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Archive for the ‘energy policy’ Category

Which is more “uninvestable:” Venezuela, the Santa Ynez Unit, or Gulf of America carbon disposal?

Posted in California, energy policy, Offshore Energy - General, Regulation, tagged , , , , , , , , on January 13, 2026| Leave a Comment »

Unsurprisingly, President Trump was not particularly pleased with Darren Woods’ “uninvestable” quote, the main media takeaway from Friday’s meeting on redevelopment of Venezuela’s oil and gas resources.

Exxon CEO Darren Woods: “If we look at the legal and commercial constructs and frameworks in place today in Venezuela — today, it’s uninvestable.”

The response from President Trump: “I didn’t like Exxon’s response,” Trump said to reporters on Air Force One as he departed West Palm Beach, Florida. “They’re playing too cute.” He told reporters he was inclined to deny Exxon any role in rebuilding Venezuela’s oil industry.

If Exxon is now in the President’s doghouse, what does this mean for the Santa Ynez Unit, an Exxon orphan that was adopted by Sable Offshore? Given Sable’s financial challenges, the SYU may soon be returning to Exxon.

Regardless of ownership, an SYU production restart faces strong opposition in California and is fully dependent on an assertive and supportive Federal government. Meanwhile, an injunction on SYU production remains in place, and despite rumors to the contrary, Sable confirms they are complying with that order.

If not already dead, another Exxon initiative, Gulf of America carbon disposal, may now be a step closer to extinction. Does Exxon, which has not drilled an exploratory well in the Gulf since 2018 or a development well since 2019, think the Gulf is only investable for carbon disposal?

Lastly, it’s noteworthy that Hilcorp, the only Alaska OCS producer, is all-in on Venezuela!

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Updated wind turbine incident data

Posted in accidents, energy policy, Offshore Wind, tagged , , , , , on January 9, 2026| Leave a Comment »

The diligent folks at Scotland Against Spin (SAS) have already updated their turbine incident data through the end of 2025. Their latest summary is attached, and their detailed historical table (342 pages) is linked.

The SAS data indicate that the number of wind turbine incidents has risen sharply in recent years (see chart below). The increased number of turbines worldwide, and perhaps better news coverage of incidents, presumably contributed to the sharp increase. Nonetheless, the growing number of incidents is disconcerting, as is the absence of industry and government summaries and reports.

SAS acknowledges that their list, which is dependent on publicly available reports, is merely the “tip of the iceberg.” For example, the list does not include the June 2, 2025, Empire Wind project fatality.

The SAS list does capture the 2008 collapse of the Russell Peterson liftboat, which was collecting data offshore Delaware for a wind project. One worker died and another was rescued. The Coast Guard never issued a report on this tragic incident. Serious questions remain about the positioning of a liftboat in the Mid-Atlantic for several months beginning in March when major storms are likely, the liftboat’s failure mechanisms, the operator’s authority to be conducting this research, and the actions that were taken in preparation for storm conditions.

The Russell Peterson toppled in May 2008 while gathering data for a proposed offshore wind project.
Turbine-Accident-Summary-to-31-December-2025Download

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California Coastal Commission challenges PHMSA

Posted in California, energy policy, Regulation, tagged , , , , on January 7, 2026| Leave a Comment »

The Commission’s letter to PHMSA is attached (click on pages to enlarge). The CCC asserts the right, pursuant to the Coastal Zone Management Act, to review Sable’s restart/special permit application and further asserts that PHMSA’s special permit should be stayed pending their review.

The Commission also raises NEPA and Consent Decree compliance issues, and implies that PHMSA’s designation of the pipeline as “interstate” is subject to consistency review.

The letter is dated 12/23/2025, one day prior to the 9th circuit filing by environmental groups, but has just surfaced online.

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Maria Machado, Venezuelan oil, PDVSA, and the Aban Pearl

Posted in energy policy, Regulation, tagged , , , , , , , , , on January 3, 2026| Leave a Comment »

Note: In light of last night’s events, I’m re-posting this 10/13/2025 BOE post.

Nobel Peace Prize winner Maria Corina Machado wisely calls for privatizing Venezuela’s oil and gas industry, which was highly respected prior to the Chavez regime. The national oil company, Petróleos de Venezuela (PDVSA), is now a corrupt arm of the Maduro government.

In the 25 years since the election of Hugo Chavez, Venezuela went from being the richest country in Latin America to becoming one of the world’s poorest. From 2012 to 2022, the Venezuelan economy contracted by 75%.

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

Followers of the Aban Pearl saga got a sense of the Chavez regime’s corruption with this comment from a PDVSA board member:

“The whole Board is responsible for the loss of about 800,000 barrels per day of oil production; for the fraudulent certification of “proven oil reserves” in the Orinoco heavy oil region; for the irregular contracting, with a ghost company, of the offshore drilling barge Aban Pearl for twice the amount really paid to the owners of the barge; for the importing of 180,000 tons of food that later went to rot in Venezuelan ports but provided some of the members of the board with millions of dollars in criminal profits; and in numerous other corrupt practices that are well documented.“

Machado’s oil and gas platform is pasted below. She has a good perspective on the proper role of govt.

Privatization and reactivation of oil and gas production by attracting specialized international and national companies. Venezuela has one of the world’s largest reserves of oil and natural gas. As per the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA),
the country has reserves of over 300 billion barrels of oil and 200 trillion cubic feet of natural gas. The goal in this area is to steadily increase oil and gas production in order to leverage the window of opportunity that exists in today’s global demand for hydrocarbons. Achieving this objective will require enormous investments that the Venezuelan State cannot undertake. The solution is to attract private capital, and the strategy to achieve this end is the industry’s privatization. Where appropriate, all the industry’s productive activities will be privatized in order to secure massive private investments and a sustained increase in production, under conditions that guarantee legal certainty and an environment that is attractive for investors. The State will continue to receive fiscal income in the form of royalties and taxes, and will ensure that an operational framework exists in which private companies can increase production in the shortest possible timeframe. A Venezuelan Energy and Petroleum Agency will be established to exercise the role of industry regulator. Oil privatization will allow Venezuela to regain its position as a safe and reliable supplier, and will provide unparalleled investment opportunities in the industry.

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Orsted files supplemental complaint in response to second Revolution Wind stop work order

Posted in energy policy, Offshore Wind, Regulation, tagged , , , , , , on January 2, 2026| Leave a Comment »

Attached is the supplemental complaint in the lawsuit Revolution Wind, LLC v. United States Department of the Interior, Case No. 1:25-cv-02999-RCL, filed in the U.S. District Court for the District of Columbia.

Brief history:

gov.uscourts.dcd.284486.47.1Download

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Court denies Dominion’s request for a temporary restraining order

Posted in energy policy, Offshore Wind, Regulation, tagged , , , , on December 31, 2025| Leave a Comment »

District Judge Jamar Walker rejected Dominion Energy’s request for an immediate temporary restraining order (TRO) that would allow work on the suspended offshore wind projects to resume immediately.

The December 28 court ruling is consistent with the Department of the Interior’s position that the TRO request be converted to a request for a preliminary injunction. Interior had argued that a preliminary injunction motion could likely be resolved by mid-to-late-January.

The Government also asserted that more time is needed to submit the classified information that is central to the dispute.

Thoughts on this case: A respected colleague recalled this advice from Don Hodel, a widely admired Secretary of the Interior during the Reagan administration: “For all its faults, a contract is a contract, great men and great nations keep their word.”

Another colleague reminded me of the offshore North Carolina oil and gas leases that were suspended in the 1990s. The companies sued the Federal government for breach of contract, and the U.S. Supreme Court ruled 8-1 on June 26, 2000, in Mobil Oil Exploration & Producing Southeast Inc. v. United States, that the government must repay the lessees.

If the suspended Atlantic wind leases are cancelled, the govt would presumably have to compensate lessees for lease purchase and development expenditures. The costs to the Federal govt would be enormous – in the tens of $billions.

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SYU/Sable update: Down to the wire!

Posted in California, energy policy, Regulation, tagged , , , , , on December 30, 2025| Leave a Comment »

All eyes are on the 9th Circuit. No injunction yet. Will the Court intervene to block Sable?

No evidence of intervention by the State.

Does Sable restart production tomorrow?

Traders on edge. Bulls are feeling optimistic. See X post below. 😉

Spend my barrel, parked in a harbor
‘Neath the platform spotlight
Pump it up tight, let the oil start flowin’
A little crude movin’ on a federal green light
Fits my life, oh so right
My Sable Offshore Delight— Victory II (@VictoryII1) December 30, 2025

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Dominion Energy vs. Dept. of the Interior et al

Posted in energy policy, Offshore Wind, Regulation, tagged , , , , , on December 30, 2025| Leave a Comment »

Dominion’s suit challenging the Coastal Virginia Offshore Wind suspension order is attached.

Summary: “BOEM’s order sets forth no rational basis, cannot be reconciled with BOEM’s own regulations and prior issued lease terms and approvals, is arbitrary and capricious, is procedurally deficient, violates the Outer Continental Shelf Lands Act (“OCSLA”), and infringes upon constitutional principles that limit actions by the Executive Branch. This Court must therefore vacate the Order and enjoin BOEM from taking further action with respect to that Order.”

Key points raised by Dominion:

  • Dominion Energy Virginia (DEV) has spent approximately $8.9 billion to develop CVOW to date, which is over two-thirds of the total projected cost of $11.2 billion.
  • BOEM and Interior afforded DEV no advance warning or due process regarding the Order for CVOW.
  • The Order alleges no CVOW violation or deficiency.
  • The Order points to unnamed “national security threats” based on a November 2025 “additional assessment regarding the national security implications of offshore wind projects” by DoD, “including the rapid evolution of relevant adversary technologies and the resulting direct impacts to national security from offshore wind projects” generally.
  • The Order deems this information “new” and “classified” without any justification or detail. Moreover, as BOEM and DoD should know, certain DEV officials have security clearances to receive and review classified information, yet never were afforded such an opportunity prior to issuance of the Order.
  • DEV is suffering more than $5 million per day in losses solely for costs relating to vessel services associated with the Order. DEV is also incurring losses related to additional storage costs for the significant amount of equipment, idle workforce, contractual penalties, and additional costs.
  • BOEM’s Order comprises a single page, identifies no specific concerns, and provides no supporting documentation.
  • Agencies are required to consider costs and benefits in their decision-making
  • Agencies are required to consider alternatives in their decision-making.
  • The CVOW Order unlawfully deprives DEV of a property interest without due process.

    Dominion’s weakest argument follows (bad State legislation shouldn’t dictate Federal energy policy):

    CVOW is critical to Virginia’s legislative clean energy directive and DEV’s commitment to achieving net-zero emissions. The VCEA requires the transition of Virginia’s electric grid to 100 percent non-carbon producing energy generation by 2045. Va. Code § 56-585.5. The VCEA also states that the construction of Virginia offshore wind facilities is in the public interest. Va. Code § 56-585.1:11 (C)(1).

      dominion-power-vs-bureau-of-ocean-engery-managementDownload

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      Year end Santa Ynez Unit drama!

      Posted in California, energy policy, Offshore Energy - General, Regulation, tagged , , , , on December 29, 2025| Leave a Comment »

      Attached are PHMSA’s Christmas week Emergency Special Permit and Permit Analysis document. Is the path clear to restart SYU production before New Year’s day?

      Three excerpts from the first attachment are pasted below. The last paragraph on p. 2 succinctly explains PHMSA’a emergency permit:

      PHMSA was able to assume jurisdiction from the State because the pipeline transports Federal OCS oil and is thus inherently interstate. The perceived problem with a PHMSA takeover had been the court approved Consent Decree that was executed following the 2015 Refugio pipeline spill. That Decree specifies that the State Fire Marshal must approve a restart of the pipeline. The first paragraph on p. 2 of the permit explains PHMSA’s position that the Consent Decree has been superseded.

      The provision pasted below (p. 4 of the permit) seems contradictory in that it stipulates compliance with the Consent Decree. However, PHMSA apparently sees no contradiction in that references to the Fire Marshal (OSFM) should now be read as references to PHMSA. PHMSA presumably included this provision to reaffirm the need to comply with the technical requirements in the Decree.

      The second attachment is PHMSA’s analysis of the special permit. Note that the permit expires in 60 days. Public notice and opportunity for comment would be required for a renewal.

      Environmental organizations reacted quickly to the PHMSA permit, filing an emergency motion in the 9th circuit (third attachment). Observations:

      • Impressive effort given the time crunch. The PHMSA permit was issued on 12/23, just 3 days prior to the court filing. No Christmas break for those folks!
      • If you wonder why the petition was filed with the 9th Circuit (seemed convenient given the 9th Circuit’s reputation), a filing at the Circuit level is required for appeals of PHMSA orders.
      • Petitioners strongest argument: Sable is not entitled to emergency relief, as there is no real emergency. PHMSA asserts that EO 14156, which declared a National Energy Emergency, supports the emergency permit.
      • The petitioners environmental doom prediction is not compelling. PHMSA’s position is that the mitigations they are imposing (reduced operating pressure, inline inspections, testing and sampling, etc) provide protection equal to or greater than than the corrosion remediation requirement that is being waived.
      • The petitioners asked the Court for relief no later than 12/26. That date has passed. Will there be a ruling today?

      Barring an injunction, odds are that Sable restarts production prior to New Year’s Day, when a requirement (SB 237) for a new Coastal Development Plan, takes effect.

      PHMSA-2025-1502-0003_attachment_1Download
      PHMSA-2025-1502-0005_attachment_1Download
      2025_12_24_Emergency-Motion-for-Stay_FINALDownload

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      Offshore energy chief leaves Interior

      Posted in energy policy, Regulation, tagged , , , , , , , , on December 26, 2025| Leave a Comment »

      Leslie Beyer, Assistant Secretary for Land and Minerals Management (ASLM), has stepped down from her post as the leader of the Dept of the Interior’s offshore energy programs. She was the senior official at this month’s BGG1 lease sale, and made strong remarks about the importance of the offshore oil and gas program. Ms. Beyer was confirmed by the Senate in September.

      Lanny Erdos, Director, Office of Surface Mining Reclamation and Enforcement, has been named Acting ASLM.

      This leaves the offshore energy program without a confirmed Asst. Secretary and with Acting Directors at both BOEM (Matthew Giacona) and BSEE (Kenny Stevens).

      Lanny Erdos

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