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Archive for the ‘natural gas’ Category

The Platform Habitat fire was extinguished at 11:40 a.m. on 5/11/2026 after burning for 5 hours.

All 26 workers were safely evacuated from DCOR’s Platform Habitat. The big question now is the fitness of the structure for continuing well plugging/abandonment and platform decommissioning.

As indicated in the attached letter, BSEE had informed DCOR that their Pitas Point Unit leases (where Platform Habitat is located) expired on 3/15/2016 owing to the cessation of well operations 6 months prior. Following the Interior Board of Land Appeals (IBLA) May 7, 2021 affirmation of BSEE’s directive, DCOR was notified that they must permanently plug all wells within one year of the lease termination (i.e. one year after the 2021 IBLA decision). I’ll include the informative IBLA decision in a future post.

Although details have not been shared, it appears that well plugging operations were still ongoing on 5/11/2026 when the fire occurred. According to BSEE’s borehole file, most of the Habitat wells have been temporarily abandoned, but few have been permanently abandoned, and several are still completed (i.e. neither temporarily nor permanently abandoned).

The risks and costs associated with delaying well plugging and abandonment have once again been demonstrated at Habitat. Fortunately, there were no casualties or pollution.

With regard to overall safety compliance, DCOR is the violations leader in the Pacific Region. In 2025 and 2026 (YTD) they were cited for 70 violations, 66 of which required component or facility shut-ins. The age of the 9 DCOR platforms (installed by others between 1968 and 1984) has likely contributed to the compliance challenges.

BSEE spreadsheets for 2020-2024 show 6 incidents at Platform Habitat. BSEE’s incident summaries are pasted in the second attachment.

Neither DCOR nor BSEE has issued a statement on the Habitat fire.

This serious incident further demonstrates the concerns expressed by John Smith and me about the relaxed decommissioning financial assurance regulations proposed by BOEM.

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Scientific discovery, technological innovation, and human ingenuity are not finite!

The U.S. Geological Survey released its assessment of undiscovered gas and oil in the Bossier Formation along the Gulf Coast. USGS assesses that there are technically recoverable resources of 343.5 trillion cubic feet of gas – enough to supply the United States for more than 10 years at the current rate of consumption.

USGS Report

The USGS quantitatively assessed three continuous and one conventional AUs (assessment units) for undiscovered oil, gas, and natural gas liquid resources in the Bossier Formation. The estimated mean total resources in the four AUs are 3 million barrels of oil (MMBO), with an F95–F5 range from 1 to 8 MMBO; 343,499 billion cubic feet of gas (BCFG), or 343.5 trillion cubic feet of gas, with an F95–F5 range from 103,943 to 611,703 BCFG; and 374 million barrels of natural gas liquids (MMBNGL), with an F95–F5 range from 109 to 721 MMBNGL (table 2).

So much for the depletion of our natural gas resources! Long-time gas advocates knew that geologic studies, technology, and ingenuity would provide the resource, and that has been demonstrated in spades!

Kudos to USGS, headed by my former colleague Ned Mamula, for their important resource assessment studies!

Photograph of an outcrop of the Bossier Formation-equivalent Pimienta Formation in the central Huayacocotla Basin, State of Hidalgo, Mexico, showing alternating limestone, bentonite, and organic-rich shale deposited in a semirestricted marine setting. The Bossier Formation is restricted to the subsurface of the United States; therefore, outcrops of equivalent strata in Mexico provide valuable observations not obtainable in the U.S. Gulf Coast region. Geology hammer shown for scale. Photograph by Mario Martínez-Yáñez, used with permission.

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Per EIA data, the Appalachia, Permian, and Haynesville regions accounted for 67% of the total marketed gas production in the US in 2025 and 81% of the growth last year.

In 2025, more natural gas was produced in the Appalachia region of the Northeast than in any other US region, accounting for 31% of marketed natural gas production. (See the chart below.) Were it not for pipeline capacity limitations, recent growth in Appalachia production would have been greater.

Appalachia production is primarily from the Marcellus and Utica shales in PA, WV, and Ohio.

OCS gas production, 80% of which is now associated gas from deepwater oil wells, continues to lag the shale basins. This is a big change from 25 years ago when the OCS produced more gas than any state but Texas. (See the chart below.) Interest in ultradeep (subsurface) OCS shelf gas prospects remains scant despite favorable demand forecasts and technological advances.

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Meanwhile, New York continues to block development of the State’s ample shale gas resources. foregoing the economic and environmental benefits.

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Argus reports that Israel’s energy ministry has instructed Chevron and Energean to suspend production at their offshore Leviathan and Karish gas fields.

Although, the Israeli facility shut-ins will result in the curtailment of exports, Egypt has implemented a backup plan to ensure adequate supply.

There is no indication that Chevron’s Tamar field has been shut-in.

Summary table:

field
(operator)
2024 production
(billion cubic meters)
(% of Israel’s total)
June 2025 conflict2026 conflict
Leviathan
(Chevron)
11.33
45%
shut-inshut-in
Tamar
(Chevron)
10.09
37%
producingproducing?
Karish
(Evergean)
5.96
18%
shut-inshut-in

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The natural gas revolution is cause for celebration! How about a parade down Constitution Ave?😉

In light of the Dept. of Energy’s announcement commemorating the 10th anniversary of the first export cargo of U.S. liquefied natural gas (LNG), I’m linking a 16 year old BOE post asking why we weren’t celebrating the emerging natural gas bonanza. Keep in mind that 20 years ago we were planning for LNG import facilities in the Gulf!

Quote from DOE about the transformation of the US into the world’s leading LNG exporter:

“This transformation was made possible by the Shale Revolution, an era of breakthrough technologies including horizontal drilling and hydraulic fracturing that unlocked vast domestic oil and natural gas resources.”

The “Natural Gas Revolution” (Yergin) is an important part of our history that deserves national attention.

DOE graphic
Natural Gas for the win!

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Tyra gas hub, North Sea, Danish sector

Excerpts from Argus article:

The Danish government will “initiate a process” to look at possibly extending one or more production licences in the Danish North Sea until 2050, to contribute to European energy security and independence, it said.

The government has asked the Danish underground consortium (DUC) — which operates the Tyra hub — to “explore an extension” beyond the current 2042 expiry.

Europe is in dire need of energy independence, and while renewables expansion can help the bloc achieve that goal, natural gas will still play a significant part of the energy mix in the coming year, the Danish government said. “Europe must stand on its own two feet,” Danish industry and trade minister Mortern Bodskov said

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Excellent AAPG article

“We have not been finding enough new fields.” That’s William DeMis, president of Richelle Court, LLC, who said that, in addition to not finding enough, we keep erecting new ways to export what we’re not finding.

The way, he said, to avert the coming shortage is for people to find new sources of gas outside of Haynesville field, which for years, considering its proximity to the Gulf Coast, and the petrochemical plants of Southwest Louisiana, as well as pipelines, made it a swing producer for natural gas.

“But I can tell you from bitter experience over the last three years that finding people to fund greenfield exploration is darn near impossible. There is scant capital to drill natural gas wildcats in the U.S.” said DeMis.

Reiterating that it’s time for another look at ultradeep shelf gas in the Gulf. Should BOEM consider royalty incentives?

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The Always On Energy Research report is attached. Conclusion:

In other words, dispatchable generation saves New England hundreds of billions of dollars and avoids blackouts. In the end, the idea that New England can run its electric grid on wind turbines, solar panels, and batteries is a dangerous and unserious proposition.

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“Natural gas and LNG are fast becoming the gravitational center of the global energy system, but some energy experts said the world is only beginning to grasp the scale of what’s to come.” ~Natural Gas Intelligence

Demand and high well producibility are stimulating exploration in the high pressure, high temperature Western Haynesville (Texas) and other ultradeep onshore gas prospects. Is it time to revisit ultradeep gas on the Gulf of America shelf? See the above targets map from 2004.

20 years ago Newfield, Exxon, and McMoRan drilled pioneering ultradeep wells targeting gas-prone reservoirs below salt welds in Miocene and older formations (diagrams below). The water depths were <100 feet but well depths exceeding 30,000 feet, and high temperatures and pressures, pushed the limits of drilling technology at the time. Noteworthy wells:

  • Blackbeard West (Exxon): Spudded in early 2005 in 70 feet of water in South Timbalier Block 168. The target was gas in Miocene sands at 27,000-32,000 feet total depth. Drilling reached 30,067 feet by 2006, but was prudently suspended due to extreme pressures, temperatures (up to 600°F), and technical challenges with equipment.
  • Blackbeard West, part 2: In 2008, McMoRan re-entered the well with upgraded equipment and drilled to a record 32,997 feet below the mudline. They encountered hydrocarbon shows in multiple zones, including potential gas pay in Middle and Deep Miocene sands below 30,000 feet, validating the ultradeep concept.
  • Followup McMorRan wells:
    • Blackbeard East (2010-2011): Drilled to 33,400 feet in South Timbalier Block 144, logged potential hydrocarbons in Sparta and Vicksburg sands.
    • Davy Jones (2009-2010): South Marsh Island Block 230 in 20 feet of water; reached 29,122 feet; discovered gas in Wilcox sands, but faced flow-testing challenges.
    • Lafitte (2011): Eugene Island Block 223, found additional pay in ultradeep Miocene zones. These wells targeted gas reservoirs but encountered operational hurdles.

This program pioneered ultradeep drilling on the shelf, influencing later deepwater successes. Over the past 10 years, the deepwater industry has successfully demonstrated high pressure high temperature (HPHT) technology which could facilitate ultradeep exploration on the shelf.

Also, note that a company targeting hydrocarbons below 25,000 feet (true vertical depth subsurface) may earn an additional 3 years on their lease. (See the Notice for next week’s lease sale.) Will improved technology and demand expectations finally open the ultradeep gas frontier?

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Both are (or in the case of Iraq will soon be) LNG importers.

Excellerate Hull 3407, the company’s newest floating storage and regasification unit (FSRU), will be delivered to Iraq in 2026.

Why would a major oil and gas producer like Iraq be dependent on LNG imports?

  • Pipeline infrastructure limitations
  • High flaring rates: Iraq flared 625 bcf in 2023 which is almost equal to their total gas consumption (682 bcf). Iraq plans to eliminate routine flaring by 2028 (delayed from earlier targets).
  • Risks associated with gas imports from Iran.

And the Commonwealth of Massachusetts? Why would a state in the world’s no.1 gas producing country and not far removed from the massive Marcellus Shale reserves be importing LNG?

  • Firstly, Massachusetts is a wonderful place in many ways: beaches, mountains, islands, history, arts and culture, universities, charming villages, commercial fishing, recreational and professional sports, and more. I thoroughly enjoyed living on Cape Cod and was blessed to meet my wife there.
  • Unfortunately, Massachusetts energy policies have been misguided in recent years, in part because of unrealistic expectations regarding renewable energy, most notably offshore wind. Except for California and Hawaii, MA has the nation’s highest residential electric prices (Aug. 2025 data), 74% above the US average.
  • Pipeline restrictions have limited the flow of gas from Pennsylvania (Marcellus) and elsewhere.
  • Massachusetts is the only state with significant LNG imports.
  • Per EIA data, Massachusetts imported 13.2 bcf of LNG in 2023, accounting for about 87% of total U.S. LNG imports that year.
  • Most imports are through the Everett Marine Terminal near Boston. Imports through the offshore Northeast Gateway LNG terminal have been limited in recent years. (See map below).
  • Imports are seasonal, peaking in winter months, with most supply originating from Trinidad.
  • Recently, Governor Healy has made more encouraging statements regarding natural gas policy. She says she never stopped gas pipelines from entering the state and calls natural gas an “essential energy source.”
  • Perhaps the net-zero flip-flop my Bill Gates and other tech leaders is contagious.

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