Posted in flaring and venting, Gulf of Mexico, Offshore Energy - General, Regulation, tagged Gulf of America, increased flaring, trend, venting on June 24, 2025| Leave a Comment »
As the chart indicates, the % of flared or vented Gulf of America gas production increased over the past 10 years. This trend is presumably due, at least in part, to the sharp increase in the % of gas production from oil wells (associated gas), which have a higher flaring rate. In 2024, 87% of Gulf gas production was from oil wells.
Flaring/venting summary tables and comments, updated through 2024, will be posted later in the week.
Posted in accidents, Gulf of Mexico, Offshore Energy - General, Regulation, tagged BSEE, fires, gas detection, gas starters, Gulf of America, injuries, mechanical integrity, pipeline pumps, proper venting on June 23, 2025| Leave a Comment »
The Safety Alert is attached. Per BSEE, the fires resulted from an accumulation of gas caused by improperly installed or disconnected exhaust vent piping on gas starters.
Incident 1: Two workers sustained burns to the hands, arms, and face. BSEE investigators discovered that the engine’s air intake hose was disconnected, which may have allowed gas-enriched air to be drawn into the carburetor causing the backfire.
Incident 2: While attempting to start the gas engine of a pipeline pump, the lead mechanic sprayed ether into the engine’s carburetor. The exhaust vent piping for the starter had not been installed. The combination of the gas-rich atmosphere and ether caused the engine to backfire and ignited the
accumulated gas. The lead mechanic, sustained burns to his face, arms, and hands.
The Alert includes important recommendations for proper venting, mechanical integrity awareness training, maintenance, and the use of gas detectors and a temporary fire watch during engine startup.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, Regulation, tagged bidding restrictions, Chevron, farm-ins, Gulf of America, joint bidding, lease acquisition, leasing, Total on June 20, 2025| Leave a Comment »
This week Total announced the acquisition of a 25% working interest in 40 Chevron leases in the Gulf of America. Total already owned interest in Chevron’s producing Ballymore (40%), Anchor (37.14%), Jack (25%), and Tahiti (17%) fields. Ironically, Federal regulations prohibited Total from jointly bidding with Chevron for any of those leases at the time of the sales. How does that make sense?
Restrictions limiting joint bidding by major oil companies date back to the Energy Policy and Conservation Act of 1975. Although these restrictions were intended to increase competition and revenues, OCS program economists have asserted, and studies have shown, that the ban results in fewer bids per tract and lower bonuses to the government.
Total did not submit a single bid in any of the past 4 Gulf of America lease sales. Perhaps they prefer to acquire interest in blocks previously leased to companies like Chevron. That is a reasonable acquisition strategy. However, farm-in acquisitions yield no bonus dollars to the Federal government. Wouldn’t it have been in the government’s best interest if some of those acquisition dollars were spent at lease sales where the bonus bids go to the US Treasury? It’s long past time to remove the joint bidding restrictions!
Posted in accidents, Gulf of Mexico, Offshore Energy - General, Regulation, tagged bypassing safety devices, Gulf of America, offshore production, process safety, risk-based inspections, Safety Alert, safety management on June 12, 2025| 2 Comments »
As explained in the attached Safety Alert, BSEE’s risk-based inspection program has identified deficiencies in safety device bypass practices including:
The regulations restricting the bypassing of safety devices are core elements of OCS regulatory and operator management programs. Because they are critical to process safety, these requirements are widely supported and strictly enforced.
Posted in Guyana, oil spill response, Regulation, well control incidents, tagged Guyana, indemnification, Oil Spill Bill, OPA 90, operator responsibility, OPPR, unlimited liability on June 6, 2025| Leave a Comment »
Guyana’s Oil Spill Bill (attached) has much in common with the Oil Pollution Act of 1990 that we implemented for US offshore faciities and the International Convention on Oil Pollution Preparedness, Response and Co-operation that I attended in 1990. A couple of issues warrant highlighting:
Operator/licensee responsibility:The definitions correctly establish the operator or license holder as the responsible party. This means that in the event of a well blowout while drilling from a mobile drilling unit, the licensee/operator would be the responsible party. This aligns with the “operator responsibility” mantra that is fundamental to the US offshore program. Drilling and other contractors are managed by the operator and are the operator’s responsibility.
Unlimited liability: The liability section (Part VI) establishes an unlimited liability standard for the responsible party. As previously discussed in more detail, this is a daunting, open-ended obligation that would trouble permittees in any industry. The unlimited liability provision could preclude responsible independent operators, including Guyanese companies, from seeking licenses.
The unlimited liability standard (par. 17) is qualified with a provision (pasted below) that also favors major international companies.
The unlimited liability provision therefore does not seem to apply to parent companies idemnifying a project. This was a point of contention during the parliamentary debate. The Kaieteur News delves into the issue and is not entirely convinced by the Government’s defense. Their article closes as follows:
It is important to note that stakeholders have argued that since ExxonMobil Guyana Limited (the responsible party) does not have adequate assets, the burden of oil spill-related costs could be left on Guyana, especially in the absence of unlimited coverage from the parent company. These and other “flaws” have prompted Guyanese to urge President Irfaan Ali not to assent to the Bill, passed in the National Assembly on May 16, 2025. Be that as it may, the Ministry maintained that the “robust statutory framework now established protects Guyana and its people.”
Posted in California, pipelines, Regulation, tagged judge bars pipeline restart, Sable Offshore, Santa Ynez Unit on June 3, 2025| Leave a Comment »
John Smith informs me that today (6/6/2025), a Santa Barbara Superior Court issued an order preventing the restart of the Santa Ynez Unit’s onshore pipeline pending Court resolution of the dispute.
Sable’s shares plunged 18% in response to the news.
Posted in energy policy, Offshore Wind, Regulation, tagged Ack for Whales, Aquinnah Wampanoag, BOEM, DOI, Green Oceans, lawsuit, New England Wind, NMFS on May 29, 2025| Leave a Comment »
ACK For Whales, the Wampanoag Tribe of Gay Head / Aquinnah, Green Oceans, a coalition of charter fishing groups and seven individuals filed suit in federal court asserting that the Departments of Interior and Commerce violated the law when they approved the Record of Decision (ROD) for the New England Wind 1 and 2 projects.
Construction has not yet begun on the New England Wind 1 and 2 projects. The leases abut Vineyard Wind’s troubled lease 0501 (see above map), site of last summer’s turbine blade failure.
Per ACK for Whales President Vallorie Oliver:
“In offshore wind project after offshore wind project, from Revolution Wind, Vineyard Wind and New England Wind to the others, the government was so desperate to rush these projects that it cut corners and violated the law,” Oliver said. “The government didn’t care if it trampled on the Wampanoag sacred beliefs and rites, hurt the charter boat, fishing and lobster industries or wiped out the Right whales. The only thing that mattered was to get these environmentally destructive turbines built, costs to the rest of us be damned.”
| Plaintiff: | ACK FOR WHALES, INC., VALLORIE OLIVER, AMY DISIBIO, VERONICA BONNET, DOUGLAS LINDLEY, STEVEN AND SHARYL KOHLER, DANNY PRONK, WILLIAM VANDERHOOP, GREEN OCEANS, RHODE ISLAND PARTY AND CHARTER BOAT ASSOCIATION, CAPE COD CHARTER BOAT ASSOCIATION, INC., CONNECTICUT CHARTER AND PARTY BOAT ASSOCIATION, INC., MONTAUK BOATMEN AND CAPTAINS ASSOCIATION, INC. and WAMPANOAG TRIBE OF GAY HEAD AQUINNAH |
|---|---|
| Defendant: | UNITED STATES DEPARTMENT OF COMMERCE, NATIONAL MARINE FISHERIES SERVICE, BUREAU OF OCEAN ENERGY MANAGEMENT, UNITED STATES DEPARTMENT OF THE INTERIOR, DOUG BURGUM, in his official capacity as Secretary of the Interior, WALTER CRUICKSHANK, in his official capacity as the Director of the Bureau of Ocean Energy Management, HOWARD LUTNICK, in his official capacity as the Secretary of Commerce and EUGENIO PIEIRO SOLER, in his official capacity as the Assistant Administrator of the National Marine Fisheries Service |
| Case Number: | 1:2025cv01678 |
| Filed: | May 27, 2025 |
| Court: | U.S. District Court for the District of Columbia |
Posted in California, energy policy, pipelines, Regulation, tagged California Coastal Commission, halt to pipeline work, preliminary injunction, Sable Offshore, Santa Ynez Unit on May 28, 2025| Leave a Comment »
For the reasons set forth herein, the application of the California Coastal Commission for issuance of a preliminary injunction is granted. No bond is required. The Commission shall present a written order for entry by the court.
The roller coaster ride continues. Sable Offshore’s stock price plunged in response to the latest order.
Posted in deep sea mining, energy policy, Regulation, tagged American Samoa, BOEM, deepsea mining, Impossible Metals on May 28, 2025| Leave a Comment »
As a result of a formal request from the Impossible Metals company, BOEM will begin a multi-step process which could lead to a marine minerals lease sale offshore American Samoa.
The first step will be the publication of a request for information and Interest in the Federal Register. This notice will seek public input that will help inform BOEM’s assessment of geologic conditions, potential environmental and cultural impacts, and other uses of the area.
Impossible Metals has developed an autonomous underwater vehicle (AUV) for selective mineral harvesting. Their novel AUV uses advanced robotics, AI, and a buoyancy engine to hover above the seabed and minimize disruption to the habitat and native biodiversity. Impossible Metals believes this method will have the lowest environmental impact and cost among land and deep-sea mining approaches.
9 minute interview with the CEO of Impossible Metals:
Posted in climate, energy policy, Offshore Wind, pipelines, Regulation, tagged commercial fishing, Constitution pipeline, Empire Wind, Equinor, Green Oceans, Norway, offshore wind regulation, pause reversal, Wampanoag Tribe on May 27, 2025| Leave a Comment »
With victory in sight, the President pulled the ball away from his most ardent East Coast supporters.
Further thoughts on the reasons for the Empire Wind reversal:
Following the reversal of the Empire Wind decision, Green Oceans, ACK for Whales, Long Island Commercial Fishing Association, Protect Our Westport Waters, Save Greater Dowses Beach, Save Right Whales Coalition, and the Wampanoag Tribe of Gay Head/Aquinnah petitioned Secretary Burgum to halt all wind construction in New England coastal waters and begin a “complete reevaluation” of their permits under applicable federal laws. In addition to right whale and tribal cultural resources concerns, the letter cited:
Bud's Offshore Energy (BOE) 