A group of more than 7,000 redhead ducks was seen floating at the Mackinac Straits during the annual Audubon Christmas Bird Count on Dec. 21, 2022. According to the Straits Area Audubon Society, motorists on the Mackinac Bridge sometimes confuse these large groups of migrating ducks for oil slicks on the water. | Photo by Steve Baker, courtesy Straits Area Audubon Society; mlive.com article
More “free” oil was withdrawn from the SPR, which has sunk to the lowest level (375.1 million bbls) since Christmas 1983. More rational oil and gas leasing policies would have been a far better gift, particularly for our children and grandchildren.
Carbon-Zero US LLC of Dallas (a Cox Oil affiliate) has applied for up to $12 million in U.S. Department of Energy funds to develop a pilot sequestration hub in offshore storage fields about 20 miles from Grand Isle, according to officials from Cox Operating LLC, the Dallas operator that owns some of the storage fields.
Cox Operating LLC will “repurpose facilities and equipment” for the carbon storage project, according to a news release.
Should this company be authorized to repurpose Gulf of Mexico facilities for carbon sequestration?
Per BSEE Incident of Non-Compliance (INC) data for 2022, Cox had more component shut-in INCs (132) than any other company. Cox was second to the Fieldwood companies in the number of warning and facility shut-in INCs, and in the total number of INCs. 48% of the Cox INCs required either a component or facility shut-in.
Cox had an INC/facility-inspection ratio of 0.77, nearly 50% higher than the GoM average of 0.53.
Per the posted BSEE district investigation reports for 2022, Cox was responsible for 9 of the 30 incidents that were significant enough to require investigation. That is more than twice as many as any other company (next highest was 4).
The incidents included 3 serious injuries, 2 fires, a large gas leak, and oil spills of 114, 129, and 660 gallons. Per the posted reports, only one other company had an oil spill of >1 bbl. (Note: Only spills of > 1 bbl are routinely investigated by BSEE. One bbl = 42 gallons.)
While INCs were issued for only 3 of the 9 Cox incidents, a review of the reports suggests that INCs should have been issued for at least 4 of the other incidents.
Cox operates 375 platforms with installation dates as early as 1949. 134 of their platforms are > 50 years old. Only 66 were installed in the last 20 years and only 6 in the last 10 years (most recent December 2014). How will the carbon sequestration plans affect their massive decommissioning obligations?
Many of the Cox platforms were assigned by predecessor lessees. Those predecessors can only be held responsible for the decommissioning of facilities they installed, not for more recent wells or platforms and not for facilities that are repurposed for carbon sequestration.
Also, as noted in the discussion of Exxon’s 94 Sale 257 oil and gas leases, a competitively issued alternate use RUE is required (30 CFR § 585.1007) before sequestration operations may be conducted on an oil and gas lease.
All you need to know about how the vaunted ‘energy transition’ is going as 2022 comes to its merciful close is to read the headline of a Reuters story published last week: “Global coal consumption to reach all-time high this year – IEA”.
That isn’t how the narrative surrounding the energy transition assumed this would all be going in the year 2022. Certainly, it isn’t how IEA head Fatih Birol has wanted it to go, given his insistence that “more wind and solar” is the answer to seemingly every energy-related question.
My former colleague Andrew Konczvald and his wife live in Mexico. Their niece took this picture in the Mexican state of Michoacán.
The little boy’s mother had died a few days before Christmas. The distressed child was comforted by this picture of her that he drew on the sidewalk, and he felt her presence.
The photo is both heartbreaking and heartwarming, and touches the soul.
Exxon is now producing >360,000 bopd from just two Guyana FPSOs. So these two FPSOs are producing about 20% as much oil as the Gulf of Mexico or Norway. A third FPSO will add 220,000 bopd in 2023.
Guyana’s oil output is expected to increase significantly in 2023, as both projects maintain steadier production at capacity throughout the year, and as the third project, Payara, comes on stream in the second half of the year. Payara will add another 220,000 bpd of production capacity to Stabroek Block output, taking it to 580,000 bpd.
I met him when he was a freshman at Penn State (1968). He was wise beyond his years. The rest is history. RIP Franco.
Perhaps most fitting is that the indelible image of him reaching down to make that catch, to save the day, is symbolic of a big man reaching down to lift others he could help.
Legendary Steelers RB Franco Harris, author of the “Immaculate Reception” – one of the greatest plays in NFL history – has passed away at the age of 72.
A 4-time Super Bowl champion, Hall of Fame player and revered individual by so many.
Bud's Offshore Energy (BOE) 