Given the relatively moderate oil prices during much of 2024, DOE has made some progress in adding to the Strategic Petroleum Reserve. However, the 31 million bbls added since July 2023 only amount to about 10% of the reserves withdrawn during the 3 years prior (July 2020 to July 2023) and about 4% of the SPR’s capacity.
Posted in energy policy | Tagged 2024 additions, SPR depletion, Strategic Petroleum Reserve | Leave a Comment »
Posted in energy policy, Offshore Wind | Tagged BOEM, BSEE, Cape May County, New Jersey Board of Public Utilities, Ocean Wind leases, Orsted, suspension of operations | Leave a Comment »
This real-life Spider-Man, seen on a Vineyard Wind turbine blade, is Tyler Paton. Tyler is an independent composite specialist who inspects and repairs blades on site. The Nantucket Current shared these images on X.
Posted in accidents, Offshore Wind | Tagged GE Vernova, Haliade-X, Nantucket Current, Offshore Wind, Spider-Man, turbine blade failure, Tyler Paton, Vineyard Wind | Leave a Comment »
| Offshore wind project | Haliade-X turbines installed | blade failures |
| Dogger Bank | 27 | 2 |
| Vineyard Wind | 21 | 1 |
Posted in accidents, Offshore Wind | Tagged BSEE, DNV, Dogger Bank Wind Farm, Dr. Edgar Gunter, Equinor, GE Vernova, Haliade-X blade failure, Vineyard Wind | 1 Comment »
Earlier this year John Smith correctly commented that a Santa Ynez Unit (SYU) production restart in 2024 was not possible. Last month, BOE reported on the regulatory “catch 22” facing Sable Offshore, the current operator under an agreement with Exxon.
An assessment prepared for Hunterbrook Capital draws the same conclusions regarding the prospects for production, calling the restart “a pipe dream” (presumably the pun was intended given the pipeline permitting quagmire). Hunterbrook’s chart (pasted below) illustrates the regulatory labyrinth facing Sable.
Hunterbrook has also flagged Sable’s ability to continue as a “going concern.” That may be a valid concern, but Sable’s success is very much in Exxon’s best interest. Exxon must have evaluated Sable and been comfortable with their management. Otherwise, they wouldn’t have made the deal.
Does Exxon want the massive SYU headache to revert back to their portfolio, as provided for in their agreement with Sable, if production doesn’t restart by January 1, 2026? Unless Exxon thinks they have a better option than Sable, they will presumably be flexible about the deadline.
Meanwhile, a judge denied the temporary restraining order requested by Sable to prohibit release of redacted portions of their oil spill contingency plan. Sable had argued that revealing “trade secrets” and specific locations and vulnerabilities of the pipelines could pose a “threat to national security.”
The Santa Barbara Independent also alludes to “pending litigation with Santa Barbara County over automatic shut-off valve permits.” Although litigation would seem likely if the County continues to deny permits for valves required by the Fire Marshall, BOE was unable to confirm any such litigation plans.
Posted in California, Offshore Energy - General, pipelines | Tagged California Fire Marshall, Exxon, Hunterbrook Capital, production restart, Sable Offshore, Santa Barbara County | 2 Comments »
The operator of the wind farm released this short statement yesterday (8/22/2024):
We are aware of a blade failure which occurred this morning on an installed turbine at Dogger Bank A offshore wind farm, which is currently under construction. In line with safety procedures, the surrounding marine area has been restricted and relevant authorities notified. No one was injured or in the vicinity at the time the damage was sustained.
We are working closely with the turbine manufacturer, GE Vernova, which has initiated an investigation into the cause of the incident.
Further updates will be issued in due course as more information becomes available.
There have thus been at least 3 GE Vernova Haliade-X turbine failures at new offshore wind farms in 2024 – two at Dogger Bank and one at Vineyard Wind.
Posted in accidents, Offshore Energy - General, Offshore Wind | Tagged Dogger Bank Wind Farm, GE Vernova, turbine blade failure, Vineyard Wind | Leave a Comment »
To find the sole exploratory well being drilled in the vast North American Atlantic, you have to exit “wind-only” US waters, head NE to St. John’s, NL (advancing your watch by 1.5 hours 😉), and transit another 317 miles NE to the Stena DrillMAX working for Exxon in the Orphan Basin.
The latest (8/20/2024) CNLOPB report (below) is that operations are ongoing. The well was spudded 3 months ago. That is about all they can disclose without compromising confidentiality. Even seemingly innocuous information like the current and projected well depth provides the opportunity to speculate about geologic conditions and current well activities.
We can assume that there have been no safety or environmental incidents to date, because the CNLOPB does a good job of posting such information in a timely manner.
Posted in Canada, drilling, Offshore Energy - General | Tagged Atlantic, exploratory drilling, Exxon, Newfoundland, Orphan basin, Stena Drillmax | Leave a Comment »
From Oil Now Guyana:
“In the evolving landscape of Guyana’s oil and gas industry, few have managed to carve out a niche quite like Koaito Grant. A name synonymous with corporate photography, Grant’s journey from discovering his passion for capturing moments to becoming a sought-after photographer within the oil and gas sector is as inspiring as it is instructive.“
So true: “It’s the best feeling when a client reaches out and says you were very highly recommended by this or that person.” His professionalism and work ethic have been key differentiators. “I have a client that always asked if I was Guyanese because I’m always early for all projects and activities.”👍 💯
Posted in Guyana, Offshore Energy - General, Uncategorized | Tagged Guyana, Koaita Grant, oil and gas, photography | Leave a Comment »
Reuters has published an interesting article on the Exxon/CNOOC vs. Chevron/Hess dispute scheduled for arbitration next year in Paris. According to Reuters (emphasis added):
“Getting the panel to consider the appraised value is central to Exxon’s claim that the deal is an asset acquisition disguised as a merger. Exxon believes the Guyana asset is so valuable that the merger would trigger a change of control and give Exxon and CNOOC a right of first refusal to the asset sale, the people said.“
The Exxon argument implies that Hess’s only major asset is its share of Stabroek, which is hardly the case. Hess’s 30% Stabroek share is without question an important asset with great long-term potential, but Hess is also a major player elsewhere, most notably in the Bakken formation in North Dakota and the Gulf of Mexico. Implying that Hess was a single asset acquisition is thus misleading:
Exxon’s ally in this dispute is state owned China National Offshore Oil Corporation. CNOOC acquired their 25% Stabroek share when they purchased Nexen, a Canadian company (sound familiar?). Both the Canadian and US governments had reservations about this acquisition and nearly nixed the deal.
This dispute will continue to smolder given the delay in the arbitration hearings until May 2025. As previously mentioned, I believe the Government of Guyana should have intervened. I’m all for companies settling their disputes privately, but this dispute is over Guyanese resources, and the protracted delay could have implications for Guyana.
Posted in Guyana, Offshore Energy - General | Tagged arbitration, Chevron, CNOOC, Exxon, Guyana, Hess, merger, Nexen, Stabroek | Leave a Comment »
Four of the five simpler, safer, greener deepwater platforms featured on this blog are now producing. The 5th platform (Whale) is on location and scheduled to begin production later this year.
| platform | operator | first production |
| King’s Quay | Murphy | April 2022 |
| Vito | Shell | Feb 2023 |
| Argos | bp | April 2023 |
| Anchor | Chevron | Aug 2024 |
| Whale | Shell | late 2024 |
These platforms are in 4000 to 8600′ of water, are expected to reach peak production rates of 100-150,000 boe/day, and have favorable emissions characteristics on a per barrel basis.
This is all good, but what is next? Will technological advances once again sustain GoM production? The short answer appears to be yes!
The efficiencies achieved with the simpler platform designs combined with the high pressure (>15,000 psi) technology developed over the past 2 decades will facilitate production from the highly prospective Paleogene (Wilcox) deepwater fans. (For those interested in learning more about the geology, see the excellent presentation by Dr. Mike Sweet, Univ. of Texas, that is embedded below.)
Chevron’s Anchor is the first deepwater, high-pressure development. Three similar deepwater hub platforms (table below) will begin production over the next 5 years. These host platforms will also facilitate additional production from nearby fields. Each will have production capacities of approximately 100,000 boe/day. Note the long lead times in achieving first production given the technological issues that had to be evaluated and addressed.
| platform | operator | discovery date | first production |
| Kaskida | bp | 2006 | 2029 |
| Sparta | Shell | 2012 | 2028 |
| Shenandoah | Beacon | 2009 | 2025 |
Wood Mackenzie sees these high pressure projects as the key to sustaining GoM production rates. Their projections for 2024 and 2025 seem optimistic based on 2024 YTD data, which adds to the importance of the projected new production.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General | Tagged Anchor, Argos, Beacon Offshore, bp, Chevron, deepwater production, Gulf of Mexico production, high pressure production, Kaskida, King's Quay, Murphy, Paleogene, Shell, Shenandoah, Sparta, Vito, Whale | Leave a Comment »
Bud's Offshore Energy (BOE) 