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Last month, we demonstrated millimeter wave drilling outside of the lab for the very first time.

Millimeter wave drilling is the keystone of superhot geothermal. It’s the only way to access the resource at scale while reaching economic and power parity with fossil fuels. Over the coming months, two more drilling field tests will pave the way to our first commercial developments.”

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Virginia Mercury photo: Gov. Youngkin makes the announcement
  • Commonwealth Fusion Systems (CFS) will independently finance, build, own, and operate a grid-scale fusion power plant in Chesterfield County, Virginia.
  • Dominion Energy will provide non-financial collaboration, including development and technical expertise as well as leasing rights for the proposed site.
  • This pioneering plant will generate 400 MW of continuous energy on 25 acres (total site is 100 acres). By comparison, Dominion Energy’s offshore wind project, which will include 176 turbines and 3 offshore substations, will intermittently produce (on average) 1092 MW (2600 MW x 0.42 capacity factor).
  • Gov. Youngkin emphasized that the project will be financed entirely by CFS, with no costs passed on to Dominion Energy ratepayers. (Good news for us Dominion Energy customers! 😀)
Fusion technology works by combining hydrogen isotopes — deuterium extracted from water and tritium from lithium — under extreme heat and pressure, using powerful magnets to fuse the elements. The process generates heat, which boils water to create steam that spins a turbine, producing electricity. The byproduct is helium.

Why BOE, and most everyone else, likes nuclear fusion:

  • Clean and sustainable power source.
  • Unlike traditional nuclear power plants that rely on fission, fusion replicates the energy-producing process of the sun.
  • Modest space requirements.
  • Generates four times more energy per kilogram of fuel than fission and nearly four million times more energy than burning oil or coal.
  • No radioactive waste
  • Safe energy source; no risk of a meltdown event
  • Nuclear Regulatory Commission has determined that fusion technology, unlike fission, does not require a federal license.

Tempering the optimism a bit, the plant won’t be operational until the early 2030’s. As we all know, there could (will likely) be delays. CFS is currently building a demonstration plant in Massachusetts that will use their SPARC “tokamok” technology.

The implications of advanced nuclear technology, not only the holy grail of fusion energy, but also modular fission reactors, for intermittent wind and solar power are substantial. Ultradeep geothermal is on a similar timeframe, and could also supersede wind and solar.

The logic behind costly offshore wind projects is therefore questionable, and the regulators better make sure that the decommissioning of these facilities is fully funded. The most likely long-term scenario is for natural gas to continue meeting most power generation needs as the nuclear and ultradeep geothermal alternatives are phased in.

More about fusion. Most of you can start at Level 3. 😉

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JL Daeschler reports that there has been no wind for the past 4 days at his home in Scotland, and his wind gauge is droopy. (See his sketch below and read the fine print 😉)

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BSEE data for the past 3 days are tabulated below. Data are as of 12:30 p.m. ET on the specified date. Barring offshore or downstream infrastructure damage, production should begin to resume over the next few days.

Prior to the shale boom, when our national production was lower and the OCS accounted for a larger share, these numbers would have had a more significant effect on oil and gas prices. That is not the case today with only a 2.4% rise in WTI prices.

date9/109/119/12
oil shut-in (BOPD)
% of total
412,070
23.55
674,833 
38.56
730,472
41.74
gas s.i. (MMCFD)
% of total
494
25.56
904
48.77
991.68
53.32
platforms evac.
% of total
130
35
171
46
169
45.55
rigs evacuated
% of total
2
40
3
60
3
60
DP rigs moved
% of total
3
15
4
20
2
10

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As of 12:30 pm ET on 9/11/2024, nearly 40% of the oil and half of the gas production was shut-in.

Total Shut-in (Percentage of GOM Production)
Oil, BOPD Shut-in674,833 BOPD38.56 %
Gas, MMCFD Shut-in907 MMCFD48.77 %

Evacuations and rig movementstotal% of GOM
Platforms Evacuated17146%
Rigs Evacuated (non DP)360%
DP Rigs Moved-off420%

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On Labor Day 2024, BOE is proud to salute the thousands of dedicated offshore professionals, in the US and around the world, who work in remote locations under challenging conditions to support economic growth and prosperity.

The overwhelming majority of offshore workers do their jobs skillfully and conscientiously, and are committed to protecting their colleagues and the environment.  It is their lives that are threatened, their “back yard” that is polluted, and their jobs that are at stake if accidents occur.

Fortunately for us, energy exploration and production doesn’t stop on holidays. BOE wants offshore workers to know that their important contributions to society are greatly appreciated, on Labor Day and throughout the year.

Happy Labor Day!

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July 24 (Reuters)The amount of electricity produced by wind farms in the U.S. fell to a 33-month low on Monday, forcing power generators to crank up natural-gas fired plants to keep air conditioners humming during a hot summer day.

Over the past few years, much of the money energy firms have invested in new generation has gone into renewable power sources like wind and solar. But when the wind stops blowing and the sun does not shine, gas is still needed to keep the lights on.

Funny how that works! Being trendy and highly promoted doesn’t make you reliable!

Saluting natural gas.

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Thinking of those who gave their lives to protect our freedoms, including workers who died providing the energy needed to power our economy.

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Given the intermittency, space preemption, aesthetic, and wildlife issues associated with wind and solar power, more attention has been shifting to geothermal energy. Quaise’s plan to tap ultradeep heat resources has been on our radar for several years and has been attracting private funding and a bit of media buzz.

Quaise is exciting not only because of the unlimited energy potential, but because of the fascinating gyrotron technology that vaporizes hard rock and could enable wells to be drilled to depths of 20-30 km and temperatures of >1000° C. Nabors, a leading drilling contractor, is one of the Quaise investors, and will be involved with the test drilling.

Demonstrating the gyrotron technology in the field is a big step up from doing so in the lab. Those of us in the “peanut gallery” are awaiting more definitive information on the lab tests that have been conducted to date and the important field tests, which are scheduled for this year.

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A Fortune article about Autry Stephens, Endeavor Energy Resources CEO, pegs him as the world’s richest oilman following the sale of his company to Diamondback Energy. His story reinforces many of the success messages previously discussed on BOE:

  • Humble beginnings: As the son of peanut-and-melon farmers, his work ethic was no doubt established at a young age.
  • Diverse experience starting with entry level positions: He “wore nearly every hat in the oil industry, from trucker to driller to engineer.”
  • Private land: Stephens started buying Texas Permian rights early in his career.
  • Technology leader: His company embraced the horizontal drilling and advanced well stimulation practices critical to Permian success.
  • Contrarian who stuck with his plan: When major oil companies left for more lucrative opportunities overseas, he continued adding Permian leases acquiring a total of 344,000 acres.
  • Low debt: His insistence on using cash to acquire drilling rights helped him survive the 2008 financial crisis, which crushed oil demand and bankrupted some US operators.
  • Lean organization: He focused on maintaining a lean staff and efficient operations, which no doubt facilitated effective communication and instilled common values.
  • Take care of your employees: He insisted that none of Endeavor’s 1200 employees be let go after the merger with Diamondback.
  • Support the community: Served Midland and merged with the company that was located right across the street.
  • Former Federal employee 😉: Not known as a key to success, but I’ll take it 😀. (Stephens once worked for the Army Corps of Engineers.)

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