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Archive for the ‘Offshore Energy – General’ Category

Comments on brief supporting California’s challenge to the use of the DPA to restart SYU production

Posted in California, energy policy, Offshore Energy - General, pipelines, Regulation, tagged , , , , , , on September 14, 2026| 2 Comments »

Twenty Members of Congress (17 from California) filed the attached amicus brief in support of California’s challenge to the use of the Defense Production Act (DPA) to facilitate the restart of production at the Santa Ynez Unit (SYU) in the Santa Barbara Channel.

Per their filing:

“This case is not about national defense. It is about a heavily leveraged, crude oil company asking the President to transform the DPA from a statute designed to“assure the availability of domestic energy supplies for national defense needs,” 50 U.S.C. § 4502(a)(5), into a corporate rescue operation for political allies; a rescue that advances the Administration’s political preference for fossil-fuel development at the expense of all other concerns. The Department of Energy’s (“DOE”) March 13, 2026 order (the “Wright Order”) comes nowhere close to identifying a need for Sable crude oil or pipelines in the Order’s generalized invocation of California’s military presence and increased reliance on foreign crude.”

Comments:

  • The brief includes no new arguments or information.
  • Is it not disingenuous to raise concerns about Sable’s financing when these critics and their allies spent a decade blocking Exxon, one of the world’s strongest companies, from restarting SYU production? Exxon’s frustration led to the ownership transfer to Sable, even though Exxon could still be held liable for some obligations, most notably decommissioning.
  • Given the conflict-driven turmoil in the energy markets and the risk of shortages affecting military operations, how is it a stretch to issue a DPA order directing the restart of an important onshore pipeline?
  • A Federal judge for the Central District of California has already opined that the DPA is a “significant statutory grant of authority to the executive, giving the President substantial discretionary power to compel private industry, allocate resources, and incentivize domestic production for national defense.”
  • With oil prices soaring, this is a bad time to attempt to halt a 20+% increase in California oil production.
us_dis_cacd_2_26cv3396_d31306472e4249_notice_of_motion_and_motion_to_file_amicus_brief_iDownload

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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 , , , , , 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!

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“All-in” on the Shelf!

Posted in drilling, energy policy, Gulf of Mexico, Offshore Energy - General, tagged , , , , , on September 10, 2026| Leave a Comment »

White Fleet Drilling’s WFD 450 jack-up drilling rig

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.

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Michael Olsen to succeed Matt Giacona as Director of the Marine Minerals Administration

Posted in energy policy, Offshore Energy - General, Regulation, tagged , , , , on September 9, 2026| Leave a Comment »

Matt Giacona
Mike Olsen

Politico is reporting that Michael Olsen has been selected to head the Marine Minerals Administration (MMA), following Matt Giacona’s departure for a position in Halliburton.

I’m not aware of any backstory behind Matt Giacona’s departure. He was well regarded and was providing strong leadership as Acting Director of the consolidated offshore energy bureau.

Managing the offshore program is very difficult and administratively complex, with acrimony and litigation around every corner. Less stress and (presumably) more money may have made the Halliburton opportunity attractive. Best wishes to Matt in his new position!

Mike Olsen has served in a number of positions in Interior and reports have been favorable. BOE wishes him well in leading this nationally important bureau.

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California Assembly Bill 1448 – OCS production blockade

Posted in California, energy policy, Offshore Energy - General, pipelines, tagged , , , , , , , , , on September 9, 2026| Leave a Comment »

Attached is the final version of AB 1448, which is among the stack of bills awaiting Gov. Newsome’s signature. John Smith has highlighted provisions of concern.

If enacted and upheld in the courts, the bill would serve as a blockade on new Outer Continental Shelf (OCS) production. The bill would:

  • prohibit pipelines and other infrastructure located within state waters from being used to support Pacific Outer Continental Shelf (OCS) leases issued after January 1, 2026.
  • prohibit the State Lands Commission from entering into any lease authorizing new construction of oil- and gas-related infrastructure within state waters for the purpose of supporting Pacific OCS leases issued after January 1, 2026.
  • prohibit any existing leases and oil- and gas-related infrastructure located within state waters from being used to support Pacific OCS leases issued after January 1, 2026.
  • require a separate process for the approval of any lease extension that would increase the volume of oil and gas transported across state waters “including by commencing, increasing, intensifying, or restarting production” from the OCS. This would presumably include pipelines transporting Santa Ynez Unit production and production increases at other OCS facilities.

It’s hard to believe these provisions would survive legal challenges given their constraint on interstate commerce and Federal OCS activities.

On a related note, California royalty owners are actively challenging Santa Barbara County and Los Angeles proposals that would prohibit new oil and gas wells and ultimately phase out all existing production. AB 1448 would have a similar effect on OCS royalty owners – namely the citizens of the United States.

AB 1448 Ban on Infratructure useDownload

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Labor Day Salute to Offshore Workers

Posted in Offshore Energy - General, Uncategorized, tagged , , on September 7, 2026| Leave a Comment »

On Labor Day 2026, 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 their families and power economic growth.

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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EIA raises the Gulf’s all-time monthly production record (April 2026) to 2.123 million bopd! Sable effect evident in the Pacific.

Posted in California, Gulf of Mexico, Offshore Energy - General, tagged , , , , , , , on September 3, 2026| Leave a Comment »

Raising the bar! The EIA’s August data release (delayed until 9/2) upped the Gulf’s all-time monthly production record (April 2026) by 14,000 bopd to 2,123,000 bopd. June production settled in just below the 2 million bopd mark.

Meanwhile, Pacific production has tripled this year reflecting the Sable SYU effect. Note that Sable reported Santa Ynez Unit production of 38,000 bopd in July and 42,000 bopd for the first week in August. This should push total Pacific production for July and August to over 50,000 bopd.

EIA explains (sort of) the delay in their June data release (only 2 days late, but enough to trigger a few conspiracy theories).

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Fish Reef Project explores the marine habitat at Platforms Ellen and Elly

Posted in California, decommissioning, energy policy, Offshore Energy - General, Regulation, rigs-to-reefs, tagged , , , , , , , , , , on September 1, 2026| 1 Comment »

Chris Goldblatt, CEO of the Fish Reef Project shared this impressive new video on the habitat beneath Platforms Ellen and Elly in the Beta Unit offshore Huntington Beach, CA. As Chris explains in the video, such valuable habitat will be needlessly lost if companies are required to remove structures down to the seafloor.

Platforms Ellen and Elly

A National Geographic article discussed the marine life beneath Eureka, the third platform in the Beta Unit:

“Every square inch is covered in marine life,” says Milton Love, biologist at the Marine Science Institute at University of California, Santa Barbara. “Sometimes there are so many fish that you can’t even see through them to the platform. It’s overwhelmingly striking.”

Jeremy Claisse, Cal Poly Pomona, called Eureka “as productive as any other marine fish habitat that has been studied around the world.”

Sea lion beneath Platform Eureka. Photo by Joel Platko

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California State Lands Commission study targets offshore pipelines

Posted in California, energy policy, Offshore Energy - General, pipelines, Regulation, tagged , , , , on August 31, 2026| Leave a Comment »

John Smith informs us that the California State Lands Commission is developing an Analysis of Impacts to Public Trust Resources and Values (APTR) for the remaining offshore oil and gas pipeline leases under its jurisdiction. See the attached slides.

The APTR will assess the risks and impacts of continued offshore pipeline use and will include additional analyses related to pipeline integrity, cultural resources, ocean and coastal uses, and economic resources.

John suspects the primary underlying purpose of this study is to build a case for terminating all offshore oil and gas production by imposing requirements that would make offshore oil and gas production uneconomic. This could be accomplished by significantly increasing lease rental and bonding requirements, imposing more stringent pipeline inspection and repair requirements, or requiring operators to shut down or replace pipelines and other aging infrastructure considered by the state to pose an unacceptable risk to the environment.  

Also, given that Platform Irene is on a terminated OCS lease and is no longer producing, John and I are wondering why the Irene pipelines are included in the APTR study.

o-g-aptr-presentationDownload

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Norway to the EU: If you don’t want our Barents Sea production, we’ll sell it elsewhere; your loss.

Posted in climate, energy policy, Norway, Offshore Energy - General, tagged , , , , , , , , on August 27, 2026| Leave a Comment »

2026 licensing rounds – North Sea, Norwegian Sea, and Barents Sea

Norway is currently producing about 2 million bbls of oil per day (similar to Gulf of America oil production) and 12 billion cu ft of gas per day (6 times Gulf gas production).

Norway’s production is expected to remain high until the end of the 2020s, after which it will decline. To slow the decline, more exploration is needed, both in well-explored and under-explored areas. In addition, more investment is needed in fields, discoveries, infrastructure and technology development. Lack of investment will lead to a rapid decline in the petroleum industry (ala the UK). The Barents Sea is expected to contribute significantly to Norway’s future production.

When asked about the EU’s support for a moratorium on Arctic drilling and production, Norway’s Energy Minister Terje Aasland (pictured) responded diplomatically: “In today’s geopolitical and security environment, and given the resource situation, I believe continued activity in the Barents Sea serves both Norwegian and European interests.”

Anders Opedal, CEO of Equinor, which is 2/3 Norwegian govt owned, was more blunt. He said oil and liquefied natural gas (LNG) from the Barents Sea can be shipped anywhere in the world if rejected by the EU.“The only thing that will suffer from this is actually European security. We have the flexibility.”

Oil and gas demand is not going away. Where is the EU going to find a more environmentally responsible producer? As noted last month, Norway is by far the world leader in minimizing flaring. That’s evidence of outstanding production management.

The country has taken other well-intended emissions reduction measures like electrifying distant platforms and injecting CO2 that have high costs and questionable benefits. Nonetheless, they are the type of initiatives that the EU supports. Good luck finding a more secure, eco-friendly producer!

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