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Archive for April, 2025

Scores are for the moment; attitude and teamwork are for a lifetime

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Every year since 1978, Safety in Seas Awards have been presented at NOIA’s Annual Meeting. This is the world’s oldest, and in my opinion, most prestigious safety award program for the offshore energy industry.

Last week NOIA presented the Safety Practices Award to Proceanic and the Culture of Safety Award to Seacor Marine. These comments from NOIA President Erik Milito sum up the selections nicely:

“The Safety in Seas awards spotlight an industry-wide truth: safety isn’t just a priority—it’s the heartbeat of what we do. SEACOR Marine and Proceanic exemplify this ethos with extraordinary resolve. SEACOR’s relentless safety culture, driven by innovative tools and a zero-incident vision, and Proceanic’s pioneering Mini-ROV inspections, safeguarding lives and assets with remarkable precision, reflect the best of our collective mission. Their leadership amplifies a broader tide of excellence, where every company, every worker, and every breakthrough pushes us toward a safer, stronger offshore future. We honor them, and we extend our deepest gratitude to all entrants—each one a vital contributor to a safer, more resilient offshore industry.”

As a Safety in Seas judge for many years, I can assure you that the selections are based solely on the award criteria and supporting data, and that the process is free from interference or campaigning. As is normally the case, there were many outstanding nominations.

I recommend that you review NOIA’s announcement for more information. You may also want to contact the companies directly to learn more about their safety programs. Industry adaptability is one of the selection criteria for both awards.

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Great people who were dedicated to the OCS program’s safety, environmental, and resource management missions! Much wisdom was shared! 😉

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The announcement was during an interview this morning (4/4/2025) with Lawrence Jones on Fox News, and is consistent with expectations and the current 5 year leasing plan.

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A letter from Congressman Chris Smith (NJ) to Sec. Burgum is attached. Excerpt:

I am writing to advise you that Equinor, a Norwegian Energy multinational is planning to move forward with construction of its Empire Wind 1 project off the coast of New Jersey and New York as early as this April.
This is an alarming development and should not be allowed before the comprehensive review of offshore wind ordered by President Trump’s January 20th executive order is completed. The executive order states that the assessment is needed to review the many shortcomings of the Federal wind leasing process including, “potential inadequacies in various environmental reviews required by the National Environmental Policy Act.”

Meanwhile, Norwegian investors have expressed dissatisfaction with Equinor’s renewable energy ventures. This Norwegian article raises concerns about Empire Wind 1, saying the project “could become a new industrial scandal.”

Based on the respective financial performance of oil producers, I think it’s fair to say that investors aren’t attracted to those companies because of their wind projects.

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It’s starting to look that way.

The State Fire Marshal stated on February 25 — during a packed-house meeting at La Cumbre Junior High School — that he would not issue Sable authorization to restart production at the Santa Ynez Unit until all outstanding permit issues between Sable and the eight state agencies with oversight authority are resolved.

Although Sable has a good defense against the Coastal Commission’s accusations, that statement by the Fire Marshal is ominous.

More bad news for Sable: The Center for Biological Diversity suit challenging the Federal government’s extension of the 16 Santa Ynez Unit leases is not going well. The government requested a voluntary remand of BSEE’s 2023 approval because “BSEE plans to reconsider its decision in light of Plaintiffs’ claims and conduct additional analysis, as warranted, under OCSLA and NEPA.”

In the attached decision, shared by John Smith, the judge denied the Federal government’s request. This does not bode well for the Federal government’s case going forward.

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In June 2023, Cox and affiliates operated 435 platforms in the Gulf. That number is now only 46, all of which are on relinquished or terminated leases.

Cox Operating LLC and affiliates were once again the violations leaders in 2024 accounting for 50% (479/957) of the warnings, 12% (47/398) of the component shut-ins, and 7.3% (8/109) of the facility shut-ins.

All but 3 of the Cox enforcement actions were during the first half of the year. This is presumably because of the termination of Cox operations and the ongoing divestiture of their assets.

According to BOEM’s platform data base, Cox (43) and affiliates Energy XXI (3) and EPL (0) now operate only 46 platforms. This is a big decline from Sept. 2024 and June 2023 when the Cox companies operated 243 and 435 platforms respectively. All of the remaining Cox platforms are non-producing and are on relinquished or terminated leases.

The curtailment of Cox operations is no doubt an important factor in the sharp decline in Gulf of America violations in the second half of 2024. Per the data below, total GoA wide violations declined by 58% (1031 vs. 433) in the second half of 2024 as Cox violations essentially disappeared:

Gulf of America
inspection data
warningscomponent
shut-ins
facility
shut-ins
facility
inspections
first half 2024725243631586
2nd half 2024232155461546
reduction493 (68%)88 (36%)17 (27%)40 (2.5%)

Cox companies inspection datawarningscomponent
shut-ins
facility
shut-ins
facility inspections
first half 2024478467 404
2nd half 2024111174

Some Cox assets have been acquired by W&T and Natural Resources Worldwide. BOEM records indicate that 8 record title assignments and 3 operating rights assignments from Cox to W&T were approved in the first half of 2024. W&T currently operates 116 platforms, but it’s unclear how many are former Cox facilities.

The acquisition of Cox properties does not appear to have significantly affected W&T 2024 inspection results, which were respectable:

W&T insp. datawarningscomponent
shut-ins
facility
shut-ins
facility
inspections
first half 20241231083
2nd half 202417142105

Additional record title and operating rights assignments to Natural Resources Worldwide (NRW) were approved in 2025, but NRW does not appear to be operating any platforms.

Ironically, NRW was cited for 1 warning and 1 facility shut-in without a single inspection. Presumably, these violations were the result of administrative issues.

Online data are insufficient to account for the 435 platforms that were on the Cox ledger in June 2023 or determine the remaining decommissioning liabilities. Per the platform database, no Cox, Energy XXI, or EPL platforms were removed in 2023, 2024, or 2025.

On a more positive note, most GoA operators had good safety and compliance records in 2024. One major producer had a historically significant record. More on that to follow.

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Sustaining or preferably increasing production rates will be dependent on a reliable schedule of lease offerings and a consistent regulatory regime based on best safety management principles and continuous improvement in technology, practices, and culture. Poorly considered operating restrictions imposed by activist judges are a major risk to both safety and production.

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