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Archive for the ‘drilling’ Category

As expected, the Santa Barbara County Board of Supervisors voted 3-2 to ban new onshore oil and gas drilling. This is another example of the South County (Districts 1-3) majority voting to deny the rights of North County (Districts 4 and 5) property owners and workers. Keep in mind that oil has been produced in the County for more than 130 years.

Attached is a concise, powerful comment letter submitted to the Board by Californians for Property Rights. Excerpt (emphasis added):

“Property rights are key to our nation’s prosperity, and these rights have been shown to be foundational to building prosperity around the world. However, for Americans, these rights are not only integral to our economy but also, and even more importantly, to our Constitution.
Oil and gas mineral and royalty interests are private property. Minerals cannot be moved when government changes the rules. Their value depends upon the ability to access and responsibly produce them, and a government prohibition can effectively eliminate that value.
These impacts reach real families. Mineral and royalty income supports farmers, ranchers, retirees, small businesses, and other property owners. For some agricultural families, it helps keep working farms and ranches economically viable and in family ownership.”

Related constitutionality issues:

  • In July, the National Assoc. of Royalty Owners sent the Board a legal opinion challenging the constitutionality of such ordinances. NARO also sent a comment letter to the Board prior to their vote.
  • A suit filed by John and Melinda Morgan, who inherited the mineral rights to two parcels in the Cat Canyon Field (District 4). argues that a similar provision in CA Senate Bill 1137 amounts to an unconstitutional taking of their property.
  • California AB 1448 would limit the property rights of Federal lessees and deprive royalty owners – most notably the citizens of the United States – of revenue.

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White Fleet Drilling’s WFD 450 jack-up drilling rig

Arena Energy CEO Mike Minarovic: “We are ‘all in’ on the future of the shallow water Gulf of America. The Shelf still holds vast potential, and the WFD 450 gives Arena the reach to unlock proved reserves that no other rig in the Gulf could access.” 

The WFD 450 drilling rig, the deepest water depth rated jack-up operating in the Gulf, is conducting a multi-well drilling program for Arena following a $65 million refurbishment program. 

Built in 1999 and formerly operated by Valaris, the rig was cold-stacked in the Gulf for seven years prior to White Fleet’s acquisition. The upgraded rig was christened on January 9, 2026, and began drilling operations in late March. 

The WFD 450 can drill in water depths up to 400 feet and to total depths of 30,000 feet — capabilities that give Arena access to resources previously beyond the reach of the Gulf’s rig fleet. That reach is expected to unlock significant new production from proved reserves that had remained undeveloped due to equipment constraints. 

The Borehole File indicates that Arena has drilled 4 development wells in Eugene Island Area Blocks 315 (231′ water depth) and 325 (252′ water depth) since the rig’s March restart. Two of those wells were completed for production.

Arena has also completed 3 wells in shallower water (138′) in the Main Pass area in 2026.

Cantium, the other active shelf operator, has completed 5 wells this year in very shallow water (50-58′). No other company has conducted drilling operations on the shelf this year.

Arena produced 8,266,036 bbls of oil and 21,079,794 Mcf of gas in 2025, making the company the number one shelf producer of both commodities.

Cantium produced 5,444,651 bbls of oil and 6,716,670 Mcf of gas in 2025.

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The proposed revisions to the Arctic drilling regulations have just been posted and are attached for your convenience.

From a risk management standpoint, the current Arctic drilling rule, particularly the same season relief well (SSRW) provisions, is arguably the worst in the history of the OCS program. Regardless of the prospects for Arctic exploration, offshore drilling is not feasible under the current regulations. Hopefully, this proposal represents a significant improvement. More to follow after the text has been reviewed.

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Lease sale Big Beautiful Gulf 3 (BBG3) will be held on 8/12/2026. The Final Notice of Sale is attached.

Given the rather tepid BBG1 and BBG2 results and the high sale frequency, robust bidding is not expected. Nonetheless, the BBG bidding patterns and tract evaluations have been interesting, most notably BOEM’s rejection of LLOG’s bid for Keathley Canyon 828, an expired lease block in the their Buckskin field.

Keathley Canyon 828 is not among the blocks listed for sale at BBG3. Per the Notice of Sale (p. 4), “any lease blocks whose high bids were rejected and not appealed in the immediately preceding Big Beautiful Gulf lease sale, are expected to be included as eligible for lease.” Can we therefore assume that either the KC 828 bid rejection or the prior lease expiration is being appealed?

The legislatively mandated BBG lease terms are attractive – 10 years and 12.5% royalty for deepwater blocks. A more recent legislative directive requires (wrongly in my opinion) the approval of downhole commingling requests. This accelerates the return on investments in deepwater, high pressure reservoirs. Such commingling has presumably contributed to record Gulf oil production in 2025. The longer term concern is the impact on ultimate oil and gas recovery.

Meanwhile, the Gulf rig count and well start numbers continue to disappoint. Baker Hughes (7/2/2026) lists only 4 active rigs in the deepwater Gulf – one each in the Alaminos and Mississippi Canyon areas and two in the Green Canyon Area. BSEE’s borehole file lists only 15 new deepwater exploratory well starts YTD.

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Aban Pearl listing off Trinidad in August 2009 before sinking offshore Venezuela in 2010

Now that we are friends with Venezuela, can someone in the Administration ask them to release the report on the sinking of the Aban Pearl semisubmersible drilling rig in May 2010? This incident is of great interest to operating companies, safety regulators, and contractors worldwide.

Posts on the Aban Pearl sinking.

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Lars Herbst saw this “beauty” while sitting at a rooftop “establishment” in Pensacola. Reminded him of our temporary Pensacola office and Destin Dome drilling. Lars had visions of returning to work as Pensacola District Manager! 😉

Upon returning to his senses, Lars reports that it’s the Borr jack-up rig Odin purchased from Noble’s fleet. The rig was brought from Mexico to Pensacola for modifications, and will be under contract to Cantium to drill in the GOA, but not the Eastern GOA!

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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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Offshore Guyana seismic line

Oil Now Guyana reports that an Exxon artificial intelligence model built using Guyana’s offshore seismic data was able to identify already-discovered crude oil accumulations with a 90% success rate.

Neil Chapman, Exxon: “…in Guyana, we have built an agent, a model…which if we give it the seismic data that we’ve run and we say, go find the crude oil, it can find all the crude oil that we’ve already found with a 90% success rate.”

(Note: Humans are also great at identifying discoveries after the fact 😉. How many false positives were there?)

Chapman said the company has also used artificial intelligence to review well data from across the industry.

“We have analyzed the well data from 50,000 wells that have been drilled in the industry all over the world, 50,000,” Chapman said. “It would have taken us 15 years to do that analysis. We’ve done it in a matter of weeks.” 

Despite the many advances in exploration technology over the years, one caveat remains unchanged: “We don’t know if they’re going to be successful or not until you drill a hole, you can never be sure,” Chapman said. 

AI should enhance not just geophysical interpretations, but all aspects of offshore exploration and production including site surveys, well planning and construction, drilling, well control, structure designs, production and pipeline monitoring, and safety management. Hopefully, the net result will be increased production at lower cost with improved safety and environmental performance, and that the workforce will not be reduced, but will become more efficient.

Stunning picture taken offshore Guyana

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Superhot geothermal is exciting because of the unlimited potential, universal availability, Star Wars drilling technology, and the dynamics of supercritical fluids.

There are still hurdles to clear, and commercial power generation is 5+ years away, but the promise is tantalizing.

Gyroton millimeter wave drilling technology

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TDI Brooks International vessel to conduct piston coring and surface geochemical survey

A research vessel departed Trinidad last weekend bound for Jamaica to conduct seabed surveys, starting this week, aimed at confirming whether oil-like substances detected beneath the island’s waters are commercially viable crude.

“This survey represents a key milestone in advancing our Jamaica exploration programme,” said Brian Larkin, CEO of United Oil & Gas.

piston coring

The piston coring survey will involve the collection of 40–60 seabed core samples across the Walton and Morant Basins, accompanied by bathymetric, multibeam echo-sounding, and heat-flow surveys.

The data will be analyzed for geochemical and thermal signatures to confirm the presence of thermogenic hydrocarbons, assess source rock maturity, and refine basin modeling, materially enhancing the definition of key prospects, including Colibri and Oriole.

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