Posted in California, pipelines, Regulation, tagged 9th circuit, Attorney General, California, consent decree, Los Flores pipelines, PHMSA, Sable Offshore on January 26, 2026| Leave a Comment »
The State has asked the 9th Circuit Court of Appeals to set aside these three PHMSA orders:
In light of the venue and the clear language in the 2015 Consent Decree regarding the California Fire Marshal’s jurisdiction, the State’s petition would seem to have a good chance of success.
Posted in California, energy policy, Offshore Energy - General, Regulation, tagged Exxon Hoover, Hunterbrook, pipeline, production restart, Sable Offshore, Santa Ynez Unit on January 26, 2026| Leave a Comment »
Updated Hunterbrook Media summary of Sable’s prospects for restarting Santa Ynez Unit production:
“Exxon spinoff Sable Offshore faces seven barriers to restart its pipeline, idled since a major oil spill in 2015. One of those approvals needs to come from the California Coastal Commission, which Sable CEO Jim Flores criticized for its “Teflon” “eco-Nazi attitude” in a leaked call recording newly obtained by Hunterbrook. Because of these barriers — and despite Trump Administration intervention — Sable’s project, originally scheduled to go online in Jan 2024, may never sell oil. At least not under the ownership of Sable ($SOC), which is quickly running out of cash.“
Exxon’s options per Hunterbrook:
The Exxon purchase agreement gives Exxon a free reassignment option: If Sable fails to “restart production” by Mar. 31, Exxon can demand reassignment of the assets within 180 days, “without reimbursement of any Purchaser costs or expenditures.”
In other words: Exxon can just take back the asset. For free.
And if Sable’s regulatory pathway is really just delayed, not denied — as Sable claims — that may be a more appealing proposition for Exxon than it once was.
Or, perhaps, Exxon will decide to retire the project, recognizing the Sisyphean path to production. (Exxon already took a $2.5 billion write-down as part of exiting offshore operations in California.)
Posted in Regulation, energy policy, deep sea mining, tagged deepsea minerals, DSHMRA, first application, NOAA, The Metals Company, TMC on January 23, 2026| Leave a Comment »
The Metals Company has filed the first consolidated application for an exploration license and commercial recovery permit under NOAA’s new regulations.
Posted in deep sea mining, energy policy, Regulation, tagged consolidated licensing, deepsea minerals, DSHMRA, environmental issues, final rule, jurisdictional issues, NOAA, step forward on January 23, 2026| Leave a Comment »
Links to final rule and post about the draft rule
“The objective of this rule is to provide the option for a consolidated application streamlining the process for qualified applicants.”
Reflecting on advances in environmental science, seafloor mapping, and offshore mineral-collection technologies, the revised rule allows qualified companies that gather the necessary site information to proceed to the collection phase. Deepsea mining is now more closely aligned with offshore oil and gas in that companies acquiring licenses are able to proceed to production after regulatory approvals.
The preamble nicely summarizes the opposition to the rule for environmental and jurisdictional reasons:
“General opposition to deep seabed mining was expressed for a variety of stated reasons, including, but not limited to the following assertions: effects on the environment; effects on seabed habitat and to marine species including undiscovered species especially in the Clarion-Clipperton Fracture Zone; harm to cultural resources and Pacific Islander livelihoods and beliefs; inadequate scientific research and information; inadequate resource protection measures and regulations; uncertainties regarding environmental impacts and a nascent industry; significant technical challenges to deep seabed mining; opposition to deep seabed mining from many U.S. states, countries, and global companies; that deep seabed mining is contrary to international agreements and efforts; the need for moratoria; that deep seabed minerals are not needed to meet U.S. demand for critical minerals and domestic sources and recycling of such minerals should be used instead; the U.S. needs to focus on building domestic refineries; using renewable and alternative resources rather than deep-sea minerals; and jeopardizing vital carbon sinks.”
“Commenters stated that acting unilaterally on deep seabed mining undermines the ISA (International Seabed Authority) process, international norms, global stability, and the rule of law, and that it could result in harm to protected areas, such as Areas of Particular Environmental Interest designated by the ISA.”
Posted in California, energy policy, Offshore Energy - General, Regulation, tagged BSEE, Chris Wright, Jane Fonda, Julia-Louis Dreyfus, Phil Mickelson, PHMSA, Sable Offshore, Santa Barbara Channel, Santa Ynez Unit, Ted Danson on January 22, 2026| Leave a Comment »
“The Santa Barbara Channel has been dubbed the Galápagos of North America” ~ Maggie Hall, Environmental Defense Center attorney. (comments: 1. clever branding ala calling ANWR “America’s Serengeti!;” 2. no natural oil seeps in the Galapagos Islands; 3. 130 years of oil production history in the Channel)
Sable opponents organize entertaining rallies featuring famous celebrities:
Meanwhile, Sable has some starpower of its own with strong public support from golfer Phil Mickelson.
Senior Federal officials and key agencies are outspoken Sable supporters:
“Only in California! Newsom is blocking oil production off California’s coast from reaching their own refineries, driving gasoline prices even higher for Californians! Now, this oil production will have to be shipped elsewhere, lowering gas prices for other areas— just not for California! This is the opposite of common sense!” ~ Energy Secretary Chris Wright
BSEE declared victory 6 months ago: “This is a significant achievement for the Interior Department and aligns with the Administration’s Energy Dominance initiative, as it successfully resumed production in just five months.”
on December 23, 2025, the Pipeline and Hazardous Material Safety Administration (PHMSA) declared jurisdiction over and issued an emergency special permit for the Santa Ynez Pipeline System.
Perhaps most entertaining are the exchanges on X between Sable bulls and short-sellers. A few examples are embedded below:
Posted in drilling, energy policy, Offshore Energy - General, Regulation, tagged Bill Clements, JL Daeschler, Malaysia, Miri, safety, Sedco on January 15, 2026| Leave a Comment »
Per JL Daeschler, Sedco’s Far East, North Sea, and South America operations were all run from Dallas in the late 60’s. In 1970, an old schoolhouse became Sedco’s corporate headquarters (see picture and narrative pasted above). Thank you Bill Clements for saving this historic building – what a beautiful headquarters for the challenging and booming offshore industry!
JL: After 2 years with SEDCO in Miri, East Malaysia (1971) I moved to Brownsville Tx. But in 1979 I returned to the old school house in Dallas in secondment to Sedco Hamilton Production Services from Hamilton Brothers Oil & Gas. The main objective of the joint venture was promotion of floating production systems and in particular use of semi sub technology. One project assignment was the BP “Buchan” field in the North Sea. (Note: this work was a precursor to the deepwater floating production units that are now the method of choice for deepwater development in the Gulf.)
JL is pictured (right below) on the Sedco 135 during operations offshore East Malaysia.
Wisdom from JL: Rules were pretty simple, as you can read on the rig wall in the picture. No App, pin, or password…. In fact no internet and mobile phone, just a radio operator.
Safety was grounded in the attitude and respect of 100 + people living and working together (47 working / 47 sleeping and 6 managing and protecting others. More difficult was the integration of the visiting contractors, logging/cementing / diving / VIPs. (Still true today!)
No division amongst ages, nationality ( sometimes 6 of them) religions, Job position , and ethnicity. Just get along and do what you get paid for!
Safety issues were dealt with immediately with short, unscheduled “toolbox” meetings – less reporting and more fixing.
(As an aside, Dan Bourgeois and I were on assignment to Petronas in 1977 and visited their East Malaysian operations. Does anyone in Petronas remember us? 😉)
Posted in energy policy, Offshore Wind, Regulation, tagged Judge Lamberth, Orsted, Revolution Wind, second shutdown order on January 14, 2026| Leave a Comment »
See the attached order. This is the second time that Judge Lamberth has ordered the lifting of a shutdown order for this project. As we previously concluded:
Orsted has a lease contract, and no matter where you stand on offshore wind, you have to have a compelling case to halt a project that is in the advanced stages of development.
Posted in California, energy policy, Offshore Energy - General, Regulation, tagged carbon disposal, Darren Woods, Exxon, Hilcorp, Sable Offshore, Santa Ynez Unit, Trump, uninvestable, Venerzuela on January 13, 2026| Leave a Comment »
Unsurprisingly, President Trump was not particularly pleased with Darren Woods’ “uninvestable” quote, the main media takeaway from Friday’s meeting on redevelopment of Venezuela’s oil and gas resources.
Exxon CEO Darren Woods: “If we look at the legal and commercial constructs and frameworks in place today in Venezuela — today, it’s uninvestable.”
The response from President Trump: “I didn’t like Exxon’s response,” Trump said to reporters on Air Force One as he departed West Palm Beach, Florida. “They’re playing too cute.” He told reporters he was inclined to deny Exxon any role in rebuilding Venezuela’s oil industry.
If Exxon is now in the President’s doghouse, what does this mean for the Santa Ynez Unit, an Exxon orphan that was adopted by Sable Offshore? Given Sable’s financial challenges, the SYU may soon be returning to Exxon.
Regardless of ownership, an SYU production restart faces strong opposition in California and is fully dependent on an assertive and supportive Federal government. Meanwhile, an injunction on SYU production remains in place, and despite rumors to the contrary, Sable confirms they are complying with that order.
If not already dead, another Exxon initiative, Gulf of America carbon disposal, may now be a step closer to extinction. Does Exxon, which has not drilled an exploratory well in the Gulf since 2018 or a development well since 2019, think the Gulf is only investable for carbon disposal?
Lastly, it’s noteworthy that Hilcorp, the only Alaska OCS producer, is all-in on Venezuela!
Posted in Gulf of Mexico, Offshore Energy - General, Regulation, tagged 2025 inspections, BSEE, Cox Operating, enforcement, incident data, INCs, Sable Offshore, violations on January 8, 2026| Leave a Comment »
Observations after reviewing publicly available 2025 BSEE inspection data:
Posted in California, energy policy, Regulation, tagged California Coastal Commission, consent decree, PHMSA, Sable Offshore, Santa Ynez Unit on January 7, 2026| Leave a Comment »
The Commission’s letter to PHMSA is attached (click on pages to enlarge). The CCC asserts the right, pursuant to the Coastal Zone Management Act, to review Sable’s restart/special permit application and further asserts that PHMSA’s special permit should be stayed pending their review.
The Commission also raises NEPA and Consent Decree compliance issues, and implies that PHMSA’s designation of the pipeline as “interstate” is subject to consistency review.
The letter is dated 12/23/2025, one day prior to the 9th circuit filing by environmental groups, but has just surfaced online.
Bud's Offshore Energy (BOE) 