Offshore Oil & Gas

 

Biden Administration Sets November Date For Gulf Lease Sale Canceled In February. According to The Hill, “The Biden administration on Thursday announced a November oil and gas lease sale in the Gulf of Mexico, months after a federal court blocked its moratorium on new federal lease sales. The lease sale will comprise about 15,135 blocks in a range of three to 231 miles offshore and depths ranging from nine to more than 11,000 feet. The federal Bureau of Ocean Energy Management (BOEM) said in a statement that the leases will include stipulations to protect threatened species and potential conflicts with other activities in the Gulf. The BOEM also resolved to press on with a ‘comprehensive review of the deficiencies associated with its offshore and onshore oil and gas leasing programs.’ As one of his first acts in office, President Biden announced a moratorium on new leases on federal lands for oil and gas drilling. However, a federal judge in June ordered a temporary hold on the moratorium. The Interior Department said it would appeal the decision but comply with it in the meantime. BOEM had previously announced it would make a decision on the lease sale in question by the end of September after it was initially canceled in February. Despite these caveats, environmental and progressive groups were sharply critical of the announcement. ‘President Biden is doing Donald Trump’s bidding today. This lease sale will be devastating for the Earth’s climate, and set America back years on our path to a climate solution,’ Center for Western Priorities Deputy Director Aaron Weiss said in a statement.” [The Hill, 9/30/21 (+)]

 

Haaland Explains Herself. According to Politico, “The department has no choice but to proceed with the Gulf of Mexico sale following the litigation, but it is committed to ‘conduct leasing in a manner that takes into account the program’s well-documented deficiencies,’ Interior Secretary Deb Haaland said Thursday in a letter to public lands activists obtained by ME. Haaland wrote in response to a letter by several prominent environmental groups urging the secretary to push Congress to update the leasing system to protect public lands, ensure companies pay to plug well leaks and garner more public revenue. ‘We also are evaluating dozens of lawsuits challenging more than 5,000 leases covering nearly five million acres of public lands as we reform the oil and gas leasing programs. The Department will exercise its authority and discretion under the Mineral Leasing Act, the Outer Continental Shelf Lands Act, and other applicable law to address climate change and use all available administrative and regulatory processes to reform these programs,’ Haaland wrote. She did not directly address the congressional action items that the activists pushed for.” [Politico, 10/1/21 (=)]

 

Biden Admin Sets First Oil Lease Sale. According to Politico, “The Interior Department today announced a date for the first oil and gas lease sale of the Biden administration, ending a freeze on that part of federal oil program while the White House weighs climate reforms. The auction on Nov. 17 will include all federal waters in the Gulf of Mexico that are available for oil and gas drilling, enough acreage to support an estimated 1 billion barrels of oil (Greenwire, Sept. 3). It obeys a court order this summer for the Biden administration to restart oil and gas lease sales until a federal judge has ruled whether President Biden in January overstepped the law when he suspended industry access to the country’s large stores of federal crude oil and natural gas. The Biden administration has made climate action a hallmark of its policy agenda and is expected to curtail oil and gas development on public lands and offshore (Energywire, Sept. 27). In the lease announcement today, Interior underscored that the sale was forced and highlighted its ongoing work to identify ‘the deficiencies associated with its offshore and onshore oil and gas leasing programs.’” [Politico, 9/30/21 (=)]

 

Interior Plans Gulf Of Mexico Oil Lease Sale In November After Court Order. According to Politico, “The Interior Department said Thursday it will hold an oil and gas lease sale for the Gulf of Mexico on Nov. 17, after a court ruled in June that the department’s pause on lease sales violated the law. Details: Interior’s Bureau of Ocean Energy Management said the lease sale would be ‘in compliance with an order from a U.S. District Court.’ But ‘BOEM will include lease stipulations to protect biologically sensitive resources, mitigate potential adverse effects on protected species, and avoid potential conflicts between oil and gas development and other activities and users in the Gulf of Mexico,’ the department noted in its press release announcing the lease sale. BOEM also said it would not reinstate a provision the Trump administration included in its November 2020 lease sale that held the agency to a 75-day timeline to approve new drilling permits associated with the lease. ‘The Biden Harris Administration is continuing its comprehensive review of the deficiencies associated with its offshore and onshore oil and gas leasing programs,’ the department added.” [Politico, 9/30/21 (=)]

 

Complying With Court Order, U.S. To Hold Gulf Of Mexico Oil And Gas Lease Sale In November. According to Offshore Engineer, “The U.S. Bureau of Ocean Energy Management (BOEM) will hold an oil and gas lease sale for the Gulf of Mexico on November 17, complying with a U.S. District Court order. To remind, the Biden administration had paused all oil and gas leasing activities on federal lands and waters in January, citing climate crisis. A federal judge in Louisiana in June then ordered the resumption of oil and gas leasing on public lands and waters. Announcing the upcoming Gulf of Mexico lease sale on Thursday, BOEM said that the Biden Harris Administration ‘is continuing its comprehensive review of the deficiencies associated with its offshore and onshore oil and gas leasing programs.’ Lease Sale 257, planned to be live-streamed from New Orleans, will be the eighth offshore sale under the 2017-2022 Outer Continental Shelf (OCS) Oil and Gas Leasing Program. Lease Sale 257 will include approximately 15,135 unleased blocks located from 3 to 231 miles offshore in the Gulf of Mexico with water depths ranging from 9 to more than 11,115 feet (3 to 3,400 meters).” [Offshore Engineer, 9/30/21 (=)]

 

Marine Renewable Energy

 

N.C. Offshore Wind Faces Big Challenges, Even Bigger Opportunities, Advocates Say. According to Energy News Network, “An impending Trump-era ban on energy development in the southern Atlantic Ocean has entangled the future of North Carolina’s offshore wind industry with congressional Democrats’ reconciliation bill. Meanwhile, tony beach towns like Bald Head Island are balking at the prospect of sea-based wind turbines that beachgoers might glimpse, saying the ‘massive industrial machinery’ would wreck their tourist economies. These are just two of the challenges a new coalition in the Tar Heel State has formed to confront, with the goal of establishing a robust market for offshore wind energy in the state. Offshore Wind For North Carolina, a group of 10 environmental and clean energy nonprofits, acknowledges the barriers loom large. But the potential benefits, they say, are much larger: abundant clean energy to help combat the climate crisis and scores of jobs manufacturing and shipping turbine components. ‘It presents such a tremendous opportunity for North Carolina on many fronts,’ said Jaime Simmons, program manager for the Southeastern Wind Coalition, a member of the new group. ‘It’s a necessary component to carbon neutrality by 2050. It’s also a once-in-a-generation economic opportunity.’” [Energy News Network, 9/30/21 (=)]

 

‘Where The Game Is Happening’ - Region Aims To Become East Coast Offshore Wind Hub. According to Virginia Business, “Touting one of North America’s largest ports, congestion-free shipping channels and the nation’s highest percentage of maritime workers, Hampton Roads is charting a course to become the East Coast supply chain hub for the offshore wind industry. Those attributes, say local leaders, set the region apart in the race to build the nascent carbon-neutral energy sector. The U.S. Department of Energy estimates that offshore wind farms under development off the East Coast will support up to 86,000 jobs and provide up to $25 billion in economic output by 2030. Currently, the projects rely on a European supply chain for their massive turbines, blades, generators and foundations, but shipping those mechanisms overseas to the United States is expensive, time-consuming and risky. That’s why East Coast states are eager to cut out the middleman by manufacturing the components in the U.S. and delivering them to offshore wind projects along the Atlantic seaboard. Hampton Roads’ deep, wide harbor, free of air-draft restrictions posed by bridges and other overhead structures, combined with its abundance of terminal facilities and waterfront industrial sites, as well as a large workforce skilled in shipbuilding and ship repair, give the region strong selling points for enticing companies involved in manufacturing, installing and maintaining offshore wind components. Plus, the state offers pro-business incentives such as lower taxes and labor costs and fewer regulations.” [Virginia Business, 9/30/21 (=)]

 

Offshore Wind Brings Central Coast Closer To Becoming Renewable Energy Hub. According to Virginia Business, “Assemblymember Jordan Cunningham (R-San Luis Obispo) believes the Central Coast can become the clean energy capital of the United States, and a recently signed bill brings the region one step closer to developing offshore wind power. Cunningham’s offshore wind generation bill, AB 525, was signed into law on Sept. 23. It’s California’s first commitment to offshore wind in state law history, the lawmaker said. ‘It sets a number of targets or deadlines for the PUC [Public Utilities Commission] to study and come back with a number of what is feasible to build, in terms of gigawatt capacity,’ Cunningham said. Offshore wind energy requires a substation on land to transmit the energy into the state grid. This makes the Central Coast an ideal location, because existing PG&E owned substations in Diablo Canyon and Morro Bay could both be used to connect offshore power to the coast, Cunningham said. As far as where the turbines will be placed, off the shore of Morro Bay is the most likely candidate. ‘I’ve been working for three and a half years with [U.S. Rep.] Salud Carbajal’s office, [U.S. Rep.] Kevin McCarthy’s office, the Pentagon, the Department of the Interior, to try to get clearance for leasing out that [Morro Bay] ocean space, which is in federal waters,’ Cunningham said. ‘We finally got that this year, so the timing is perfect. Now with this bill, we’ve been able to put into state policy and law for the first time a commitment that California is going to pursue offshore wind power.’” [Virginia Business, 9/30/21 (=)]

 

BOEM To Conduct Environmental Review Of Two Offshore Wind Projects Off New Jersey. According to gCaptain, “The U.S. Department of the Interior’s Bureau of Ocean Energy Management (BOEM) is set to conduct an environmental review of two proposed offshore wind energy projects off the coast of New Jersey. The plan was submitted by Atlantic Shores Offshore Wind LLC which plans to construct and operate two commercial-scale offshore wind projects in federal waters approximately 8.7 miles from the New Jersey coast. The first of the two projects will have a capacity of 1,510 megawatts, enough to power over 700,000 homes, making it the largest single project in New Jersey and the third largest in the United States. ‘The Interior Department is moving rapidly to develop a clean energy future with good-paying union jobs. Offshore wind holds enormous potential for our nation, and the wind resources offshore New Jersey are no exception,’ said Secretary of the Interior Deb Haaland. ‘As we kick off this process, the Department will continue to do our part to ensure the development of our offshore renewable energy resources is done responsibly and sustainably.’” [gCaptain, 9/29/21 (=)]

 

Spirited Debate Featured At Offshore Wind Public Hearing; City Engineer Fears ‘A Wall Of Turbines’ On Horizon. According to The Dispatch, “In an often-spirited, three-hour plus virtual public hearing, the Maryland Public Service Commission heard a wide range of opinions on the proposed next phases of two offshore wind energy projects off the coast of Ocean City. The Maryland Public Service Commission (PSC) on Tuesday held the first of two virtual public hearings on applications from US Wind and Ørsted for second phases of two offshore wind energy projects off the coast of the resort. In 2017, the PSC awarded Offshore Renewable Energy Credits, or ORECS, for two projects including US Wind’s Marwin project and Ørsted ‘s Skipjack I project. Those projects are now going through the federal review period with the Bureau of Ocean Energy Management (BOEM). Buoyed by federal and state calls for an expansion of offshore wind energy, both Ørsted and US Wind have submitted requests for ORECs from the PSC for their second-phase projects, which, if approved, would significantly increase the number of wind turbines sited off the resort coast. To that end, the PSC on Tuesday held the first of two public hearings virtually. The second was scheduled for Thursday night. As expected, local officials remained adamant they continue to support clean energy, including offshore wind, but voiced opposition about the proposed scope and locations for the second-phase projects.” [The Dispatch, 9/30/21 (=)]

 

Vineyard Wind Signs Port Deal With Salem. According to CommonWealth Magazine, “SALEM, A LATECOMER to the scramble for offshore wind business, snagged a deal on Thursday with Vineyard Wind, which promised to help make the North Shore community the state’s second major wind port if the company wins an upcoming power contract. The deal, announced in Salem at a press conference with Mayor Kim Driscoll and local legislators, would have Vineyard Wind serve as the anchor tenant for a new port facility offering offshore wind developers space for turbine assembly, staging, and storage. Salem could accommodate large wind turbine installation vessels because it has a deepwater port with unrestricted access – no hurricane barrier like New Bedford or bridges limiting ocean access to and from Fall River and Somerset’s Brayton Point. The Salem announcement is another sign of how offshore wind companies are competing for business in Massachusetts. Massachusetts is prioritizing price in the bidding process, but there is an economic development component as well, and developers are trying to check that box. Two developers are bidding on the latest procurement – for as much as 1,600 megawatts. Vineyard Wind linked up with Salem in its bid while Mayflower Wind offered to locate an operations and maintenance operation in Fall River and bring its electricity ashore at Brayton Point, where it would build a capital-intensive facility to adapt the electricity for use on the New England power grid.” [CommonWealth Magazine, 9/30/21 (=)]

 

Ocean Health & Management

 

Op-Ed: Can We Harness The Natural Power Of The Ocean To Fight Climate Change? According to an op-ed by Brad Ack and Peter De Menocal in The Hill, “The good news is that the ocean may have the potential to significantly contribute in new ways to reduce the buildup of carbon pollution that is affecting it so seriously. Ocean-based CDR pathways build on the natural power of the ocean to remove and safely store carbon, which it already does at very large scales. The ocean has vast potential to durably store carbon at time and mass scales that match the problem. Indeed, if all human emissions since the Industrial Revolution that are now in the atmosphere were transferred to the deep sea, it would only increase seawater carbon content by less than 2 percent. There are a number of potential ocean CDR pathways — from growing vast quantities of marine plants, to removing CO2 directly out of the sea, to burying it safely beneath the seafloor. While these are promising solutions, all of them require a great deal more research, development and testing to understand their potential, range of impacts and benefits, as well as possibilities for scaling. This research must also focus on issues of equity, justice and proportionate risks, with broad community input. A top priority for science is to advance our understanding and monitoring of the oceans so that we can measure impacts and viability of these potential solutions. Specifically, this means developing more complete understanding of how the ocean works at this scale, how it cycles carbon from the surface to deep waters, and how the oceans are changing. With this new capability, we can test the effectiveness and impacts of these ocean CDR approaches.” [The Hill, 9/30/21 (+)]

 

 

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