Shell Plc is turning to drones to shorten the costly wait for oil production to resume after Gulf of Mexico hurricanes. The British energy giant has obtained a key US approval to become the first oil producer to use drones on offshore platforms, a move it hopes will help it restart production faster after major weather events such as Hurricane Isaias and save tens of millions of dollars in coming years.
"When a hurricane hits and we have to evacuate, we don't produce a single drop of oil," said Kevin Mc Mahon, vice president of production assets in the Gulf of America. "Having platform-based drones allows us to perform inspections sooner after the storm has passed, putting us ahead of the game." The company, the largest producer in the Gulf of Mexico, said the investment is "in the thousands" and could save nearly $50 million over three years by opening the oil spigots a day sooner following powerful storms.
The first drone of its IRN-Maiden project, sporting a logo styled after the British heavy-metal band, is expected to be installed before the end of the year on one of the platforms of the Mars project, a deep-water oil and gas development about 130 miles south of New Orleans. The timing is pressing, as Hurricane Isaias is barreling toward the US Gulf Coast. Roughly 63% of US Gulf of Mexico crude output had been shut in by early Friday.
Restarting a platform after a storm is a slow, multi-step process. Crews must wait until inspectors determine conditions are safe, a process that can take a full day, using helicopters and long-range cameras. The 2.5-foot battery-powered drones can fly over and around the offshore facility, zooming in to check for leaks and damaged equipment while sending live reports to shore via Starlink. Shell obtained an FAA waiver earlier this year after a two-year process, and the drones will be housed in a hurricane-proof box.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing