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Archive for the ‘energy policy’ Category

One nodule contains high grades of four key metals, meaning that four times less ore needs to be processed to obtain the same amount of metal. Nodules also contain no toxic levels of heavy elements, and the entirety of a nodule can be used, making near-zero-solid-waste production possible. Because nodules sit unattached on top of the seafloor, they will not require drilling or blasting for retrieval.

It’s time to move ahead with deep sea mining in both international and US territorial waters. As we did for frontier exploratory oil and gas drilling in Alaska and the Atlantic, I recommend comprehensive oversight including full time onboard inspectors during the initial operations and a carefully designed environmental monitoring program.

This deep sea mining commentary by Mars Lewis was brought to my attention by John Smith. Good read:

🇺🇸🚢 ⛏️ We’re witnessing a wave of glorified pseudoscience and fantasy activism around the ocean floor—this idea that the deep sea is some mystical sanctuary of life and that any attempt to extract resources from it is an unforgivable sin against Gaia. Spare me.

The bottom of the ocean is not the Garden of Eden. It’s a black, silent, high-pressure wasteland—largely lifeless, uninhabitable, and filled with the very minerals we need to break free from Chinese supply chain domination. You want a clean energy future? Then stop whining about the only scalable path to get there.

China has already begun strip-mining the ocean floor without asking for your permission. They don’t care about the blobfish or the bacteria colonies around volcanic vents. They care about winning. And every time we moralize ourselves into inaction, we gift them another geopolitical advantage wrapped in Western guilt.

Let’s cut the delusion. There is no future where America stays on top without securing its own critical minerals. Recycling won’t save us. Wind and solar need metals. Batteries need rare earths. Data centers need semiconductors. And semiconductors need the materials sitting at the bottom of the ocean.

You don’t get to demand green tech, reject land mining, block seabed access, and still pretend you’re “saving the planet.” That’s not leadership. That’s learned helplessness.

So yes, I support Trump’s executive action. Because someone has to make the grown-up decision. Either we lead this resource race with responsibility and strength—or we watch tyrants carve up the planet while we post crying-face emojis and argue about what’s sacred 10,000 feet below sea level.

Let the race for the bottom begin.
🇺🇸🚢 

Deep sea vs. land mining:

From a paper by Daina Paulikas and Dr. Steven Katona, with input from Erika Ilves, Dr. Greg Stone, Anthony O’Sullivan, and a review from Todd Cort and Cary Kroninsky at Yale. While the industry-funding introduces the potential for bias, it nonetheless provides a comprehensive and thorough comparison.

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We will explore more, find more and extract more. Therefore, it is important to ensure that companies have stable access to exploration areas. Never before has a larger area been advertised in a licensing round. It is good for Norway and for Europe,” Energy Minister Terje Aasland said in a statement.

Further exploration and more discoveries are crucial to limiting the decline in production on the continental shelf after 2030. The expansion this year gives companies access to significant new acreage in the Barents Sea and we are thus even better positioned to clarify the resource base in the north,” added Aasland.

Comments:

  • This is a prudent policy decision that underscores Norway’s commitment to sustaining oil and gas production.
  • This should be good news for Equinor, which is 2/3 Norwegian govt owned and has made some ill-advised offshore wind investments.
  • Based on the Energy Minister’s quotes (above), one senses that Equinor’s wind investments, particularly those in the US, may not be fully aligned with Norwegian policy.
  • Is this a bit embarrassing for the UK, which has essentially been sanctioning its own offshore oil and gas industry? Only last week, Aasland met with his UK counterpart Ed Miliband and entered into a “green industrial partnership” (photo below).
from Upstream: NTB/SCANPIX photo

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UK Energy Minister Ed Miliaband

By Richard Littlejohn with apologies to Bob Dylan 😉

“How many pits must a man close down

Before we run out of coke?

How many North Sea oil rigs must shut

Before the UK goes broke?

Yes, and how many windmills must the countryside take

Before it’s beyond a sick joke?

Disaster, my friend, is blowin’ in the wind

Disaster is blowin’ in the wind.

Yes, and how many more must be dumped on the dole

Before the worm starts to turn?

Yes, and how long will we go on importing foreign coal

As if we’ve got money to burn?

Yes, and how many times will the lights go out again

Before this madman will learn?

Disaster, my friend, is blowin’ in the wind

Disaster is blowin’ in the wind.

Yes, and how much higher will our gas bills have to go

So Miliband can play superhero?

Yes, and while the economy goes up in flames

Mister Ed fiddles madly like Nero,

Yes, and how many old folk will die from the cold

In futile pursuit of Net Zero?

Disaster, my friend, is blowin’ in the wind

Disaster is blowin’ in the wind.

And here is Miliband with his version (You can’t make this up! 😉):

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Orsted photo: wind wakes trailing turbines at Vattenfall’s Horns Rev wind farm offshore Denmark

A previous post on wind theft and a recent BBC article point to the rather limited understanding that wind developers and govt land managers have about wind resource management including optimal turbine spacing and protection of correlative rights. Wind is considered a renewable energy resource, but the energy lost through inefficient operating practices is not renewable.

Given that the wake effect can extend for more than 100 km, reduce downwind energy production by >10%, and affect biological productivity, a better understanding of this phenomenon should have preceded the installation of thousands of turbines.

Wind resource management is reminiscent of the early years of oil production when the “law of capture” reigned supreme and wasteful production practices were a self-defense mechanism.

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On May 26 in London a three-judge International Chamber of Commerce panel will finally begin considering the Exxon claim that the Stabroek joint operating agreement grants them the right-of-first-refusal in Chevron’s acquisition of Hess’s 30% share of the massive field (>11 billion boe) offshore Guyana.

Exxon’s position claim seems weak to most analysts given that Chevron is not buying the Stabroek share; they are buying the company (Hess) that holds that share.

Exxon’s rather unlikely ally in this case is state-owned China National Offshore Oil Corp. How did CNOOC get a stake in Stabroek and why is their position on the Hess acquisition hypocritical?

CNOOC became a 25% Stabroek partner by acquiring Canadian Nexen in 2013. Their Nexen acquisition, which included Canadian, US, and international assets, was only reluctantly approved by the Canadian and U.S. governments, and probably would not be approved today.

CNOOC’s Stabroek acquisition is thus very similar to Chevron’s. In both cases, the entire company, not just the Stabroek asset, was acquired.

The Stabroek acquisition has proven to be most fortuitous for CNOOC, not only because of the oil and gas resources, but also through the deepwater development expertise that has been gained. Now CNOOC is trying to further leverage their Stabroek position by joining Exxon in challenging the Chevron acquisition.

It would be great if the arbitration proceedings were streamed, but that will not be the case. It also appears unlikely that media will be allowed to attend or that transcripts will be made available.

As previously noted, I would have liked the Guyanese government to be more assertive in this dispute. Stabroek is Guyana’s offshore gem, their most important economic asset. This lengthy dispute has to affect partner teamwork and communication. From safety, environmental, and production standpoints, do you want feuding partners managing such an important national asset?

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Congressman Jeff Van Drew doesn’t mince any words in commenting on New Jersey’s participation in the lawsuit against the offshore wind pause:

“You cannot make this stuff up. The Murphy administration already burned through billions of your tax dollars on offshore wind projects that never worked. They pushed it on us even when towns were saying no, fishermen were saying no, and the tourism industry was saying no. They looked the other way while whales washed up on our beaches. They ignored the Pentagon when it said it was a national security risk. The NJ Ratepayer Advocate said it would raise utility bills. The Government Accountability Office (GAO) said the cons outweighed the pros. They did not listen to anyone. And now, after all that, they want to throw even more taxpayer dollars at it in court. It truly is a slap in the face to every taxpayer and every family struggling to pay their energy bill.”

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Shutterstock / Tomasz Kozal photo

David is small, semi-nomadic and works across a vast sea area; Goliath is massive and growing rapidly.”

Energy Voice describes the challenges offshore wind poses for the small but culturally important UK commercial fishing industry, highlighting the findings of a fisheries research lab report.

Per Elspeth Macdonal of the Scottish Fishermen’s Federation:

How it often feels to us is that government says all the right things, has this blue economy vision and all of those great things but, at the end of the day, it actually feels like government is picking winners and losers and, at the moment they seem unable to see past the wind industry as the only game in town.

This comment on the evolution of the relationship between the fishing and oil industries in the North Sea also aptly describes the US offshore experience:

The fishing industry eventually learned to live with Big Oil, which is now on the wane, but living with territory-guzzling offshore wind farms – fixed and floating – may prove a lot more challenging.”

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All 17 of the States that filed the offshore wind law suit have Democrat governors. However, 6 States with Democrat governors are not parties in the suit (see table below). Two of those governors, Andy Breshear, and Josh Shapiro, are leading moderates within the Democrat party.

StateGovernor
HawaiiJosh Green
KansasLaura Kelly
KentuckyAndy Beshear
North CarolinaJosh Stein
PennsylvaniaJosh Shapiro
WisonsinTony Evers

The State where participation in this suit could have the most political impact is New Jersey, given the well organized wind opposition “down the shore.” However, Gov. Phil Murphy, whose offshore wind promotion has been widely criticized, is not eligible to run for re-election later this year.

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John Smith shared an outstanding paper (attached) that was presented by co-author Robert Byrd at the SPE Regional Meeting in Garden Grove, CA last week.  

 

John Smith: “My objective in writing the paper is to hopefully spur legislators to recognize the benefits of reefing and the legislative fixes required to facilitate reefing and the removal of aging infrastructure.  The California Department of Fish and Wildlife Habitat Lead was very complimentary of the paper and has distributed it to the Interagency Team which is developing a California Artificial Reefing Plan.”  

John adds: “They are in the process of creating a statewide artificial reef plan and you can sign up for updates and get more information. The California Artificial Reef Program (CARP) Plan won’t discuss the specifics of Rigs-to-Reefs but will be compliant with the National Fisheries Enhancement Act and National Artificial Reef Plan and meet the BSEE requirement of having an adopted state artificial reef plan. The intent is to add an addendum to the plan when resources become available to move Rigs-to-Reefs forward in California. You can check out the latest program update that further discusses the CARP Plan and Rigs-to-Reefs.”

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Unsurprisingly, 17 States (plus DC) filed the attached lawsuit in Massachusetts federal court asserting that the directive to suspend offshore wind activities is illegal.

This will be interesting given that the OCS Lands Act grants broad authority to the Secretary of the Interior to suspend activities when necessary to ensure safety, protect the environment, or allow for further study of potential impacts.

Those who are familiar with the administration of the OCS Lands Act know that there is really no such thing as a “fully permitted project.” The Secretary can call for further review whenever concerns are raised and there is a need for further investigation.

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