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Archive for the ‘California’ Category

California Appellate Court rules against Sable by 2-1 vote

Posted in California, energy policy, pipelines, Regulation, tagged , , , , , , on June 19, 2026| Leave a Comment »

In the ongoing Santa Ynez Unit production restart saga, John Smith informs that a California Appellate Court ruled against Sable Offshore by a vote of 2-1, with a strong dissent from one of the three judges.

The decision (attached) affirms the California Coastal Commission’s regulatory authority over Sable’s Los Flores Canyon pipeline repairs, meaning that Sable could be ordered to cease operating the pipeline. However, this is just one element of a complex legal maze. An important case regarding PHMSA’s emergency special permit for the pipeline will be heard by the Federal 9th Circuit Court of Appeals in July.

The dissenting judge’s opinion beginning on p.15 of the attachment sets the stage for the upcoming arguments in the 9th Circuit. Excerpt:

“But first, a dose of reality. The repair work has been done. It is a “fait accompli.” And, pursuant to federal intervention, oil is now flowing in the pipeline without incident. The supremacy clause of the United States Constitution takes precedence. The federal Government trumped the state’s Commission “cease and desist” order and it trumps the preliminary injunction order. Based upon these events, the trial court should vacate the preliminary injunction, dismiss the matter as moot, and nullify the civil penalties.”

2026-b347601Download

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More Sable drama: CNN visits Platform Harmony, Coastal Commission threatens to shut it down

Posted in California, energy policy, Offshore Energy - General, pipelines, Regulation, tagged , , , , on June 12, 2026| Leave a Comment »

Meanwhile, the California Coastal Commission notified Sable Offshore that it intends to issue a cease and desist order aimed at shutting down crude oil extraction in the Santa Barbara Channel.

Sable responds: “Sable Offshore Corp. (“Sable”) through its subsidiary, Pacific Pipeline Company (“PPC”), continues to lawfully operate through its existing coastal development permits which were issued in 1986.”

California cage fight! Who ya’ got?

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DOT needs to back off on the Sable hyperbole

Posted in California, drilling, energy policy, Regulation, tagged , , , on June 10, 2026| 3 Comments »

DOT and others shouldn’t make statements they can’t back up (see the X post below).

As a supporter of responsible offshore oil and gas operations, I find statements like this to be irresponsible and embarrassing. Sable Offshore is not using newer or safer drilling technology than is used in many other areas.

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As expected, Secretaries Burgum and Wright visited Sable’s onshore facilities today

Posted in California, energy policy, Offshore Energy - General, tagged , , , , , on June 5, 2026| Leave a Comment »

Sable posts

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The events that led to the Strategic Petroleum Reserve also drove the rapid expansion of the offshore program

Posted in Alaska, California, energy policy, Georges Bank, Gulf of Mexico, Offshore Energy - General, tagged , , , , , , , , , on June 5, 2026| 2 Comments »

Nothing tilts public opinion more than high gasoline prices, or worse yet shortages! Hence the 1975 legislation establishing the SPR, the massive SPR drawdown in 2022, and this year’s withdrawals.

Looking back to the halcyon days of the US offshore program, it was the gas lines in the 1970s that drove the remarkable and rather unlikely growth in the program during the Carter Administration (1977-1981). A few highlights from those four years:

  • 15 lease sales including 3 offshore Alaska, 3 in the Atlantic, and 1 offshore California
  • Drilling activity in all 4 regions: GoM, Pacific, Alaska, and Atlantic
  • Natural gas discovery in the Mid Atlantic (Hudson Canyon Unit)
  • North, Mid, and South Atlantic District offices for permitting and inspections
  • 5300 well starts including 97 in water depths > 1000′
  • 314 new platforms including Cognac, the world’s first platform in > 1000′ of water

Perhaps unthinkable today, the Governor of Massachusetts from 1979-1983, Ed King, was a strong supporter of offshore drilling. Absent that support, the exploratory drilling on Georges Bank would probably have never occurred. /s/ Nostalgic Old Man 😉

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Informative Sable update; Burgum and Wright to visit

Posted in California, energy policy, Offshore Energy - General, Regulation, tagged , , , , , , , , on June 4, 2026| Leave a Comment »

SYU near-term workover plan; estimated reserve additions exceed production.

Those who have been following the Santa Ynez Unit saga should take a look at Sable’s informative PowerPoint update (attached). The presentation includes reserve data, well operation plans, production forecasts, financial and legal updates, and regional energy supply information.

Also, Sable CEO Jim Flores has announced that Energy Secretary Wright and Interior Secretary Burgum will be visiting the project this week. Transportation Secretary Duffy was also expected, but he will not be attending.

Sable-Offshore-Corp-Investor-Presentation_2026-06-01Download

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57 years after the Santa Barbara blowout, production continues at Platform A

Posted in California, decommissioning, Gulf of Mexico, Offshore Energy - General, Regulation, well control incidents, tagged , , , , , on May 29, 2026| Leave a Comment »

Santa Barbara Channel, Dos Cuadras Field platforms (L to R): Hillhouse, A, B, and C; Antandrus Wiki photo

As part of the recent focus on decommissioning and financial assurance requirements, I looked at borehole data for platforms A, B, and C on Lease OCS-P 0241 in the Santa Barbara Channel. Platform “A” is where a well blew out in 1969, permanently scarring the US offshore program. Observations:

  • There are 140 completed and unplugged wells on the 3 platforms. None of the wells on these platforms have been permanently plugged and only one is temporarily abandoned.
  • The latest available production information (2024 data) indicates ave. daily oil production of 3791 bopd for the lease, including 1901 bopd from Platform A, the highest production for any platform in the region in 2024.
  • 41 of the lease’s completed (unplugged) wells are on Platform A.
    • The number of these wells that are currently producing is not publicly available.
    • 30 of the completed Platform A wells were drilled prior to 1985.
    • The blowout well was the 5th well drilled from platform A. All 4 of the wells drilled prior to the 1/28/1969 blowout are still unplugged:
      • well A-20: spudded on 11/19/1968, reached total depth on 12/2/1968
      • well A-41: spudded on 11/27/1968, TD on 12/19/1968
      • well A-25: spudded on 12/18/1968, TD on 12/28/1969
      • well A-38: spudded on 1/12/1969, TD on 1/24/1969
      • Note how quickly the wells were drilled. The wells were shallow (2299-4051′ true vertical depth), and the operator (Union Oil) saved time by omitting a casing string. (This decision was a root cause of the blowout and thus changed history 😡)

Lease documents and regulations at 30 CFR § 250.1710 require that all wells be permanently plugged within one year of lease termination. For leases like 0241 that are still active, 30 CFR § 250.1711 stipulates that BSEE will order a well to be permanently plugged if the well poses a hazard to safety or the environment, or is not useful for lease operations and is not capable of oil, gas, or sulphur production in paying quantities. In the Gulf of America Region, the policy is to require wells that have not been used in the past 5 years to be permanently plugged. Allowing old wells to remain unplugged is neither prudent nor consistent with the regulations.

Platform A during 1969 blowout

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Sable wins again – Gaviota State Park case

Posted in California, Offshore Energy - General, pipelines, Regulation, tagged , , , , on May 28, 2026| Leave a Comment »

Sable Offshore (SOC) surged 12% on Thursday. Here’s why:

Judge Stephen V. Wilson, US District Court for the Central District of California ruled that Sable’s pipeline doesn’t imminently harm Gaviota Park. Judge Wilson said the state “is grasping at straws,” for evidence of real environmental harm, and the federal consent decree governing the terms of the system’s restart is controlled by the California Office of the State Fire Marshall, not the parks department.

The judge didn’t rule on the larger question of whether the Defense Production Act order to restart the Las Flores pipeline system was lawful.

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John Smith’s update on California OCS decommissioning obligations

Posted in California, decommissioning, energy policy, Offshore Energy - General, Regulation, tagged , , , , , , , on May 28, 2026| Leave a Comment »

John Smith’s update on California OCS Decommissioning Obligations is attached. His comments:

Chevron and FMC hold joint and several liability responsibilities for many platforms and all of those operated by DCOR. This reflects Chevron’s long history in developing CA onshore and offshore oil and gas resources. A 2020 report issued by BSEE estimated the nine platforms operated by DCOR had a combined decommissioning cost of $397 million. The actual cost could be 2-3-fold higher based on estimates for decommissioning California state water platforms prepared by experienced decommissioning consultants.

Chevron may be checking out of California by moving its corporate offices to Houston, but as someone once said about decommissioning – referring to the popular Eagles Hotel California song “You can check out but you can never leave.”

Table POCS Platform Lease Ownership and Obligations JBS May 2026.docxDownload

Official decommissioning anthem 😉: Hotel California

Excerpt from the lyrics – Hotel California, Eagles, 1976

Last thing I remember
I was running for the door
I had to find the passage back
To the place I was before
“Relax, ” said the night man
“We are programmed to receive
You can check out any time you like
But you can never leave”

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Another win for Sable?

Posted in California, Offshore Energy - General, tagged , , , , on May 20, 2026| 2 Comments »

A legal challenge to Sable’s ongoing Santa Ynez Unit production has been transferred from the Santa Barbara courtroom of Judge Donna Geck (pictued) to a Federal courtroom in northern California.

Judge Geck had refused to lift her preliminary injunction on SYU operations, and appeared to be set to find Sable in contempt at a hearing that was scheduled for this Friday (5/22).

Attorneys for a coalition of Santa Barbara environmental organizations have filed legal papers demanding that the case be returned to Judge Geck.

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