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Archive for January, 2026

The Santa Barbara Channel has been dubbed the Galápagos of North America” ~ Maggie Hall, Environmental Defense Center attorney. (comments: 1. clever branding ala calling ANWR “America’s Serengeti!;” 2. no natural oil seeps in the Galapagos Islands; 3. 130 years of oil production history in the Channel)

Sable opponents organize entertaining rallies featuring famous celebrities:

Meanwhile, Sable has some starpower of its own with strong public support from golfer Phil Mickelson.

Senior Federal officials and key agencies are outspoken Sable supporters:

Only in California! Newsom is blocking oil production off California’s coast from reaching their own refineries, driving gasoline prices even higher for Californians! Now, this oil production will have to be shipped elsewhere, lowering gas prices for other areas— just not for California! This is the opposite of common sense!” ~ Energy Secretary Chris Wright

BSEE declared victory 6 months ago: “This is a significant achievement for the Interior Department and aligns with the Administration’s Energy Dominance initiative, as it successfully resumed production in just five months.”

on December 23, 2025, the Pipeline and Hazardous Material Safety Administration (PHMSA) declared jurisdiction over and issued an emergency special permit for the Santa Ynez Pipeline System.

Perhaps most entertaining are the exchanges on X between Sable bulls and short-sellers. A few examples are embedded below:

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The Always On Energy Research report is attached. Conclusion:

In other words, dispatchable generation saves New England hundreds of billions of dollars and avoids blackouts. In the end, the idea that New England can run its electric grid on wind turbines, solar panels, and batteries is a dangerous and unserious proposition.

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Louisiana State Treasurer John Fleming

Senator Bill Cassidy hopes to retain his seat in the US Senate, but faces a stiff challenge from Louisiana State Treasurer John Fleming.

Fleming is opposed to carbon capture and sequestration: “If elected to the U.S. Senate, the first bill I will submit will be to fully defund and repeal the 45Q tax credits that pay for this. There’s no market for this. People don’t buy this technology.

This is purely crony capitalism, where you have the government paying wealthy companies that are going to make a lot of money out of this, and the average landowner is going to suffer from it. So I’ve committed that I will submit the bill that will defund it so that money will no longer be available, and it will stop all these projects.”

posts on carbon disposal

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Juvenile rockfish seen on an oil platform off the coast of Santa Barbara. For the scientists who study them, preserving these accidental marine ecosystems has become a moral issue. Photograph: Scott Gietler

John Smith, decommissioning specialist and BOE contributor, has shared his comments (attached) on the Marine Fisheries Habitat Protection Act. This legislation would expand the successful reefing programs on the OCS by facilitating the conversion of retired production platforms into artificial reefs.

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10 million bbls were added in 2025. Only 67 million bbls (<10% of capacity) have been added since the 7/7/2023 nadir. Unsurprisingly, It’s easier to deplete strategic national assets than replace them.

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Per JL Daeschler, Sedco’s Far East, North Sea, and South America operations were all run from Dallas in the late 60’s. In 1970, an old schoolhouse became Sedco’s corporate headquarters (see picture and narrative pasted above). Thank you Bill Clements for saving this historic building – what a beautiful headquarters for the challenging and booming offshore industry!

JL: After 2 years with SEDCO in Miri, East Malaysia (1971) I moved to Brownsville Tx. But in 1979 I returned to the old school house in Dallas in secondment to Sedco Hamilton Production Services from Hamilton Brothers Oil & Gas. The main objective of the joint venture was promotion of floating production systems and in particular use of semi sub technology.  One project assignment was the BP “Buchan” field in the North Sea. (Note: this work was a precursor to the deepwater floating production units that are now the method of choice for deepwater development in the Gulf.)

JL is pictured (right below) on the Sedco 135 during operations offshore East Malaysia.

Wisdom from JL: Rules were pretty simple, as you can read on the rig wall in the picture. No App, pin, or password…. In fact no internet and mobile phone, just a radio operator.

Safety was grounded in the attitude and respect of 100 + people living and working together  (47 working / 47 sleeping and 6 managing and protecting others.  More difficult was the integration of the visiting contractors, logging/cementing / diving / VIPs. (Still true today!)
No division amongst ages, nationality ( sometimes 6 of them) religions, Job position , and ethnicity. Just get along and do what you get paid for!
Safety issues were dealt with immediately with short, unscheduled “toolbox” meetings – less reporting and more fixing.

(As an aside, Dan Bourgeois and I were on assignment to Petronas in 1977 and visited their East Malaysian operations. Does anyone in Petronas remember us? 😉)

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See the attached order. This is the second time that Judge Lamberth has ordered the lifting of a shutdown order for this project. As we previously concluded:

Orsted has a lease contract, and no matter where you stand on offshore wind, you have to have a compelling case to halt a project that is in the advanced stages of development. 

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RIP Scott Adams

Sadly, Scott Adams passed today. His satire was greatly appreciated in the corporate world and govt!

In Scott’s honor, I’m re-posting this gem from a 1/14/2022 BOE post. His wisdom lives on!

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Unsurprisingly, President Trump was not particularly pleased with Darren Woods’ “uninvestable” quote, the main media takeaway from Friday’s meeting on redevelopment of Venezuela’s oil and gas resources.

Exxon CEO Darren Woods: “If we look at the legal and commercial constructs and frameworks in place today in Venezuela — today, it’s uninvestable.”

The response from President Trump: “I didn’t like Exxon’s response,” Trump said to reporters on Air Force One as he departed West Palm Beach, Florida. “They’re playing too cute.” He told reporters he was inclined to deny Exxon any role in rebuilding Venezuela’s oil industry.

If Exxon is now in the President’s doghouse, what does this mean for the Santa Ynez Unit, an Exxon orphan that was adopted by Sable Offshore? Given Sable’s financial challenges, the SYU may soon be returning to Exxon.

Regardless of ownership, an SYU production restart faces strong opposition in California and is fully dependent on an assertive and supportive Federal government. Meanwhile, an injunction on SYU production remains in place, and despite rumors to the contrary, Sable confirms they are complying with that order.

If not already dead, another Exxon initiative, Gulf of America carbon disposal, may now be a step closer to extinction. Does Exxon, which has not drilled an exploratory well in the Gulf since 2018 or a development well since 2019, think the Gulf is only investable for carbon disposal?

Lastly, it’s noteworthy that Hilcorp, the only Alaska OCS producer, is all-in on Venezuela!

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Bill Clements founded the Southeast Drilling Company (SEDCO) in 1947 with two partners and a loan. Clements grew the business from three used drilling rigs into a global leader and a deepwater pioneer. Through SEDCO, Clements developed strong international relationships that included the Shah of Iran, Reza Pahlavi. Clements went on on to serve as Deputy Secretary of Defense. He served as Governor of Texas from 1979-91.

BOE contributor and pioneering subsea engineer, JL Daeschler, fondly recalls working for Clements:

He looked after the employees well, knew everyone by name on all his rigs, and was very encouraging. He was a great leader for the emerging deepwater industry. I often discussed a project with him on early Saturday morning office calls. Despite worldwide rig locations and time differences, he was able to read and digest all the morning reports. He conducted crisp executive meetings every Friday – very few speakers and to the point. He was no time waster. I learned a lot!

Sedcon 445, pioneering deepwater drillship, 1971

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