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Archive for the ‘Regulation’ Category

The proposed revisions to the Arctic drilling regulations have just been posted and are attached for your convenience.

From a risk management standpoint, the current Arctic drilling rule, particularly the same season relief well (SSRW) provisions, is arguably the worst in the history of the OCS program. Regardless of the prospects for Arctic exploration, offshore drilling is not feasible under the current regulations. Hopefully, this proposal represents a significant improvement. More to follow after the text has been reviewed.

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Interesting article by Amanda Van Dyke. Highly recommended.

There are 67 NGOs with observer status at the International Seabed Authority (ISA) as of March 2026, which explains why nothing gets done. More than thirty years after its creation, there is still no final Mining Code for nodule exploitation.

Deep‑sea mining disturbs low‑productivity abyssal ecosystems and may have long‑lasting local effects on small communities of widely distibuted organisms reliant upon the nodules themselves, but avoids the deforestation, human displacement and occupational hazards of many terrestrial mines. The ethical question is whether it is better to concentrate impacts on a relatively small portion of the most common habitat on Earth, or to continue expanding high‑impact mining frontiers on land like tropical rainforests.

The job of a regulator is not to deliver closure for activists. It is to regulate access to resources designated as the “common heritage of mankind” in a way that balances environmental protection, equitable benefit sharing and global development needs. That will always involve trade‑offs.

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Excerpts from BP press release:

Atlantis is located about 150 miles south of New Orleans and has been in production for nearly 20 years. The expansion project adds two new subsea water injection wells to help increase the pressure of targeted reservoirs, unlocking additional barrels and extending the producing life of one of bp’s flagship US offshore assets.

The project, which was delivered ahead of schedule and under budget, adds approximately 10,000 barrels of oil equivalent per day (boe/d) of gross peak annualized average production, with around 5,000 boe/d net to bp.

Some of you may remember the 2009 False Claims Act allegations by a former BP contractor claiming that BP did not properly maintain the engineer-approved “as built” drawings of systems and structures aboard the Atlantis facility. The contractor alleged that the absence of the documentation created increased safety risks for the facility and to its personnel.

Following the allegations, an industry source closely involved with the project (but not a BP employee) made the following comment to the BOE blog:

Atlantis was by far, in my opinion, the best of the bunch; proceeded as a normal construction project. The PMs were the best I’ve come across.

BOEMRE (the name of the offshore safety regulator at the time) conducted a comprehensive investigation of the matter. Director Michael Bromwich sumarized the findings:

“As the report makes clear, although we found significant problems with the way BP labeled and maintained its engineering drawings and related documents, we found the most serious allegations to be without merit, including the suggestion that a lack of adequate documentation created a serious safety risk on the Atlantic facility. We found no credible evidence to support that claim.”

The BOEMRE press release is attached. Link to the full investigation report.

In August 2014, a Federal court dismissed the False Claims Act lawsuit because the plaintiffs lacked evidence and standing.

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A 7/28/2026 Dept. of Justice brief submitted to the Ninth Circuit Court of Appeals cites the 5/28/2026 Supreme Court decision in Flowers Foods Inc. v. Brock in asserting that Sable’s onshore pipeline segments are interstate and subject to Federal jurisdiction.

This filing is part of multi-faceted litigation involving Federal preemption, a 2020 Consent Decree, emergency special permits, and state environmental concerns. The Ninth Circuit is handling the expedited briefings and consolidation of petitions.

DoJ’s core argument is that Sable’s onshore segments do not interrupt the continuous “flow of commerce” from Outer Continental Shelf (OCS) offshore extraction → onshore processing → further transport to terminals (e.g., in Kern County). Thus, the system qualifies as interstate commerce subject to Federal (PHMSA) oversight rather than state regulation.

The Flowers Foods Inc. v. Brock case considered similar flow of commerce issues. The SCOTUS agreed with the Tenth Circuit that Brock delivery franchisees were engaged in interstate commerce even if they never cross State lines. The gist of the decision is as follows (emphasis added, full decision attached):

The Federal Arbitration Act (FAA) requires courts to enforce many private arbitration agreements, but it also provides that “nothing” in the law shall be used to compel arbitration in disputes involving the “contracts of employment” of any class of workers “engaged in . . . interstate commerce.” 9 U. S. C. §1. This case poses the question whether someone can qualify as a worker under the §1 exemption if he never crosses state lines and never interacts with vehicles that do. Flowers Foods, Inc., is a large producer of packaged baked goods with bakeries in 19 States. To get its products to market, the company depends in part on franchisees who buy the distribution rights to Flowers’s products in specific geographic territories. Angelo Brock is one such franchisee serving the Denver area; he picks up Flowers’s products from a warehouse in Colorado and delivers them to local stores, all without leaving the State. In 2022, Brock sued Flowers in federal district court alleging that the company had underpaid him and other distributors in violation of various federal and state laws. Flowers moved to compel arbitration, arguing that the FAA generally requires courts to stay or dismiss cases when the parties have agreed to resolve their disputes by arbitration and that Brock had signed a distribution agreement promising to arbitrate any disagreement. The district court denied Flowers’s motion, and the Tenth Circuit affirmed. Resting its decision on 9 U. S. C. §1, the Tenth Circuit reasoned that Brock belonged to a class of workers engaged in interstate commerce and thus the court lacked authority to compel arbitration.

We should soon find out what the Ninth Circuit thinks!

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The National Defense Authorization Act (NDAA), as passed by the House this week, includes an amendment (attached) authorizing the Federal govt to acquire all lands along the Santa Ynez Pipeline System route. Wesley Hunt (TX), who introduced the amendment, comments in the short video below. The Senate has yet to approve the bill.

Assuming Sable’s attorneys are able to continue navigating through the legal minefield, the success of the project will depend on the performance of Sable’s well operations and production teams, and the extent to which they have the authority and confidence to curtail operations when deemed necessary to protect workers and the environment. In that regard, MMA engineers and inspectors have an important role in identifying risks and assuring that they are mitigated.

Excerpt from the amendment:

SEC. 28ll. ACQUISITION OF EASEMENTS FOR DEFENSE FUEL SUPPLY INFRASTRUCTURE.
(a) AUTHORITY TO ACQUIRE.—The Secretary of Defense is authorized to acquire, by purchase, donation, exchange, or condemnation, on behalf of the United States, such permanent easements over all lands along the route of the Santa Ynez Pipeline System, including all lands owned or otherwise held by the State of California or any agency, department, or instrumentality thereof, as the Secretary of Defense determines necessary to ensure continuous pipeline transportation of crude oil from the Santa Ynez Unit to domestic refineries supplying Department of Defense installations in the State of California

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On February 12, 2024, the bankruptcy court approved the sale of certain Cox Operating assets to Natural Resources Worldwide LLC (NRW), a company that had no prior offshore experience. NRW contracted with Array Petroleum to operate 154 Cox legacy platforms (per MMA data). NRW is listed as the operator of just one platform.

The bankruptcy court had previously approved the sale of Cox assets in 6 Gulf of America fields to W&T Offshore.

As noted in previous posts, the Cox legacy of non-compliance has continued under new ownership. In 2026 YTD, Array Petroleum accounted for 52% of Gulf of America Incidents of Non-Compliance (INCs) while operating only 12% of the platforms, and producing only 0.06% of the oil and 0.17% of the gas (2025 production data). Their 2026 YTD INCs/inspection ratio is 7.55 times the Gulf average and 14.6 times the Gulf average if Array inspections are excluded.

The only platform operated directly by NRW was cited for 3 INCs on 2 inspections.

Per MMA data, W&T operates 117 platforms in the Gulf. The number of platforms that were included in the acquisition of the 6 Cox fields is unknown. W&T’s INC/inspection ratio in 2023, the year before the Cox acquisition, was 0.72 (80/111), which was better than their 2026 performance (0.94), but worse than the Gulf-wide 2023 average of 0.57. So W&T’s compliance relative to other Gulf operators was about the same before and after the acquisition.

According to the borehole file, neither Array, NRW, nor W&T conducted any drilling operations in 2026 YTD.

Kudos to the MMA inspectors for their diligence in identifying INCs and issuing citations. The 2026 YTD data table is below.

WCSIFSItotal
INCs
facility
insp
INCs/isp
Array4031154522885.93
NRW120321.50
W&T3846488940.94
GoA total65329656100512800.785
Notes: Numbers are from published BSEE data (7/21/2026 inquiry); INC=incident of non-compliance; W=warning INC; CSI=component shut-in INC; FSI=facility shut-in INC; INCs/insp= INCs issued per facility inspection; each facility-inspection may include multiple types of inspections (e.g. production, pipeline, pollution, Coast Guard, site security, etc)

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See attached. This is a well written directive. Kudos to the authors.

Retaining the revenue management functions in ONRR is prudent.

There has been no specific announcement regarding the MMA Director, but a quote in the American Samoa lease sale announcement cites Matt Giacona, Acting MMA Director. Congrats to him.

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World Bank global flaring estimates are now derived from 3 satellites carrying NOAA VIIRS detectors. The increased number of observations improves the precision and accuracy of the flare locations and volume estimates.

The World Bank (WB) Global Gas Flaring Tracker is the only worldwide flaring data source. Offshore and onshore data are segmented, so offshore flaring can be considered separately for each country.

The WB estimates that 21600.03 million cu m (762.5 bcf) of gas were flared at offshore locations worldwide in 2025. This is an increase from 2024 when the total offshore flaring volume was 21159.91 million cu m.

The flaring totals for prominent offshore producers are entered in the table below. Also included are the largest offshore flares for each country.

Unsurprisingly, Norway led the pack in minimizing offshore flaring. Their total of 36.11 million cu m (1.3 bcf) is very impressive for such a large producer. The US offshore total of 160.95 cu m (5.7 bcf) is also quite respectable relative to production.

At the other end of the scale are Iran – 3329 million cu m (118 bcf), Nigeria – 2566 (91 bcf), Angola – 2300 (81 bcf), and Mexico 2068 (73 bcf). These 4 countries accounted for nearly half of all 2025 offshore flaring. They were also massive offshore flarers in 2024: Iran – 3753 million cu m, Nigeria – 2867, Angola – 2040, and Mexico – 2223.

If both onshore and offshore flaring are considered, Iran flared 29931 million cu m in 2025. That equates to 1.057 trillion cu ft!

2025 WB flaring total
million cu meters
largest flarelargest flare volume
Angola2300.26Lombo East862.02
Australia268.36Santos61.89
Brazil969.16Albacora Leste118.93
Canada145.12Terra Nova95.83
China535.56Weizhou 12-168.26
Congo, Rep.788.98Kitina384.12
Gabon368.91Tchatamba Marin37.46
Ghana351.81Sankofa East184.97
Guyana227.38Yellowtail164.06
Indonesia292.16Belida30.84
Iran3329.19Foroozan1360.09
Libya313.78Bouri74.07
Malaysia1459.32Kasawari205.8
Mexico2067.62Akal386.44
Nigeria2565.88Oso308.37
Norway36.11Balder6.38
Qatar688.19Ras Laffan LNG54.65
Russia227.27Yuri Korchagin82.07
Trinidad87.66Atlantic LNG53.23
UK234.08Penguins22.94
US160.95NA*22.77
*The WB lists the field name for the largest US flare as NA. The lat/long for the Whale deepwater platform in the Western Gulf matches the identified flare location (26.22 lat., -94.67 long.)

The WB tracker identifies the Gulf of America facilities with the highest flaring volumes. The 2025 list is pasted below. Repeat top ten Gulf flarers from 2024 were Vito (14.55 million cu m in 2024), Pompano (11.68), and Lucius (5.72).

The WB lists the field name for the largest US flare as NA. The lat/long for the Whale deepwater platform in the Western Gulf matches the identified flare location (26.22 lat., -94.67 long.)

Per the WB tracker, the Terra Nova FPSO, offshore Newfoundland, was the top North American offshore flarer by a considerable margin (data for Canada below). Terra Nova was also the top flarer in 2024 (95.56 million cu m).

The location of the only flare identified offshore California corresponds with that of the Dos Cuadras field in the Santa Barbara Channel. The estimated 2025 flaring volume was 0.10 million cu m.

The WB flaring tracker is an excellent data source, but doesn’t capture vented gas and likely understates the total volume flared. The WB estimated that 160.95 million cu m (5.68 bcf) were flared at US offshore facilities in 2025. This compares with the 9.7 bcf (flaring and venting) and 8.0 bcf (flaring only) totals derived from ONRR data (chart below). The flaring difference is not surprising given that the WB numbers are dependent on satellite imagery and the ONRR data are from mandated/audited production reports. A previous comparison also showed that the WB flaring estimates are significantly lower than the ONRR numbers. From a regulatory oversight perspective, this is rather reassuring given that the reverse (WB>ONRR) would imply serious reporting issues.

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The attached letter to the General Accountability Office (GAO) asserts that there were “deeply entrenched ethical issues and conflicts of interest within the former Minerals Management Service (MMS),” and implies that these issues were among the factors contributing to the tragic Macondo well blowout.

I retired from MMS shortly before the Macondo well blew out on April 20, 2020, and testified before the Senate Energy and Natural Resources Committee on May 11, 2010. My comments on MMS employee ethics still stand and are reiterated below:

I also want to express my disappointment in certain media comments directed at my former MMS colleagues. These comments have not only been ill-informed and unsubstantiated, but malicious. Without hesitation, I can tell you that MMS regulatory personnel–inspectors, engineers, scientists, and others–are 100% committed to their safety and pollution prevention mission. MMS inspectors are themselves exposed to risks every day when they fly offshore and inspect facilities. MMS personnel have repeatedly made personal sacrifices to support the regulatory mission. After Ivan, Katrina, Rita, Gustav, and Ike, MMS employees worked to restore oil and gas production essential to our economy, even when their personal lives had been disrupted by the onshore impacts of these hurricanes. These personnel work under strict ethics standards, and despite a few isolated and highly publicized incidents that occurred more than four years ago, conduct themselves with the highest degree of professionalism. While a critical review of the entire offshore regulatory regime is necessary and appropriate, unsubstantiated accusations and personal attacks are not.


The comprehensive Chief Counsel’s Report, National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, was the only inquiry to consider whether ethical lapses were a contributing factor to the blowout. In the “Regulatory Observations” chapter, the Chief Counsel addressed ethics concerns directly (p. 261):

“In recent years various bodies have concluded that certain MMS offices and programs have violated ethical rules or guidelines. In the wake of the Deepwater Horizon disaster, some questioned whether ethical lapses played any role in causing the blowout. The Chief Counsel‘s team found no evidence of any such lapses.

This blog closely followed the Macondo blowout. I have read all of the investigation reports and many of the court documents. I also served on the defense team for Bob Kaluza, the BP Well Site Leader who was fully acquitted after being shamefully prosecuted in the wake of the blowout. My thoughts on the Macondo tragedy are summarized in a six part series.

Because of the false ethics narrative and scapegoating of MMS, experts who should have been directing the well control efforts, were pushed to the back of the bus shortly after the blowout began. Had that not been the case, I believe the top kill operation would not have been aborted in late May and the well would have been killed 48 days sooner, reducing the oil spill volume by at least 2.4 million bbls. (See the analysis by Dr. Mayank Tyagi and his colleagues at LSU.) Also, keep in mind that the USCG Incident Commander almost required BP to resume flow from the well after the capping stack successfully shut-in the well on 7/15/2010, and would have likely done so were it not for forceful input from an engineer from the former MMS.

The consolidation of BOEM and BSEE into a single bureau makes sense. As I previously commented:

This is an excellent step that many OCS program veterans have been advocating. In addition to the inefficiencies associated with overlapping and intertwined BOEM and BSEE responsibilities, the associated regulatory fragmentation is a significant safety risk factor.

The primary OCS functions including leasing, resource evaluation, economic analysis, permitting, inspection and enforcement, investigations, environmental assessment, spill response preparedness, promulgation of regulations, technology assessment, research,and decommissioning, are inextricably linked, cannot be effectively segmented, and should not be stovepiped.

Finally, with regard to the reorganization planning questions posed at the end of the attached letter, perhaps GAO should first consider the abrupt, unplanned termination of MMS. At a 2011 Ministerial Forum in Washington, an international offshore safety expert criticized that rash decision noting – “It took 87 days to stop the blowout, but only 30 days to get rid of the regulator.”

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The Piper Alpha fire (July 6, 1988) was the worst disaster in the history of offshore oil and gas operations and sent shock waves around the world. Eight months later another interactive pipeline-platform fire killed 7 workers at the South Pass 60 “B” facility in the Gulf of Mexico. A US Minerals Management Service task group reviewed the investigation reports for both fires and recommended regulatory changes with regard to:

  1. the identification and notification procedures for out-of-service safety devices and systems,
  2. location and protection of pipeline risers,
  3. diesel and helicopter fuel storage areas and tanks,
  4. approval of pipeline repairs, and
  5. location of ESD valves on pipelines.

Paul Schneider and I wrote a paper on the task group’s findings and that paper was published in Offshore Operations Post Piper Alpha (Institute of Marine Engineers,1991). The proposed regulations that followed summarized these findings and can be be found at this Federal Register link.

Lord Cullen’s comprehensive inquiry into the Piper Alpha tragedy challenged traditional thinking about regulation and how safety objectives could best be achieved, and was perhaps the most important report in the history of offshore oil and gas operations. Per Cullen:

Many current safety regulations are unduly restrictive because they impose solutions rather than objectives. They also are out of date in relation to technological advances. Guidance notes lend themselves to interpretations that discourage alternatives. There is a danger that compliance takes precedence over wider safety considerations and that sound innovations are discouraged.

Cullen advocated management systems that describe the safety objectives, the system by which those objectives were to be achieved, the performance standards to be met, and the means by which adherence to those standards was to be monitored. He called for safety cases that describe major hazards on an installation and provide appropriate safety measures. Per Cullen, each operator should be required in the safety case to demonstrate that the safety management systems of the company and the installation are adequate to assure that design and operation of the platform and its equipment are safe.

Full Piper Alpha Inquiry – 2 parts.

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