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Archive for the ‘Offshore Energy – General’ Category

Photos courtesy of Glenn’s sister and MMS colleague Eddie Lee Lim

On February 27, 2026, we lost a long-time pillar of the OCS safety program, the foremost authority on California offshore oil and gas operations, and a wonderful friend and colleague.

Glenn Shackell grew up in Hawthorne, California, where he lived most of his life. He attended Hawthorne High with the Beach Boys!

Glenn served as a helicopter door gunner during the Vietnam War, an extremely hazardous assignment. According to historical accounts, the average life expectancy of a door gunner was two weeks. Think about that!

Glenn discussed his Vietnam experience with Minerals Management Service (MMS) colleague Andrew Konczvald:

Glenn told me about encounters when the bullets were hitting the bottom of his Huey helicopter, and he was sitting on his personal armored jacket as the only protection against the bullets! He told me how he prayed every night and miraculously escaped wounds and returned home safely.

Thankfully, Glenn survived and returned to earn a Petroleum Engineering degree from the Univ. of Southern California. He was a proud USC Trojan.

Glenn had an outstanding career in our Pacific Region office, starting in the early days when the OCS regulatory program was part of the US Geological Survey. He assessed and monitored drilling and production operations in the region, which once produced 120,000 bopd from 23 platforms, and had up to 9 mobile drilling units operating concurrently. Floating drilling operations were pioneered offshore California with the CUSS 1, and production was extended to 1200 feet of water at Platform Harmony.

Glenn had an encyclopedic knowledge of the California offshore sector, and was an expert on the history of the applicable regulations, orders, and standards. We had countless discussions about topics like OCS Order No. 2 (Drilling) and the evolution of API RP 14C (Production Safety Systems).

Glenn served on numerous MMS teams that evaluated the latest technical innovations of the offshore industry, established research priorities, and assessed safety and environmental performance. He was an authority on drilling safety and was called on to evaluate and accredit well control training programs.

Glenn respected everyone, and everyone admired and respected him. He was a man of faith, but didn’t impose his beliefs on others. Fittingly, his favorite Bible passage was John 11:25-26:Β Jesus tells Martha, “I am the resurrection and the life. The one who believes in me will live, even though they die; and whoever lives by believing in me will never die.”

RIP Glenn, you continue to inspire your friends, and your important contributions to society live on. We love you man!

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Big move by SOC following the issuance of the DOJ opinion. Justified optimism or irrational exuberance?

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Attached is an opinion prepared by the Assistant Attorney General, Office of Legal Counsel, for the General Counsel, Dept. of Energy. This opinion may boost prospects for Santa Ynez Unit (SYU) production, either by Sable Offshore or a successor.

BOE SYU watchers see this State-Federal battle ultimately ending up in the Supreme Court, perhaps following the 9th Circuit’s ruling on PHMSA’s preemption of State authority over the onshore pipeline segments.

A few key excerpts from the DOJ opinion (emphasis added):

p. 1: You have asked whether an order issued under the Defense Production Act of 1950 (β€œDPA” or β€œAct”), Pub. L. No. 81-774, 64 Stat. 798 (codified as amended at 50 U.S.C. Β§ 4501 et seq.), to Sable by the President or his delegee would preempt the California laws currently impeding Sable from resuming production and operating the associated pipeline infrastructure. We conclude that it would.

p. 6: As the Supreme Court has explained, executive orders β€œmay create rights protected against inconsistent state laws through the Supremacy Clause,” especially when such orders are issued pursuant to β€œcongressional authorization.”

p. 20: State law, we have been advised, is not currently the only impediment to Sable’s ability to resume production and transportation of oil. A consent decree entered in United States v. Plains All American Pipeline L.P., No. 20-cv-02415 (C.D. Cal. Oct. 14, 2020), Dkt. 33 (β€œConsent Decree”), β€œcurrently vests authority over resumption of transportation through the onshore portions of the Santa Ynez Pipeline System with the California Office of the State Fire Marshal.” Sable Letter at 9. We have been advised that, in addition to the United States and various State of California entities, Sable is a party to the Consent decree as a result of an acquisition. You have asked whether an executive order under the DPA would displace these provisions of the Consent Decree, even though there are both federal- and state-law claims at issue in that case. For three reasons, we think it would.

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The potential rewards are great – 500+ million barrels of oil, 3 major production platforms, associated pipelines, onshore processing facilities – but can Sable survive the costly legal and administrative challenges? What is Exxon’s plan for the Santa Ynez Unit if Sable should fail?

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The results of today’s Cook inlet oil and gas lease sale are disappointing, but not surprising.

BOEM: At this time, no bids have been received. In accordance with OBBBA, we will continue to hold leasing opportunities for Cook Inlet so that industry has a regular, predictable federal leasing schedule that ensures we achieve President Trump’s American Energy Dominance Agenda.

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Expectations are low for tomorrow’s Cook Inlet oil and gas lease sale. The last Cook Inlet sale (2022) attracted only one bid (Hilcorp – $63,983).

The final sale notice is attached. The terms are favorable, most notably the 1/8 royalty and 10 year primary lease term.

Hopefully, we’ll be pleasantly surprised by the results.

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On Friday, California Superior Court Judge Donna Geck upheld the restraining order that blocks Sable Offshore from restarting Santa Ynez Unit production. She scheduled a followup court hearing for June 27. Meanwhile, the Ninth Circuit Court of Appeal’s hearing on PHMSA’s assertion of Federal jurisdiction over the onshore pipeline segments is scheduled for July.

Can Sable survive financially until those hearings are concluded?

Contradictorily, we learn that FourWorld Capital Management just purchased 8 million shares of Sable. Is that the financial equivalent of Pickett’s Charge or does FourWorld have good reasons for their optimism?

Prior Sable Santa Ynez Unit posts.

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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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December 2025 Gulf oil production had to average 1.993 million bopd for 2025 to match the 2019 record. It exceeded that mark by 0.003 million bopd. However, October and November production were revised slightly downward resulting in a near dead heat annual average.

A closer look at the numbers (table below) shows that 2025 edged 2019 by a mere 250 bopd. Amazing!

Major caveat: The Nov and Dec 2025 figures will likely be revised slightly when EIA releases the next update at the end of January. Fingers crossed!πŸ˜€

Top 3 Yearsave. daily production (1000’s of barrels)
20251897.67
20191897.42
20231864

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John Smith has shared the Environmental Assessment (attached) associated with PHMSA’s Special Permit for segments 324 and 325 of Sable’s Santa Ynez Unit (SYU) pipeline system. The document is an interesting read for those following Sable’s attempt to restart production from the SYU.

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