Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged 5th Circuit, API, BOEM, court ruling, Lease Sale 261, Louisiana, Rice's whale on November 15, 2023| Leave a Comment »
Order is pasted below and attached.
IT IS ORDERED and ADJUDGED that the Intervenors’ appeal is DISMISSED. As for BOEM’s limited appeal as to the timing of the sale, we hereby AMEND the district court’s preliminary injunction only to the extent that the deadline for conducting Lease Sale 261 shall now be thirtyseven days from the date of the issuance of the mandate in this appeal.
IT IS FURTHER ORDERED that each party bear its own costs on appeal.
Background information and related posts.
Posted in climate, energy policy, Offshore Energy - General, UK, tagged annual licensing rounds, North Sea, North Sea Transition Authority, UK, UK EiTi on November 9, 2023| Leave a Comment »
Each annual licensing round will only take place if key tests are met that support the transition to net zero. The first test is that the UK must be projected to import more oil and gas from other countries than it produces at home.
The second is that the carbon emissions associated with the production of UK gas are lower than the equivalent emissions from imported liquefied natural gas.
If both these tests are met, the NSTA will be required to invite applications for new licences annually.
The “key tests” would seem to ensure annual licensing rounds for the foreseeable future. The charts below are from UK EiTi. The first chart illustrates the sharp decline in UK production over the past 20 years. The second and third charts illustrate the large projected gaps between supply and demand, particularly for natural gas.
In 2050, total production of oil and gas is estimated at ~10 million tonnes of oil equivalent. The projected 2050 demand is estimated at ~35 tonnes. For domestic production to exceed imports over the next 20-30 years, resource licensing and field development would have to be very successful and efficient.
With regard to the second test, carbon emissions from the production of UK gas should maintain their advantage over imported LNG given the energy required to liquefy and transport that gas.
It would have perhaps been more transparent to simply stipulate annual licensing rounds, but that would probably not have been politically acceptable.
Posted in energy policy, Offshore Energy - General, tagged Global Petoleum Group, Grenada, missing data, oil and gas exploration on November 8, 2023| Leave a Comment »
From the Amsterdam News:
“Encouraged by the Guyana Suriname finds, several other regional bloc member nations, including Barbados and Jamaica, have been ramping up efforts to attract companies to explore offshore acreages. The most determined of them seems to be Grenada, which is just north of oil and gas producers Trinidad and Venezuela.”
“Officials there say they are preparing to put out bids to attract some of the world’s largest exploration companies, but the 14-month new administration has said the previous government secreted away all the documents and data obtained from a 2018 exploration campaign by a little-known Russian firm, the Global Petroleum Group (GPG).”
“The group had told the previous administration that it had found commercial quantities of oil and gas in a well labeled Nutmeg 2, in about 400 feet of water, and that there were other promising prospects right nearby. But as the current Dickon Mitchell government gets ready to assess the island’s prospects, it has said there is nothing to work with.”
Grenada will no doubt be more careful about whom they issue future exploration licenses to and how they manage the data.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged 5th Circuit, delay, Lease Sale 261, Rice's whale on November 6, 2023| Leave a Comment »
In light of the 5th Circuit’s order, holding the sale on 11/8 would have been messy for all sides in the Rice’s whale dispute. Seemingly, the only option for holding the sale prior to the Court’s decision on the injunction would have been the following:
Because the RIce’s whale stipulations would affect the value of all deepwater leases, bidders would be rolling the dice on the outcome of the case.
Also, absent legislative action, there will be no lease sale in 2024. This adds to the importance of Sale 261, and making sure the terms are understood.
Posted in climate, energy policy, Uncategorized, tagged climate ultras, Department of the Interior, resignation, Tommy Beaudreau on November 2, 2023| Leave a Comment »
Deputy Secretary of the Interior Tommy Beaudreau was “disrupted” (perhaps a euphemism for the thuggish behavior demonstrated in the video clip below) by climate ultras in New York on Sept. 21. On Oct. 4, Mr. Beaudreau announced that he would be leaving the Dept. of the Interior.
The official announcement provides no reasons for his departure. By all accounts, Beaudreau was highly regarded by career employees in the Department. Was he troubled by his experience in NYC and the absence of a response from DOI? Was it difficult being a lone advocate for a more balanced energy policy?
Posted in energy policy, Offshore Wind, Wind Energy, tagged Governor Murphy, New Jersey, Ocean Wind 1, Ocean Wind 2, Offshore Wind, Orsted on November 1, 2023| Leave a Comment »
NJ Governor Murphy, an offshore wind promoter, is not pleased:
“Today’s decision by Orsted to abandon its commitments to New Jersey is outrageous and calls into question the company’s credibility and competence,” the Democratic governor said. “As recently as several weeks ago, the company made public statements regarding the viability and progress of the Ocean Wind I project.”
6ABC NJ
Perhaps the Governor’s credibility and competence is also taking a hit, as is staking the State’s energy future on highly uncertain, intermittent, and facility-intensive power systems. .
Posted in energy policy, Offshore Energy - General, UK, tagged 27 new licenses, energy security, NSTA, UK on October 30, 2023| Leave a Comment »
The North Sea Transition Authority (perhaps the transition is a bit more complicated than changing the name of the licensing agency) has announced the awarding of 27 new oil and gas licenses in the UK sector of the North Sea. Summary bullets:
These licences are in the Central and Northern North Sea, and West of Shetland. There are currently 284 offshore fields in production in the UK North Sea and an estimated 5.25 billion boe in total projected production to 2050.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, Regulation, tagged 5th Circuit, Gulf of Mexico, Lease Sale 261, Rice's whale on October 27, 2023| Leave a Comment »
I take it that since the 5th Circuit stayed both the 9/21 and 9/25 orders, the mandate to hold the sale by 11/8 is also stayed. Ergo, it is assumed that the sale will be delayed pending a decision on the merits of the injunction. Oral arguments are scheduled for 11/13.
If the 5th Circuit’s decision facilitates timely resolution of the Rice’s whale deletions and stipulations, delaying the sale is probably the best outcome. Otherwise, the level of uncertainty would be unacceptable for many bidders.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, Regulation, tagged 5th Circuit, appeal, DOI, injunction stayed, Lease Sale 261, Rice's whale on October 27, 2023| Leave a Comment »
Not a lawyer, but I take this to mean that the Judge’s injunction has been suspended and DOI may delete acreage and include the Rice’s whale stipulations in Sale 261 leases. The sale will be held on Nov. 8.
ORDER:
IT IS ORDERED that the preliminary injunction entered by the Memorandum Order of September 21, 2023, as amended by the motions panel’s order of September 25, 2023, is STAYED pending the merits panel’s decision on appeal.
LYLE W. CAYCE, CLERK
United States Court of Appeals
Posted in energy policy, tagged Chevron, Hess, IEA, OPEC, World Energy Outlook 2023 on October 27, 2023| Leave a Comment »
Good article in OilPrice.com on the “notably politicized” IEA World Energy Outlook 2023.
The IEA’s assessments face criticism, particularly in terms of the agency’s optimistic outlook on the growth and impact of renewable energy worldwide. The report suggests that renewables will meet half of the world’s power demand by 2030, based on optimistic scenarios, including the proliferation of electric vehicles (EVs) and substantial investments in offshore wind, solar, green hydrogen, and ammonia. The IEA emphasizes the idea that consumers worldwide are enthusiastic about changing their heating systems to electricity or heat pumps.
Simultaneously, the ongoing contentious relationship between the IEA and OPEC is poised to reach new levels of disagreement. The release of the IEA’s report shortly after OPEC’s relatively optimistic oil market report gives the impression that Paris is attempting to alarm markets without substantial grounds. It’s worth noting that, despite its inherent bias, OPEC’s reports have historically demonstrated a higher level of accuracy compared to the IEA reports from the early 21st century. Even OPEC’s most optimistic scenarios regarding hydrocarbon demand growth have been realized sooner than expected. The current IEA report appears to resemble a modern-day version of “Crying Wolf.” It’s possible that the underlying strategy of Paris and its supporters is to induce significant fear among investors, including clients, in the hope that their biased outlook becomes a reality. However, at present, such a scenario appears unlikely. It’s essential to keep in mind that the IEA will need to present a doomsday scenario for hydrocarbons, as it faces a different audience in Dubai in the coming weeks.
Cyril Widdershoven for Oilprice.com
Major media outlets will, of course, run with the IEA assessment, as did the Washington Post when criticizing Chevron’s acquisition of Hess.
Bud's Offshore Energy (BOE) 