf, citing article 121 of the United Nations Convention on the Law of the Sea.
|Philippines||1,590,780||The Philippines’ EEZ covers 2,265,684 (135,783) km2.
|Fiji||1,282,978||Fiji is an archipelago of more than 332 islands, of which 110 are permanently inhabited, and more than 500 islets, amounting to a total land area of about 18,300 square kilometres (7,100 sq mi).|
|Netherlands||154,011||The Kingdom of the Netherlands include the Antilles islands of Aruba, Bonaire, Curacao, Saba, Sint Maarten and Sint Eustatius|
|Antigua and Barbuda||110,089|
|Trinidad and Tobago||74,199|
|St Vincent and the Grenadines||36,302|
|Saint Kitts and Nevis||9,974|
Appendix B – Guyana Stabroek MC2D Description
Petroleum Geo-Services (PGS), in conjunction with the Guyana Geology and Mines Commission (GGMC), is pleased to announce the availability of the MultiClient 2D survey acquired over the Stabroek concession. The survey consists of approximately 7,603 km of seismic that has been acquired and processed over the block and tie lines to existing well information with the objective of providing for the first time detailed imaging and geological understanding of this as yet undrilled concession. PGS acquired the data using its GeoStreamer® technology which is a solid streamer with the combination of two different sensors which provide data that exhibits a wider bandwidth and better penetration than conventional data. This MC2D survey provides the GGMC with a state of the art data set that assists industry in their evaluation of this frontier area.
2008 – M/V Aquila Explorer
2D Acquisition Mode
2 ms sample rate
Record Length 14000 ms
Shot Interval 37.5 m
Streamer Length 12000 m
Nominal fold 160
Pre-Stack Time Migration
Raw PSTM Stack SEGY
Final PSTM Stack SEGY
Near, Mid and Far Angle Stack SEGY
Velocity Data in ASCII format
Petroleum Geo-Services (PGS) offers a broad range of products including seismic and electromagnetic services, data acquisition, processing, reservoir analysis/interpretation and multi-client library data. We help oil companies to find oil and gas reserves offshore worldwide.
PGS was founded in Norway in 1991, with two seismic ships and some highly innovative ideas on how to reshape the industry. Today we share the same drive to innovate as inspired our founders, though the team is bigger:
- 12 offshore seismic vessels
- 30 offices worldwide, employing over 70 nationalities
PGS has a presence in 21 countries with regional centers in London, Houston and Singapore. Our headquarters is in Oslo, Norway and the PGS share is listed on the Oslo stock exchange (OSE:PGS).
VIDEO – PGS Seismic Principles – https://youtu.be/q4PqkV0SBe0
Published on Mar 21, 2014 – A short video explaining the seismic principles.