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Archive for the ‘energy policy’ Category

Dan Yergin: “America Can’t Do Without Fracking”

Posted in energy policy, tagged , , on November 1, 2024| Leave a Comment »

Wisdom from Daniel Yergin, Pulitzer Prize Winner and the world’s leading energy authority: (emphasis added):

“This year’s presidential race features an oddity: a discussion about a ban on fracking. What’s striking is that such a conversation is happening at all. This talk takes participants through the Wayback Machine to the first two decades of this century, when hydraulic fracturing and horizontal drilling—together known as fracking—came to public attention. The U.S. was then the world’s largest importer of oil. Today it is energy-independent with, S&P Global estimates, more than 70% of its oil and more than 80% of its natural gas produced through fracking. The process has become essential to the nation’s energy supply and can’t be eliminated.“

“Not long ago the prospect of U.S. energy independence seemed fanciful. For more than four decades every president aspired to it, but their goal seemed unattainable. Many observers considered the U.S. destined to grow more dependent on imports. In recent years, however, America has achieved energy independence on a net basis. U.S. output is closing in on 13.5 million barrels of crude oil a day, exceeding that of perennial big producers Saudi Arabia and Russia by several million barrels per day. Add what are called natural-gas liquids, and the U.S. produces around 20 million barrels per day.“

WSJ article

More from Dan Yergin

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Ocean City MD et al sue to vacate Maryland Offshore Wind approval

Posted in energy policy, Offshore Wind, tagged , , , , , on October 30, 2024| Leave a Comment »

As promised, Ocean City, Maryland, neighboring towns, counties, fishing groups, the Save Right Whales Coalition, and a long list of commercial entities have sued BOEM for approving the Construction and Operations Plan (COP) for the Maryland Offshore Wind project. The complete filing is attached.

The plaintiffs’ discussion of BOEM’s failure to consider true alternatives (begins on p. 43) is particularly interesting. They contend that “BOEM rejected out-of-hand all true alternatives, and selected alternatives with only minor differences in number of turbines and the route for the power cables from the proposed action.“

The plaintiffs also assert (p. 44) that “BOEM flatly rejected the option of not authorizing the Maryland Offshore Wind Project—as though approval were foreordained, with only the details to be determined.“

The plaintiffs’ argue further (p. 46) that BOEM failed to analyze the 3 phases of the project, particularly the third phase which is open-ended at this time.

Blade failure concerns are discussed beginning on p. 49. Excerpt:

“Missing from BOEM’s Final EIS is any discussion or analysis of the environmental impacts in the event of blade and turbine failure and the degradation of Project components, which are known and foreseeable possibilities that should have been reviewed and analyzed by BOEM. Risks of blade and turbine failure and component degradation are not hypothetical. Rather, they pose real dangers to the water quality of the ocean, fish and essential fish habitats, marine mammals, benthic resources, and recreational and commercial boaters.”

As previously recommended, wind leasing and plan approvals should be paused until BSEE’s investigation of the Vineyard Wind blade failure and the associated environmental damage study have been completed.

There is much more in this filing for those who want to take a closer look.

093114415371Download

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Moderate oil prices have protected the SPR in the run-up to the 2024 elections

Posted in energy policy, tagged , , , , on October 25, 2024| Leave a Comment »

The Strategic Petroleum Reserve would have no doubt been tapped again, as the Administration implied in June, if prices had exceeded $80/bbl for a sustained period prior to the upcoming elections. Fortunately, for the consumer and the SPR, that has not been the case.

Prior to the 2022 midterm elections, oil prices reached as high as $122/bbl in June and remained above $90/bbl through July. The SPR was tapped hard with a massive reduction of 123 million bbls in the 5 months prior to the elections.

June-Oct
WTI range $/bbl		beginning of June SPR vol. (bbls)end of Oct. SPR vol.
(bbls)		net gain or (loss)
midterm elections
11/8/2022		80-120519,323396,219(123,104)
general elections 11/5/202465-83370,526 384,64214,116

Despite the modest additions to the SPR in 2024, the reserve is only about one-half of capacity and 11% above the all-time low (7/7/2023).

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New England Fishermen ask Maine Governor Mills to stop the wind sale in the Gulf of Maine; Oregon precedent is cited

Posted in energy policy, Offshore Wind, tagged , , , , , , on October 11, 2024| Leave a Comment »

The New England Fishermen’s Stewardship Association (NEFSA) is sending the attached letter to Maine Gov. Janet Mills along with a petition with over 2,500 signatures urging her to halt the development of offshore wind farms in the Gulf of Maine.

A Gulf of Maine wind lease sale is scheduled for Oct. 29.

The NEFSA cites the 9/27 letter from Oregon Governor Kotek that resulted in cancellation of the Oregon wind sale that had been scheduled for Oct. 15.

NEFSA letter to Gov Mills (1)Download

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Don’t expect to see OCS carbon disposal regulations prior to the election or perhaps for a long time after (regardless of who wins)

Posted in CCS, climate, energy policy, Gulf of Mexico, Regulation, tagged , , , , , , on October 10, 2024| Leave a Comment »

199 oil and gas leases were wrongfully acquired at Sales 257, 259, and 261 with the intent of developing these leases for carbon disposal purposes. Repsol was the sole bidder at Sale 261 for 36 nearshore Texas tracts in the Mustang Island and Matagorda Island areas (red blocks at the western end of the map above). Exxon acquired 163 nearshore Texas tracts (blue in map above) at Sales 257 (94) and 259 (69).

Despite false starts by Exxon and Repsol (see above summary), no carbon sequestration (disposal) leases may be issued or developed until implementing regulations have been promulgated. In that regard, no news is good news for those who are less than enamored with CO2 disposal in the Gulf of Mexico.

The implementing regulations will be controversial. Most operating companies prioritize GoM production over GoM disposal. Most environmental organizations are strongly opposed to CO2 disposal schemes that sustain fossil fuel production and benefit fossil fuel producers. Taxpayers are leery of subsidizing these projects and absorbing increased costs for energy and consumer goods.

The Administration is, of course, well aware of this opposition and will not be publishing implementing regulations prior to the election. The next Administration, regardless of the election outcome, will no doubt take a hard look at these issues before proposing regulations.

The few oil and gas producers that are rather cynically hoping to cash in on CO2 disposal in the GoM will therefore have to wait, perhaps for a long time.

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Equinor buys 9.8% of Orsted – good counter cyclical investment or irrational pursuit of renewables goal

Posted in climate, energy policy, Norway, Offshore Wind, Uncategorized, tagged , , , , , on October 7, 2024| Leave a Comment »

Equinor, which is 2/3 owned by the Norwegian government, has purchased a nearly 10% stake in offshore wind giant Orsted (50.1% Danish govt ownership).

With bp and Shell reducing their wind energy investments, Equinor’s Orsted acquisition is a contrarian move. Equinor is also the only major oil company that is still in the market for new US offshore wind leases.

While the Orsted acquisition does not appear to have been directed by the Norwegian government, the State’s 2/3 ownership of the company no doubt influences renewable energy targets and broader corporate strategy.

The initial market reaction to the Orsted purchase was negative (see chart below). On a day when most oil companies’ share prices rose in response to the jump in oil prices, Equinor shares opened sharply lower.

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More offshore wind litigation: Save LBI to sue BOEM and NOAA over the Atlantic Shores South project

Posted in energy policy, Offshore Wind, tagged , , , , , , on October 4, 2024| Leave a Comment »

As a boy, my grandfather owned a home “down the shore” on Long Beach Island (LBI). From the beach, all we saw were swimmers, surf fishers, porpoises, and an occasional vessel on the horizon. The offshore wind industrialization will change the island dramatically.

Attached is the release announcing Save LBI’s intent to sue. Their issues are summarized below:

  • Constructing and operating hundreds of wind turbines directly in a prime migration path for the critically endangered North Atlantic right whale.
  • Operational noise from the larger and noisier turbines Atlantic Shores plans to build.
  • Cumulative impact of the East Coast wind-turbine projects on the right whale’s migration.
  • Interference with other uses of the ocean including fishing and national security.
  • No plan or capability, technically or monetarily, to remove turbines and other facilities at the end of their useful life, upon their failure during normal operation, or in the aftermath of a hurricane or other extreme storm event.
  • Failure to account for structural failures such as the Vineyard Wind turbine blade incident, the damage from such failures to the ocean and beaches, and how that damage will be remediated.
  • Excessive electric bill increases under the State’s Offshore Wind Energy Development Act.

The Endangered Species Act issues are similar to those that the Nantucket group ACK for Whales is trying to elevate to the Supreme Court.

Perhaps not the best choice of graphic if you want to sell the project as being environmentally benign and compatible with other uses.

2024-09-30_NoticeofIntenttoSue _PRDownload

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It’s sad to see what is going on in the UK sector of the North Sea. Is this a preview of what to expect in the GoM?

Posted in climate, energy policy, Gulf of Mexico, Offshore Energy - General, UK, tagged , , , on October 3, 2024| Leave a Comment »

See the video embedded below or view it here.

Some of us are long-time observers of North Sea operations. Others like JL Daeschler are pioneers who were involved with North Sea exploration and development from the outset. It’s sad to see what is happening to the UK offshore industry.

And for what purpose? Virtue signaling by politicians? Pandering to the international climate cartel? Shutting down North Sea production will have no measurable effect on our climate.

Now that the entire U.S. Atlantic and Pacific, and nearly all of offshore Alaska, are closed to oil and gas leasing, the goal of some is to shut down the Gulf of Mexico. That intent is clear in the 5 year leasing plan that provides for a maximum of 3 sales, the fewest of any 5 year plan in the history of the US offshore program. This is really a 5 year moratorium, not a 5 year leasing plan.

As noted in the post below, GoM production is 1.8 million bopd. BOEM’s reasonable forecast of >2 million bopd through 2027 will not be achieved because of policy decisions, not resource limitations or technical capabilities.

And shame on those who are attributing Hurricane Helene’s destruction to GHG emissions. This is uninformed opportunism at its worst.

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Nantucket group petitions the Supreme Court: “Hail Mary” or good chance of success?

Posted in energy policy, Offshore Wind, tagged , , , on October 1, 2024| Leave a Comment »

The Nantucket non-profit ACK for Whales (ACK is the FAA abbreviation for Nantucket Airport) has petitioned the Supreme Court to review the 1st Circuit’s ruling on the Vineyard Wind project. Per the Supreme Court filing (full document attached):

Despite the agencies’ explicit statutory duty to consider all “best information available,” regarding the impacts its actions might have on an endangered or threatened species and those habitats, the National Marine Fisheries Service (NMFS) and the Bureau of Ocean Energy Management (BOEM), did not consider the cumulative impacts of other planned projects when they authorized and issued permits to construct the Vineyard Wind 1 Project.

Will the Supreme Court accept the case?

  • “Hail Mary:” Per the Nantucket Current, the odds that the Supreme Court justices will accept the case are exceedingly slim. Of the 7,000 cases that the Supreme Court is asked to review each year, only 100 to 150 of them – about 2 percent – are accepted.
  • “Really good chance:” Per Val Oliver, ACK for Whales founding director, “In light of the recent Chevron decision, we think we have a really good chance. That was about government overreach and that is what this (Vineyard Wind) has felt like since the beginning: go, go, go, and we’ll figure it out as we go. That’s just not responsible.“

Regardless of the outcome of this case, there is a profound inconsistency in the administration of the Endangered Species Act as evidenced by our comparison of the operating restrictions for the Right whale (Atlantic wind) and Rice’s whale (Gulf of Mexico oil and gas). Note that the more onerous Rice’s whale restrictions were removed by court order.

No.-24-Petition_2024-09-24-201936_csjkDownload

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More Nord Stream intrigue

Posted in accidents, energy policy, tagged , , , , , on September 30, 2024| 5 Comments »

Just when the media seemed to be settling on rogue Ukrainians in a rented yacht being responsible for the sabotage of the Nord Stream pipelines, comments by a Danish harbor master have muddied the waters.

On the second anniversary of the Nord Stream pipeline sabotage, the Danish publication Politiken posted comments from John Anker Nielsen, harbor master on Christiansø, the small Danish Island near the explosion sites.

Swedish engineer, Erik Andersson tweeted an excerpt from the Politiken article:

“For the first few days, the harbor master said he was “not allowed to say a thing”. But today, John Anker Nielsen can reveal that four or five days before the Nord Stream blasts, he was out with the rescue service on Christiansø because there were some ships with switched-off radios. They turned out to be American naval vessels, and when the rescue service approached, they were told by Naval Command to turn back. Therefore, the harbor master has some faith in the theory that American star journalist Seymour Hersh, among others, has put forward without any documentation: that the US was behind the sabotage. The Americans have these small unmanned submarines that can solve any task, John Anker Nielsen has been told.”

Erik commented further:

The harbor master isn’t making this up. He wasn’t alone on the rescue vessel ordered to stay clear of the American warships.

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