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As we await the outcome of the nationally important gubernatorial race here in the Commonwealth of Virginia, I wanted to acknowledge the political appointees whom I had the opportunity to work for in the OCS oil and gas program. While they had different backgrounds and interests, all respected the importance of the program and were committed to safe operations and protection of the marine environment. Remarkably, they all managed the OCS program in a rather non-partisan manner.

Republican AppointeesDemocrat AppointeesNotes
Harold DoleyDon KashDr. Kash was Chief of the Conservation Div. (USGS), which was roughly the equivalent of BSEE Director
Bill BettenbergTom FryBill Bettenberg was a career Federal employee appointed as MMS Director by a Republican administration
Bob KallmanCynthia Quarterman
Barry WilliamsonWalt Rosenbusch
Scott SewellTom KitsosDr. Kitsos was a career Federal employee appointed MMS Director by a Democrat administration
Johnnie
Burton
Liz
Birnbaum
Randall Luthi

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Are the Saudis reading BOE?

The Public Investment Fund (PIF) announced today the launch of “THE RIG.”, a new tourism project. Inspired by offshore oil platforms, “THE RIG.” will be located in the Arabian Gulf and will span a combined total area of more than 150,000 square meters and provide a multitude of hospitality offerings, adventures, and aquatic sporting experiences.

PIF News Release

Were they inspired by this BOE exclusive?

Rigs-to-Rides
Rigs-to-Rides

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The House Oversight Committee has requested that executives from Exxon, Shell, Chevron, BP, and testify on October 28th.

“We are deeply concerned that the fossil fuel industry has reaped massive profits for decades while contributing to climate change that is devastating American communities, costing taxpayers billions of dollars and ravaging the natural world,” Oversight Chairwoman Carolyn Maloney, D-N.Y., and Rep. Ro Khanna, D-Calif., wrote in a letter to oil executives.

House Oversight Committee

Expect moral outrage, sloganeering, and finger pointing (the Washington salute). A link for viewing the hearing will be posted at the committee website.

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Vineyard Windmap 9 10 19 01

Washington, D.C. (9/13/2021) — Responsible Offshore Development Alliance (RODA), a broad membership-based coalition of fishing industry associations and fishing companies, filed a Petition for Review today in the First Circuit U.S. Court of Appeals regarding the Secretary of the Interior’s July 15, 2021 decision approving the Vineyard Wind 1 offshore wind energy project. This action is the culmination of many years of conscientious participation by fisheries professionals only to see their expertise and value summarily ignored by decision-makers during the leasing process.

The RODA statement is quite strong. While the new administration understandably wants to advance offshore wind development, they would have been wise to accept input from RODA and other interested parties before approving Vineyard Wind I. The fishing industry certainly has a legitimate interest in the outcome of this and other offshore wind projects.

A group of Nantucket residents had already sued BOEM over concerns about the endangered North Atlantic Right Whale. Concerns have also been expressed about the wind farm’s proximity to shore:

Fifteen miles was not OK in North Carolina or Long Island; then why is it OK for Nantucket? It’s just wrong.

David Stevenson, Caesar Rodney Institute

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May be an image of monument, outdoors and text

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This Canadian video was a big hit at an awards program in Houston 15 years ago. I was pleased to find it on YouTube and thought it would be a nice Labor Day feature. Kudos to the workers who produce the energy that supports our economy and our way of life. Your efforts are greatly appreciated! Happy Labor Day!

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After an amazing 38 year career with MMS and BSEE, Lars Herbst has announced that he will retire at the end of 2021. Lars had important technical and managerial roles in the development of the deepwater Gulf of Mexico, the response to major hurricanes including Ivan, Katrina, and Rita, controlling the Macondo blowout and addressing the related regulatory issues, and the offshore industry’s response to the COVID-19. Lars was an active participant in the International Regulator’s Forum and is recognized worldwide for his operational and regulatory expertise. Best wishes to Lars as he transitions to the next phase of his life.

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The Department of the Interior (Interior) confirmed today that the Department of Justice (DOJ) has appealed the preliminary injunction entered by the district court in Louisiana v. Biden, which enjoined Interior from implementing the pause in new federal oil and gas leasing 

DOI statement 8/16/21

The day after the fall of Kabul and 5 days after the White House urged OPEC to increase production, DOI reiterated the Administration’s support for a pause in oil and gas leasing on Federal lands (including the OCS). Given the increased risk of long-term oil supply uncertainty, rigid support for a blanket leasing pause would not seem to be a prudent policy position at this time.

DOI argues that greenhouse gas (GHG) emissions must be curtailed, but reductions in domestic production would increase the demand for imports with higher GHG intensity. Reductions in deepwater Gulf of Mexico production, which has low GHG intensity and other environmental advantages (few dispersed facilities distant from shore), would be particularly detrimental. Of course, any public policies that discourage natural gas production would also have distinct air emissions costs.

If supply restrictions increase the price of oil, net reductions in oil consumption and GHGs could be achieved. However, as evidenced by the recent appeal for increased OPEC production, higher oil prices are not consistent with Administration policy.

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Watching Kevin Costner at the beginning of the “Field of Dreams” game in Iowa reminds me that Kevin visited the MMS Ohmsett facility in New Jersey in 1999. He and his brother had developed an oil purification system that was being tested at Ohmsett (“Tank of Dreams?”). In the picture below, Kevin is flanked by Ohmsett Manager Bill Schmidt and Engineer Dave DeVitis. Were it not for the heroic efforts of Ed Tennyson and other MMS employees, Ohmsett would have been abandoned in the 1980s. More on that in a later post.

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Déjà vu?

The White House urged OPEC to boost oil production Wednesday, saying recent planned increases are insufficient as countries around the world seek to emerge from the Covid-19 pandemic.

Wall Street Journal, 8/11/2021

 

(Eizenstat) urged Carter to “shift the cause for inflation and energy to OPEC, to gain credibility with the American people 

Washington Post, 7/7/1979

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