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The roller coaster ride continues!

From the Santa Barbara Independent:

California Attorney General Rob Bonta unsuccessfully requested that a Santa Barbara Superior Court judge issue a temporary restraining order on the Texas-based oil company for defying a cease-and-desist order issued last week by the California Coastal Commission.

Initially, Judge Anderle planned on granting the restraining order at Bonta’s request in his tentative ruling. However, his opinion changed after reading Sable’s opposition documents in the courtroom on April 17. 

Arguments for a preliminary injunction will be heard on May 14. 

Meanwhile, in an “All Hands on Deck” message to their mailing list, the Environmental Defense Center (EDC) predicts doom and gloom unless supporters answer their fundraising call:

This fight is now in a critical phase. We need your help to ensure EDC can continue to present the strongest defense against Sable’s dangerous proposal.

EDC photo

Lastly, Market Beat reports the following large purchases of Sable shares. Those investors better have a high risk tolerance!

  • Harraden Circle Investments LLC bought 220,000 shares of Sable Offshore stock. Sable now accounts for approximately 4.6% of Harraden’s investment portfolio, making the stock its 9th largest position.
  • State Street Corp boosted its stake in shares of Sable by 74.3% during the 3rd quarter. State Street Corp now owns 1,589,395 shares of the company’s stock after acquiring an additional 677,426 shares in the last quarter.
  • Vanguard Group Inc. boosted its holdings in Sable Offshore by 23.6% in the 4th quarter. Vanguard now owns 3,486,126 shares of the company’s stock.
  • Emerald Advisers LLC bought a new stake in shares of Sable Offshore in the fourth quarter valued at about $6,700,000.
  • Bridgewater Associates LP acquired a new position in Sable Offshore in the 4th quarter valued at approximately $4,693,000.
  • Renaissance Technologies LLC grew its holdings in shares of Sable Offshore by 313.8% during the 4th quarter. Renaissance now owns 269,800 shares of the company’s stock worth $6,178,000 after purchasing an additional 204,600 shares in the last quarter.

26.19% of Sable’s stock is owned by hedge funds and other institutional investors.

The following message is from Jason Mathews – petroleum engineer, football coach, proud father, and outstanding offshore safety leader.

Happy Easter – BSEE Family and Friends

The explosion on the Deepwater Horizon oil rig occurred on April 20, 2010, at approximately 9:45 p.m. CDT. Shortly after the initial explosion, a series of further explosions and a firestorm engulfed the platform that forever changed our industry and eleven families.

This past week, I was in Orlando with my family attending an International Cheer event – All Star World Championship. As I was sitting there, I noticed a young athlete with a date written on her shoes, and she touched the date as she walked back with her team. My assumption was it was something to inspire her.

It quickly reminded me of a young man by the name of Shane Roshto. At only 22 years young, he was a victim of the Deepwater Horizon explosion, and he had written the date of his wedding and his son’s birthday on the inside of his hard hat. Those dates served as reminders of the important people and events in his life while working on the rig miles away from those who meant the most to him.

On Wednesday evening, they brought the top ten teams at the cheer competition onto the stage and called out each finalist on the stage until there were three left, and my daughter’s team was still remaining. While those girls were on stage, I thought back on the countless hours her coaches pushed her and always requested more from them because they had a collective goal to win Nationals and Worlds, and then they called the third-place finisher. It seemed like forever before they called the second-place finisher, but when they did, I got to witness athletes, coaches and families reach something they had put everything into since they began cheer. A date LA Spirit – Fame will never forget – April 16th, and only four days from a day we will never forget – April 20th.

At the conclusion of the day after taking everything in and calming down, I sent this message to the coaches of my daughter’s team – “Coaches thanks for “living your legacy” with our girls at LA Spirit. Every one of your goals, expectations, and coaching styles foster a meaningful life well beyond cheer that leaves a positive impact on our girls. All too often, our girls are told what they can and can’t do with their schedules, their abilities, or their choices. Y’all showed them they can do whatever they set their mind to if they want it bad enough and are willing to make sacrifices for it. As a parent, thank you for making positive memories and experiences that have a ripple effect and continue to inspire our girls for years to come.”

Although the two events have nothing in common (one being a tragedy and one being a highlight), they both drive individuals to live their legacies. At BSEE, all of us (not just inspectors and engineers) have an awesome responsibility to live our legacy in the oil and gas industry by actively shaping our life’s story and influence by focusing on our values, actions, and contributions to those around us (and those who work offshore).

Whether you have days like April 20th or April 16th, always “Live Your Legacy.”

Respectfully,

Jason Mathews

Bidding at the February 2022 Atlantic (NY/NJ) wind sale seemed 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.

That wind bubble has since burst, as demonstrated by the lackluster (at best) August 2024 Atlantic sale, the disinterest in Gulf of America wind leases, and recognition of the costly realities of floating turbine projects in the Pacific. Any air that remained in the balloon was released following the Presidential election.

The table below summarizes the sale results and the current status for the 6 leases issued 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 bidderlease #acresbid ($millions)status
Bluepoint Wind (EDP, ENGIE, Global Infrastructure Partners)053771,522765Site Assessment Plan (SAP) review
Attentive Energy
(Total and Corio Generation)
053884,332795Construction and Operations Plan (COP) review
Community Offshore Wind
(RWE, National Grid)
0539125,9641100no plans submitted
Atlantic Shores
(Shell, EDF)
054179,351780dead?
Invenergy
054283,976645no plans submitted
Vineyard Mid-Atlantic (Avangrid, Copenhagen Industy Partners)054443,056285COP review

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.

Dept. of the Interior Announcement and leasing plan development process

Notably, BOEM’s jurisdiction on the OCS has recently changed. A new planning area offshore Alaska—the High Arctic—is being established as the 27th OCS planning area. Additionally, boundaries of other existing planning areas are being updated to align with BOEM’s revised jurisdiction. Details on these changes will be included in a forthcoming Federal Register notice and posted to BOEM’s website. 

The letter is attached. Excerpt:

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).

I am again sharing this touching tribute to the 11 men who lost their lives on the Deepwater Horizon on April 20, 2010. The video is introduced by country singer Trace Atkins, a former Gulf of Mexico rig worker. The video and Trace’s song serve as a memorial to the 11 Deepwater Horizon workers and others who have died exploring for and producing oil and gas around the world. Please take a moment to watch.

Deepwater Horizon Memorial, New Orleans

Macondo revisited series:

The Santa Barbara Independent doesn’t pull any punches in this article about the once invincible California Coastal Commission. I recommend that you read the entire article, but here are some choice excerpts (emphasis added):

Lastly, it’s totally unprecedented for members of the commission to verbally eviscerate energy planners with Santa Barbara County at a public hearing for refusing to provide them requested planning documents having to do with Sable no fewer than seven times. While the county has denied this charge, no one from the county showed up for last week’s meeting to explain their actions. One commissioner termed this absence a “dereliction of duty.”

What actions and outcomes ultimately emerge from this rancor remain far from obvious. That’s in part because the political support enjoyed by the Coastal Commission — long regarded as one of California’s many “third rails” of state politics — has never been so uncertain. By “uncertain,” I mean rarely has any state agency been so reviled by such a wide swath of political players and stakeholder groups.

The question has become not so much who hates the Coastal Commission — it’s who doesn’t. Donald Trump has hated the commission since it objected to a 70-foot flagpole Trump planted on a beachfront golf course he owned back before he became president.

Elon Musk, Trump’s alter ego, sued the Coastal Commission — and lost — over the commission’s outspoken refusal to grant him the “consistency determination” he needed to increase the number of SpaceX rocket launches from Vandenberg Space Force Base from 35 to 50. Although a federal judge would rule in the commission’s favor, Governor Gavin Newsom, a noted Democrat, announced he was siding with Musk on this one. 

So, what happens if Sable doesn’t pay the fine? Or keeps on working despite three cease-and-desist orders? The key question — still loudly unanswered — is what Attorney General Rob Bonta will do. Will Bonta throw his considerable heft behind the commission? He hasn’t yet. And it’s been several months. Does the governor want to pick his battles with the Trump-Musk White House for causes that enjoy more broad public support?

pictured:TMC pilot nodule recovery trials

According to a Financial Times report, the White House is drafting an executive order that will facilitate the stockpiling of critical metals found in the Pacific. The Administration is intent on countering China’s rare earth supply chains and battery mineral dominance.

This is good news for TMC, a Canadian company that plans to apply for deepsea mining permits under US authority, not proposed international regulations.

Equinor’s Empire Wind project had been challenged by New Jersey congressmen and questioned by Norwegian investors. I suspect that Equinor saw the writing on the wall.

Ouch!