Victoria Nuland’s glee over the Nord Stream damage (video clip below) is particularly galling to those responsible for offshore production, worker safety, and environmental protection. Does she realize that the Gulf of Mexico has more than 13,000 miles of active offshore pipeline that could be similarly targeted, and that the US has 2.6 million miles of onshore pipelines?
Whether or not the US was involved in the Nord Stream sabotage, Ms. Nuland’s schadenfreude is disturbing given the economic and security implications of the attack.
“Former U.S. Rep. David Rivera, a well-connected Florida Republican, has been arrested on federal charges that include failing to register as a foreign agent. The case centers on Rivera’s signing of a $50 million contract with Venezuela’s government in early 2017, and his subsequent attempts to thaw Venezuela’s icy relationship with the U.S.”
Perhaps Mr Rivera’s conduct at a 2012 hearing on Cuban offshore drilling was a hint of things to come. Mr. Rivera inappropriately pressed BSEE, represented by Lars Herbst, to find ways to “bleed” Repsol should there be an incident while they were drilling in Cuban waters.
“So, we need to figure out what we can do to inflict maximum pain, maximum punishment, to bleed Repsol of whatever resources they may have if there is a potential for a spill that will affect the U.S. coast. So, I hope you will look into that and verify that for us.”
For the first time in 71 weeks the Strategic Petroleum Reserve has not declined. DOE reports that the SPR was unchanged during the week ending 1/20/2023. The reserve remains at 371.6 million bbls, about 51% of capacity.
Bob McNally, founder and president of the consulting firm Rapidan Energy Group, said any effect on pump prices has been modest.
“Pump prices are largely driven by global crude oil prices,” McNally said in an email. “SPR releases have at most temporary and small impacts on global crude oil prices. Therefore the SPR is a bad tool for trying to manage pump prices.”
This week’s loss was by a small margin, only 800,000 barrels (down to 371.58 million barrels total), suggesting that the record losing streak may end soon. EIA data
The EIA 2022 figure is spot-on, as it should be given that 10 months of 2022 production data are now in hand. However, BOEM’s 2022 forecast (published in July) missed the mark considerably. (In fairness to BOEM staff, their work was probably completed months before publication pending internal reviews.)
Of greater concern, given the policy implications, is the rosy BOEM forecast for the out-years. Despite historically low levels of leasing and exploratory drilling, BOEM forecasts oil production to exceed 2 million BOPD through 2027 and to remain well above the current (2022) level through 2031 (second table below).
Offshore gas has important environmental advantages, particularly nonassociated gas-well gas (GWG). While the GoM production chart (below) is not pretty, there are signs that gas production may have bottomed and is slowly rising. This is largely due to growth in oil-well gas (OWG) associated with deepwater oil production.
A successful offshore program requires a mix of strategies, and it is encouraging that companies are still pursuing natural gas on the GoM shelf. The second chart (below), based on BOEM data, shows 2022 YTD (probably through Oct.) GWG production for the 11 companies that (1) produced more GWG than OWG and (2) produced more than 1 BCF of GWG.
Interestingly, 100% of the gas produced by Contango, Samchully, and Helis in 2022 was from gas wells. Contrast this with bp, the third largest GoM gas producer. None of bp’s gas production was from gas wells.
Liz is an experienced attorney and leader in clean energy, climate change, and environmental law and policy. A member of the Biden-Harris administration since January 20, 2021, Liz has served as Senior Counselor to Secretary Haaland with an emphasis on water policy and climate change resilience. In this role, Liz also served as Chair of the Indian Water Rights Working Group, which manages, negotiates and implements settlements of water rights claims.
Prior to joining the Administration, Liz was Deputy Director of the non-partisan State Energy & Environmental Impact Center at NYU School of Law, which supports state Attorneys General addressing clean energy, climate, and environmental initiatives of regional and national importance. President Biden is the third President under which Liz has served at Interior, having worked for both the Clinton and Obama administrations. Under Secretaries Ken Salazar and Sally Jewell, Liz served as Interior’s Associate Deputy Secretary as well as Principal Deputy Assistant Secretary in the Office of Policy, Management and Budget. She was a key architect of the Obama Administration’s work to create a new offshore wind industry and leasing program.
Congratulations to Ms. Klein on being appointed to lead the Bureau of Ocean Energy Management. In addition to her commendable support for offshore wind energy, I trust that she appreciates the national importance of the OCS oil and gas program and the need for regular lease sales.
Both discoveries are near the company’s Ram Powell platform, where future production will flow via subsea tiebacks.
The Lime Rock prospect was acquired in Lease Sale 256 in November of 2020.
The new discoveries will help sustain production at Ram Powell, an early tension leg platform that has produced more than 250 million boe.
Ram Powell was the deepest production facility in the world (water depth of 3216′) when it was installed by Shell in 1997.
Access to nearby resources through regular lease sales facilitates continued production from existing platforms, reducing costs and environmental impacts.
Bud's Offshore Energy (BOE) 