Posted in California, drilling, energy policy, Regulation, tagged DOT, drilling technology, hyperbole, Sable Offshore 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.
Posted in Alaska, California, energy policy, Georges Bank, Gulf of Mexico, Offshore Energy - General, tagged Atlantic, Ed King, gas lines, Georges Bank drilling, Gulf of America, history, OCS oil and gas program, Pacific, Strategic Petroleum Reserve, withdrawals 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:
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 đ
Posted in California, energy policy, Offshore Energy - General, Regulation, tagged California, Chris Wright, Doug Burgum, finances, oil and gas reserves, production, Sable Offshore, Santa Ynez Unit, update on June 4, 2026| Leave a Comment »
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.
Posted in California, decommissioning, Gulf of Mexico, Offshore Energy - General, Regulation, well control incidents, tagged decommissioning, Dos Cuadras field, Lease OCS-P 0241, Platform A, Santa Barbara blowout, well plugging and abandonment on May 29, 2026| Leave a Comment »
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:
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.
Posted in California, Offshore Energy - General, pipelines, Regulation, tagged California, Gaviota State Park, Judge Stephen Wilson, no imminent harm, Sable Offshore 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 doesnât imminently harm Gaviota Park. Judge Wilson said the state âis grasping at straws,â for evidence of real environmental harm, and the federal consent decree governing the terms of the systemâs restart is controlled by the California Office of the State Fire Marshall, not the parks department.
The judge didnât rule on the larger question of whether the Defense Production Act order to restart the Las Flores pipeline system was lawful.
Posted in California, decommissioning, energy policy, Offshore Energy - General, Regulation, tagged California, Chevron, cost, DCOR, decommissioning obligations, Eagles, Freeport-McMoRan, John B Smith 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.”
Official decommissioning anthem đ: 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”
Posted in California, Offshore Energy - General, tagged Santa Barbara, Santa Ynez Unit, injunction, Judge Geck, change of venue on May 20, 2026| 2 Comments »
A legal challenge to Sableâs 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.
Posted in California, Offshore Energy - General, Regulation, tagged BOEM, CBD, Development Plans, dismissal, Justice Dept., litigation, Sable Offshore, Santa Ynez Unit, US Dept. of the Interior on May 19, 2026| Leave a Comment »
On 5/14/2026, the U.S. District Court for the Central District of California dismissed the complaint filed by the Center for Biological Diversity (CBD) against the Dept. of the Interior. This was one of the less prominent cases challenging Sable Offshoreâs oil and gas operations in the Santa Ynez Unit.Â
The CBD had challenged an April 2025 BOEM decision concluding that Sable was not required to revise its development and production plan for the SYU. They sought a court order requiring a revised plan. This suit seemed to be a stretch, so its dismissal is not a surprise.
Per the Dept. of Justice, the court dismissed the lawsuit because the plaintiffsâ asserted procedural injury had no basis in the statute, was not traceable to any action by BOEM, and could not be redressed by an order of the court. (Other than that, it was just fine. đ)
Among other problems the court identified with the plaintiffsâ case, they invoked a provision of the statute that governs âapproval of a development and production plan,â not revision of an already-existing plan. It will be interesting to see the full decision so that we can better understand the context for that statement. Distinguishing revised plans in that manner could have significant policy implications.
For a full update on Sable litigation, see the section of their Quarterly Report beginning on p. 12.
Posted in Offshore Energy - General, California, Regulation, decommissioning, tagged ConocoPhillips, decommissioning, BOEM, financial assurance, Signal Hill, Hogan and Houchin, Oxy, Devon, IBLA, temporary abandonment, permanent abandonment on May 15, 2026| Leave a Comment »
In light of the decommissioning fire at Platform Habitat, I checked on the status of well plugging operations at Platforms Hogan and Houchin.
BSEE (2020) estimates the cost of decommissioning these facilities to be $85 million (too low), and there is no collateral or third party guarantee.
The responsibility for decommissioning these platforms has yet to be settled. ConocoPhillips, Oxy, and Devon have appealed decommissioning orders from BSEE. The Interior Board of Land Appeals (IBLA) has yet to rule on those appeals. The appellants are funding some plugging operations and facility upgrades pending the IBLA decision.
Per BSEE’s borehole file, this is the current status of the Hogan and Houchin wells:
Therefore, by my count, 33 wells have yet to be TA’d, and all 76 wells remain to be PA’d. Note that the lease was relinquished nearly 6 years ago (10/14/2020).
If you are interested in the Hogan/Houchin mess or decommissioning liability in general, I highly recommend that you look at Devon’s informative and rather compelling appeal to IBLA. Similar appeals were submitted by Oxy and ConocoPhillips.
Lease history (excerpted from the Devon appeal):
1991 Assignment to Signal Hill: MMS approved assignment of the lease to Signal Hill effective February 5, 1991. The assignment was approved without any provision under which the assignors agreed to be liable for decommissioning operations on the lease. MMSâs approval actually had the opposite effect, leaving such obligations to the assignee. The assignment was approved despite concerns within the MMS about the financial strength of Signal Hill and the technical competence of Pacific Operators Offshore Inc (POOI), the affiliate that would operate the facilities.
Comments:
This is the final day to comment on BOEM’s proposal:
