A previous post on wind theft and a recent BBC article point to the rather limited understanding that wind developers and govt land managers have about wind resource management including optimal turbine spacing and protection of correlative rights. Wind is considered a renewable energy resource, but the energy lost through inefficient operating practices is not renewable.
Given that the wake effect can extend for more than 100 km, reduce downwind energy production by >10%, and affect biological productivity, a better understanding of this phenomenon should have preceded the installation of thousands of turbines.
high density, low ultimate recoverycirca 1910modern deepwater production, few facilities, high oil recovery
Wind resource management is reminiscent of the early years of oil production when the “law of capture” reigned supreme and wasteful production practices were a self-defense mechanism.
“You cannot make this stuff up. The Murphy administration already burned through billions of your tax dollars on offshore wind projects that never worked. They pushed it on us even when towns were saying no, fishermen were saying no, and the tourism industry was saying no. They looked the other way while whales washed up on our beaches. They ignored the Pentagon when it said it was a national security risk. The NJ Ratepayer Advocate said it would raise utility bills. The Government Accountability Office (GAO) said the cons outweighed the pros. They did not listen to anyone. And now, after all that, they want to throw even more taxpayer dollars at it in court. It truly is a slap in the face to every taxpayer and every family struggling to pay their energy bill.”
“David is small, semi-nomadic and works across a vast sea area; Goliath is massive and growing rapidly.”
Energy Voice describes the challenges offshore wind poses for the small but culturally important UK commercial fishing industry, highlighting the findings of a fisheries research lab report.
Per Elspeth Macdonal of the Scottish Fishermen’s Federation:
“How it often feels to us is that government says all the right things, has this blue economy vision and all of those great things but, at the end of the day, it actually feels like government is picking winners and losers and, at the moment they seem unable to see past the wind industry as the only game in town.“
This comment on the evolution of the relationship between the fishing and oil industries in the North Sea also aptly describes the US offshore experience:
“The fishing industry eventually learned to live with Big Oil, which is now on the wane, but living with territory-guzzling offshore wind farms – fixed and floating – may prove a lot more challenging.”
All 17 of the States that filed the offshore wind law suit have Democrat governors. However, 6 States with Democrat governors are not parties in the suit (see table below). Two of those governors, Andy Breshear, and Josh Shapiro, are leading moderates within the Democrat party.
Unsurprisingly, 17 States (plus DC) filed the attached lawsuit in Massachusetts federal court asserting that the directive to suspend offshore wind activities is illegal.
This will be interesting given that the OCS Lands Act grants broad authority to the Secretary of the Interior to suspend activities when necessary to ensure safety, protect the environment, or allow for further study of potential impacts.
Those who are familiar with the administration of the OCS Lands Act know that there is really no such thing as a “fully permitted project.” The Secretary can call for further review whenever concerns are raised and there is a need for further investigation.
Farther in the past, there were noteworthy failures (below) like Mobil’s acquisition of Montgomery Ward, Exxon’s investment in Reliance Electric, and Gulf’s real estate ventures.
Mobil – Montgomery WardExxon – Reliance ElectricGulf Land – Reston
Finally, don’t expect the carbon sequestration boom that some are forecasting. As wind investors have discovered, industries dependent on mandates and subsidies are risky.
Not much unites climate activists and skeptics, but they are largely aligned in their opposition to carbon sequestration (euphemism for disposal), as are fiscal conservatives. The word chutzpah comes to mind when companies seek public funds to dispose of emissions associated with the combustion of their products.
199 oil and gas leases were wrongfully acquired at Sales 257, 259, and 261 with the intent of developing these leases for carbon disposal purposes. Repsol was the sole bidder at Sale 261 for 36 nearshore Texas tracts in the Mustang Island and Matagorda Island areas (red blocks at the western end of the map above). Exxon acquired 163 nearshore Texas tracts (blue in map above) at Sales 257 (94) and 259 (69).
Bidding at the February 2022 Atlantic (NY/NJ) wind saleseemed incomprehensible given the economic and political uncertainties associated with offshore wind development.The 6 leases garnered bids ranging from $285 million to an astounding $1.1 billion, with total high bids of $4.37 billion! The Administration’s victory message correctly boasted that this was the “nation’s highest grossing competitive energy lease sale in history.”
The intense bidding was driven by the lure of subsidies, guaranteed power sales, unprecedented Federal and State promotion, peak climate activism, inattention to mounting public opposition, and irrational expectations regarding the role of offshore wind in powering the regional economy.
The table below summarizes the sale results and the current status for the 6 leasesissued following the 2/2022 sale. One lease has been essentially terminated by the partners and the State. The other leases are in holding patterns in the planning phases.
high bidder
lease #
acres
bid ($millions)
status
Bluepoint Wind (EDP, ENGIE, Global Infrastructure Partners)
The first US commercial offshore project, Vineyard Wind, has proven to be a major step backward for the wind industry. After being granted questionable financial and quality assurance waivers to reduce costs and “allow Vineyard Wind to adhere to its construction schedule,” the July 2024 turbine blade failure and subsequent lightning strike have raised new questions about the technology, industry, and regulatory regime. The report on the blade failure, which should arguably be a precursor to the resumption of Atlantic wind development, has yet to be released.
The one shining light, relatively speaking, for Atlantic wind development, has been Coastal Virginia Offshore Wind. That large project is on track to be completed at the end of 2026. Although the cost has risen about nine per cent, to $10.7 billion, that increase is understandable given the higher than anticipated costs for upgrading the onshore network.
The Bureau of Ocean Energy Management (BOEM) is issuing this Director’s Order to Empire Offshore Wind LLC to halt all ongoing activities related to the Empire Wind Project on the outer continental shelf to allow time for it to address feedback it has received, including from the National Oceanic and Atmospheric Administration (NOAA), about the environmental analyses for that project. BOEM received this and other feedback regarding Empire Wind as an outgrowth of the review that the Department is engaged in related to offshore wind projects. See the President’s Memorandum of January 20, 2025. 90 Fed. Reg. 8363 (January 29, 2025).
Bud's Offshore Energy (BOE) 