MMA report as of noon ET today:
Archive for the ‘Gulf of Mexico’ Category
Hurricane Isaias – 1.46 million bopd, 71.5% of Gulf production, shut-in
Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, tagged Gulf of America, Hurricane Isaias, MMA, production shut-in on October 9, 2026| Leave a Comment »
Lease Sale BBG4 – 3/10/2027
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged Gulf of America, Lease Sale BBG4, Notice of Sale, sale terms on October 9, 2026| Leave a Comment »
The proposed Sale Notice is attached. The terms, summarized below, are the same as for the other BBG sales. See the sale map for the blocks that correspond with with the legend categories.
Hurricane Isaias – 63% of Gulf oil production is now shut-in
Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, tagged deepwater production, Gulf of America, Hurricane Isaias, oil production on October 8, 2026| Leave a Comment »
Per MMA, nearly 1.3 million barels/day of Gulf of America oil production was shut-in as of noon ET today. Given that ~95% of Gulf production is from deepwater facilities, the high shut-in volume and the storm track (map below) tell us that major deepwater platforms in the eastern areas of the Gulf are shut-in. It’s also apparent that operators are prudently shutting in platforms well outside the projected hurricane track.
Isaias looks like a problem for the Eastern Gulf; 25% of oil production shut-in
Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, tagged hurricanes, Isaias, oil production, shut-in production on October 7, 2026| Leave a Comment »
MMA reports some production has been shut-in as a result of Tropical Depression Invest 92L
Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, tagged Gulf of America, Invest 92L, production shut-in, tropical storm on October 6, 2026| Leave a Comment »
MMA estimates that approximately 9.24% of current Gulf of America oil production and 3.36% of natural gas production were shut-in as of 1130 CT today. No personnel had been evacuated.
Another Gulf oil production record in 2026? Sable restart continues to raise Pacific production.
Posted in California, Gulf of Mexico, Offshore Energy - General, tagged EIA, Gulf of America, offshore oil, Pacific, production on October 1, 2026| 3 Comments »
2025 was a record production year for the Gulf. Assuming the continued absence of tropical storms, 2026 will likely surpass 2025.
The EIA’s Gulf production revisions have been more significant in recent months. For example, May production was increased by 48,000 bopd over the past 2 months. Yesterday’s report increased June production by 44,000 bopd.
More importantly, the EIA and official ONRR production totals for 2025 are now aligned! Is the EIA reading this blog? 😉
The July production bump in the Pacific was slightly less than expected. Given that Sable reported July production of 38,000 bopd and the production estimate for the other platforms is ~12,000 bopd, a total of 50,000+ bopd was expected.
EO 14430 establishes Reef-in-Place Program
Posted in Offshore Energy - General, California, Gulf of Mexico, energy policy, rigs-to-reefs, tagged decommissioning, EO 14430, John B Smith, Marine Minerals Administration, NOAA, repurposing platforms, rigs to reefs on September 25, 2026| 2 Comments »
Section 6 of EO 14430, RESTORING AMERICAN SALTWATER ANGLING AND RECREATION, establishes a program to facilitate the reefing of decommissioned platforms (i.e. “Rigs-to-Reefs”).
Presumably, existing Gulf State reefing programs and private initiatives for repurposing offshore platforms will be integrated into the new Federal program. Where State reefing legislation is unworkable (California), liability issues will have to be resolved. John Smith has made a proposal in that regard.
Full text of Section 6:
Sec. 6. Fast-Tracking Artificial Reefs and Habitat Creation. (a) Within 60 days of the date of this order, the Secretary of the Interior, acting through the Marine Minerals Administration, shall establish a Federal Outer Continental Shelf Reef-in-Place Program (Program) to facilitate the conversion of decommissioned offshore oil and gas and other-use structures, with the exception of infrastructure associated with offshore wind energy facilities, into permanent artificial reefs through reef-in-place, topple-in-place, or other approved reefing methods, where consistent with applicable law.
(b) The Program shall be available to qualifying offshore structures and leaseholders that satisfy all applicable statutory, regulatory, environmental, navigational, and safety requirements. The Secretary of the Interior shall establish criteria and standards for the program that ensure protection of navigation and national security interests.
(c) In establishing the Program, the Secretary of the Interior shall coordinate with the Secretary of Commerce, the Secretary of War, the Commandant of the United States Coast Guard, and the heads of other appropriate agencies to streamline interagency review and permitting to the maximum extent permitted by law, reduce unnecessary administrative delays, and promote timely decisions for qualifying reef projects.
(d) Within 120 days of the date of this order, the Secretary, acting through the NOAA Administrator, in coordination with the Secretary of the Interior, shall review and, as appropriate and consistent with applicable law, revise policies and procedures governing SUPs and other applicable authorizations for the placement and management of artificial reefs within National Marine Sanctuaries and Marine National Monuments. Such revisions shall seek to establish transparent and efficient permitting pathways, identify areas suitable for artificial reef development and other national interest uses, and enhance fisheries, recreational fishing, diving, and other compatible public uses.
Following up on the Keathley Canyon Block 828 bid rejection
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, Regulation, tagged appeal, Block 828, Buckskin field, Keathley Canyon, Lease Sale BBG2, LLOG, rejected bid on September 16, 2026| Leave a Comment »
As suspected, the rejection of LLOG’s Sale BBG2 bid for Keathley Canyon Block 828 has been appealed. This is an interesting case because KC 828 is part of LLOG’s Buckskin field. The block had been previously leased, but that lease expired on 9/3/2025.
We assume the lease expired due to inactivity given that the last well reached total depth more than a year prior to the expiration date. LLOG wanted to reacquire the lease back, but BOEM’s valuation was 20 times higher than LLOG’s bid. It’s also interesting that no other company submitted a bid. Did no one want a lease in an established field? BOEM valued this block far higher than any other block in the sale.
LLOG’s letter of appeal is not publicly available. Below is the summary blurb from the Serial Register Page:
By letter dated May 27, 2026, LLOG Exploration Offshore, L.L.C. appealed the Bureau of Ocean Energy Management’s (BOEM) decision for OCS-G 38173, covering all of Block 828, Keathley Canyon. LLOG Exploration Offshore, L.L.C. is requesting reconsideration of the rejection decision. The Adjudication Section received the written request and statement of reasons within the 15 days of the rejection decision, on May 28, 2026.
According to the applicable regulation, the BOEM/MMA Director is the deciding officer and the decision is not subject to appeal to the Interior Board of Land Appeals. The rejection seems rather straightforward under BOEM’s bid evaluation policies, but perhaps there is much more to the story.
On 9/11, recalling recent judicial and programmatic decisions that favored higher oil prices and threatened national security
Posted in climate, energy policy, Gulf of Mexico, Offshore Energy - General, Regulation, tagged 2024-2029 leasing program, 9/11, energy security, net zero, oil prices, Sale 257 litigation on September 11, 2026| Leave a Comment »
Two particularly troubling examples of decisions that threatened long-term US offshore production and national security, and endorsed higher oil prices:
Sale 257 court ruling: In 2022, a Federal judge ruled in favor of higher oil prices. In response to an OCS Sale 257 lawsuit, the judge agreed with the NGO plaintiffs that BOEM failed to consider the “positive” effect that higher prices (the logical result of lower production) would have on reducing demand. In particular, the plaintiffs asserted that BOEM failed to consider the effect that reduced production (and higher prices) would have on foreign consumption and the associated GHG emissions.
The judge not only decided in favor of the plaintiffs, but ruled that BOEM’s omission was so serious that the lease sale had to be vacated. The judge’s decision was subsequently overturned by legislative action.
OCS Leasing Policy: The official leasing policy, as articulated in the 2024-2029 OCS Leasing Program (published 9/2023), was to phase out oil and gas production:
The long-term nature of OCS oil and gas development, such that production on a lease may not begin for a decade or more after lease issuance and can continue for decades, makes consideration of net-zero pathways relevant to the Secretary’s determinations on how the National OCS Program best meets the Nation’s energy needs. (p. 6, 2024-2029 Leasing Program)
The Leasing Program prioritized “net-zero pathways” over cost and national security considerations. The clear objective was to prevent new production. Absent legislative action, we would have had a 5 year leasing plan with no lease sales!
“All-in” on the Shelf!
Posted in drilling, energy policy, Gulf of Mexico, Offshore Energy - General, tagged Arena Energy, Cantium, Gulf of America, jackup rig, shelf, White Fleet Drilling on September 10, 2026| Leave a Comment »
Arena Energy CEO Mike Minarovic: “We are ‘all in’ on the future of the shallow water Gulf of America. The Shelf still holds vast potential, and the WFD 450 gives Arena the reach to unlock proved reserves that no other rig in the Gulf could access.”
The WFD 450 drilling rig, the deepest water depth rated jack-up operating in the Gulf, is conducting a multi-well drilling program for Arena following a $65 million refurbishment program.
Built in 1999 and formerly operated by Valaris, the rig was cold-stacked in the Gulf for seven years prior to White Fleet’s acquisition. The upgraded rig was christened on January 9, 2026, and began drilling operations in late March.
The WFD 450 can drill in water depths up to 400 feet and to total depths of 30,000 feet — capabilities that give Arena access to resources previously beyond the reach of the Gulf’s rig fleet. That reach is expected to unlock significant new production from proved reserves that had remained undeveloped due to equipment constraints.
The Borehole File indicates that Arena has drilled 4 development wells in Eugene Island Area Blocks 315 (231′ water depth) and 325 (252′ water depth) since the rig’s March restart. Two of those wells were completed for production.
Arena has also completed 3 wells in shallower water (138′) in the Main Pass area in 2026.
Cantium, the other active shelf operator, has completed 5 wells this year in very shallow water (50-58′). No other company has conducted drilling operations on the shelf this year.
Arena produced 8,266,036 bbls of oil and 21,079,794 Mcf of gas in 2025, making the company the number one shelf producer of both commodities.
Cantium produced 5,444,651 bbls of oil and 6,716,670 Mcf of gas in 2025.
