Posted in climate, energy policy, Gulf of Mexico, Offshore Energy - General, Uncategorized, tagged energy security, Gulf of Mexico, Lease Sale 257, offshore oil and gas, oil prices on March 7, 2022| 2 Comments »
Remember that only 5 weeks ago Judge Contreras (DC Federal Court) vacated OCS Lease Sale 257 because BOEM didn’t analyze the benefits of higher oil and gas prices (as a result of lower US offshore production) in reducing international consumption and GHG emissions. The about that!
Lease Sale 257 wouldn’t have helped get us through this crisis, but would have most definitely reduced our vulnerability to future crises.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged Catch22, Lease Sale 257, offshore oil on March 2, 2022| Leave a Comment »
“The absolute earliest a new Lease Sale 257 could occur is July 2, which is after the expiration of the current five year program,” Interior said in a 28 February court filing (opting not to appeal the DC court decision invalidating the lease sale).
Argus
So, a new lease sale cannot occur until after the five year program expires and no sale may be held. Brilliant, Joseph Heller would be proud. It’s a good thing oil and gas supplies are plentiful and secure, and that prices are cheap.
Remember, the judge’s decision invalidating Sale 257 was that BOEM didn’t analyze the benefits of higher oil and gas prices (as a result of lower offshore production) in reducing international consumption and GHG emissions.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged Lease Sale 257, offshore production, oil and gas supply, shale depletion on February 18, 2022| Leave a Comment »
Meanwhile, however, drillers may be running out of sweet spots in the shale basins of the country. In an article citing well data, the Wall Street Journal reported earlier this month that because of the quick depletion rates of shale wells, low-cost resources are giving way to higher-cost deposits. And this is motivating a warier approach to production growth.
Markets Insider
The shale revolution made the US a net oil exporter, but skepticism about shale production forecasts suggests the need for other supply sources. Given the shale uncertainty and the unrealistic expectations regarding the energy transition, greater US dependence on imported oil is on the horizon. This bodes well for OPEC, but not so well for US and international consumers.
BOE post, 1/4/2022
Yet Lease Sale 257 was vacated because BOEM didn’t analyze the GHG reduction that would result from reduced international consumption caused by zero US leasing (and thus higher oil and gas prices). Fortunately US onshore production on private land is not subject to this absurd and economically destructive level of oversight.
Posted in climate, energy policy, Offshore Energy - General, tagged DC Federal Court, EO 13990, Lease Sale 257, Louisiana Federal Court on February 17, 2022| Leave a Comment »
On 2/11/2022 Judge Cain (Western District of Louisiana) issued ruled that a Biden executive order contradicts Congress’ intent regarding the consideration of global effects:
The Court finds that EO 13990 contradicts Congress’ intent regarding legislative rulemaking by mandating consideration of the global effects. The Court further finds that the President lacks power to promulgate fundamentally transformative legislative rules in areas of vast political, social, and economic importance, thus, the issuance of EO 13990 violates the major questions doctrine.
p. 33 of the ruling
Judge Cain’s order seems, at least to this non-lawyer, to contradict the 1/27/2022 ruling by Judge Contreras, DC Federal Court, that BOEM “acted arbitrarily and capriciously in excluding foreign consumption from their greenhouse gas emissions calculation.” The plaintiffs had asserted that BOEM failed to consider the effect that reduced US offshore production (and higher prices) would have on foreign consumption and the associated GHG emissions. (Poverty is good?)
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged API, appeal, DOI, Lease Sale 257 on February 11, 2022| Leave a Comment »
“At a time of rising energy costs and heightened geopolitical tensions, the misguided decision to cancel the only lease sale held last year is contributing to significant uncertainty for U.S. natural gas and oil producers and limiting access to the affordable, reliable energy that’s needed here in the U.S. and around the world. We call on the Department of Interior to join us in this effort and appeal the court’s ruling …
API release
When will we hear from the Department of the Interior?
Update: We understand that Louisiana has also appealed the Sale 257 decision.
Posted in CCS, Gulf of Mexico, Offshore Energy - General, Offshore Wind, Wind Energy, tagged carbon sequestration, CCS, Lease Sale 257, leasing pause, Offshore Wind on February 2, 2022| Leave a Comment »
The judge correctly dismissed the unfounded claim that new oil and gas leasing would preclude wind development in the Gulf. BOE comments:
Will the Administration appeal the court decision to vacate the lease sale or does the decision assist them by reinstating their leasing pause? How will the conflict between the DC court decision and the injunction invalidating the leasing pause (Federal Court for the Western District of Louisiana) be resolved?
What does this mean for the 94 leases that were to have been acquired for carbon sequestration purposes? Will BOEM have a proper CCS sale after conducting an environmental assessment, determining bidding terms and evaluation criteria, and publishing a Notice of Sale? Or will there be a legislative end run that authorizes the issuance of the leases without these steps?
Posted in climate, energy policy, Gulf of Mexico, Offshore Energy - General, tagged BOEM, DC Federal Court, energy justice, energy poverty, Lease Sale 257, oil prices on January 31, 2022| Leave a Comment »
The very disappointing 68 page ruling on Lease Sale 257 boils down to the following:
So, if BOEM has to consider the environmental benefits of higher oil and gas prices, shouldn’t they also have to consider the negative economic and environmental effects from the resulting price inflation and energy poverty? Are higher prices, which are most detrimental to the poor and to developing nations, “energy justice?”
If your only objective is the destruction of the US offshore oil and gas program, this was a great decision. For everyone else, this is yet another reason to be concerned about our energy future.
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged DC Federal Court, Lease Sale 257, Louisiana on January 28, 2022| Leave a Comment »
The Court VACATES and REMANDS the Record of Decision for Lease Sale 257 to the Department of the Interior.
Rudolph Contreras, US District Judge
The decision is yet another victory for OPEC+, which is doing quite well of late, and a loss for our economy and energy security.
So here is where we are:
Posted in accidents, decommissioning, energy policy, hurricanes, Offshore Energy - General, tagged 2020 offshore fatalities, Beta Unit pipeline, Globetrotter II, Hogan and Houchin, Huntington Beach, Khamsin, Lease Sale 257, offshore production, Russell Peterson on January 10, 2022| Leave a Comment »
Posted in CCS, climate, energy policy, Gulf of Mexico, Norway, Offshore Energy - General, tagged CCS, Exxon, Lease Sale 257, Norway, NPD on December 20, 2021| Leave a Comment »
Several actors have approached the ministry with a desire to be allocated two specific areas for storage of CO 2 . One area in the North Sea and one in the Barents Sea were therefore announced on 10 September in accordance with the storage regulations.
By the application deadline of 9 December, the ministry had received applications from five companies. The Ministry will process the received applications and allocate area in accordance with the storage regulations during the first half of 2022.
Ministry of Petroleum and Energy, Norway
Contrast the situation in Norway with Exxon’s apparent attempt to acquire 94 Gulf of Mexico leases at Oil and Gas Lease Sale 257 solely for CCS purposes. BOEM’s Notice of Sale made no mention of CCS, and there had been no environmental or economic assessment of CCS activity.
And how much will the public pay for grand CCS ventures that (although interim measures) will take years to initiate, add new safety and environmental risks, and may never achieve their objectives? The public burden will no doubt include direct subsidies, tax credits, increased petrochemical prices, and the erosion of purchasing power associated with the resulting inflation pressures.
Bud's Offshore Energy (BOE) 