Posted in energy policy, Gulf of Mexico, Offshore Energy - General, Regulation, tagged Gulf of America, January 2025, offshore leasing, oil production, safety regulation on April 1, 2025| Leave a Comment »
Sustaining or preferably increasing production rates will be dependent on a reliable schedule of lease offerings and a consistent regulatory regime based on best safety management principles and continuous improvement in technology, practices, and culture. Poorly considered operating restrictions imposed by activist judges are a major risk to both safety and production.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged climate change, greenhouse gases, Gulf of America, Inflation Reduction Act, Lease Sale 259, leasing mandate, Rice's whale, US District Court for DC on March 31, 2025| Leave a Comment »
OCS Lease Sale 259 was mandated by Congress, and was held on March 29, 2023, two days before the deadline established in the Inflation Reduction Act. Ah, but compliance with environmental law, which is of course subject to interpretation, was still required.
So the formula for eNGOs in such cases is to sue on NEPA grounds in a friendly Federal court. In the case of Sale 259, the plaintiffs asserted that BOEM’s climate change and Rice’s whale analyses were inadequate.
With regard to climate change, the reality is that incremental Gulf of America production will have virtually no effect on petroleum consumption and global GHG emissions. Increased GoA production will actually have a slight positive effect on worldwide GHG emissions given the relatively lower carbon intensity for deepwater Gulf production.
With regard to the Rice’s whale, Darren Ireland’s analysis is compelling:
“Based on the limited data available on the use and occurrence of Rice’s whale in the central and northwestern GOMx (one acoustic study (Soldevilla et al. 2022b), one confirmed sighting (NMFS 2018a) and a few unconfirmed sightings (Rosel et al. 2021)), there is insufficient scientific evidence to determine that essential features for Rice’s whale conservation are indeed present in the central and northwestern GOMx. In fact, data on the life-history requirements of Rice’s whale even in the core habitat are still lacking and need further investigation.“
Unsurprisingly, Judge Amit P. Mehta of the US District Court for the District of Columbia, has ruled that BOEM’s environmental assessments on climate change and the Rice’s whale were deficient, and has ordered the parties and intervenors to jointly submit a proposed briefing schedule by April 3, 2025. “The court will also order additional briefing on remedy” (e.g. onerous operating restrictions).
In case you haven’t suffered enough, the judge’s full opinion is attached.
Posted in deep sea mining, energy policy, Offshore Energy - General, tagged deepsea mining, ISA, NOAA, The Metals Company, TMC, UNCLOS, US permitting on March 31, 2025| Leave a Comment »
Lars Herbst brought this bold and rather surprising deepsea mining development to my attention. Let the screaming begin!
NEW YORK, March 27, 2025 (GLOBE NEWSWIRE) (emphasis added) — TMC the metals company Inc. (Nasdaq: TMC) (“TMC” or the “Company”), an explorer of the world’s largest undeveloped resource of critical metals for building infrastructure, power generation, transmission, and batteries, today announced that its subsidiary The Metals Company USA LLC (“TMC USA”) has formally initiated a process with NOAA under the U.S. Department of Commerce to apply for exploration licenses and commercial recovery permits under existing U.S. legislation, the Deep Seabed Hard Mineral Resources Act of 1980 (DSHMRA).
Following extensive legal diligence on DSHMRA, NOAA’s implementing regulations and other applicable environmental protection legislation, the Company strongly believes that the U.S. seabed mining code offers the greatest probability of securing a permit for commercial recovery of deep-sea mineral resources in a timely manner.
Gerard Barron, Chairman & CEO of The Metals Company, commented: “Over the last decade, we’ve invested over half a billion dollars to understand and responsibly develop the nodule resource in our contract areas. We built the world’s largest environmental dataset on the CCZ, carefully designed and tested an offshore collection system that minimizes the environmental impacts and followed every step required by the International Seabed Authority. But, despite collaborating in good faith with the ISA for over a decade, it has not yet adopted the Regulations on the Exploitation of Mineral Resources in the Area in breach of its express treaty obligations under UNCLOS and the 1994 Agreement.”
“We believe we have sufficient knowledge to get started and prove we can manage environmental risks. What we need is a regulator with a robust regulatory regime, and who is willing to give our application a fair hearing. That’s why we’ve formally initiated the process of applying for licenses and permits under the existing U.S. seabed mining code. After extensive legal review and constructive engagement with NOAA and other officials across the U.S. government, we believe the United States offers a stable, transparent, and enforceable regulatory path. TMC USA expects to submit applications to NOAA in the second quarter of 2025. We’re encouraged by the growing recognition in Washington that nodules represent a strategic opportunity for America—and we’re moving forward with urgency.”
Posted in energy policy, Offshore Energy - General, UK, tagged JL Daeschler, North Sea oil and gas, sad state of affairs, Scotland on March 28, 2025| Leave a Comment »
JL Daeschler, pioneering subsea engineer, outstanding artist, and BOE contributor, lives in Scotland. He shared these concerns about the state of the UK offshore industry:
Since projects have been shelved, contractors have left the country – so no drill rigs, no exploration, no pipelines, and no crane barges. The list of disciplines put out of work is far longer.
The big international operators have left looking for better opportunities overseas with milder environments and cheaper manpower support. Air travel, modern communication systems, and immediate electronic access to information and support facilitate operations anywhere in the world.
So what is left in the UK sector of the North Sea are the few installations running towards the end of production. Their years are numbered.
The North Sea could have had a sustainable greener and safer project profile if the momentum had been kept. It’s like an oil & gas pandemic, except you do not work from home if you operate rigs and vessels. No research, no strategy, and no money !!!
Posted in energy policy, Offshore Energy - General, UK, tagged energy policy, North Sea, offshore oil and gas, Scotland, UK on March 27, 2025| Leave a Comment »
Scotsman letter
Industry sources tell us, authoritatively, that the North Sea could produce around half of all the oil and gas the UK will need up until at least 2050 – if new projects are developed. Meanwhile, as instead we shut down our existing wealth, China continues burning dirty coal and making us more dependent on their products.
As it stands, Offshore Energies UK (OEUK) says the UK is on track to produce just four billion of the 13-15bn barrels of oil and gas the country will need over the next 25 years.
It is time for those making decisions in London and Edinburgh to put away all the green zealotry nonsense and get the UK powerhouse moving again. Given 25 years they could make a good start on installing small, clean, nuclear plants dotted across the UK to help in great part to pick up the load.
We need planning, not zealotry. It is now even more clear the green emperor is not wearing clothes. When will Energy Secretary David Miliband be convinced?
Alexander Mckay
Edinburgh
And from an offshore worker @Deano9981:
As someone who actually works in the North Sea on oil rigs I have heard almost all my life how the oil and gas will be gone in 10 years. 35 years in this industry and the first time I am likely to be unemployed is because of the government. Not the end of oil fields.
Posted in California, Offshore Energy - General, pipelines, Regulation, tagged Exxon, investor presentation, production forecast, Sable Offshore, Santa Ynez Unit on March 21, 2025| Leave a Comment »
Attached is a recent Sable Offshore presentation for investors. Notably, Sable is now projecting to resume Santa Ynez Unit production in Q2 2025 (see slide below). John Smith thinks this is unrealistic, and I have to agree.
It’s tough for an offshore producer to succeed in California, but Sable is making a strong effort. Exxon must agree, because they have extended Sable’s first production deadline to 3/1/2026, which reflects a more plausible Q1 2026 restart. Additional extensions seem likely if necessary given that Exxon’s other options aren’t very attractive.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, Regulation, tagged BOEM, Congressional Review Act, Joint Resolution, Marine Archaeological Resources, Regulation, Sen. Kennedy on March 20, 2025| Leave a Comment »
Exercising authority granted in the Congressional Review Act (Chapter 8 of Title 5 of the United States Code), Congress passed Joint Resolution 11 nullifying the Bureau of Ocean Energy Management rule titled “Protection of Marine Archaeological Resources” (Sept. 3, 2024).
Nullification of a final rule is not common. Since its Enactment in 1996, the CRA has been used to overturn only 20 rules. This is the first time an OCS energy rule has been nullified.
Enactment of a CRA resolution of disapproval is unlikely in most circumstances, because a President would be expected to veto a joint resolution disapproving a rule issued by the President’s own Administration.
There are also time limitations for nullifying a rule. The joint resolution must be introduced during a 60-days- of-continuous-session period beginning when the rule has been published in the Federal Register and been received by Congress. However, if within 60 session days after a rule is submitted, Congress adjourns its session, the periods to introduce and act on a disapproval resolution reoccur in their entirety in the next session of Congress.
It’s also noteworthy that a CRA resolution cannot be filibustered if the Senate acts on the resolution during a 60-days-of-Senate-session period beginning when the rule has been received by Congress.
Most of the 20 nullifications involved rules finalized at the end of a previous administration that were nullified at the beginning of a new administration with a majority in both chambers of Congress. That is the case for the Marine Archaeology Rule, which was published at the end of the Biden administration and nullified at the beginning of the Trump administration. .
The nullified OCS rule required operators to submit an archaeological report identifying potential archaeological resources with any exploration or development plan. The rule modified regulations that only required such a report only when a BOEM regional director had reason to believe that an archaeological resource may be present in the lease area.
Archaeological survey requirements have been somewhat contentious since they were introduced in the 1970s. There were concerns about decisions to require the protection of speculative, low probability sites that could significantly alter operating plans.
A reasonable balance and an apparent consensus was achieved by limiting the report requirements to areas where studies and other information indicated the potential for such resources. BOEM’s new rule tightened the requirement considerably, which led to opposition and ultimately nullification.
Resolution Timeline
| 2/4/2025 | Senate | Resolution Introduced by Sen. Kennedy |
| 2/25/2025 | Senate | Passed by Yea-Nay Vote 54 – 44 |
| 3/6/2025 | House | Passed by Yea-Nay vote: 221 – 202, 1 Present |
| 3/13/2025 | President | signed |
Posted in energy policy, Offshore Energy - General, Offshore Wind, UK, tagged Aberdeen, carbon capture, energy jobs, GB Energy, hydrogen, Juergen Maier, Keystone Pipeline, Louise Gilmour, North Sea oil and gas, Offshore Wind, the Scotsman on March 19, 2025| Leave a Comment »
Juergen Maier, chairman of GB Energy, “a planned British government-owned renewable energy investment body,” is promising to revive Aberdeen with “green energy” jobs, and to create “something special for the years ahead.”
Maier: “Floating offshore wind, green hydrogen, and carbon capture should be as synonymous with Aberdeen’s future as oil and gas have been with its past.” This is an interesting comment given that the success of the industries he is promoting is far from assured; nor is the continuation of government edicts and subsidies on which they are dependent.
How many times have we been told that the government driven energy transition would create thousands of jobs? How many workers in economically important industries have been told to transition to politically favored professions? How many Keystone Pipeline workers found the promised “green energy jobs?” Why were coal miners condescendingly told to “learn to code?”
Perhaps Mr. Maier should broaden his message by showing support for development of the Rosebank and Jackdaw fields, and for sustaining production of oil and gas, on which the UK will be dependent for many years. As Louise Gilmour wisely opined in her column in the Scotsman:
“We need more of it because even the most ardent supporters of renewable energy, the most vocal proponents of net zero, quietly admit oil and, especially, gas will be needed for a couple of decades at least. That obvious truth, that inarguable necessity, is not, apparently, enough for ministers to encourage UK production, however, or temper their rhetoric around renewables.“
“Allowing our rigs and refineries to power down and relying on other countries to keep the lights on still seems a little, well, counter-intuitive. We will import oil and gas but not produce it while happily exporting contracts, skills and jobs overseas? The practical impact of Labour’s refusal to grant new exploration licences in the North Sea might remain unclear but the message it sent was absolutely crystal.“
Posted in California, Offshore Energy - General, tagged information meeting, Jane Fonda, Julia-Louis Dreyfus, Sable Offshore, Santa Barbara County, Santa Ynez Unit on March 17, 2025| Leave a Comment »
The Santa Barbara Independent and Noozhawk have closely followed the Sable saga and provided good coverage of the “Information Meeting.” BOE contributor John Smith followed the meeting online and shares his impressions.
Independent: “What was advertised as an informational meeting with eight state agencies that oversee Sable’s operations quickly became emotionally charged when the Environmental Defense Center’s Linda Krop and resident actor Julia Louis-Dreyfus were surprisingly called onto the stage to voice their opposition to the oil project.“
John Smith reports that the meeting got off to a good start before deteriorating:
Smith: “The CCC (Coastal Commission) presentation was interesting because it highlights their position and disagreement with SBC (Santa Barbara County) who determined permits were not required by Sable for maintenance and repair work. I think the agencies did a good job in sharing information on the status of permits, which if people were objective, may have alleviated many of their major concerns. Unfortunately, it went downhill at the end when EDC and Hollywood types were given the floor.”
Unsurprisingly, a State Senator facilitated the ambush:
Independent: “When Senator Limón’s staff called to the stage the Environmental Defense Center’s chief counsel, Linda Krop — who hosted a star-studded press conference beforehand with state legislators, actors Julia Louis-Dreyfus and Jane Fonda, and Ventura-based Patagonia CEO Ryan Gellert, among others, outside the EDC’s headquarters — the town hall shifted gears from an info-session into a quasi-rally. Krop’s emotion-inciting words, followed by an angry, passionate speech from Louis-Dreyfus, put the room into a cacophony of cheers and jeers.“
Sable supporters (workers, not movie stars) were also in the house:
Independent: “Sable Offshore management, employees, contractors, labor, and supporters showed up today in good faith to participate in a town hall meeting where only government officials were on the agenda to present,” said Steve Rusch, Sable’s vice president of environmental and governmental affairs, in a statement. “Project opponents forced the moderators to give them dedicated time to present biased information and smear the project. The opponents’ self-serving fundraiser and rally was not an appropriate use of public resources.”
“Not one word was said about the working people,” a Sable employee and union member told the Independent after he walked out. “This is my home, too, and I’m going to fight, too…. Without this, we’re just unemployed.”
Interestingly, regulatory fragmentation, a topic that this blog has railed about, was mentioned by one of the Sable opponents, and I suspect the Sable supporters agree!:
Noozhawk: “One of the audience members was Ravid Raphael, who has lived in Goleta for the past 11 years. One of his concerns was that there are too many departments and that they are too fragmented.“
Posted in California, Offshore Energy - General, Regulation, tagged California Coastal Commission, litigation, pipeline repairs, Sable Offshore, Santa Barbara County, Santa Ynez Unit on March 14, 2025| Leave a Comment »
See the attached letter from Sable’s attorneys; highlights below:
Bud's Offshore Energy (BOE) 