This graphic uses 2021 EIA data to compare the volumes of crude oil and petroleum products imported by the US from other countries.
Archive for 2022
O Canada!
Posted in Canada, energy, energy policy, Uncategorized, tagged Canada, US oil imports on May 20, 2022| Leave a Comment »
Leasing program update – about as good as we could hope for at this point
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged 5 year leasing plan, DOI, Gulf of Mexico, US offshore oil and gas leasing on May 19, 2022| 1 Comment »
WASHINGTON — During testimony before the U.S Senate Committee on Energy and Natural Resources today, Secretary of the Interior Deb Haaland confirmed that, despite delays in implementation from the previous Administration, the Interior Department will release the Proposed Program – the next step in the five-year offshore energy planning process – by June 30, 2022, which is the expiration of the current program. A Proposed Program is not a decision to issue specific leases or to authorize any drilling or development.
DOI
Here is the timeline for the 5 Year Leasing Program (light blue).
A sale this year under the new program is thus highly unlikely. The process will no doubt be delayed even further by litigation. As we have said previously, the only hopes for a sale this year are a successful appeal of Judge Contreras’s Sale 257 ruling or successful congressional action (unlikely but possible under the circumstances).
Chevron sanctions Ballymore; BSEE conducts pre-production inspection of Shell’s Vito platform
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged Ballymore, BSEE, Chevron, offshore leasing, Shell, Vito on May 19, 2022| Leave a Comment »
Ballymore will be produced with 3 seafloor wells (6540′ water depth) that are expected to transport 75,000 bopd via a three-mile subsea tieback to Chevron’s Blind Faith floating production unit. Per BOEM, the Ballymore field was discovered in December, 2017. First production is expected to be in 2025.
Shell’s Vito floating production unit was inspected last week by BSEE personnel. Vito is expected to begin production later this year or early next year and produce up to 100,000 bopd. Per BOEM data, the Vito field was discovered in 2010.
As these projects demonstrate, deepwater development takes time and is often dependent on related projects on other leases. This is why future production is dependent on regular, predictable lease sales.
As energy prices soar, remember these 3 things…
Posted in climate, energy policy, Gulf of Mexico, Offshore Energy - General, tagged 5 year leasing plan, DC Federal Court, India coal, Lease Sale 257, oil prices on May 18, 2022| Leave a Comment »
- Gulf of Mexico Lease Sale 257 was vacated on 1/27/2022 because DC Federal Court Judge Contreras ruled that BOEM failed to consider the “positive” effect that higher prices (the logical result of lower production) would have on reducing foreign consumption and the associated GHG emissions. Think about that in the context of the timing and magnitude of this ruling. Why did the court fail to consider the other logical consequences of tight oil supplies and higher prices – increased coal consumption and energy poverty? To avoid the latter, India, the world’s second largest coal producer and consumer, is boosting coal production to record highs.
- The Administration, which had only proceeded with Sale 257 because a prior court ruling invalidated the President’s leasing pause, chose not to appeal the decision by Judge Contreras. Why appeal a decision that is consistent with your agenda?
- The legislatively mandated 5 year leasing program, without which no Federal offshore leases sales may be conducted, expires at the end of June. This is why last week’s cancellation of the 3 remaining sales in the current 5 year program was rather meaningless. Despite bipartisan congressional support for prompt completion of a new 5 year plan, this does not appear to be a high priority for the Department of the Interior. The only hope for a sale this year might be a successful appeal by Lousisiana and API of Judge Contreras’s Sale 257 ruling.
BSEE/USCG issue Safety Alert on the Globetrotter II incident during Hurrricane Ida (8/29/2021)
Posted in accidents, drilling, Gulf of Mexico, hurricanes, tagged BSEE, Globetrotter II, Gulf of Mexico, Hurricane Ida, Noble, Shell on May 17, 2022| Leave a Comment »
BOE was troubled by this incident and the contractor’s statements that followed.
BSEE has posted a strong safety alert.
The BSEE investigation concluded that the operator and contractor representatives failed to promptly start the Temporary Abandonment (TA) procedures.
BSEE’s investigation report provides complete details on the incident.
Interesting shareholder votes
Posted in climate, energy policy, Uncategorized, tagged bp, Chevron, ConocoPhillips, energy transition, Exxon, Marathon, Oxy, Shell, targets on May 17, 2022| Leave a Comment »
From Reuters article:
- bp: Only 15% of shareholder votes backed a call for the company to accelerate its energy transition, compared with the 21% in favor in a similar vote last year.
- Oxy: Only 17% of investors backed a call for emissions-reduction targets. (I wonder how Buffett voted 😀)
- Marathon: 16% supported a measure calling for the company to report on how its transition plans affected workers and communities
- ConocoPhillips: 42% supported an emissions-reductions targeting measure vs. 58% last year.
Exxon, Shell, and Chevron are on deck!
Rigs-to-Rest-Retirement-RIP-Respect
Posted in drilling, Offshore Energy - General, rigs-to-reefs, Uncategorized, tagged Dalmore, rigs-to-reefs, rigs-to-rest, Scotland, transocean on May 17, 2022| Leave a Comment »
In 2016, this old Transocean semisubmersible was being towed from Norway to Malta prior to being scrapped in Turkey. The rig broke free and grounded at Dalmore, Scotland. This picture, with a Scottish cemetery in the foreground, is a fitting tribute to old rigs, the wells they drilled, the storms they endured, and the people they served.
The picture and title will be added to our world-famous Rigs-to-Reefs+++ page. Many thanks to those who have contributed to this important resource over the years.
Important hydrogen transmission study
Posted in climate, Offshore Wind, Wind Energy, tagged hydrogen embrittlement, hydrogen transmission, PG&E, Rick Carrier on May 17, 2022| Leave a Comment »
PG&E will conduct a study of different levels of hydrogen blends in a multi-feed, multi-directional natural gas pipeline system that is separate from its current natural gas transmission system.
The study will help to determine the extent to which hydrogen can be transported in natural gas pipelines without introducing embrittlement and other pipeline safety risks.
Good advice to industry execs from Congressman Donalds
Posted in climate, energy policy, Offshore Energy - General, Uncategorized, tagged bullying, Byron Donalds, Congress, JustSayNo on May 16, 2022| Leave a Comment »
The video below is from 6 months ago but is even more relevant today. Those who produce nothing but insults shouldn’t be dictating corporate strategy.
Amen Byron!
Congratulations Stuart Smith!
Posted in Australia, IRF, NOPSEMA, tagged Australia, IRF, NOPSEMA, Stuart Smith on May 15, 2022| Leave a Comment »
After 8 outstanding years with Australia’s offshore safety and environmental regulator, Stuart Smith has announced that he will be departing NOPSEMA in September. Stuart was a highly effective CEO and an important contributor to international offshore safety initiatives. Best wishes to Stuart!
Bud's Offshore Energy (BOE) 