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Archive for the ‘energy policy’ Category

According to the LA Times and other reporting, the Dept. of Commerce (NOAA) 92-page draft review of California’s federally approved (1978) Coastal Management Program finds:

  • A “pattern of jurisdictional and regulatory overreach.”
  • “Unjustified hostility and political bias against offshore drilling opportunities, oil and gas projects broadly, and SpaceX’s launch activities.”

Among the corrective actions specified:

  • Meeting with SpaceX to discuss concerns about political bias and productive next steps.
  • Discussions with Sable Offshore Corp. regarding regulatory burden/overreach related to restarting offshore operations off the Santa Barbara coast.
  • Issuance of an official statement (by January, per reports) pledging that California will not categorically oppose initiatives related to certain industries (e.g., oil and gas) or activities (e.g., offshore drilling).

Future federal funding for the state’s coastal management program is described as suspended “unless and until the identified deficiencies are satisfactorily addressed.” State agencies were given a response deadline (initially around mid-November 2026; extension requested).

Legal, political, and administrative fireworks are sure to follow!

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Bid Evaluation Results

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  • The UK government has approved extraction from the Jackdaw gas field in the North Sea
  • Jackdaw “will start to supply gas to British homes and businesses from as early as the end of this month, helping heat millions of homes and protecting hundreds of jobs”
  • Chancellor John Healey says a new “Energy Wealth Fund”, using tax revenue from oil and gas extraction, will invest in “green transition” (but of course!😉🙃)
  • What about Rosebank?

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Final Leasing Notice is attached.

  • Two lease areas for bid as identified in the map above
  • Sale date: Thursday, November 19, 2026
  • 20 year primary lease term
  • Oral auction bidding to be livestreamed at boem.gov
  • Minimum Bonus Bid Amount: $3,000,000 for each lease area
  • Royalty: 2% on all mineral production during the first five years of production, 5% on production in years 6+
  • Rental rates:

Yesterday, EarthJustice, representing a council of matai (chiefs or leaders) from American Samoa’s Manu‘a Islands, filed a lawsuit in federal court in Hawaii seeking to block the lease sale.

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Jim Fraser and JL Daeschler

JL Daeschler, North Sea pioneer and BOE contributor, met this week with Jim Fraser, an Aberdonian PhD Researcher working at the University of Edinburgh.

Jim is investigating how North Sea oil and gas has transformed social and cultural life in Aberdeen, and what the future holds for the region considering the current uncertainty within the North Sea industry. Who better to learn from than JL, an important figure in North Sea oil and gas development?

Our best to Jim as he pursues this important research.

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Serhii Kusnetzov (center), Ukrainian army officer, at his trial in Hamburg-Reuters photo
  • In July, German state prosecutors accused Ukrainian “state authorities” of ordering the attacks on the Nord Stream and Nord Stream 2 lines: “The aim was to permanently halt gas supplies via the pipelines and prevent Russia from using the revenue from natural gas trade to finance its war effort.”
  • Wednesday (10/14) was day one of the trial of Serhii Kuznetsov for leading the pipeline sabotage.
  • The trial will resume on 10/27.
  • Kuznetsov’s lawyers argued that the trial should not be taking place at all. They said the defendant had been held almost entirely in solitary confinement for 11 months, and that he was being treated “like a pawn on a chessboard.”
  • The attorneys argued that he could not defend himself in the conventional manner because he was an army officer, which forbade him from speaking.
  • The Alternative für Deutschland (AfD) party, which has soared in popularity and is currently leading in German polling:
    • Argues that German aid for Ukraine must cease and the pipeline be reinstated.
    • Asks why Germany poured billions of euros into a political regime that deprived them of cheap energy.
    • Calls this an attack on German sovereignty.
    • Has requested the establishment of an investigative committee to clarify what the federal government knew and to what extent Ukrainian authorities were involved.
  • AfD’s energy policy (p.77) highlights:
    • The AfD supports “Protection of the Environment”, but not the “German Climate Protection Policy” and plans for “decarbonization” and the “Transformation of Society”. They want to end the perception of CO² as an exclusively harmful substance and stop Germany’s maverick policy in the reduction of CO² emissions.
    • Because the average output is so variable, renewable energy generators are not viable replacements for conventional large power stations.
    • Renewable sources necessitate a massive expansion of the electric grid systems and jeopardize grid stability.
    • Fracking: Explore Opportunities and Risks, Involve Citizens
    • Nuclear Energy: Explore Alternatives, Grant Lifetime Extensions in the Interim

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There have been many BOE posts about the Nord Stream pipeline sabotage, but most of our 2023 summary still stands.

Yesterday, the trial of a Ukrainian officer began in a Hamburg courtroom. See the X post and video below.

The big issue, of course, is the extent of Ukrainian govt involvement in the sabotage.

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Attached is the Sale Notice for the 3/3/2027 Cook Inlet oil and gas lease sale.

“The proposed sale would make approximately 1.05 million acres available for leasing in the northern portion of the Cook Inlet Planning Area, the same area offered in the Big Beautiful Cook Inlet 1 sale, held in March 2026.” ZERO bids were received at this sale!) Sale summary:

There are currently no active Federal leases in the Cook Inlet. The last well was drilled in 2007. That well was drilled directionally from shore into the Cosmopolitan Unit, a State Unit that included 2 Federal leases at the time.

BlueCrest Energy is operator of the Cosmopolitan Unit. The Alaska Department of Natural Resources threatened to revoke BlueCrest’s Cosmopolitan leases for not meeting the gas drilling requirements, but BlueCrest has reported that they have secured the financing to meet that obligation.

Hilcorp Energy is now the largest oil and gas operator and the largest gas supplier in Alaska. They were the last Federal leaseholder in the Cook Inlet area.

Below are the 8 leases that Hilcorp still held in 2024:

Will Hilcorp participate in the 2027 sale? BlueCrest? Anyone?

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The proposed Sale Notice is attached. The terms, summarized below, are the same as for the other BBG sales. See the sale map for the blocks that correspond with with the legend categories.

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JL Daeschler informs us that Equinor may shun further investments in the UK if new oil and gas fields at Rosebank and Jackdaw are not approved.

Rosebank and Jackdaw are operated by Adura, an Equinor-Shell joint venture. Much of the infrastructure for Jackaw is already in place, and gas production could begin this winter when it may be badly needed. Production at Rosebank, which is primarily an oil field, could begin in the first half of 2027.

BBC quotes Equinor chief Anders Opedal:

“The question will be: is the UK investable in the future? I hope it will not come to that.”

“It’s a political choice.The North Sea oil and gas industry started on the UK side. We learned from the UK and it’s actually the same geology on both sides of the border – several fields actually cross it.”

Ithaca Energy is a 20% Rosebank owner. Ithaca has an Israel connection which has further incited project opponents. (Which do left-wing activists hate more – oil or Israel?)

Sadly, as JL laments, the UK is reaping what it has sown. Approval of Rosebank and Jackdaw is a small but important step toward energy sanity.

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