Posted in Uncategorized | 5 Comments »
Section 6 of EO 14430, RESTORING AMERICAN SALTWATER ANGLING AND RECREATION, establishes a program to facilitate the reefing of decommissioned platforms (i.e. “Rigs-to-Reefs”).
Presumably, existing Gulf State reefing programs and private initiatives for repurposing offshore platforms will be integrated into the new Federal program. Where State reefing legislation is unworkable (California), liability issues will have to be resolved. John Smith has made a proposal in that regard.
Full text of Section 6:
Sec. 6. Fast-Tracking Artificial Reefs and Habitat Creation. (a) Within 60 days of the date of this order, the Secretary of the Interior, acting through the Marine Minerals Administration, shall establish a Federal Outer Continental Shelf Reef-in-Place Program (Program) to facilitate the conversion of decommissioned offshore oil and gas and other-use structures, with the exception of infrastructure associated with offshore wind energy facilities, into permanent artificial reefs through reef-in-place, topple-in-place, or other approved reefing methods, where consistent with applicable law.
(b) The Program shall be available to qualifying offshore structures and leaseholders that satisfy all applicable statutory, regulatory, environmental, navigational, and safety requirements. The Secretary of the Interior shall establish criteria and standards for the program that ensure protection of navigation and national security interests.
(c) In establishing the Program, the Secretary of the Interior shall coordinate with the Secretary of Commerce, the Secretary of War, the Commandant of the United States Coast Guard, and the heads of other appropriate agencies to streamline interagency review and permitting to the maximum extent permitted by law, reduce unnecessary administrative delays, and promote timely decisions for qualifying reef projects.
(d) Within 120 days of the date of this order, the Secretary, acting through the NOAA Administrator, in coordination with the Secretary of the Interior, shall review and, as appropriate and consistent with applicable law, revise policies and procedures governing SUPs and other applicable authorizations for the placement and management of artificial reefs within National Marine Sanctuaries and Marine National Monuments. Such revisions shall seek to establish transparent and efficient permitting pathways, identify areas suitable for artificial reef development and other national interest uses, and enhance fisheries, recreational fishing, diving, and other compatible public uses.
Posted in California, energy policy, Gulf of Mexico, Offshore Energy - General, rigs-to-reefs | Tagged decommissioning, EO 14430, John B Smith, Marine Minerals Administration, NOAA, repurposing platforms, rigs to reefs | 2 Comments »
Two fisherment died when the F/V Mistress capsized and sank near the Block Island Wind Farm on 1/1/2019. This summer Green Oceans sponsored investigators located the wreckage within 50′ of one of the turbines.
“The F/V Mistress appears to have been resting in a very conspicuous location and that should have been detected and reported to the USCG for investigation within a period of months, not for more than 7 years.” John Ansay Sr., father of one of the deceased.
Green Oceans (press release attached) is calling for the Federal government to reopen the F/V MISTRESS marine casualty investigation and independently examine the new evidence in light of the incident’s proximity to the Block Island Wind Farm. Because the Coast Guard declared the wreck ‘lost,’ its investigation never resolved the cause of the sinking or the conditions impacting the search and rescue response.
A Coast Guard helicopter dispatched in response to mayday calls reportedly could not conduct sector or parallel searches. The helicopter aborted its rescue attempt, returning after approximately 37 minutes. The records cite high winds, limited visibility, a low ceiling, and proximity to wind turbines as the hazards affecting the decision to turn back.
Green Oceans has asked the U.S. Department of the Interior to coordinate an interagency investigation, including reopening the Coast Guard inquiry that concluded with the vessel and two crew members classified as ‘lost’, and to provide public transparency for all subsea maintenance and monitoring at the site since 2019.
On a related note, perhaps the Coast Guard can finally issue a report on the tragic toppling of the liftboat Russell Peterson in 2008. One crew member lost his life. The vessel was conducting research for a proposed offshore wind project.
Posted in accidents, Offshore Wind | Tagged 2 died, Block Island Wind, Coast Guard, commercial fishing, F/V Mistress, Green Oceans, John Ansay, reopen investigation, rescue effort, Russell Peterson, vessel sank, wind turbines | Leave a Comment »
Sable Offshore has asked Santa Barbara County for approval to conduct exploratory digs to check anomalies at seven points along onshore Segment 324 of the Santa Ynez Unit pipeline system. This 10.86 mile segment runs from the Los Flores Canyon Processing Facility to the Gaviota Pump Station (map below).
According to the Emergency Special Permit issued by PHMSA, Sable is required to conduct in-line inspections (ILIs) with metal loss tools every 6 months for the first 2 years of operation.
Where metal loss is identified, immediate repair is required if the remaining strength of pipe shows a predicted failure pressure <1.39 times the maximum operating pressure (MOP).
Where direct field examinations indicate pipe wall loss of 40% or more, permanent repairs are required.
Comments:
- On the plus side, it appears that the ILIs identified anomalies as intended.
- The number of anomalies that have been identified is concerning. (Per PHMSA, the last ILI was on 12/10/2022, several years prior to the restart of production.)
- Note that external corrosion caused the failure leading to the 2015 Refugio spill. The followup excavations should be effective in confirming such corrosion.
- Are the mitigations specified in the Refugio investigation report sufficient?
- If the County releases a high-profile applicant’s letter to local media and NGOs, they should also post the letter on the County website so that other interested parties have access.
- “The county did not inform the Coastal Commission about the excavation request until Wednesday afternoon at the EDC’s request.” Is it appropriate for the Environmental Defense Center to be directing the County in this manner?
Posted in California, pipelines, Regulation | Tagged anomalies, excavation, external corrosion, In-line inspections, PHMSA, pipeline, Refugio Spill, Sable Offshore, Santa Barbara County, Santa Ynez Unit | 2 Comments »
2025 Gulf of America gas production as compared to:
- total US production – 1.5%
- TX – 5.3%
- PA – 9.4%
- NM – 17.3%
- LA – 18.8%
- WV – 20%
- AK – 20.3%
Gas production in OK, OH, CO, ND, and WY also exceeded Gulf production.
NY gas production would also be far > than Gulf production, if companies were allowed to access natural gas in the Marcellus and Utica shale formations.
Total US gas withdrawals have doubled from 30 years ago when the Gulf accounted for >20% of the US total. Gulf production declined by 87% in that timeframe.
Posted in energy policy, natural gas, Offshore Energy - General | Tagged Gulf of America, Marcellus, minnow, natural gas, production, production by state | Leave a Comment »
Until the late Triassic period, Virginia, the Carolinas, and Georgia were co-joined with Mauritania and Senegal as part of the Pangea super-continent. These Pangea neighbors share a common ancient geology.
Paul Post believed the untested West African analogs in the US Atlantic were highly prospective, and could contain >20 billion barrels of oil equivalent (BOE). Paul was not alone in his thinking about Atlantic resource potential.
Sadly, Paul is no longer with us 😥. I’m sharing a few of his slides as a reminder of his important work. I have also attached his 2016 report and am linking the 2021 update.
Given the current Atlantic moratoriums and the steep legal, social, and political barriers that would have to be cleared, evaluating the US Atlantic is not imminent. However, nearly all Atlantic nations and their Caribbean and North Sea cousins have exploration programs and some have been wildly successful. Oil and gas consumption will be stable or growing for the foreseeable future, and it’s important to better understand the petroleum potential of our Atlantic continental margin.
Posted in energy policy, Guyana, Offshore Energy - General | Tagged Atlantic oil and gas, BOEM, Mauritania, pangea, Paul Post, Senegal | Leave a Comment »
As expected, the Santa Barbara County Board of Supervisors voted 3-2 to ban new onshore oil and gas drilling. This is another example of the South County (Districts 1-3) majority voting to deny the rights of North County (Districts 4 and 5) property owners and workers. Keep in mind that oil has been produced in the County for more than 130 years.
Attached is a concise, powerful comment letter submitted to the Board by Californians for Property Rights. Excerpt (emphasis added):
“Property rights are key to our nation’s prosperity, and these rights have been shown to be foundational to building prosperity around the world. However, for Americans, these rights are not only integral to our economy but also, and even more importantly, to our Constitution.
Oil and gas mineral and royalty interests are private property. Minerals cannot be moved when government changes the rules. Their value depends upon the ability to access and responsibly produce them, and a government prohibition can effectively eliminate that value.
These impacts reach real families. Mineral and royalty income supports farmers, ranchers, retirees, small businesses, and other property owners. For some agricultural families, it helps keep working farms and ranches economically viable and in family ownership.”
Related constitutionality issues:
- In July, the National Assoc. of Royalty Owners sent the Board a legal opinion challenging the constitutionality of such ordinances. NARO also sent a comment letter to the Board prior to their vote.
- A suit filed by John and Melinda Morgan, who inherited the mineral rights to two parcels in the Cat Canyon Field (District 4). argues that a similar provision in CA Senate Bill 1137 amounts to an unconstitutional taking of their property.
- California AB 1448 would limit the property rights of Federal lessees and deprive royalty owners – most notably the citizens of the United States – of revenue.
Posted in California, drilling, energy policy, Regulation | Tagged 3-2 vote, AB 1448, bans new drilling, NARO, North County, property rights, Santa Barbara County, South County | Leave a Comment »
United Oil and Gas reported a loss after tax of US$1.25 million for 2025, and closed the year with just US$1.67 million in cash. Their stock trades well below £1 per share (currently 0.22 GBX/share) on the London Exchange.
UOG’s primary asset is the massive Walton-Morant lease offshore Jamaica. The company’s future is dependent on finding a partner to fund an exploratory well. In that regard, UOG’s optimism has yet to result in a farmout deal after years of trying.
Absent a partner, UOG is promoting a drilling planning study, a very modest step forward in the drilling process:
“This drilling study marks an important step in our operational planning to advance the Walton-Morant Licence towards a potential future drilling programme. It will provide a current, market-based assessment of rig suitability, availability, commercial conditions, and the long-lead items required to drill Colibri and Thunderball or similar targets.
Colibri and Thunderball represent substantial exploration opportunities within the Licence, with a combined potential of over 1 billion barrels of mean prospective resources out of the 7 billion barrels of prospective resources identified on the licence to date.
By undertaking this study now, we are positioning the Company for operational readiness ahead of future drilling, whilst providing valuable information to support our on-going work as we push to conclude the Jamaican farm-out process. We look forward to updating the market with the study results in the coming weeks.”
Questions:
- After years of trying, UOG has yet to secure a farmout partner. Are their terms unreasonable or are other companies less optimistic about the production potential?
- Why has the Govt of Jamaica granted UOG multiple license extensions, the latest through 1/31/2028. Does the govt have that much confidence in a company with such limited financial resources?
- Should the Govt of Jamaica have allowed the license to expire and negotiated directly with larger companies?
- Was the govt concerned about administrative or political constraints associated with re-offering the massive license area?
I have been following this story for 5 years, and am still hopeful for a positive outcome for Jamaica.
Below are UOG’s resource assessments for the prospects in their license area.
| Name | Assignation | Location | Mean/Mid Prospective Resources (MMBo / MMboe) |
| Lead 11F | Lead | Walton Basin | 1126 |
| Zumbador | Lead | Morant Basin | 925 |
| Thunderball | Lead | Morant Basin | 603² |
| Colibri | Prospect | Walton Basin | 406² |
| Lead D | Lead | Walton Basin | 382 |
| Moonraker | Lead | Morant Basin | 323² |
| Cascade Central | Lead | Pedro Bank | 275 |
| Streamertail | Prospect | Walton Basin | 221² |
| Oriole | Prospect | Walton Basin | 220² |
| Boag | Lead | Walton Bank | 219 |
| Lead 6I | Lead | Walton Bank | 205 |
| Goldeneye | Lead | Morant Basin | 174² |
| Moneypenny | Lead | Morant Basin | 173² |
| Blofeld | Lead | Morant Basin | 171² |
| Earspot | Lead | Walton Bank | 145 |
| Squire | Lead | Walton Basin | 139 |
| Lead 12M | Lead | Walton Basin | 133 |
| Lead 6H | Lead | Walton Bank | 120 |
| Lead 12V | Lead | Walton Basin | 111 |
| Cascade South | Lead | Pedro Bank | 101 |
| Lead6Q | Lead | Walton Bank | 101 |
| Cascade East | Lead | Pedro Bank | 86 |
| Rumpspot | Lead | Walton Bank | 85 |
| Lead 7P | Lead | Walton Bank | 76 |
| Lead 7N | Lead | Walton Bank | 70 |
| Lead 10K | Lead | Walton Basin | 70 |
| Lead 12L | Lead | Walton Basin | 70 |
| Lead 7T | Lead | Walton Bank | 60 |
| Bluefields | Lead | Walton Bank | 57 |
| Tody | Prospect | Walton Bank | 53² |
| Mango | Lead | Walton Basin | 53 |
| Guani | Lead | Walton Bank | 53 |
| Lead 12U | Lead | Walton Basin | 41 |
| Jaws | Lead | Morant Basin | 39² |
| Euphonia | Prospect | Walton Bank | 38² |
| Lead 6G | Lead | Walton Bank | 38 |
| Booby | Lead | Walton Basin | 34 |
| Lead 10B | Lead | Walton Basin | 32 |
| Lead 7R | Lead | Walton Bank | 28 |
| Lead 7S | Lead | Walton Bank | 28 |
| TOTAL | 7,284¹ |
Posted in energy policy, Jamaica, Offshore Energy - General | Tagged drilling study, farmout, Jamaica, license extenstions, United Oil and Gas, Walton Morant License | Leave a Comment »
As suspected, the rejection of LLOG’s Sale BBG2 bid for Keathley Canyon Block 828 has been appealed. This is an interesting case because KC 828 is part of LLOG’s Buckskin field. The block had been previously leased, but that lease expired on 9/3/2025.
We assume the lease expired due to inactivity given that the last well reached total depth more than a year prior to the expiration date. LLOG wanted to reacquire the lease back, but BOEM’s valuation was 20 times higher than LLOG’s bid. It’s also interesting that no other company submitted a bid. Did no one want a lease in an established field? BOEM valued this block far higher than any other block in the sale.
LLOG’s letter of appeal is not publicly available. Below is the summary blurb from the Serial Register Page:
By letter dated May 27, 2026, LLOG Exploration Offshore, L.L.C. appealed the Bureau of Ocean Energy Management’s (BOEM) decision for OCS-G 38173, covering all of Block 828, Keathley Canyon. LLOG Exploration Offshore, L.L.C. is requesting reconsideration of the rejection decision. The Adjudication Section received the written request and statement of reasons within the 15 days of the rejection decision, on May 28, 2026.
According to the applicable regulation, the BOEM/MMA Director is the deciding officer and the decision is not subject to appeal to the Interior Board of Land Appeals. The rejection seems rather straightforward under BOEM’s bid evaluation policies, but perhaps there is much more to the story.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, Regulation | Tagged appeal, Block 828, Buckskin field, Keathley Canyon, Lease Sale BBG2, LLOG, rejected bid | Leave a Comment »
Our guy in Scotland, JL Daeschler, reminds Sunday Times readers that the UK can’t simply summon the return of the long neglected North Sea oil industry.
The editors deleted this sentence from JL’s letter: “Thank you Norway and USA for supplying us energy.” 😉
Compare Norway and UK management of their North Sea resources. The UK govt still hasn’t even made the clear and obvious decision to approve Jackdaw and Rosebank production.
The West of Shetland area has high oil and gas resource potential. Researchers at the University of Aberdeen are advocating a tailored management system to facilitate development.
Posted in energy policy, Norway, Offshore Energy - General, UK | Tagged Jackdaw field, JL Daeschler, North Sea, resource management, Rosebank, UK energy policy, Univ. of Aberdeen | Leave a Comment »
Twenty Members of Congress (17 from California) filed the attached amicus brief in support of California’s challenge to the use of the Defense Production Act (DPA) to facilitate the restart of production at the Santa Ynez Unit (SYU) in the Santa Barbara Channel.
Per their filing:
“This case is not about national defense. It is about a heavily leveraged, crude oil company asking the President to transform the DPA from a statute designed to“assure the availability of domestic energy supplies for national defense needs,” 50 U.S.C. § 4502(a)(5), into a corporate rescue operation for political allies; a rescue that advances the Administration’s political preference for fossil-fuel development at the expense of all other concerns. The Department of Energy’s (“DOE”) March 13, 2026 order (the “Wright Order”) comes nowhere close to identifying a need for Sable crude oil or pipelines in the Order’s generalized invocation of California’s military presence and increased reliance on foreign crude.”
Comments:
- The brief includes no new arguments or information.
- Is it not disingenuous to raise concerns about Sable’s financing when these critics and their allies spent a decade blocking Exxon, one of the world’s strongest companies, from restarting SYU production? Exxon’s frustration led to the ownership transfer to Sable, even though Exxon could still be held liable for some obligations, most notably decommissioning.
- Given the conflict-driven turmoil in the energy markets and the risk of shortages affecting military operations, how is it a stretch to issue a DPA order directing the restart of an important onshore pipeline?
- A Federal judge for the Central District of California has already opined that the DPA is a “significant statutory grant of authority to the executive, giving the President substantial discretionary power to compel private industry, allocate resources, and incentivize domestic production for national defense.”
- With oil prices soaring, this is a bad time to attempt to halt a 20+% increase in California oil production.
Posted in California, energy policy, Offshore Energy - General, pipelines, Regulation | Tagged 20 members of congress, amicus brief, Defense Production Act, Exxon, pipeline restart, Sable Offshore, Santa Ynez Unit | 2 Comments »
