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2024 Gulf of America compliance data and the Cox bankruptcy

April 2, 2025 by offshoreenergy

In June 2023, Cox and affiliates operated 435 platforms in the Gulf. That number is now only 46, all of which are on relinquished or terminated leases.

Cox Operating LLC and affiliates were once again the violations leaders in 2024 accounting for 50% (479/957) of the warnings, 12% (47/398) of the component shut-ins, and 7.3% (8/109) of the facility shut-ins.

All but 3 of the Cox enforcement actions were during the first half of the year. This is presumably because of the termination of Cox operations and the ongoing divestiture of their assets.

According to BOEM’s platform data base, Cox (43) and affiliates Energy XXI (3) and EPL (0) now operate only 46 platforms. This is a big decline from Sept. 2024 and June 2023 when the Cox companies operated 243 and 435 platforms respectively. All of the remaining Cox platforms are non-producing and are on relinquished or terminated leases.

The curtailment of Cox operations is no doubt an important factor in the sharp decline in Gulf of America violations in the second half of 2024. Per the data below, total GoA wide violations declined by 58% (1031 vs. 433) in the second half of 2024 as Cox violations essentially disappeared:

Gulf of America
inspection data		warningscomponent
shut-ins		facility
shut-ins		facility
inspections
first half 2024725243631586
2nd half 2024232155461546
reduction493 (68%)88 (36%)17 (27%)40 (2.5%)

Cox companies inspection datawarningscomponent
shut-ins		facility
shut-ins		facility inspections
first half 2024478467 404
2nd half 2024111174

Some Cox assets have been acquired by W&T and Natural Resources Worldwide. BOEM records indicate that 8 record title assignments and 3 operating rights assignments from Cox to W&T were approved in the first half of 2024. W&T currently operates 116 platforms, but it’s unclear how many are former Cox facilities.

The acquisition of Cox properties does not appear to have significantly affected W&T 2024 inspection results, which were respectable:

W&T insp. datawarningscomponent
shut-ins		facility
shut-ins		facility
inspections
first half 20241231083
2nd half 202417142105

Additional record title and operating rights assignments to Natural Resources Worldwide (NRW) were approved in 2025, but NRW does not appear to be operating any platforms.

Ironically, NRW was cited for 1 warning and 1 facility shut-in without a single inspection. Presumably, these violations were the result of administrative issues.

Online data are insufficient to account for the 435 platforms that were on the Cox ledger in June 2023 or determine the remaining decommissioning liabilities. Per the platform database, no Cox, Energy XXI, or EPL platforms were removed in 2023, 2024, or 2025.

On a more positive note, most GoA operators had good safety and compliance records in 2024. One major producer had a historically significant record. More on that to follow.

Posted in Gulf of Mexico, Offshore Energy - General, Regulation | Tagged , , , , , | Leave a Comment »

Gulf of America production in January 2025 was consistent with the 2024 average

April 1, 2025 by offshoreenergy

Sustaining or preferably increasing production rates will be dependent on a reliable schedule of lease offerings and a consistent regulatory regime based on best safety management principles and continuous improvement in technology, practices, and culture. Poorly considered operating restrictions imposed by activist judges are a major risk to both safety and production.

Posted in energy policy, Gulf of Mexico, Offshore Energy - General, Regulation | Tagged , , , , | Leave a Comment »

How do you invalidate a lease sale mandated by Congress?

March 31, 2025 by offshoreenergy

OCS Lease Sale 259 was mandated by Congress, and was held on March 29, 2023, two days before the deadline established in the Inflation Reduction Act. Ah, but compliance with environmental law, which is of course subject to interpretation, was still required.

So the formula for eNGOs in such cases is to sue on NEPA grounds in a friendly Federal court. In the case of Sale 259, the plaintiffs asserted that BOEM’s climate change and Rice’s whale analyses were inadequate.

With regard to climate change, the reality is that incremental Gulf of America production will have virtually no effect on petroleum consumption and global GHG emissions. Increased GoA production will actually have a slight positive effect on worldwide GHG emissions given the relatively lower carbon intensity for deepwater Gulf production.

With regard to the Rice’s whale, Darren Ireland’s analysis is compelling:

“Based on the limited data available on the use and occurrence of Rice’s whale in the central and northwestern GOMx (one acoustic study (Soldevilla et al. 2022b), one confirmed sighting (NMFS 2018a) and a few unconfirmed sightings (Rosel et al. 2021)), there is insufficient scientific evidence to determine that essential features for Rice’s whale conservation are indeed present in the central and northwestern GOMx. In fact, data on the life-history requirements of Rice’s whale even in the core habitat are still lacking and need further investigation.“

Unsurprisingly, Judge Amit P. Mehta of the US District Court for the District of Columbia, has ruled that BOEM’s environmental assessments on climate change and the Rice’s whale were deficient, and has ordered the parties and intervenors to jointly submit a proposed briefing schedule by April 3, 2025. “The court will also order additional briefing on remedy” (e.g. onerous operating restrictions).

In case you haven’t suffered enough, the judge’s full opinion is attached.

show_public_docDownload

Posted in energy policy, Gulf of Mexico, Offshore Energy - General | Tagged , , , , , , , | Leave a Comment »

The Metals Company to apply for deepsea mining permits under US authority, not proposed international regulations

March 31, 2025 by offshoreenergy

pictured:TMC pilot trials

Lars Herbst brought this bold and rather surprising deepsea mining development to my attention. Let the screaming begin!

NEW YORK, March 27, 2025 (GLOBE NEWSWIRE) (emphasis added) — TMC the metals company Inc. (Nasdaq: TMC) (“TMC” or the “Company”), an explorer of the world’s largest undeveloped resource of critical metals for building infrastructure, power generation, transmission, and batteries, today announced that its subsidiary The Metals Company USA LLC (“TMC USA”) has formally initiated a process with NOAA under the U.S. Department of Commerce to apply for exploration licenses and commercial recovery permits under existing U.S. legislation, the Deep Seabed Hard Mineral Resources Act of 1980 (DSHMRA).

Following extensive legal diligence on DSHMRA, NOAA’s implementing regulations and other applicable environmental protection legislation, the Company strongly believes that the U.S. seabed mining code offers the greatest probability of securing a permit for commercial recovery of deep-sea mineral resources in a timely manner.

Gerard Barron, Chairman & CEO of The Metals Company, commented: “Over the last decade, we’ve invested over half a billion dollars to understand and responsibly develop the nodule resource in our contract areas. We built the world’s largest environmental dataset on the CCZ, carefully designed and tested an offshore collection system that minimizes the environmental impacts and followed every step required by the International Seabed Authority. But, despite collaborating in good faith with the ISA for over a decade, it has not yet adopted the Regulations on the Exploitation of Mineral Resources in the Area in breach of its express treaty obligations under UNCLOS and the 1994 Agreement.”

“We believe we have sufficient knowledge to get started and prove we can manage environmental risks. What we need is a regulator with a robust regulatory regime, and who is willing to give our application a fair hearing. That’s why we’ve formally initiated the process of applying for licenses and permits under the existing U.S. seabed mining code. After extensive legal review and constructive engagement with NOAA and other officials across the U.S. government, we believe the United States offers a stable, transparent, and enforceable regulatory path. TMC USA expects to submit applications to NOAA in the second quarter of 2025. We’re encouraged by the growing recognition in Washington that nodules represent a strategic opportunity for America—and we’re moving forward with urgency.”

Previous deepsea mining posts

Greenpeace photo

Posted in deep sea mining, energy policy, Offshore Energy - General | Tagged , , , , , , | Leave a Comment »

Another Atlantic wind project “paused”

March 29, 2025 by offshoreenergy

In this case, it’s a State of Maine research project for up to 12 floating turbines. This type of project is not viable without large subsidies which are apparently not forthcoming. See the Notice below.

Posted in Offshore Wind | Tagged , , , | Leave a Comment »

JL Daeschler adds his concerns on the sad state of the UK offshore industry

March 28, 2025 by offshoreenergy

“Waiting on Weather” by JL Daeschler

JL Daeschler, pioneering subsea engineer, outstanding artist, and BOE contributor, lives in Scotland. He shared these concerns about the state of the UK offshore industry:

Since projects have been shelved, contractors have left the country – so no drill rigs, no exploration, no pipelines, and no crane barges. The list of disciplines put out of work is far longer.
The big international operators have left looking for better opportunities overseas with milder environments and cheaper manpower support. Air travel, modern communication systems, and immediate electronic access to information and support facilitate operations anywhere in the world.
So what is left in the UK sector of the North Sea are the few installations running towards the end of production. Their years are numbered.
The North Sea could have had a sustainable greener and safer project profile if the momentum had been kept. It’s like an oil & gas pandemic, except you do not work from home if you operate rigs and vessels. No research, no strategy, and no money !!!

Posted in energy policy, Offshore Energy - General, UK | Tagged , , , | Leave a Comment »

Bits of Scottish common sense

March 27, 2025 by offshoreenergy

Scotsman letter

Industry sources tell us, authoritatively, that the North Sea could produce around half of all the oil and gas the UK will need up until at least 2050 – if new projects are developed. Meanwhile, as instead we shut down our existing wealth, China continues burning dirty coal and making us more dependent on their products.

As it stands, Offshore Energies UK (OEUK) says the UK is on track to produce just four billion of the 13-15bn barrels of oil and gas the country will need over the next 25 years.

It is time for those making decisions in London and Edinburgh to put away all the green zealotry nonsense and get the UK powerhouse moving again. Given 25 years they could make a good start on installing small, clean, nuclear plants dotted across the UK to help in great part to pick up the load.

We need planning, not zealotry. It is now even more clear the green emperor is not wearing clothes. When will Energy Secretary David Miliband be convinced?

Alexander Mckay

Edinburgh

And from an offshore worker @Deano9981:

As someone who actually works in the North Sea on oil rigs I have heard almost all my life how the oil and gas will be gone in 10 years. 35 years in this industry and the first time I am likely to be unemployed is because of the government. Not the end of oil fields.

Posted in energy policy, Offshore Energy - General, UK | Tagged , , , , | Leave a Comment »

Is the Friends of Oceano Dunes court victory a good omen for Sable?

March 27, 2025 by offshoreenergy

The organization Friends of Oceano Dunes is determined to preserve the long history of off-road vehicle use on Pismo-Oceano beach. See the video below and the historic photos from Bob2000.com.

The Coastal Commission, which dislikes off-road vehicles as much as they dislike offshore oil and gas operations (well maybe not quite that much! 😉) lost a court case with some similarities to the suit filed by Sable Offshore.

Noozhawk: In an opinion filed Monday, the Second Circuit Court of Appeals found that the commission’s attempt to ban off-road vehicles at the Dunes contradicts the language of the Local Coastal Plan put in place by San Luis Obispo County.

The Court ruled that the decision to open or close the Dunes to vehicles fell under the jurisdiction of the county, not the Coastal Commission.

Sable’s dispute with the Commission is similar in that Sable contends that their pipeline repair and maintenance activities are in compliance with Santa Barbara County’s Coastal Zoning Ordinance, Local Coastal Program (LCP), and the Coastal Act. Will Sable also be victorious in Court?

Posted in California, Regulation | Tagged , , , , , | Leave a Comment »

Exploratory drilling for freshwater offshore Nantucket

March 26, 2025 by offshoreenergy

Excerpt from the expedition summary:

The northeast coast of the United States is perhaps the best understood example of an offshore freshwater system, and multiple studies have been undertaken to determine the origin and volume of offshore freshwater. Coring and sampling the subseafloor offshore Massachusetts, USA, will provide data for understanding the processes driving emplacement of freshwater lenses offshore New England and elsewhere globally, and lead to a better understanding of this worldwide hydrogeological phenomenon. This is essential for protection and sustainable management of offshore freshwater systems and for better understanding biogeochemical and elemental cycling in continental shelf environments.

With regard to the potential freshwater resources (from the Nantucket Current):

“I’m just excited about the science, and that finally, after all these years, someone’s trying to get the truth,” said Nantucket Water Department director Mark Willett. “Computers predicted it. Everybody thinks it’s there. These guys are the first ones in the world who are going to go drill a hole and prove it.”

Willett and (lead scientist Brandon) Dugan are particularly intrigued by the possibility that the offshore freshwater aquifer could be connected to a lower, untapped aquifer beneath Nantucket that Willett calls “ancient glacier lake Nantucket.”

“If it is connected and it’s young water that’s being recharged actively today, that’s really exciting, because it’s a renewable source,” Dugan said.

The liftboat Robert will drill 3 wells to depths of 300-400 feet between May 1 and August 32.

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Atlantic wind: attention shifts to EPA

March 25, 2025 by offshoreenergy

In February, EPA Region 2 asked the agency’s Environmental Appeals Board to remand Atlantic Shores’ air emissions permit back to the Region for reconsideration. That remand (attached) was granted on 14 March over the objections of Atlantic Shores Offshore Wind.

Atlantic Shores Offshore Wind still exists despite the exit of 50% partner Shell and a $940 million write down by the remaining owner EDF. The diagram depicts Atlantic Shores South (0499) and North (0549) lease areas.

EDF intends “to preserve the company and its future development.” Whether or not they can hold the leases indefinitely without pursuing development remains to be seen. BOEM’s diligence regulations for offshore wind projects are vague, and neither the Construction and Operations Plans nor BOEM’s Record of Decision (Atlantic Shores South) include work schedules.

Does EDF have the right to sit on the lease until the financial and regulatory environment is attractive? That is not allowed for oil and gas leases, and rightfully so. (See a related post on Total’s wind lease.)

Meanwhile, ACK for Whales has petitioned EPA Region 1 to reopen and reanalyze the air permits for permits for the New England Wind 1 and 2 projects asserting that:

  • The analysis does account for emissions related to and resulting from blade failures, which would warrant emergency repairs or replacement activities.
  • The decision to group Vineyard Wind 1, New England Wind 1 and New England Wind 2, as a single stationary source is both legally questionable and could have the effect of masking localized emission spikes.
  • Insufficient consideration of cumulative vessel emissions could lead to 1-hour NO₂ exceedances.
  • The emissions from pile driving are not adequately modeled in isolation or synergistically.
Atlantic Shores Order Granting Motion for Voluntary Remand, FINALDownload

Posted in Offshore Wind, Regulation | Tagged , , , , , , | Leave a Comment »

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