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US Offshore Wind Industry Targets and Challenges

President Biden sets target of 30GW generated from US offshore wind industry by 2030, aiming to power 10M homes amid challenges and oil industry shifts.
WorkBoat

President Joe Biden aims for the US offshore wind industry to generate 30 gigawatts of electrical power by 2030. This would be sufficient to power 10 million homes, equating to 16,920 bbls. of petroleum an hour or 384,000 bbls. of oil a day. However, the Energy Information Administration (EIA) highlights that reliance on petroleum, including oil and natural gas, is approximately 20 million bbls. per day.

According to EIA statistics for 2023, even if all residential electricity was produced by wind power, it wouldn’t be enough to meet half of US home energy requirements. Currently, there are no plans to import wind energy into the US, and it isn’t expected that offshore wind will replace oil and gas as the prime energy source in the near future.

Oil Giants and Offshore Wind

Significant oil companies are stepping back from offshore wind involvement. For instance, Shell withdrew from a South Korean floating offshore wind project in February to focus on more profitable endeavors. BP originally aimed for a 35% to 40% emissions reduction by the end of the decade. However, it revised this aim to a 20% to 30% reduction target in March 2023. Both companies highlight the need for a gradual transition to renewable energy, with oil and gas remaining the primary energy source for now.

Lease Sales

The Bureau of Ocean Energy Management (BOEM) released final revisions to its bid adequacy procedures in January. The updated rules aim to ensure fair market value for Outer Continental Shelf (OCS) oil and gas lease sales, and are set to be implemented in the 2024-2029 National OCS Oil and Gas Leasing Program. The revisions include updating BOEM’s methodology for measuring the adequacy of bids for OCS oil and gas lease sales to enhance clarity and transparency, discontinuing the use of tract classification, and minor changes to clarify and streamline processes.

BOEM published its proposed revisions in the Federal Register, receiving over 15,500 public comments. The final Gulf of Mexico Oil and Gas Lease Sale — 261 — took place in late December 2023 and generated over $382 million in high bids for 311 tracts covering 1.7 million acres in federal waters of the Gulf of Mexico.

Revenue from Offshore Oil and Gas Leases

Revenues from offshore oil and gas leases, including high bids, rental payments, and royalty payments, are directed to the U.S. Treasury, certain Gulf Coast states (Texas, Louisiana, Mississippi, and Alabama) and local governments, the Land and Water Conservation Fund, and the Historic Preservation Fund.

Lease Sale 261 offered 13,482 unleased blocks on 72.7 million acres in the Gulf’s Western, Central and Eastern Planning Areas. The $382 million is a considerable increase from the $264 million in high bids for 313 tracts covering 1.6 million acres in federal waters of the Gulf in March 2023.

Legal Complexities

Offshore energy operations can be legally complex, subject to state, federal, and maritime law. This legal complexity includes the definition of what constitutes a vessel or seaman in the offshore energy context, and the applicability of maritime law.

Setbacks and Regrouping in the Offshore Wind Industry

Despite setbacks, there were milestones in 2024 for the offshore wind industry. South Fork Wind, an array of 12 turbines 35 miles east of Montauk, N.Y., became the first fully operational offshore wind energy project in U.S. federal waters in March. Developers continue to explore other projects, and boatbuilders are busy constructing the new U.S. support fleet. The industry, while facing challenges, is set on making progress.

Original Story at www.workboat.com

Trending News

Mississippi River Faces Persistent Saltwater Intrusion, Region Seeks Long-Term Solutions



For the third consecutive year, the Mississippi River is experiencing significant saltwater intrusion, prompting local communities and environmental experts to search for sustainable solutions. This recurring issue arises as the river’s flow decreases, allowing saltwater to move upstream and threaten drinking water supplies. The U.S. Army Corps of Engineers is actively involved in addressing this problem, employing temporary measures like saltwater barriers to mitigate the impact on affected areas.



Saltwater infiltration poses serious risks to public health and agriculture, as freshwater sources become compromised. The situation is exacerbated by prolonged periods of drought, which have reduced freshwater flow in the Mississippi River. According to the National Weather Service, drought conditions have worsened due to climate change, increasing the frequency and severity of saltwater intrusion events.



Local authorities are collaborating with federal agencies to explore permanent solutions. Among the proposed strategies are enhanced levee systems and improved water management techniques. The U.S. Army Corps of Engineers is evaluating the feasibility of long-term infrastructure projects to prevent further saltwater encroachment. Additionally, community leaders are advocating for increased funding to support these initiatives and safeguard the region’s water resources.



The impact of saltwater intrusion extends beyond drinking water concerns, affecting local ecosystems and agricultural productivity. Farmers in the region have reported crop damage due to elevated salinity levels in irrigation water. The Natural Resources Conservation Service is working with farmers to implement adaptive practices, such as planting salt-tolerant crops and improving soil management techniques.



As the Mississippi River continues to face challenges from saltwater intrusion, stakeholders emphasize the importance of collaborative efforts and innovative solutions. The ongoing threat underscores the need for comprehensive planning and investment to protect one of America’s most vital waterways from the impacts of climate change and environmental stressors.

November 19, 2024



Environmental activists have raised concerns over the fossil fuel sector’s significant impact on COP29, the latest United Nations Climate Change Conference. Activists argue that the industry’s presence diverts focus from critical climate actions.



The conference, designed to promote global climate agreements, faces criticism for allowing fossil fuel companies to participate extensively. Environmental groups claim these companies undermine efforts to reduce carbon emissions and transition to renewable energy sources.



According to Climate Action Network, fossil fuel representatives have increased their lobbying activities, aiming to weaken climate policies. These industries allegedly influence negotiations, leading to watered-down commitments that fail to address the urgency of climate change effectively.



Experts suggest that the influence of these companies stems from financial contributions and longstanding relationships with decision-makers. Critics argue that this affects the conference’s ability to enforce meaningful climate change regulations.



During the event, several protests highlighted the need for transparency and a stronger focus on sustainable energy solutions. Activists are calling for increased participation of renewable energy stakeholders in future conferences.



The controversy surrounding fossil fuel involvement at COP29 underscores the ongoing challenge of balancing industrial interests with the global imperative to combat climate change.



November 19, 2024