Posted in Uncategorized | 5 Comments »
December 2025 Gulf oil production had to average 1.993 million bopd for 2025 to match the 2019 record. It exceeded that mark by 0.003 million bopd. However, October and November production were revised slightly downward resulting in a near dead heat annual average.
A closer look at the numbers (table below) shows that 2025 edged 2019 by a mere 250 bopd. Amazing!
Major caveat: The Nov and Dec 2025 figures will likely be revised slightly when EIA releases the next update at the end of January. Fingers crossed!😀
| Top 3 Years | ave. daily production (1000’s of barrels) |
| 2025 | 1897.67 |
| 2019 | 1897.42 |
| 2023 | 1864 |
Posted in Gulf of Mexico, Offshore Energy - General | Tagged 1.898 million bopd, 2025 Gulf of America oil production, 2025 vs. 2019, dead heat, EIA, oil production record | 1 Comment »
The Hot Rock Act (attached) would authorize a large grant program for superhot, ultradeep geothermal energy research and development. Here is the gist of the bill:
- $16 million/yr (2027-2031) for high temperature completions. equipment, and supercritical fluids research and development.
- $40 million/yr (2027-2031) for a test site.
- $16 million/yr (2027-2031) for hot dry rock geothermal systems research and development.
- $30 million/yr (2027-2031) for achieving program milestones.
- $5 million/yr (2027-2031) to study the risks associated with hot dry rock geothermal energy.
- $10 million/yr (2027-2031) for geothermal industry workforce training.
- $10 million/yr to support BLM and Forest Service authorization programs for hot dry geothermal.
That’s a total of $127 million/yr for the next 5 years. Is this necessary?
Press reports indicate that Quaise is raising $200 million to develop its first commercial geothermal power plant. If superhot geothermal is as promising as many of us believe, companies should be able to attract sufficient private capital without financial support from the Federal govt.
Posted in energy policy | Tagged Federal funding, grant programs, Hot Rock Act, Quaise Energy, super hot geothermal | Leave a Comment »
John Smith has shared the Environmental Assessment (attached) associated with PHMSA’s Special Permit for segments 324 and 325 of Sable’s Santa Ynez Unit (SYU) pipeline system. The document is an interesting read for those following Sable’s attempt to restart production from the SYU.
Posted in California, energy policy, Offshore Energy - General, pipelines, Regulation | Tagged environmental assessment, PHMSA, pipeline, Sable Offshore, Santa Ynez Unit, special permit | Leave a Comment »
PHMSA’s public notice (attached) is required because Sable’s Emergency Special Permit expired on 21 FEB. Comments are due by 26 MAR. More background.
“PHMSA is publishing this notice to solicit public comments on a request for a special permit submitted by Sable Offshore Corp. (Sable). Sable is seeking relief from compliance with certain requirements in the Federal pipeline safety regulations. PHMSA has proposed conditions to ensure that the special permit is not inconsistent with pipeline safety. At the conclusion of the 30-day comment period, PHMSA will review the comments received from this notice as part of its evaluation to grant or deny the special permit request.“
Posted in California, energy policy, Offshore Energy - General, pipelines, Regulation | Tagged onshore pipeline, PHMSA, public notice, Sable Offshore, Santa Ynez Unit, special permit | Leave a Comment »
In light of the Dept. of Energy’s announcement commemorating the 10th anniversary of the first export cargo of U.S. liquefied natural gas (LNG), I’m linking a 16 year old BOE post asking why we weren’t celebrating the emerging natural gas bonanza. Keep in mind that 20 years ago we were planning for LNG import facilities in the Gulf!
Quote from DOE about the transformation of the US into the world’s leading LNG exporter:
“This transformation was made possible by the Shale Revolution, an era of breakthrough technologies including horizontal drilling and hydraulic fracturing that unlocked vast domestic oil and natural gas resources.”
The “Natural Gas Revolution” (Yergin) is an important part of our history that deserves national attention.
Posted in energy policy, natural gas | Tagged DOE, first exports, LNG, natural gas, revolution | 2 Comments »
The Danish government will “initiate a process” to look at possibly extending one or more production licences in the Danish North Sea until 2050, to contribute to European energy security and independence, it said.
The government has asked the Danish underground consortium (DUC) — which operates the Tyra hub — to “explore an extension” beyond the current 2042 expiry.
Europe is in dire need of energy independence, and while renewables expansion can help the bloc achieve that goal, natural gas will still play a significant part of the energy mix in the coming year, the Danish government said. “Europe must stand on its own two feet,” Danish industry and trade minister Mortern Bodskov said
Posted in energy policy, natural gas, Offshore Energy - General | Tagged Denmark, energy policy, extension of gas licenses, North Sea production, Tyra gas hub | Leave a Comment »
Attached are proposed revisions to BOEM’s marine minerals regulations as published today in the Federal Register. As advertised, the revisions appear to be largely administrative in nature and do not substantively change the marine minerals program.
The proposal does require BOEM to act on unsolicited lease sale requests within 28 days (currently 45 days), which may prove to be a challenge. See the excerpt pasted below.
G. Revise 30 CFR 581.11(b) “Unsolicited request for a lease sale”
The requirement for the BOEM Director to decide “within 45 days” of receipt of a lease request is not based on a statutory requirement. BOEM proposes to replace this 45-day timeframe with 28 days to ensure timely processing of such requests.
Posted in deep sea mining | Tagged BOEM, Federal Register, marine minerals, proposed regulations, unsolicited lease request | 2 Comments »
The wave data are from Georges Bank (buoy 44011, first chart) and Nantucket Shoals (buoy 44008, second chart).
Note that the significant wave height is the average height from trough to crest of the highest one-third of waves that occur in a given period.
Posted in climate | Tagged Georges Bank, Nantucket Shoals, NOAA, nor'easter, weather buoys | Leave a Comment »
Per Baker Hughes, the latest (2/20/2026) Gulf of America rig count (2/20/2026) slipped to 9. The count was 10 the previous week and 12 a year ago. In 2023 and 2024, the BH rig count was a more healthy 15-20.
8 of the 9 rigs currently drilling are at high potential deepwater locations: 3 in the Mississippi Canyon Area, 3 in Green Canyon, 1 in Walker Ridge, and 1 in Alaminos Canyon. One rig was drilling on the shelf in the Eugene Island Area.
Per MMS data, the active Gulf rig count in 2001 was 148. The 2001 count was not a one year blip; the number of rigs active in the Gulf exceeded 100 for the ten year period from 1994-2003.
Although drilling and production have become more efficient with improved exploration technology, modern well completion practices, high pressure/temperature equipment, and enhanced recovery programs, drilling activity must still be sufficient to replace reserves and sustain production over the longer term.
2025 may have been a record production year for the Gulf; we’ll find out at the end of this week. However, that level of production is not sustainable without increased drilling activity.
The EIA (chart below) is forecasting another banner year for Gulf oil production in 2026. However, they are pointing to a decline in 2027, when new production is not anticipated to be sufficient to offset natural declines. The decline in production is likely to continue beyond 2027 absent increased drilling.
BH rig count criteria: To be counted as active a rig must be on location and be drilling or ‘turning to the right’ for 4 out of 7 days during a week. A rig is considered active from the moment the well is ‘spudded’ until it reaches target depth or “TD”. Rigs that are in transit, rigging up, or being used in non-drilling activities such as workovers, completions, or production testing, are NOT counted as active.
Posted in Gulf of Mexico, Offshore Energy - General | Tagged 9 rigs, Baker Hughes rig count, decline in drilling, EIA, Gulf of America production, MMS | Leave a Comment »
Per PHYS.ORG: Researchers at the Helmholtz Center Hereon have analyzed the long-term overall impact of this large number of wind farms on the hydrodynamics of the North Sea for the first time. They found that the current pattern could change on a large scale.
The peer reviewed German study is attached. Excerpt:
The near- and far-field wake effects affect vertical mixing and surface heat fluxes – primarily driven by large-scale wind stress reductions – leading to shallower mixed layers and long-term surface warming of up to 0.2 deg. C in wind farm areas. Our findings reveal a basin-scale physical footprint of offshore wind energy and highlight the need to account r hydrodynamic impacts in future offshore wind farm planning.
Note that (1) an 11/2023 NAS study raised concerns about the potential hydrodynamic effects of wind energy on Nantucket Shoals Regional Ecology (see graphics below), and (2) a 5/2022 NOAA letter had voiced similar concerns.
Posted in climate, energy policy, Offshore Wind | Tagged German study, Helmholtz Center, hydrodynamic effects, NAS study, NOAA letter, Offshore Wind, surface warming | Leave a Comment »
Bud's Offshore Energy (BOE) 