Posted in energy policy, Offshore Energy - General, tagged 5 year leasing plan, High Arctic, planning areas, Secretary Burgum, US Dept. of the Interior on April 18, 2025| Leave a Comment »
Dept. of the Interior Announcement and leasing plan development process
Notably, BOEM’s jurisdiction on the OCS has recently changed. A new planning area offshore Alaska—the High Arctic—is being established as the 27th OCS planning area. Additionally, boundaries of other existing planning areas are being updated to align with BOEM’s revised jurisdiction. Details on these changes will be included in a forthcoming Federal Register notice and posted to BOEM’s website.
Posted in accidents, Gulf of Mexico, Offshore Energy - General, well control incidents, tagged 11 men died, 4/20/2010, Deepwater Horizon, macondo, Trace Atkins on April 18, 2025| Leave a Comment »
I am again sharing this touching tribute to the 11 men who lost their lives on the Deepwater Horizon on April 20, 2010. The video is introduced by country singer Trace Atkins, a former Gulf of Mexico rig worker. The video and Trace’s song serve as a memorial to the 11 Deepwater Horizon workers and others who have died exploring for and producing oil and gas around the world. Please take a moment to watch.
Macondo revisited series:
Posted in deep sea mining, energy policy, Offshore Energy - General, tagged China, marine minerals, new executive order, TMC, trade dispute on April 17, 2025| Leave a Comment »
According to a Financial Times report, the White House is drafting an executive order that will facilitate the stockpiling of critical metals found in the Pacific. The Administration is intent on countering China’s rare earth supply chains and battery mineral dominance.
This is good news for TMC, a Canadian company that plans to apply for deepsea mining permits under US authority, not proposed international regulations.
Posted in climate, energy policy, natural gas, Offshore Energy - General, Offshore Wind, Regulation, tagged BOEM, BSEE, consultation, development impacts, dispatchable power, fishing industry, GAO, Offshore Wind, staffing, tribes on April 16, 2025| Leave a Comment »
The Government Accountability Office report on Offshore Wind Energy (full report attached) does a good job of summarizing the potential impacts from offshore wind development. They are categorized in the report as follows:
Unfortunately, GAO’s recommendations, which focus on consultation and staffing (perennial favorites), are rather meaningless. Does GAO really think more consultation will resolve the fundamental concerns of the tribes and fishing industry? Does GAO really think increasing BOEM/BSEE staff is a solution? Wind was the signature offshore energy program of the previous Administration, and it was well resourced.
When the legislation authorizing offshore wind energy development was drafted, we envisioned energy alternatives that could complement thermal energy sources like gas, coal, and nuclear plants. Natural gas plants are particularly important to intermittent energy sources, because their power can be readily dispatched on demand.
Never did we expect attempts to ban the dispatchable energy sources on which renewable energy goals were dependent. Policies that limit gas production, transportation, and consumption don’t boost offshore wind development, they doom it.
In a rush to achieve the Administration’s energy goals, the wind leasing program brushed aside important economic, safety, national security, and environmental issues. Coastal residents, tribes, fishing interests, power customers, and other affected parties have rebelled. Their concerns won’t be smoothed over by increasing consultation.
So now the wind program is in a dark and windless place (a regulatory dunkelflaute?). Five projects are under construction or in the early stages of operation. Construction has been authorized for 6 other projects. Five more projects are in various stages of permitting. What next?
Meanwhile, we still haven’t seen a report on the ugly and embarrassing Vineyard Wind blade failure offshore Nantucket last July. Shouldn’t that report be a precursor to further offshore wind development in the US Atlantic? Also of note, that same turbine was struck by lightning 2 months ago.
Should directed suspension orders be issued pending a complete review of the wind program? If so, for which leases and for how long? Suspension of projects still in the permitting phase would be relatively painless and maybe even attractive given the current state of the wind industry. However, financial impacts for projects in the construction phase would be significant. These important next-step decisions need to be made soon. Muddling along is not a strategy.
Table 2: Examples of Potential Impacts of Offshore Wind Development to Marine Life and Ecosystems
| Impact | Description |
| Acoustic disturbance | Construction and survey activities produce underwater noise that can disturb sensitive marine species. Offshore wind projects take measures to mitigate underwater noise, including the use of bubble curtains to dampen pile driving sound and pausing operations if protected species are sighted. |
| Changes to marine habitat | Installation of infrastructure, such as turbine foundations and transmission cables, introduces new structures and causes changes to the ocean floor that can alter marine habitat and affect the distribution, abundance, and composition of marine life in the area. These new structures can create artificial habitat that may benefit some species while displacing others and could affect bottom-dwelling species through disturbing the seabed. Artificial habitat effects of wind turbines are well documented, but research is ongoing to monitor and understand impacts on marine life. |
| Hydrodynamic effects | Operation of wind turbines can affect hydrodynamics and ocean processes such as currents and wind wakes, but little is known about regional effects of widescale deployment on ecosystems. |
| Vessel disturbance | Vessels can disturb some species and pose strike risks to large marine animals, but the increase in offshore wind vessels is projected to be small compared to the total volume of vessel traffic. Offshore wind vessels are required to take measures such as following speed restrictions and employing protected species observers. |
| Entanglement risk | Structures, such as mooring cables from floating wind turbines, could snag fishing gear and other marine debris and create entanglement risk to marine animals. Wind projects employ measures to minimize entanglement (e.g., mooring systems designed to detect entanglement), but there is uncertainty about the extent of the risk from floating turbines because of limited deployment.a |
| Collision risk to birds and bats | Turbine blades pose a collision risk to some sea birds, but little is known about offshore collision risk to bats. Research on collision risks and mitigation measures (e.g., lighting and curtailment) is ongoing. |
Posted in energy policy, Offshore Energy - General, Regulation, tagged Administrative Procedures Act, efficient regulation, Executive Order, OCS Lands Act, offshore energy, regulatory fragmentation, Zero-based regulatory budgeting on April 15, 2025| Leave a Comment »
The “Zero Based Regulatory Budgeting” Executive Order will promote confusion and uncertainty, not sustainable regulatory reform.
The EO requires agencies to issue a rule, effective not later than September 30, 2025, that inserts a sunset date into each “covered regulation.” The sunset date must be 1 year after the effective date of the sunset rule, but may be extended multiple times for a total of up to 5 years.
From an offshore energy perspective, the confusion starts with the EO’s applicability. One section of the order exempts regulatory permitting regimes authorized by statute. Another section specifies that the order “applies to all regulations issued pursuant to the Outer Continental Shelf Act of 1953 and any amendments thereto.” This is a fundamental contradiction given that OCSLA is a statutory planning and permitting regime. Which regulations are subject to the EO?
Comments:
If regulatory efficiency is the goal, this EO is likely to do more harm than good. Federal agencies are largely comprised of bright people with good intentions. Challenge them to propose innovative reforms that will simplify and improve their regulatory regimes.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged 5 year leasing plan, BOEM, Dan Yergin, Gulf of America, oil and gas reserves, Vicki Hollub on April 14, 2025| Leave a Comment »
“The Bureau of Ocean Energy Management’s analysis reveals an additional 1.30 billion barrels of oil equivalent since 2021, bringing the total reserve estimate to 7.04 billion barrels of oil equivalent. This includes 5.77 billion barrels of oil and 7.15 trillion cubic feet of natural gas—a 22.6% increase in remaining recoverable reserves.”
| Year | Number of fields | Original Reserves | Historical Cumulative Production | Reserves | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Oil Bbbl | Gas Tcf | BOE Bbbl | Oil Bbbl | Gas Tcf | BOE Bbbl | Oil Bbbl | Gas Tcf | BOE Bbbl | ||
| 1975 | 255 | 6.61 | 59.9 | 17.3 | 3.82 | 27.2 | 8.66 | 2.79 | 32.7 | 8.61 |
| 1980 | 435 | 8.04 | 88.9 | 23.9 | 4.99 | 48.7 | 13.66 | 3.05 | 40.2 | 10.20 |
| 1985 | 575 | 10.63 | 116.7 | 31.4 | 6.58 | 71.1 | 19.23 | 4.05 | 45.6 | 12.16 |
| 1990 | 782 | 10.64 | 129.9 | 33.8 | 8.11 | 93.8 | 24.80 | 2.53 | 36.1 | 8.95 |
| 1995 | 899 | 12.01 | 144.9 | 37.8 | 9.68 | 117.4 | 30.57 | 2.33 | 27.5 | 7.22 |
| 2000 | 1,050 | 14.93 | 167.3 | 44.7 | 11.93 | 142.7 | 37.32 | 3.00 | 24.6 | 7.38 |
| 2005 | 1,196 | 19.80 | 181.8 | 52.2 | 14.61 | 163.9 | 43.77 | 5.19 | 17.9 | 8.38 |
| 2010 | 1,282 | 21.50 | 191.1 | 55.5 | 17.11 | 179.3 | 49.01 | 4.39 | 11.8 | 6.49 |
| 2015 | 1,312 | 23.06 | 193.8 | 57.6 | 19.58 | 186.5 | 52.78 | 3.48 | 7.3 | 4.78 |
| 2016 | 1,315 | 23.73 | 194.6 | 58.4 | 20.16 | 187.5 | 53.58 | 3.57 | 6.8 | 4.79 |
| 2017 | 1,319 | 24.65 | 195.2 | 59.7 | 20.78 | 188.9 | 54.21 | 3.87 | 6.3 | 5.00 |
| 2018 | 1,319 | 24.86 | 195.5 | 59.7 | 21.42 | 189.8 | 55.21 | 3.44 | 5.7 | 4.45 |
| 2019 | 1,325 | 26.77 | 197.0 | 61.8 | 22.12 | 190.9 | 56.09 | 4.65 | 6.1 | 5.74 |
| 2023 | 1,336 | 30.43 | 201.2 | 66.2 | 24.66 | 194.0 | 59.19 | 5.77 | 7.2 | 7.04 |
This increase in reserves will not please those responsible for the current 5 Year Oil and Gas Leasing Plan. They told us that we don’t need more OCS lease sales and that our biggest concern is producing too much oil and gas for too long!
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.“
Energy experts like Dan Yergin and Vicki Hollub have a much different view. Per Hollub:
“Crude reserves are being found and developed at a much slower pace than they’ve been in the past. Specifically, she said the world has only newly identified less than half the amount of crude it’s consumed over the course of the past 10 years. Given the current trends, this means demand will exceed supply before the end of 2025.“
A bit off-topic, but Jeff Walker, a former colleague and the MMS Regional Supervisor in Alaska, had the best quip about reserve numbers. In explaining an operator’s revised reserve numbers for a producing unit which had leases with different royalty rates, Jeff noted that “oil always migrates to the lower royalty leases.”😉
Posted in California, energy policy, Offshore Energy - General, Regulation, tagged $18 million fine, California Coastal Commission, Fire Marshall, Sable Offshore, Santa Barbara County on April 11, 2025| Leave a Comment »
Yesterday, the California Coastal Commission voted 8-3 to fine Sable Offshore $18,022,500 for performing pipeline repairs necessary to minimize operating risks and comply with the FIre Marshall’s requirements.
In the minds of at least some commissioners, Santa Barbara County, which reached agreement with Sable on pipeline repairs, is also a villain in this matter. Per Commissioner Harmon:
“We have not gotten a foothold with Sable, and we’ve not gotten a foothold with Santa Barbara County either. So, we are where we are, and because of this absolute failure of communication and Sable’s, to be frank, absolute failure to follow the law, this hearing has become necessary,” Harmon said.
We’ll see how this gets sorted out in the courts. Sable appears to have a strong case against the Commission, but litigation in California courts is not exactly ideal for oil companies.
Posted in Canada, energy policy, Gulf of Mexico, Offshore Energy - General, UK, tagged Appomattox, CNOOC, Gulf of America, INEOS Energy, Stampede on April 11, 2025| Leave a Comment »
China National Offshore Oil Corp. (CNOOC) has surrendered its 21% interest in the Appomattox (Mississippi Canyon 391, 392, and 393) project and its 25% stake in Stampede (Green Canyon 468, 511, and 512). Those ownership positions were acquired in CNOOC’s takeover of Calgary-based Nexen in 2013.
CNOOC had been quite positive about the prospects for Appomattox and Stampede, which are producing at higher than expected rates. However, because of sanctions concerns, an exit from operations in the US, Canada, and the UK had been under consideration for at least 2 years.
CNOOC’s shares of Appomattox and Stampede were acquired by INEOS Energy, a UK company.
The transaction is also discussed in CNOOC’s 2024 Annual Report (p.19).
Posted in accidents, Gulf of Mexico, Offshore Energy - General, Regulation, tagged cranes, district investigations, fires, Gulf of America, injuries, OCS incidents, panel reports, safety performance on April 10, 2025| Leave a Comment »
BSEE incident investigations are another window into OCS safety performance.
Panel reports are published for the most significant OCS incidents (e.g. fatalities, serious injuries, significant pollution). Unfortunately, these reports have been unacceptably delayed in recent years. Status reports are not provided leaving the public in the dark as to what is being investigated and why.
The more common investigations, conducted by BSEE’s district offices, are timely and informative. The Districts typically investigate lost time (>72 hours) injuries, crane and lifting equipment incidents, small fires, pollution events, property damage > $25k, gas releases, and other incidents requiring workers to muster for possible evacuation.
The number of District investigations in 2024 declined significantly to 31, one-third fewer than the average of 46.25 for the past 4 years.
Violations were not identified for 2/3 of the incidents.
A complete list of the 2024 District investigations follows. Hyperlinks are provided for those who want to review the reports.
| Date | Operator | Time | Violation(s) | Area/Block | Accident Type |
| 12-25-2024 | bp | 1330 | no | GC 584 | lifting, LTA |
| 11-24-2024 | Anadarko | 1710 | no | VK 915 | Muster, gas release |
| 11-15-2024 | Anadarko | 837 | no | GB 668 | Muster |
| 11-10-2024 | Murphy | 145 | no | GC 432 | LTA |
| 10-12-2024 | LLOG | 540 | yes | AC 337 | LTA – Lifting |
| 10-03-2024 | Shell | 900 | no | AC 857 | Fire, > $25K damage |
| 09-27-2024 | LLOG | 200 | no | AC 337 | LTA, Crane |
| 09-21-2024 | Talos | 1630 | no | SM 160 | LTA |
| 08-11-2024 | Gulf Offshore | 1910 | yes | VR 170 | Fire, Explosion, >$25k, Muster, LTA |
| 07-20-2024 | Talos | 2200 | no | SS 224D | LTA |
| 07-11-2024 | Manta Ray | 730 | no | HI A 5 | LTA |
| 07-08-2024 | Cantium | 1908 | yes | ST 23CC | Lifting |
| 06-05-2024 | Kosmos | 1538 | no | MC 727 | Muster, > $25K |
| 05-31-2024 | MC Offshore | 100 | yes | GC 52 | Crane, > $25K |
| 05-02-2024 | Murphy | 1620 | no | GC 478 | Crane; > $25K |
| 04-24-2024 | Murphy | 815 | no | GC 389 | LTA |
| 04-04-2024 | Renaissance | 2230 | yes | VR 369 A | LTA |
| 03-28-2024 | BOE | 2200 | yes | WR 51 | LTA |
| 03-20-2024 | Talos | 700 | yes | GB 506 | LTA |
| 03-19-2024 | Chevron | 1330 | no | MC 607 | Lifting, <$25k |
| 03-13-2024 | Walter | 2010 | no | SS 189 | Crane |
| 03-07-2024 | LLOG | 1500 | yes | KC 785 | LTA, lifting |
| 03-05-2024 | Shell | 415 | yes | MC 391 | Pollution, >$25k |
| 02-25-2024 | Talos | 930 | yes | SM 130 B | Crane,> $25K |
| 02-21-2024 | W&T | 1319 | no | HI A 379B | Fire |
| 02-16-2024 | Chevron | 1335 | no | WR 29 | LTA, Crane |
| 02-13-2024 | Shell | 2035 | no | MC 899 | LTA |
| 02-07-2024 | Williams | 855 | no | GA A 244JP | LTA |
| 01-29-2024 | Cantium | 1900 | no | ST 23 CC | Fire,>$25K |
| 01-18-2024 | Murphy | 1303 | no | GC 478 | Lifting, > $25k |
| 01-16-2024 | Arena | 252 | no | SM 128 B | Fire, > $25K |
Posted in California, energy policy, Offshore Energy - General, Regulation, tagged California Coastal Commission, Friends of Oceano Dunes, pipeline repair, Pismo Beach, Sable Offshore, Santa Barbara County, Santa Ynez Unit on April 9, 2025| Leave a Comment »
BOE contributor John Smith has shared (attached) his highlighted version of the 89 page California Coastal Commission staff report recommending imposition of a $15 million fine.
John finds it noteworthy that the report documents that Santa Barbara County did not concur with the CCC, and that the California State Lands Commission approved the span remediation work. John thinks this raises legitimate questions as to whether the CCC is overreaching in terms of asserting permitting authority for the repair and maintenance work.
John thinks it will be interesting to see how the Courts rule on this and expects an appeal regardless of the outcome. He points to the Court ruling against the CCC on Pismo Beach offroading case as being pertinent to the Sable-CCC dispute. (“Is the Friends of Oceano Dunes court victory a good omen for Sable?“)
In particular, note the text John has highlighted in green. These issues will likely be central to the Court deliberations.
Bud's Offshore Energy (BOE) 