WASHINGTON — During testimony before the U.S Senate Committee on Energy and Natural Resources today, Secretary of the Interior Deb Haaland confirmed that, despite delays in implementation from the previous Administration, the Interior Department will release the Proposed Program – the next step in the five-year offshore energy planning process – by June 30, 2022, which is the expiration of the current program. A Proposed Program is not a decision to issue specific leases or to authorize any drilling or development.
A sale this year under the new program is thus highly unlikely. The process will no doubt be delayed even further by litigation. As we have said previously, the only hopes for a sale this year are a successful appeal of Judge Contreras’s Sale 257 ruling or successful congressional action (unlikely but possible under the circumstances).
Ballymore will be produced with 3 seafloor wells (6540′ water depth) that are expected to transport 75,000 bopd via a three-mile subsea tieback to Chevron’s Blind Faith floating production unit. Per BOEM, the Ballymore field was discovered in December, 2017. First production is expected to be in 2025.
As these projects demonstrate, deepwater development takes time and is often dependent on related projects on other leases. This is why future production is dependent on regular, predictable lease sales.
The Administration, which had only proceeded with Sale 257 because a prior court ruling invalidated the President’s leasing pause, chose not to appeal the decision by Judge Contreras. Why appeal a decision that is consistent with your agenda?
The legislatively mandated 5 year leasing program, without which no Federal offshore leases sales may be conducted, expires at the end of June. This is why last week’s cancellation of the 3 remaining sales in the current 5 year program was rather meaningless. Despite bipartisan congressional support for prompt completion of a new 5 year plan, this does not appear to be a high priority for the Department of the Interior. The only hope for a sale this year might be a successful appeal by Lousisiana and API of Judge Contreras’s Sale 257 ruling.
bp: Only 15% of shareholder votes backed a call for the company to accelerate its energy transition, compared with the 21% in favor in a similar vote last year.
Oxy: Only 17% of investors backed a call for emissions-reduction targets. (I wonder how Buffett voted 😀)
Marathon: 16% supported a measure calling for the company to report on how its transition plans affected workers and communities
ConocoPhillips: 42% supported an emissions-reductions targeting measure vs. 58% last year.
In 2016, this old Transocean semisubmersible was being towed from Norway to Malta prior to being scrapped in Turkey. The rig broke free and grounded at Dalmore, Scotland. This picture, with a Scottish cemetery in the foreground, is a fitting tribute to old rigs, the wells they drilled, the storms they endured, and the people they served.
The picture and title will be added to our world-famous Rigs-to-Reefs+++ page. Many thanks to those who have contributed to this important resource over the years.
The study will help to determine the extent to which hydrogen can be transported in natural gas pipelines without introducing embrittlement and other pipeline safety risks.
The video below is from 6 months ago but is even more relevant today. Those who produce nothing but insults shouldn’t be dictating corporate strategy.
Rep. @ByronDonalds: "How do we ever expect to beat [China] on the world stage when we're cutting our neck when it comes to energy production while they are burning more coal, burning more oil, they're increasing their emissions and they're not showing up in Scotland." pic.twitter.com/WnIyUbKKPG
After 8 outstanding years with Australia’s offshore safety and environmental regulator, Stuart Smith has announced that he will be departing NOPSEMA in September. Stuart was a highly effective CEO and an important contributor to international offshore safety initiatives. Best wishes to Stuart!
Bud's Offshore Energy (BOE) 