Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged Anchor platform, Chevron, CNBC, Jim Kramer, Mad Money, Mike Wirth on November 5, 2024| Leave a Comment »
Mike Werth’s response to Jim Kramer’s question about US production leadership is spot-on (see the clip below).
Kudos to Kramer for visiting Chevron’s Anchor platform in the Gulf of Mexico. More business/energy reporters and government officials with energy responsibilities need to (1) learn more about offshore oil and gas exploration and development and (2) visit offshore facilities.
Posted in climate, energy policy, Offshore Energy - General, tagged 2050 production end, ban, Danish gas production, Denmark, oil and gas exploration, Orsted, Total on November 4, 2024| Leave a Comment »
As the table below illustrates, Denmark’s highly publicized oil and gas exploration ban is more pragmatic than has been reported in the media. The expansion of production from existing fields is not restricted.
| 12/4/2020 policy announcement | 10/29/2024 discovery announcement |
| Denmark has brought an immediate end to new oil and gas exploration in the Danish North Sea as part of a plan to phase out fossil fuel extraction by 2050. | TotalEnergies announces that the Harald East Middle Jurassic nearby exploration well (HEMJ-1X) has discovered additional gas condensate resources in the Harald field, in the Danish North Sea.“The success of the Harald East Middle Jurassic well, nearby our Harald facilities in Denmark, demonstrates the strength of our Exploration strategy.” |
As a result of new exploration, Danish gas production is on the rise (graphic below) after two decades of decline. August 2024 production (165.8 MMCFD) was 21% higher than August 2023 production (136.9 MMCFD)
While Total has proven to be resourceful in sustaining North Sea gas production, Denmark’s refusal to hold new licensing rounds dooms their production over the longer term. This is consistent with Denmark’s intent to cease domestic production by 2050. (Those of you who are young enough can report on whether that deadline is met 😉).
The demand for fossil fuels, which has yet to peak, will still be strong in 2050 and beyond. Phasing out domestic production may be Denmark’s choice, but it’s not a good choice for much of the world.
Denmark is a lovely country, but their rather smug commitment to “lead a global campaign on the role of fossil-fuel producing countries” is not universally welcome. Similarly, companies like Orsted (50.1% Danish govt ownership) are not always the best ambassadors for exporting Danish energy policy.
Other governments, including the US, are quite capable of risking their economic growth and energy security without Denmark’s help.
Related posts:
Posted in energy policy, tagged Dan Yergin, energy independence, fracking on November 1, 2024| Leave a Comment »
“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.“
Posted in energy policy, Offshore Wind, tagged BOEM, COP, law suit, Maryland Offshore Wind, NEPA, Ocean City MD 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.
Posted in energy policy, tagged general election 2024, midterm elections 2022, oil prices, SPR depletion, Strategic Petroleum Reserve 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 | 80-120 | 519,323 | 396,219 | (123,104) |
| general elections 11/5/2024 | 65-83 | 370,526 | 384,642 | 14,116 |
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).
Posted in energy policy, Offshore Wind, tagged BOEM, Gov. Kotek, Gov. Mills, Gulf of Maine, NEFSA, Oregon wind sale, wind sale 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.
Posted in CCS, climate, energy policy, Gulf of Mexico, Regulation, tagged BOEM, carbon disposal, CCS regulations, Exxon, Gulf of Mexico, opposition to CCS, Repsol on October 10, 2024| Leave a Comment »
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.
Posted in climate, energy policy, Norway, Offshore Wind, Uncategorized, tagged acquisition, Equinor, Norway, Offshore Wind, Orsted, renewable energy targets 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.
Posted in energy policy, Offshore Wind, tagged Ack for Whales, Atlantic Shores project, ESA, litigation, Offshore Wind, RIght Whale, Save LBI 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:
The Endangered Species Act issues are similar to those that the Nantucket group ACK for Whales is trying to elevate to the Supreme Court.
Posted in climate, energy policy, Gulf of Mexico, Offshore Energy - General, UK, tagged A Town Called Bruce, Gulf of Mexico production, UK offshore oil and gas, US 5 year leasing plan 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.
Bud's Offshore Energy (BOE) 