Posted in climate, flaring and venting, natural gas | Tagged Bovaer, Dairy cattle emissions, UK, Whistle Hill Beef | Leave a Comment »
As expected, the Gulf of Mexico’s remarkable 7 month production consistency streak ended in September as a result of shut-ins associated with Tropical Storms Francine and Helene. Nonetheless, average daily production still amounted to 88% of the ~1.8 million bopd average that had been achieved for the previous 7 months. Rather impressive resiliency!
Posted in Gulf of Mexico, hurricanes, Offshore Energy - General | Tagged Gulf of Mexico, Hurricane Francine, Hurricane Helene, oil production, production consistency, September 2024 | Leave a Comment »
Texas Attorney General Ken Paxton:
“Blackrock, Vanguard, and State Street utilized the Climate Action 100 and the Net Zero Asset Managers Initiative to signal their mutual intent to reduce the output of thermal coal, which predictably increased the cost of electricity for Americans across the United States.
These firms also deceived thousands of investors who elected to invest in non-ESG funds to maximize their profits. Yet these funds pursued ESG strategies notwithstanding the defendants’ representations to the contrary.”
Note that this litigation may also have implications for the oil and gas industry. The complete filing is attached.
Posted in climate, energy policy, Uncategorized | Tagged coal companies, ESG, Ken Paxton, sues asset managers, Texas | Leave a Comment »
Happy Thanksgiving from BOE. Special thanks to those who are working on this holiday to discover and produce the energy needed to power our economy!
Posted in Uncategorized | Tagged offshore workers, Thanksgiving | Leave a Comment »
A recent Nantucket Current piece criticizes the Nantucket Select Board for failing to address community concerns about the attached Good Neighbor Agreement (GNA) with Vineyard Wind. In particular, any discussion about the GNA was throttled at a recent public forum on the SouthCoast Wind project.
Some key points from the article and related thoughts:
- Over 2,000 individuals and 150 businesses have signed a petition asking the Nantucket Select Board to withdraw from the GNA.
- The GNA established a long-term relationship between Vineyard Wind and Nantucket. In essence, Nantucket became a partner and an advocate for the projects.
- Sections 5.2 and 5.3 of the GNA are particularly striking and believed to be unprecedented in the history of Federal offshore energy programs.
- Section 5.2 defines Nantucket’s broad advocacy responsibilities.
- Section 5.3 stipulates that “the Nantucket Parties shall use their reasonable best efforts to inform federal, state, and local elected officials of their support for the Projects” throughout the environmental, historical, and state review processes. Wow, nothing subtle about that directive!
- By signing the GNA with Vineyard Wind, Nantucket withdrew from the important National Historic Preservation Act consulting process for these projects.
- Vineyard Wind, New England Wind, and the other projects that are covered under the GNA will add approximately 350 turbines off Nantucket’s south shore beaches.
- Given the partnership with Vineyard Wind, it’s difficult for Nantucket to challenge the mitigations for another project, SouthCoast Wind, which is not covered by the GNA.
The Nantucket GNA controversy should be carefully considered by other communities that are tempted by developer incentives to enter into agreements that may not be in their best long-term interest.
Will Nantucket exit (Nexit) the GNA? The pressure is building.
Posted in energy policy, Offshore Energy - General, Offshore Wind | Tagged Good Neighbor Agreement, Nantucket, Nexit, petition, SouthCoast Wind, Vineyard Wind | Leave a Comment »
The Beatrice Offshore Windfarm has become the fourth UK windfarm to have received more than £1 billion in subsidy payments. The landmark was reached in just its seventh year of operation, suggesting that it could reach £2 billion over the course of its subsidy agreement.
Block Island Wind Farm – “America’s Starting Five” (first 5 offshore turbines) – reliably generates subsidies (table below).
Projected PPA subsidies for other Atlantic wind projects:
Vom Winde verweht: Germany will pay as much as €20 billion to wind and solar operators through the end of 2024, twice what grid operators had forecast in last October.
Posted in climate, energy policy, Offshore Wind, UK | Tagged Beatrice Wind, Block Island Wind, German wind power, Gone with the Wind, subsidies, Wind Energy | Leave a Comment »
Bjorn Lomborg graphics using IEA data:
Wisdom from Dan Yergin:
The 19th century is known as the “century of coal,” but, as the technology scholar Vaclav Smil has noted, not until the beginning of the 20th century did coal actually overtake wood as the world’s No. 1 energy source. Moreover, past energy transitions have also been “energy additions”—one source atop another. Oil, discovered in 1859, did not surpass coal as the world’s primary energy source until the 1960s, yet today the world uses almost three times as much coal as it did in the ’60s.
Aissatou Sophie Gladima, the energy minister of Senegal, put it more pithily: Restricting lending for oil and gas development, she said, “is like removing the ladder and asking us to jump or fly.”
Christyan Malek, JPMorgan’s top energy strategist: That intrinsic demand that is not visible is so significant that we don’t see demand peaking – I don’t think we’ll see [oil] demand peaking in our lifetimes,” he said. “Particularly as demand growth in [emerging markets] continues to surprise the upside.”
Alex Epstein graphic:
Posted in climate, energy policy | Tagged Bjorn Lomborg, coal, Daniel Yergin, energy transition, JPMorgan, oil, renewables | 1 Comment »
American businessman Stephen Lynch wants to acquire the Swiss company that controls the Nord Stream 2 pipeline.
From his investment firm’s website: Over the last twenty years, Mr. Lynch has acquired and managed distressed assets in Eastern Europe, Central Asia, Russia, and Ukraine. He specializes in securing cross-border collaboration on transactions and settlements around special situations and corporate conflicts. Lynch is a life member of the Council on Foreign Relations.
Lynch has worked closely with the US Department of The Treasury’s Office of Foreign Assets Control (OFAC) to acquire and de-Russify important industrial assets in U.S. partner nations.
With regard to Nord Stream: “The bottom line is this: This is a once-in-a-generation opportunity for American and European control over European energy supply for the rest of the fossil-fuel era,” Lynch told the Wall Street Journal.
Nord Stream 2 bankruptcy proceedings are scheduled to begin in January.
A “US official” told the Washington Post that a Nord Stream revival is not in the US interest right now. However, a resumption of the flow of Nord Stream gas could be a significant consideration in talks to end the Ukraine – Russian war. Also, in light of economic and energy supply challenges, there is growing German interest in restoring ties with Russia.
This appears to be a serious initiative on the part of Mr. Lynch that should not be discounted.
Also looming is a court decision in the litigation between Nord Stream AG and their insurers.
Posted in energy policy, pipelines | Tagged germany, Nord Stream, pipeline acquisition, Russia, Stephen Lynch | Leave a Comment »
Attached is an excellent Scientific American article featuring BOE contributor and decommissioning specialist John Smith, former colleague and marine biologist Dr. Ann Bull, and Dr. Milton Love, the leading authority on California’s offshore platform ecosystems.
I had the pleasure of taking a highly informative boat tour around Platform Holly with Dr. Love and a group of international visitors. Holly, which is pictured at sunset in the BOE header, is among the platforms awaiting decommissioning.
Dr. Love on the total removal of California offshore platforms:
“As a biologist, I just give people facts,” he says. “But I have my own view as a citizen, which is: I just think it’s criminal to kill huge numbers of animals because they settled on a piece of steel instead of a rock.”
Posted in California, decommissioning, Offshore Energy - General, rigs-to-reefs | Tagged Ann Bull, California, John Smith, Milton Love, Platform Holly, rigs to reefs, Scientific American | Leave a Comment »
Bud's Offshore Energy (BOE) 
Total wants to sit on their wind lease until the next administration (2029). Can they do that?
December 3, 2024 by offshoreenergy
Impressive arrogance from the CEO of a foreign company that paid $795 million for a lease (OCS-A 0538) that was worth pennies on the dollar even before the Presidential election:
“Offshore wind, I have decided to put the project on pause” with Trump’s return, Total Chief Executive Officer Patrick Pouyanne said at an energy industry conference in London on Tuesday.
“I said to my team, the project in New York, we’ll see that in four years,” he said. “But the advantage is it’s only for four years.”
Perhaps Mr. Pouyanne thinks Total owns those 84,332 acres in the Atlantic or that they have the right to hold the leased area indefinitely. They do not. The OCS Lands Act calls for diligent development of leases and BOEM has promulgated implementing regulations.
The Total (Attentive Energy) lease was issued on 5/1/2022. Per 30 CFR § 585.235(a)(1), the company must submit a Construction and Operations Plant (COP) no later than 5/1/2027, more than 20 months before the end of the Trump administration. BOEM will have ample time to act on the plan prior to the next administration.
BOEM could also call for progress updates and an earlier COP submittal if there is evidence that the lessee is not moving forward with development plans (as would already seem to be the case given Mr. Pouyanne’s public statements in London).
In the absence of progress in developing the lease, BOEM could seek cancellation (§ 556.1102) for failure to comply with the diligence mandate in OCSLA (556.1102 (a)). Cancellation could also be pursued based on misrepresentations in acquiring the lease (556.1102 (c)) or the threat of unacceptable harm to the environment or national security (556.1102 (d)).
Rather than making rash comments at a public forum in London, perhaps Mr. Pouyanne would have been wise to first meet with energy officials of the new administration early next year. At a minimum, the CEO’s comments will help justify any attempts to cancel the Total (Attentive Energy) lease on diligence grounds.
Posted in energy policy, Offshore Wind | Tagged Attentive Energy, BOEM, CEO comments, COP deadline, diligent development, lease cancellation, OCSLA, Total, wind lease | Leave a Comment »