Posted in Uncategorized | 5 Comments »
“The Department of the Interior today announced the start of a phased plan to establish the Marine Minerals Administration, bringing together the functions of the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement. This action is intended to improve coordination and increase efficiencies across offshore leasing, permitting, inspections and environmental oversight, while maintaining all existing regulatory protections and rigorous safety standards.
This streamlined approach reflects the evolution of offshore energy development and the need for a more integrated approach to managing conventional and emerging resources such as critical minerals. By aligning planning, leasing and oversight functions, the Department is positioning the agency to better meet current and future energy demands.“
This is an excellent step that many OCS program veterans have been advocating. In addition to the inefficiencies associated with overlapping and intertwined BOEM and BSEE responsibilities, the associated regulatory fragmentation is a significant safety risk factor.
See the comments that I submitted to the Dept. of the Interior in response to their request for regulatory reform recommendations.
Posted in energy policy, Regulation | Tagged BOEM, BSEE, combined, Department of the Interior, inefficiency, Marine Minerals Administration, overlap, regulatory fragmentation | Leave a Comment »
For those who haven’t suffered enough following the BOE blog😉, you can listen to me on the G’Day Mate podcast hosted by offshore industry veterans Evan Zimmerman and Tom Pado. You may also want to check out other episodes on their excellent podcast.
Posted in energy policy, Offshore Energy - General, Regulation, Uncategorized | Tagged Evan Zimmerman, G'Day Mate, offshore energy, podcast, Tom Pado | Leave a Comment »
DOE’s 3/11/2026 announcement called for the release of 172 million barrels. To date, 378,000 bbls (0.22% of that amount) have been released.
| date | bbls (1000s) |
| 3/6 | 415,422 |
| 3/13 | 415,422 |
| 3/20 | 415,442 |
| 3/27 | 415,064 |
The big picture:
Posted in energy policy | Tagged 172 million barrel withdrawal, only 378 thousand, progress to date, SPR, Strategic Petroleum Reserve | Leave a Comment »
Companies seeking to acquire OCS leases are not only competing with each other, they are also competing with BOEM’s tract evaluations. In that regard, the bidders fared well at Sale BBG1. Only 3 of the 181 high bids were rejected by BOEM. and those rejections appear to be warranted.
The rejected bids were significantly below both BOEM’s Mean of the Range-of-Value and Lower Bound Confidence Interval for these single bid tracts (table below).
| Block No. | Company | no. of bids | bid | MROV | LBCI |
| EW 921 | LLOG | 1 | $505,777 | $2,900,000 | $2,200,000 |
| MC 587 | KUSA | 1 | $700,000 | $3,300,000 | $2,200,000 |
| MC 588 | LLOG | 1 | $613,008 | $6,100,000 | $4,600,000 |
LLOG submitted 9 other high bids (alone or with partners) that were accepted. KUSA did not submit any other bids. We’ll see if the rejected bids for these blocks are exceeded in future sales.
Nine other high bids (table below) were less than the MROV, but all were greater than the LBCI. Those bidders “beat the house,” acquiring leases for <MROV. In that regard, Equinor led the pack with no rejections even though 3 of their 7 bids were below MROV. Similarly, 2 of Beacon’s 4 bids were <MROV, with no rejections.
| Block No. | Company | no. of bids | bid | MROV | LBCI |
| GC 345 | Beacon | 1 | $5,302,358 | $5,400,000 | $4,200,000 |
| GC 346 | Beacon | 1 | $1,102,358 | $1,500,000 | $900,000 |
| GC 547 | Equinor | 1 | $3,200,067 | $4,500,000 | $2,600,000 |
| GC 549 | Equinor | 1 | $899,967 | $1,500,000 | $576,000 |
| AT 64 | LLOG | 1 | $7,997,018 | $8,300,000 | $6,700.000 |
| KC 386 | Oxy | 2 | $3,000,505 | $3,500,000 | $2,800,000 |
| KC 429 | Oxy | 1 | $600,505 | $910,000 | $470,000 |
| KC 431 | Woodside | 1 | $904,547 | $1,200,000 | $840,000 |
| WR 56 | Equinor | 1 | $904,547 | $1,200,000 | $576,000 |
Perhaps most interesting were the blocks that were highly valued by industry, but not by BOEM. Each of these blocks (table below) received multiple bids and high bids >$10 million. Conversely, BOEM valued the blocks at only $576,000, which (per the terms of the sale) equates to the minimum acceptable bid of $100/acre.
| Block No. | high bidder | high bid | other bids | MROV |
| GC 845 | Beacon | $11,802,358 | LLOG: $613,008 | $576,000 |
| KC 25 | Chevron | $18,592,086 | BP: $11,507,770 Shell: $753,029 | $576,000 |
| WR 443 | Woodside | $15,204,547 | Chevron $1,596,189 | $576,000 |
| WR444 | Woodside | $12,204,547 | BP: $4,593,770 Chevron $1,482,378 | $576,000 |
All of this demonstrates yet again that:
- the govt is leasing exploration and development opportunities, not confirmed resources,
- commercial discoveries are far from certain,
- informed assessments differ (I.e. great minds, and their computers, don’t always think alike 😀),
- corporate priorities differ, and
- exploration strategies evolve.
Superstition, tactic, AI, coded or subliminal message? 😉
- All 58 BP bids end with 770. Examples: $1,707,770 and $807,770. (At Sale BBG2, all 5 BP bids ended with 990.)
- All 18 Shell bids ended with 029. (At Sale BBG2, all 6 Shell bids ended with 240.)
- 13 of 15 Anadarko bids ended with 505, the other 2 ended with 101.
- All 9 Woodside bids ended with 547.
- All 3 Eni bids ended with 001.
- All 4 Arena bids ended with 912.
- All 12 Talos bids ended with 986.
- All 3 Beacon bids ended with 358.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General | Tagged bid rejections, BOEM, Gulf of America, MROV, Sale BBG1, tract evaluation | Leave a Comment »
The ESA, which was enacted with good intentions, has perhaps been most effective in blocking, delaying, or complicating energy development. In the Gulf of America, the primary species in recent ESA battles has been the Rice’s whale.
While this blog was focused on the Santa Ynez Unit drama, a major ESA policy maneuver for the Gulf of America was in the works.
A provision of the ESA authorizes an Endangered Species Committee, known to critics as the “God Squad,” to grant exemptions to ESA requirements. The Committee is comprised of the Secretary of the Interior (chair), the Secretary of Agriculture, the Secretary of the Army, the Chairman of the Council of Economic Advisors, the Administrator of the Environmental Protection Agency, and the Administrator of the National Oceanic and Atmospheric Administration.
Yesterday, the Committee met (notice attached) and agreed to exempt Gulf oil and gas operations from the Endangered Species Act.
Knowing the swings in the political pendulum, provisions for reversing this decision warrant attention. The applicable language from the statute is pasted below:
(B) An exemption shall be permanent under subparagraph (A) unless—
(i) the Secretary finds, based on the best scientific and commercial data available, that such exemption would result in the extinction of a species that was not the subject of consultation under subsection (a)(2) or was not identified in any biological assessment conducted under subsection (c), and
(ii) the Committee determines within 60 days after the date of the Secretary’s finding that the exemption should not be permanent.
So, barring legislation, the exemption would seem to be difficult to overturn.
Earthjustice is vowing to “go to court to stop this illegal order.”
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, Regulation | Tagged Endangered Species Act, exemption, God Squad, Gulf of America, permanent, Rice's whale | Leave a Comment »
Sable Offshore Corp. (3/30/2026) today announced that on March 29, 2026, Sable initiated oil sales. The Santa Ynez Pipeline System was filled from Las Flores Canyon to Pentland Station at a rate in excess of 50,000 barrels of oil per day.
At the Santa Ynez Unit, Platform Harmony is currently producing approximately 22,000 gross barrels of oil per day. Additionally, the United States Department of the Interior’s Bureau of Safety and Environmental Enforcement has completed its final pre-restart inspection of Platform Heritage. Sable plans to commence production restart at Platform Heritage today at an expected total rate of over 30,000 gross barrels of oil per day. We expect Platform Hondo to be online by the end of the second quarter of 2026 at a rate in excess of 10,000 barrels of oil per day.
Sable Chairman and Chief Executive Officer, Jim Flores, said “Sable is proud to announce oil sales through the Santa Ynez Pipeline System to Chevron. In doing so, we are providing American oil from American soil through an American pipeline to an American refinery for American consumers and the United States military.
A wild month in the 50 year Santa Ynez Unit saga is ending with a flourish. The wind is at Sable’s back, but storm clouds are on the horizon.
Posted in California, energy policy, Offshore Energy - General, pipelines | Tagged 50 year saga, BSEE, Jim Flores, oil sales, Sable Offshore, Santa Ynez Unit | Leave a Comment »
Rules of thumb for offshore spills:
- The initial spill estimates are low; often by a lot
- The estimates of oil recovered are high and unverified
Louisiana Offshore Oil Port (LOOP) spill:
- product spilled: Venezuelan crude
- first observed: 2/26 at approximately 0400
- initial spill volume estimate: <100 barrels (bbls)
- 3/3: spill volume update: 300 bbls
- 3/5: final spill volume update: 750 bbls; volume reaffirmed on 3/17 and 2/26
- reported cause: material failure in a section of the cargo transfer hose during a crude oil transfer between the offshore facility tanker
- estimate of oil recovered: 655–664 bbls (>87%!)
Comments:
- According to a Unified Command interview, the spill volume estimate was based on visual observations and estimates of the volume of oil recovered. Neither are reliable indicators of the volume actually spilled.
- Was the volume transferred being metered at the vessel and LOOP, such that meter differentials could indicate the actual spill volume?
- The spill was first observed at night. What procedures were in place for monitoring the transfer operation for potential leaks?
- LOOP first reported a spill estimate of <100 bbls, subsequently increased to 300 bbls, and then 750 bbls.
- The oil recovery estimate of 655-664 bbls is highly suspect unless the spill was much larger than reported. Recoveries >50% are unlikely for open water spills. (Typically <20% is recovered.)
- How were the oil recovery estimates determined? Is data available on the total fluid recovered and water content?
- NOAA reports that the spill response and repair were postponed due to hazardous offshore conditions. This makes the spill and recovery numbers even more suspect.
- Ed Tennyson, a leading authority on oil spill response capabilities and a former colleague, was skeptical of oil recovery claims. When on-scene, he would ask to see the recovered oil and data on how the volumes were determined.
- Hopefully, the investigation report will be timely and comprehensive.
Posted in accidents, Gulf of Mexico, oil spill response | Tagged Ed Tennyson, LOOP, NOAA, oil spill, skepticism, unified command, volume recovered, volume spilled | Leave a Comment »
Tyler Priest, the leading historian on US offshore oil and gas operations, has informed me that his much anticipated book, “Offshore Oildom,”is now available for order from LSU Press. Tyler’s book is a fascinating account of the history of the technologically innovative and economically important, yet controversial, OCS Oil and Gas program. See the attached flyer.
Consider this recommendation by Daniel Yergin:
“Tyler Priest, a preeminent historian of energy and the environment, explores how a single well drilled off a pier near Santa Barbara in 1898 gave rise to a major American industry—offshore oil and gas. In spirited prose, Priest demonstrates how this U.S. industry was created not only by innovation, creative engineering, and complex execution; it was also the result of fierce political battles.” ~Daniel Yergin, Pulitzer Prize–winning author of The Prize: The Epic Quest for Oil, Money, and Power and The New Map: Energy, Climate, and the Clash of Nations.
Posted in California, energy policy, Gulf of Mexico, Offshore Energy - General, Regulation | Tagged Daniel Yergin, energy policy, Gulf of Mexico, LSUPress, offshore oil and gas, Offshore Oildom, Tyler Priest | Leave a Comment »
The Rigs-to-Resistors category in our World Famous Rigs-to-Reefs +++ list has been expanded to include offshore data centers, a concept that is attracting investor interest (see attached brochure).
Advantages of offshore data centers include power availability (natural gas, hydro-kinetic, wind, solar), cooling water, sovereignty, and growth potential.
Alternative uses of OCS facilities were authorized by an OCS Lands Act amendment drafted by the Minerals Management Service and attached to the Energy Policy Act of 2005 by Congresswoman Barbara Cubin. The amendment authorized:
“use, for energy-related purposes or for other authorized mariner elated purposes, facilities currently or previously used for activities
authorized under this Act,”
The attachment summarizes plans to install modular data centers on existing offshore platforms. The advocates see “using fixed platforms ready for decommissioning as a low-cost solution with simpler execution.” Are they a bit too optimistic? 😉
Japan has some interesting offshore data center ideas, including the concept pictured below.
Posted in decommissioning, energy policy | Tagged alternate uses, Energy Policy Act of 2005, OCSLA, offshore data centers, re-purpose offshore platforms, rigs to reefs | Leave a Comment »
Robert “Bobby” Nelson, a beloved father and husband, and a highly respected engineer, died suddenly last Saturday.
Jason Mathews, a Supervisory Petroleum Engineer with the Bureau of Safety and Environmental Enforcement, had this to say about his admired colleague:
“A legacy is not just what you leave for others; it’s the impact of your presence, the influence of your actions, and the memories you create.
Bobby was an exceptional engineer, father, husband and friend who had a lasting impact on many of us. In fact, I would argue Bobby was one of the most impactful engineers in my tenure on developing and transforming younger engineers on how to think critically on complex offshore systems and processes.
Bobby’s legacy in my industry will push on for many years, and we are forever grateful for the time we had with him.”
More from his colleagues:
Bobby dedicated much of his professional life to BSEE, where he served as a Technical Advisor since January 2020, and for the previous seven years as Well Operations Section Chief and Drilling Engineer in the Houma District.
His expertise in well control, drilling engineering, and offshore regulatory compliance was invaluable. He contributed significantly as a subject matter expert and assistant content writer for the BSEE Well Control Rule Revision Team, helping shape post-Deepwater Horizon reforms, and provided technical insights on critical projects ranging from tropical cyclone risk assessments for floating rigs to hydrate pressure coring expeditions and incident investigations.
Bobby’s commitment to safety and environmental stewardship on the Gulf of America’s Outer Continental Shelf left a lasting impact on his colleagues and the industry.
He is survived by his loving wife, Amber, whom he met at BSEE, and their young daughter. In this time of grief, please keep Bobby’s family in your thoughts and prayers.
Posted in Gulf of Mexico, Offshore Energy - General, Regulation, Uncategorized | Tagged Bobby Nelson, BSEE, Obituary, offshore safety, rising star | Leave a Comment »
Bud's Offshore Energy (BOE) 