“Honored to be named Inspector of the Year. I’m sincerely thankful to my supervisor and the management involved for recognizing my commitment to this mission, and I’m proud to work alongside the Well Operations Inspection team, whose support and professionalism elevate all of us. This award reflects our shared dedication to safety and the environment.”
Archive for the ‘Offshore Energy – General’ Category
Congratulations to Frank Musacchia – BSEE Inspector of the Year
Posted in Gulf of Mexico, Offshore Energy - General, Regulation, tagged BSEE, Frank Musacchia, Inspector of the Year, New Orleans District, offshore safety, well operations on April 9, 2026| Leave a Comment »
Deepwater development takes time, unless you buy a project that is already producing 😉
Posted in Gulf of Mexico, Offshore Energy - General, tagged Beacon, Blackstone, bp, Chevron, HEQ, investment companies, Shell, Shenandoah, Total on April 7, 2026| Leave a Comment »
If Beacon and HEQ are willing sellers of their majority share in the impressive Shenandoah field, as appears to be the case (per Reuters), the big dogs are interested in buying. And why wouldn’t they be? Production began last July and the targeted rate of 100,000 bopd has already been achieved from just four phase-one wells.
Reuters reports that Total, Shell, BP, Repsol, and Chevron are interested in Beacon and HEQ’s 51% stake. More about Shenandoah:
- located in Walker Ridge blocks 51, 52, and 53
- ~150 miles off the coast of Louisiana
- floating production unit (FPU) in 5800′ of water in WR block 52
- true vertical reservoir depths ~30,000′
- high pressure ~20,000 psi
- Paleogene, Inboard Wilcox trend
- FPU can host production from nearby subsea systems
- capacity is being expanded to 140,000 bopd
- estimated 600 million BOE recoverable including nearby tiebacks
- other owner: Navitas Petroleum (49% share)
Investment companies like Beacon (owned by Blackstone) are positive, and increasingly necessary, contributors to the offshore program. These companies bring capital and new exploration strategies that increase development and production. They must, of course, be committed to safety excellence, which seems to be the case for Beacon.
It’s noteworthy that Anadarko and Conoco Phillips, Shenandoah’s major original partners holding 33% and 30% interest respectively, withdrew from the project in 2018 citing unsatisfactory appraisal results and weak commodity prices. Evaluation mistakes like this are common, which is why broad and diverse industry participation is needed. With mergers reducing the number of US majors (remember Amoco, Arco, Sun, Texaco, Getty, Mobil, Phillips, Marathon, Unocal, Superior, Hess, etc.), investment companies play an increasingly important role in OCS development.
2019 vs. 2025 Gulf oil production: dead heat
Posted in California, Gulf of Mexico, Offshore Energy - General, tagged 2025 vs. 2019, Calfornia, dead heat, EIA, Gulf of America, offshore oil production, ONRR, record OCS oil production, Santa Ynez Unit on April 6, 2026| Leave a Comment »
The EIA has revised Gulf of America oil production slightly downward for Nov. and Dec. such that we now have an absolute dead heat between 2025 and 2019. Production for both years averaged exactly 1.898 million bbls/day.
Because of the ~6 month lag in obtaining verified OCS production data from the Office of Natural Resources Revenue (ONRR), the monthly EIA reports are based on ONRR’s more timely sales of production data. The final sales and production numbers are typically very close. For the 2019 record OCS production year, both the EIA and ONRR report identical Gulf production of 1.898 million bopd.
Meanwhile, 2026 Gulf production (chart below) is off to a strong start – 2.019 million bopd in January. This is the third highest monthly oil production in the history of Gulf operations.
Finally, California OCS oil production, which has been hobbling along at ~10,000 bopd (2nd chart) will see a massive increase of up to 500% should Santa Ynez Unit production continue.
Honored to have been a guest on the G’Day Mate podcast
Posted in energy policy, Offshore Energy - General, Regulation, Uncategorized, tagged Evan Zimmerman, G'Day Mate, offshore energy, podcast, Tom Pado on April 3, 2026| 2 Comments »
For those who haven’t suffered enough following the BOE blog😉, you can listen to me on the G’Day Mate podcast hosted by offshore industry veterans Evan Zimmerman and Tom Pado. You may also want to check out other episodes on their excellent podcast.
Sale BBG1 bidding outcomes: rejections, close calls, differences in valuations, and other interesting outcomes
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged bid rejections, BOEM, Gulf of America, MROV, Sale BBG1, tract evaluation on April 2, 2026| Leave a Comment »
Companies seeking to acquire OCS leases are not only competing with each other, they are also competing with BOEM’s tract evaluations. In that regard, the bidders fared well at Sale BBG1. Only 3 of the 181 high bids were rejected by BOEM. and those rejections appear to be warranted.
The rejected bids were significantly below both BOEM’s Mean of the Range-of-Value and Lower Bound Confidence Interval for these single bid tracts (table below).
| Block No. | Company | no. of bids | bid | MROV | LBCI |
| EW 921 | LLOG | 1 | $505,777 | $2,900,000 | $2,200,000 |
| MC 587 | KUSA | 1 | $700,000 | $3,300,000 | $2,200,000 |
| MC 588 | LLOG | 1 | $613,008 | $6,100,000 | $4,600,000 |
LLOG submitted 9 other high bids (alone or with partners) that were accepted. KUSA did not submit any other bids. We’ll see if the rejected bids for these blocks are exceeded in future sales.
Nine other high bids (table below) were less than the MROV, but all were greater than the LBCI. Those bidders “beat the house,” acquiring leases for <MROV. In that regard, Equinor led the pack with no rejections even though 3 of their 7 bids were below MROV. Similarly, 2 of Beacon’s 4 bids were <MROV, with no rejections.
| Block No. | Company | no. of bids | bid | MROV | LBCI |
| GC 345 | Beacon | 1 | $5,302,358 | $5,400,000 | $4,200,000 |
| GC 346 | Beacon | 1 | $1,102,358 | $1,500,000 | $900,000 |
| GC 547 | Equinor | 1 | $3,200,067 | $4,500,000 | $2,600,000 |
| GC 549 | Equinor | 1 | $899,967 | $1,500,000 | $576,000 |
| AT 64 | LLOG | 1 | $7,997,018 | $8,300,000 | $6,700.000 |
| KC 386 | Oxy | 2 | $3,000,505 | $3,500,000 | $2,800,000 |
| KC 429 | Oxy | 1 | $600,505 | $910,000 | $470,000 |
| KC 431 | Woodside | 1 | $904,547 | $1,200,000 | $840,000 |
| WR 56 | Equinor | 1 | $904,547 | $1,200,000 | $576,000 |
Perhaps most interesting were the blocks that were highly valued by industry, but not by BOEM. Each of these blocks (table below) received multiple bids and high bids >$10 million. Conversely, BOEM valued the blocks at only $576,000, which (per the terms of the sale) equates to the minimum acceptable bid of $100/acre.
| Block No. | high bidder | high bid | other bids | MROV |
| GC 845 | Beacon | $11,802,358 | LLOG: $613,008 | $576,000 |
| KC 25 | Chevron | $18,592,086 | BP: $11,507,770 Shell: $753,029 | $576,000 |
| WR 443 | Woodside | $15,204,547 | Chevron $1,596,189 | $576,000 |
| WR444 | Woodside | $12,204,547 | BP: $4,593,770 Chevron $1,482,378 | $576,000 |
All of this demonstrates yet again that:
- the govt is leasing exploration and development opportunities, not confirmed resources,
- commercial discoveries are far from certain,
- informed assessments differ (I.e. great minds, and their computers, don’t always think alike 😀),
- corporate priorities differ, and
- exploration strategies evolve.
Superstition, tactic, AI, coded or subliminal message? 😉
- All 58 BP bids end with 770. Examples: $1,707,770 and $807,770. (At Sale BBG2, all 5 BP bids ended with 990.)
- All 18 Shell bids ended with 029. (At Sale BBG2, all 6 Shell bids ended with 240.)
- 13 of 15 Anadarko bids ended with 505, the other 2 ended with 101.
- All 9 Woodside bids ended with 547.
- All 3 Eni bids ended with 001.
- All 4 Arena bids ended with 912.
- All 12 Talos bids ended with 986.
- All 3 Beacon bids ended with 358.
“God Squad”exempts Gulf oil and gas operations from Endangered Species Act
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, Regulation, tagged Endangered Species Act, exemption, God Squad, Gulf of America, permanent, Rice's whale on April 1, 2026| Leave a Comment »
The ESA, which was enacted with good intentions, has perhaps been most effective in blocking, delaying, or complicating energy development. In the Gulf of America, the primary species in recent ESA battles has been the Rice’s whale.
While this blog was focused on the Santa Ynez Unit drama, a major ESA policy maneuver for the Gulf of America was in the works.
A provision of the ESA authorizes an Endangered Species Committee, known to critics as the “God Squad,” to grant exemptions to ESA requirements. The Committee is comprised of the Secretary of the Interior (chair), the Secretary of Agriculture, the Secretary of the Army, the Chairman of the Council of Economic Advisors, the Administrator of the Environmental Protection Agency, and the Administrator of the National Oceanic and Atmospheric Administration.
Yesterday, the Committee met (notice attached) and agreed to exempt Gulf oil and gas operations from the Endangered Species Act.
Knowing the swings in the political pendulum, provisions for reversing this decision warrant attention. The applicable language from the statute is pasted below:
(B) An exemption shall be permanent under subparagraph (A) unless—
(i) the Secretary finds, based on the best scientific and commercial data available, that such exemption would result in the extinction of a species that was not the subject of consultation under subsection (a)(2) or was not identified in any biological assessment conducted under subsection (c), and
(ii) the Committee determines within 60 days after the date of the Secretary’s finding that the exemption should not be permanent.
So, barring legislation, the exemption would seem to be difficult to overturn.
Earthjustice is vowing to “go to court to stop this illegal order.”
Buckle up! Sable is selling SYU production!
Posted in California, energy policy, Offshore Energy - General, pipelines, tagged 50 year saga, BSEE, Jim Flores, oil sales, Sable Offshore, Santa Ynez Unit on March 31, 2026| Leave a Comment »
Sable Offshore Corp. (3/30/2026) today announced that on March 29, 2026, Sable initiated oil sales. The Santa Ynez Pipeline System was filled from Las Flores Canyon to Pentland Station at a rate in excess of 50,000 barrels of oil per day.
At the Santa Ynez Unit, Platform Harmony is currently producing approximately 22,000 gross barrels of oil per day. Additionally, the United States Department of the Interior’s Bureau of Safety and Environmental Enforcement has completed its final pre-restart inspection of Platform Heritage. Sable plans to commence production restart at Platform Heritage today at an expected total rate of over 30,000 gross barrels of oil per day. We expect Platform Hondo to be online by the end of the second quarter of 2026 at a rate in excess of 10,000 barrels of oil per day.
Sable Chairman and Chief Executive Officer, Jim Flores, said “Sable is proud to announce oil sales through the Santa Ynez Pipeline System to Chevron. In doing so, we are providing American oil from American soil through an American pipeline to an American refinery for American consumers and the United States military.
A wild month in the 50 year Santa Ynez Unit saga is ending with a flourish. The wind is at Sable’s back, but storm clouds are on the horizon.
Offshore Oildom by Tyler Priest
Posted in California, energy policy, Gulf of Mexico, Offshore Energy - General, Regulation, tagged Daniel Yergin, energy policy, Gulf of Mexico, LSUPress, offshore oil and gas, Offshore Oildom, Tyler Priest on March 30, 2026| Leave a Comment »
Tyler Priest, the leading historian on US offshore oil and gas operations, has informed me that his much anticipated book, “Offshore Oildom,”is now available for order from LSU Press. Tyler’s book is a fascinating account of the history of the technologically innovative and economically important, yet controversial, OCS Oil and Gas program. See the attached flyer.
Consider this recommendation by Daniel Yergin:
“Tyler Priest, a preeminent historian of energy and the environment, explores how a single well drilled off a pier near Santa Barbara in 1898 gave rise to a major American industry—offshore oil and gas. In spirited prose, Priest demonstrates how this U.S. industry was created not only by innovation, creative engineering, and complex execution; it was also the result of fierce political battles.” ~Daniel Yergin, Pulitzer Prize–winning author of The Prize: The Epic Quest for Oil, Money, and Power and The New Map: Energy, Climate, and the Clash of Nations.
The offshore world has lost a rising star 😢
Posted in Gulf of Mexico, Offshore Energy - General, Regulation, Uncategorized, tagged Bobby Nelson, BSEE, Obituary, offshore safety, rising star on March 27, 2026| Leave a Comment »
Robert “Bobby” Nelson, a beloved father and husband, and a highly respected engineer, died suddenly last Saturday.
Jason Mathews, a Supervisory Petroleum Engineer with the Bureau of Safety and Environmental Enforcement, had this to say about his admired colleague:
“A legacy is not just what you leave for others; it’s the impact of your presence, the influence of your actions, and the memories you create.
Bobby was an exceptional engineer, father, husband and friend who had a lasting impact on many of us. In fact, I would argue Bobby was one of the most impactful engineers in my tenure on developing and transforming younger engineers on how to think critically on complex offshore systems and processes.
Bobby’s legacy in my industry will push on for many years, and we are forever grateful for the time we had with him.”
More from his colleagues:
Bobby dedicated much of his professional life to BSEE, where he served as a Technical Advisor since January 2020, and for the previous seven years as Well Operations Section Chief and Drilling Engineer in the Houma District.
His expertise in well control, drilling engineering, and offshore regulatory compliance was invaluable. He contributed significantly as a subject matter expert and assistant content writer for the BSEE Well Control Rule Revision Team, helping shape post-Deepwater Horizon reforms, and provided technical insights on critical projects ranging from tropical cyclone risk assessments for floating rigs to hydrate pressure coring expeditions and incident investigations.
Bobby’s commitment to safety and environmental stewardship on the Gulf of America’s Outer Continental Shelf left a lasting impact on his colleagues and the industry.
He is survived by his loving wife, Amber, whom he met at BSEE, and their young daughter. In this time of grief, please keep Bobby’s family in your thoughts and prayers.
Bud's Offshore Energy (BOE) 
Comments from the California AG and Sable Offshore on the special permit application to PHMSA
Posted in California, energy policy, Offshore Energy - General, pipelines, Regulation, tagged California AG, comment letters, PHMSA, pipeline, Rob Bonta, Sable Offshore, Santa Ynez Unit, special permit on April 8, 2026| 2 Comments »
I’m attaching the complete comment letters from Sable Offshore and their main antagonist, California Attorney General Bonta, in response to PHMSA’s public notice and request for comments on Sable’s special permit application.
Summary of the California AG’s assertions:
“First, PHMSA is without authority to grant such a special permit because Lines CA-324/325 are intrastate pipelines and California regulators have sole regulatory oversight over any attempt to restart these Lines and issue state waivers. Second, California has vested interests in ensuring Lines CA-324/325 operate safely and PHMSA’s proposed special permit would dilute the higher state safety standards that were imposed on Sable and therefore it is inconsistent with pipeline safety. 49 C.F.R. § 190.341(d). Third, given the fact Line CA-324 already failed and caused a catastrophic oil spill in 2015 in Santa Barbara County, even if PHMSA had authority to issue a special permit (which it does not), a more robust environmental analysis needs to be performed. Fourth, PHMSA unlawfully invokes the Endangered Species Acts’s emergency consultation procedures and has given no indication that it will consult with the National Marine Fisheries Service, in violation of the Act. Finally, Secretary Wright’s March 13, 2026, order (“DPA
Order”) does not change anything about the propriety of the Application, because the DPA Order itself is unlawful.”
Summary of Sable’s position (screenshot):
You can sample the other public comments, some of which are quite good, by visiting the Regulations.gov docket.
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