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Archive for the ‘energy policy’ Category

Congratulations to Walter Cruickshank on his retirement from the U.S. Dept. of the Interior!

Walter’s policy acumen, in depth understanding of the offshore program, and balanced perspective on energy development earned him the respect of the political leadership from both parties, a rare achievement. As a result, Walter served more time as Director and Deputy Director of both the Minerals Management Service and Bureau of Ocean Energy Management than any other individual. He also served as Acting Secretary of the Interior during the latest transition, a first for a career offshore program employee.

Walter earned a Bachelor of Arts in Geological Sciences from Cornell University and a Doctorate in Mineral Economics from the Pennsylvania State University (We Are!). Although his Federal career spanned more than 40 years, he has rather remarkably retained his intellect and sanity! 😉

Best wishes to Walter going forward. I hope he finds time to root for his Harwich Mariners in the Cape Cod Baseball League!

Consistent with the proud tradition of the OCS program, I am posting the masterpiece “Rig at Sunset” in Walter’s honor.

“Rig at Sunset” was painted 50 years ago by a US Geological Survey (USGS) employee who chose to remain anonymous. The masterpiece was presented to USGS (later MMS) engineers and scientists who had made important contributions to the offshore oil and gas program. Understandably, the intended recipients were so humbled by the magnificence of the painting that they could not accept it. As the painting grew in value and international prominence, framed copies were presented to retirees and the original painting was kept at a secure, undisclosed location. More on the painting’s important symbolism at a later date. 😉

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Radar interference is one of the key issues in the law suit against the Empire Wind project. Congressman Smith’s press release (attached) focuses on that issue.

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Protect Our Coast – NJ graphic

Along with other charges, the attached complaint asserts that awarding a wind lease to Norway’s Equinor, violates the Outer Continental Shelf Lands Act (OCSLA):

  1. As an agency or instrumentality of Norway, Equinor cannot receive a lease on the Outer Continental Shelf for offshore wind turbine development or generation of electric power.

While other elements of the complaint appear to have merit, the charge against Norway does not. Here’s why:

  • US subsidiaries of foreign companies have long held leases under the OCS Lands Act.
  • Equinor US Wind is the US subsidiary holding the wind lease.
  • Equinor USA E&P holds interests in OCS oil and gas leases in the Gulf of America. BOEM credits 548,389 barrels of oil production to Equinor for 2023.
  • Chinese state-owned CNOOC has been an oil and gas lessee in the Gulf of America.
  • US subsidiaries of Shell and BP, both foreign corporations, are the top 2 producers in the Gulf. Although not government owned, there is nothing in OCSLA that distinguishes between US subsidiaries of private and govt owned companies. Woodside (Australia) and Eni (Italy) are also important Gulf producers.

The plaintiffs second count (excerpt below) seems to have more merit. The bulk of the filing pertains to this count.

  1. BOEM never completed its “necessary review”, see Stop Work Order, April 16, 2025, and, instead, reinstated the Empire Wind work permit on May 19, 2025 without any explanation or finding, stating as follows:
    On April 16, 2025, the Bureau of Ocean Energy Management issued a Director’s Order to Empire Offshore Wind LLC to halt all ongoing activities related to the Empire Wind Project on the outer continental shelf. That Order is hereby amended to lift the halt on activities during the ongoing review.

The complaint goes on to discuss the reasons why the plaintiffs believe the review was indeed necessary and should have been conducted.

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Thialf: a character in Norse mythology who was Thor’s servant.

The Heerema Thialf, a semi-submersible crane vessel (SSCV), is a rather massive presence in coastal waters. The vessel is 661 feet long and 470 feet high, with a lifting capacity of up to 14,200 metric tons, and is the second-largest of its kind.

The Thialf, which set a world record in 2000 by lifting the 11,883-metric-ton Shearwater topside structure in the North Sea, will be driving piles for 54 Vestas 15 MW wind turbines and a substation structure that are part of Equinor’s controversial Empire Wind project.

John Smith tells me that the Thialf is one of the heavy lift vessels being considered for removing California offshore oil and gas platforms. The vessel is too large for the Panama Canal and would have to make the trip around South America or across the Pacific, depending on where it was last working.

The Thialf’s day rate has not been disclosed, but is likely greater than $500k. Equinor claimed to be losing $50 million/week when the project was paused. Thialf costs were presumably a significant chunk of those losses.

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ACK For Whales, the Wampanoag Tribe of Gay Head / Aquinnah, Green Oceans, a coalition of charter fishing groups and seven individuals filed suit in federal court asserting that the Departments of Interior and Commerce violated the law when they approved the Record of Decision (ROD) for the New England Wind 1 and 2 projects.

Construction has not yet begun on the New England Wind 1 and 2 projects. The leases abut Vineyard Wind’s troubled lease 0501 (see above map), site of last summer’s turbine blade failure.

Per ACK for Whales President Vallorie Oliver:

“In offshore wind project after offshore wind project, from Revolution Wind, Vineyard Wind and New England Wind to the others, the government was so desperate to rush these projects that it cut corners and violated the law,” Oliver said. “The government didn’t care if it trampled on the Wampanoag sacred beliefs and rites, hurt the charter boat, fishing and lobster industries or wiped out the Right whales. The only thing that mattered was to get these environmentally destructive turbines built, costs to the rest of us be damned.”

Court filing summary:

Plaintiff:ACK FOR WHALES, INC., VALLORIE OLIVER, AMY DISIBIO, VERONICA BONNET, DOUGLAS LINDLEY, STEVEN AND SHARYL KOHLER, DANNY PRONK, WILLIAM VANDERHOOP, GREEN OCEANS, RHODE ISLAND PARTY AND CHARTER BOAT ASSOCIATION, CAPE COD CHARTER BOAT ASSOCIATION, INC., CONNECTICUT CHARTER AND PARTY BOAT ASSOCIATION, INC., MONTAUK BOATMEN AND CAPTAINS ASSOCIATION, INC. and WAMPANOAG TRIBE OF GAY HEAD AQUINNAH
Defendant:UNITED STATES DEPARTMENT OF COMMERCE, NATIONAL MARINE FISHERIES SERVICE, BUREAU OF OCEAN ENERGY MANAGEMENT, UNITED STATES DEPARTMENT OF THE INTERIOR, DOUG BURGUM, in his official capacity as Secretary of the Interior, WALTER CRUICKSHANK, in his official capacity as the Director of the Bureau of Ocean Energy Management, HOWARD LUTNICK, in his official capacity as the Secretary of Commerce and EUGENIO PIEIRO SOLER, in his official capacity as the Assistant Administrator of the National Marine Fisheries Service
Case Number:1:2025cv01678
Filed:May 27, 2025
Court:U.S. District Court for the District of Columbia

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Stop the bluster about annexation of Canada. Almost no one on either side of the border supports this. Focus instead on strengthening strategic alliances – most notably with regard to energy supply.

Both the US and Canada are energy powerhouses. Both countries are also energy underachievers relative to their potential. The more efficiently our pipelines and transmission systems can be integrated, the better that potential can be realized and the more both countries can prosper.

See the attached energy trade map to get a better understanding of our integrated energy economies.

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For the reasons set forth herein, the application of the California Coastal Commission for issuance of a preliminary injunction is granted. No bond is required. The Commission shall present a written order for entry by the court.

The roller coaster ride continues. Sable Offshore’s stock price plunged in response to the latest order.

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As a result of a formal request from the Impossible Metals company, BOEM will begin a multi-step process which could lead to a marine minerals lease sale offshore American Samoa. 

The first step will be the publication of a request for information and Interest in the Federal Register. This notice will seek public input that will help inform BOEM’s assessment of geologic conditions, potential environmental and cultural impacts, and other uses of the area. 

Impossible Metals has developed an autonomous underwater vehicle (AUV) for selective mineral harvesting. Their novel AUV uses advanced robotics, AI, and a buoyancy engine to hover above the seabed and minimize disruption to the habitat and native biodiversity. Impossible Metals believes this method will have the lowest environmental impact and cost among land and deep-sea mining approaches.

9 minute interview with the CEO of Impossible Metals:

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With victory in sight, the President pulled the ball away from his most ardent East Coast supporters.

Further thoughts on the reasons for the Empire Wind reversal:

  • Legal/regulatory: Although lease cancellation is not a reasonable option at this time, a pause for further review of the environmental and procedural issues is justified. During the previous Administration, the regulators seemed to function primarily as cheerleaders, as evidenced by the departures (examples here and here), the BOEM/NOAA strategy document, and the promotional tweets. Also, where is the long awaited report on the turbine blade failure? How do you proceed with development before that has been released for public review?
  • Norwegian govt intervention: Some would argue that Empire Wind was a bad investment by Equinor (2/3 govt owned) and it would have been better to take the losses and move on.
  • Trade unions: Concerns about the job losses are warranted, but the long term viability of the subsidy dependent offshore wind industry is in doubt, and important industries (e.g. fishing and tourism) may be negatively impacted. Other job losses could occur if offshore wind drives up electric prices and decreases grid reliability.
  • Pipeline deal: The regionally important Constitution natural gas pipeline is still very much in doubt despite reports of a deal with Governor Hochul. With or without her support, climate-ultras are driving NY/New England energy policy and will, at a minimum, stall this project. Fisheries Nation was particularly blunt in criticizing fishermen being “used as a poker chip” to gain tepid support for the pipeline project.

Following the reversal of the Empire Wind decision, Green Oceans, ACK for Whales, Long Island Commercial Fishing Association, Protect Our Westport Waters, Save Greater Dowses Beach, Save Right Whales Coalition, and the Wampanoag Tribe of Gay Head/Aquinnah petitioned Secretary Burgum to halt all wind construction in New England coastal waters and begin a “complete reevaluation” of their permits under applicable federal laws. In addition to right whale and tribal cultural resources concerns, the letter cited:

  • Critical habitat destruction impacting cod spawning grounds.
  • Inadequate response to turbine blade failures and environmental cleanup.
  • Severe adverse impacts on regional fisheries and economic displacement.
  • Compromised national defense radar and marine safety capabilities.
  • Misleading economic analyses that omit substantial regional job losses and increased electricity prices.

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Thinking of those who gave their lives to protect our freedoms, including workers who died providing the energy needed to power our economy.

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