Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged Anchor platform, Chevron, CNBC, Jim Kramer, Mad Money, Mike Wirth on November 5, 2024| Leave a Comment »
Mike Werth’s response to Jim Kramer’s question about US production leadership is spot-on (see the clip below).
Kudos to Kramer for visiting Chevron’s Anchor platform in the Gulf of Mexico. More business/energy reporters and government officials with energy responsibilities need to (1) learn more about offshore oil and gas exploration and development and (2) visit offshore facilities.
Posted in climate, energy policy, Offshore Energy - General, tagged 2050 production end, ban, Danish gas production, Denmark, oil and gas exploration, Orsted, Total on November 4, 2024| Leave a Comment »
As the table below illustrates, Denmark’s highly publicized oil and gas exploration ban is more pragmatic than has been reported in the media. The expansion of production from existing fields is not restricted.
| 12/4/2020 policy announcement | 10/29/2024 discovery announcement |
| Denmark has brought an immediate end to new oil and gas exploration in the Danish North Sea as part of a plan to phase out fossil fuel extraction by 2050. | TotalEnergies announces that the Harald East Middle Jurassic nearby exploration well (HEMJ-1X) has discovered additional gas condensate resources in the Harald field, in the Danish North Sea.“The success of the Harald East Middle Jurassic well, nearby our Harald facilities in Denmark, demonstrates the strength of our Exploration strategy.” |
As a result of new exploration, Danish gas production is on the rise (graphic below) after two decades of decline. August 2024 production (165.8 MMCFD) was 21% higher than August 2023 production (136.9 MMCFD)
While Total has proven to be resourceful in sustaining North Sea gas production, Denmark’s refusal to hold new licensing rounds dooms their production over the longer term. This is consistent with Denmark’s intent to cease domestic production by 2050. (Those of you who are young enough can report on whether that deadline is met 😉).
The demand for fossil fuels, which has yet to peak, will still be strong in 2050 and beyond. Phasing out domestic production may be Denmark’s choice, but it’s not a good choice for much of the world.
Denmark is a lovely country, but their rather smug commitment to “lead a global campaign on the role of fossil-fuel producing countries” is not universally welcome. Similarly, companies like Orsted (50.1% Danish govt ownership) are not always the best ambassadors for exporting Danish energy policy.
Other governments, including the US, are quite capable of risking their economic growth and energy security without Denmark’s help.
Related posts:
Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, tagged August production, Gulf of Mexico, Hurricane Francine, Hurricane Helene, oil production, stability on October 31, 2024| Leave a Comment »
The streak of unprecedented Gulf of Mexico oil production stability was extended to 7 months in August.
As a result of shut-ins for Tropical Storms Francine and Helene, the streak will end when the production for Sept. is posted.
Posted in California, decommissioning, Offshore Energy - General, Regulation, tagged Chevron, Chumash Marine Sancturary, decommissioning, FMC, Sable Offshore, Santa Ynez Unit on October 23, 2024| Leave a Comment »
Almost 40 years ago, four large oil and gas platforms were installed in the beautiful offshore area that was part of our Santa Maria District (Pacific Region of the Minerals Management Service). Those platforms are now within the boundaries of the Chumash Heritage National Marine Sanctuary (see map above).
We watched those platforms being installed, inspected the drilling and production operations, and performed a myriad of other duties including the curtailment of offshore operations prior to launches from Vandenberg AFB. Those Vandenberg launches weren’t always perfect as this link clearly demonstrates. Even knowing that, it was still a bit unnerving when missiles were recovered during post-abandonment site clearance trawls.
All four of those Santa Maria District platforms are now on terminated OCS leases. All were installed by companies that are now part of Chevron Corp. (Chevron, Texaco, and Unocal). They are currently maintained by Freeport-McMoRan Oil & Gas, with Chevron retaining financial responsibility for decommissioning.
| Platform | Install yr. | installed by | water depth (ft) | Est. removal weight (short tons) | wells drilled |
| Harvest | 1985 | Texaco | 675 | 35,150 | 19 |
| Hermosa | 1985 | Chevron | 603 | 30,868 | 13 |
| Hidalgo | 1986 | Chevron | 430 | 23,384 | 14 |
| Irene | 1985 | Unocal | 242 | 8,762 | 26 |
BSEE reports that the 46 wells on Harvest, Hermosa, and Hidalgo have been plugged and tested, and that the well conductors have been removed. No information has been posted on the status of the wells at Platform Irene, but presumably they are (or will soon be) plugged in accordance with BSEE regulations.
Will the inclusion of these platforms in the Chumash Marine Sanctuary further complicate the already difficult decommissioning process? Decommissioning specialist John Smith thinks it may:
“In addition to the BOEM and BSEE approval process, Chevron and FMC are going to be dealing with the NOAA permitting regime for Sanctuaries. Those permitting and environmental compliance requirements are extensive. NOAA’s NEPA documentation for West Coast marine sanctuaries will also need to be amended to include the Chumash.”
So the “Mission Impossible” that is California OCS decommissioning now has yet another complex regulatory element.
John also thinks the Sanctuary designation presents yet another obstacle for Sable’s plans to restart Santa Ynez Unit production:
“Even though most of the SYU facilities are outside the Sanctuary, the proximity of the operations to the Sanctuary is problematic. The Chumash are now going to be a co-manager of the Sanctuary, adding another player in the process. Sable is going to obtain multiple Federal, State and local permits to restart SYU, and law suits are likely at every stage of the process.”
BOE will be watching!
Posted in accidents, Gulf of Mexico, Offshore Energy - General, tagged 4 fatalities, BSEE, Coast Guard, helicopter crash, helideck safety, NTSB, regulatory fragmentation on October 16, 2024| Leave a Comment »
Posted in California, Offshore Energy - General, tagged California Coastal Commission, California Fire Marshall, Elon Musk, pipeline repair, Sable Offshore, Santa Ynez Unit, SpaceX on October 15, 2024| Leave a Comment »
The California Coastal Commission, which exercises enormous power and limited restraint, is making headlines for preventing SpaceX, arguably America’s most extraordinary company, from increasing the number of satellite launches from the Vandenberg Space Force Base, a Federal facility. The Coastal Commission made this decision just 3 days before SpaceX’s awe inspiring rocket booster catch in Texas:
Sable Offshore, despite being spawned by super-major Exxon, is a relative minnow compared to SpaceX, at least politically. The restart of production from Sable’s Santa Ynez Unit is facing another obstacle now that the Coastal Commission has entered the fray.
The Coastal Commission has ordered Sable to stop the installation of pipeline shutdown valves that are not only prudent, but required by the California Fire Marshall, the State’s safety authority for pipelines. The Commission has intervened by asserting that the pipeline upgrades require a coastal development permit.
Sable argues that repair and maintenance activities are exempt from Coastal Act permitting requirements, and have been conducted under their existing permits for 35+ years.
The Commission does not like to see its authority questioned, and is influenced by groups whose sole objective is to prevent the restart of production. We’ll see how this sorts out.
Meanwhile, Elon Musk did not hold back after the Commission’s decision not to allow an increase in the number of launches from Vandenberg:
“The California Coastal Commission should be dissolved as an organization. An utterly insufferable and misanthropic group of Karens if there ever was one! Their idea of the perfect coastline is one where there are zero humans or even signs of human! Anyone who has had any dealings with them will attest to this. They should not exist.”
Ouch! Tell us what you really think Elon! 😉
Posted in climate, energy policy, Gulf of Mexico, Offshore Energy - General, UK, tagged A Town Called Bruce, Gulf of Mexico production, UK offshore oil and gas, US 5 year leasing plan on October 3, 2024| Leave a Comment »
See the video embedded below or view it here.
Some of us are long-time observers of North Sea operations. Others like JL Daeschler are pioneers who were involved with North Sea exploration and development from the outset. It’s sad to see what is happening to the UK offshore industry.
And for what purpose? Virtue signaling by politicians? Pandering to the international climate cartel? Shutting down North Sea production will have no measurable effect on our climate.
Now that the entire U.S. Atlantic and Pacific, and nearly all of offshore Alaska, are closed to oil and gas leasing, the goal of some is to shut down the Gulf of Mexico. That intent is clear in the 5 year leasing plan that provides for a maximum of 3 sales, the fewest of any 5 year plan in the history of the US offshore program. This is really a 5 year moratorium, not a 5 year leasing plan.
As noted in the post below, GoM production is 1.8 million bopd. BOEM’s reasonable forecast of >2 million bopd through 2027 will not be achieved because of policy decisions, not resource limitations or technical capabilities.
And shame on those who are attributing Hurricane Helene’s destruction to GHG emissions. This is uninformed opportunism at its worst.
Posted in Gulf of Mexico, Offshore Energy - General, tagged 2024 data, Gulf of Mexico, Hurricane Francine, Hurricane Helene, oil production, stability on October 3, 2024| Leave a Comment »
The stability in Gulf of Mexico oil production rates, as noted when the data for June were released, continued into July. Oil production once again remained remarkably consistent at 1.8 million bopd.
Average daily production was within 1.4% of 1.8 million bopd for each month from February to July. As previously observed, this is as stable as production has been for any 6 month period in the past 10 years. I’m not sure this observation is terribly significant, but it’s interesting nonetheless. 😀
If the streak didn’t end in August, it most certainly did in September given the shut-ins for Hurricanes Francine and Helene.
Posted in Offshore Energy - General, Uncategorized, tagged drone attack, Eastern Mediterranean, IDF report, Israel, Karish gas field on September 30, 2024| Leave a Comment »
Below is IDF video of a drone intercept by an Israeli naval vessel offshore northern Israel.
Initial assessments suggest that the drone was headed for offshore infrastructure at the Karish gas field, presumably the FPSO pictured above.
Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, tagged evacuations, Gulf of Mexico, Hurricane Helene, production shut-in on September 29, 2024| Leave a Comment »
Update: BSEE reports that as of 9/29/2024, essentially all production had been restored.
As of 9/28, 210,000 BOPD remained shut-in with only 4 platforms still evacuated. Presumably, production had not resumed (or had only partially resumed) on some high rate deepwater platforms.
BSEE shut-in, evacuation, and relocation data in the table below are as of 12:30 p.m. ET on the specified date.
| date | 9/24 | 9/25 | 9/26 | 9/27 | 9/28 |
| oil s.i.(BOPD) % of total | 284,000 16.21 | 511,000 29.18 | 441,923 25.25 | 427,000 24.39 | 210,000 12 |
| gas s.i.(MMCFD) % of total | 208 11.2 | 313 16.85 | 363.39 19.81 | 343 18.46 | 112 6.04 |
| platform evacs % of total | 4 1.08 | 17 4.58 | 27 7.28 | 9 2.43 | 4 1.08 |
| rig evacs % of total | 0 0 | 1 20 | 1 20 | 0 | 0 |
| DP rigs moved % of total | 2 9.5 | 3 14.3 | 3 14.3 | 1 4.76 | 1 4.76 |
Bud's Offshore Energy (BOE) 