SANIBEL ISLAND

Groups are fighting to stop the federal government from opening up the Gulf of Mexico to offshore drilling. They want to keep our environment safe, but supporters promise they wont do harm.

In hopes of keeping waters clean, folks gathered on Sanibel to learn more about offshore drilling Monday.

The federal offshore drilling is still in play, Said Hunter Miller, who is a Florida Gulf Coast campaign organizer with Oceana. Our beaches, our coastline, our tourism industry, our wildlife is still at risk.

Groups such as Oceana and Sanibel-Captiva Conservation Foundation fear the Gulf Coast isnt in the clear when it comes to offshore drilling.

Its certainly important here where weve already experienced these traumatic events of the last year these terrible water quality events, said Ryan Orgera, the CEO of Sanibel-Captiva Conservation Foundation.

Florida Petroleum Council released a statement ensuring offshore drilling can be done successfully without harming the natural environment.

The U.S. with its strict environmental regulations and safety policies, coupled with industrys best practices and advanced technologies is better positioned than other nations to safely and responsibly develop its offshore energy, said David Mica, the executive director or Florida Petroleum Council in a statement.

Steven Schulz on Sanibel believes our country still has enough resources elsewhere before drilling would need to be done out in the Gulf.

I think we have enough oil reserves and get oil from other places that we dont have to do offshore drilling, Schulz said.

Oil and gas leases in the Gulf are slated to come up for sale in 2020.

There is a moratorium on drilling and exploration in the Eastern Gulf that will expire in 2022 unless its permanently extended.

The U.S. House of Representatives voted to permanently ban drilling in the eastern Gulf. Its now in the Senates hand.

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Offshore drilling opposition meets on Sanibel, supporters say no harm will come - Wink News

"FLOATING wind farms to bring 230 million and thousands of Scots jobs to economy," claim Renewable UK and Scottish Renewables, adding that 33.6 billion worth of economic activity could be delivered, generated over the next 30 years ("Thousands of Scots jobs can be created by floating wind farms", The Herald, November 1). Seventeen thousand jobs could be created or supported.

Since the wind turbine hardware is manufactured in and imported from the Continent and, more especially, from China, where its manufacture generates vast amounts of greenhouse gases, along with more during installation, servicing and, eventually, demolition and disposal of the equipment, one must ask at least five questions:

1) Whence will come the huge monies and how much could go to Scotland?

2) Will the world's CO2 release be usefully spared?

3) If our greenhouse gases' output can be reduced by this approach, what evidence is there that the climate could benefit, from offsetting adverse changes?

4) Could surplus electricity be sold abroad?

5) Since the UK is responsible for only one-third of one per cent of the planet's manmade CO2 output, Scotland's a tenth of that, how useful could this proposed project be so as to help decarbonisation?

The great bulk of the Earth's greenhouse gases come from China, the United States, India and many more non carbon-curbing nations.

Our governments rightly stress the vital need for value for money, so very comprehensive and detailed auditing of scientific-electrical engineering assessments and also manpower prospects are essential before any further, rational decisions can taken on this vast proposed project.

Taxpayers should recall that promising statistics about any benefits from wind turbines and all renewables must be taken with a pinch, or more, of salt.

(Dr) Charles Wardrop, Perth.

* FRIDAY'S Agenda article ("Engineering will be key to solving net zero problems", The Herald, November 1) made reference to the Scottish Parliament's Scottish Parliaments climate change committee. This should have been the Westminster climate change committee. We apologise for this error.

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Questions that need to be answered on offshore wind - HeraldScotland

Thu, Oct 31, 2019 - 3:47 PM

POLLUX Properties and PACC Offshore Services Holdings (POSH) have separately called for trading halts on Thursday, pending the release of announcements.

During the morning session, Pollux Properties shares more than doubled to seven Singapore cents as at 11.38am. Prior to the trading halt called at 1.01pm, the counter was trading at 70 per cent or 2.1 cents higher at 5.1 Singapore cents, compared with the previous day's close of three cents.

Pollux Properties on Tuesday released its first-quarter results for the period ended June 30, sinking into the red with a net loss of S$531,000, from a net profit of S$847,000 a year ago. This came on the back of a rise in its share of loss of a joint venture by S$1.10 million toS$1.2 million, which was mainly due to a delay in obtaining strata titlefor a project.

Loss per share stood at 0.02 Singapore cent, from earnings per share of 0.03 cent the year prior. Revenue was up 21 per cent to S$3.4 million, from S$2.8 million a year ago, due to higher rental income collected.

The shares of mainboard-listed POSH meanwhile climbed as much as 19.2 per cent to 13 Singapore cents as at 10.44am, compared with its Wednesday closing price of 10.9 cents.

Prior to calling for a trading halt at 12.30pm, the counter was up 16.6 per cent or 1.8 cents at 12.7 cents.

On Oct 24, the company disclosed that its joint venture (JV) company POSH Terasea Pte Ltd will be wound up by way of a creditors voluntary winding up. Posh has a 50 per cent stake in the JV.

Terasea a JV between Ezion and Seabridge Marine Services owns the other half of POSH Terasea.

Continued here:

Pollux Properties, PACC Offshore call for trading halts - The Business Times

So much information is flowing into HMRC that it relies on speculative letters to taxpayers

The tax office has been swamped with 5.7 million pieces of information about overseas bank accounts held by three million British citizens under the terms of a new international treaty, according to tax experts.

However, HM Revenue & Customs (HMRC) does not have enough staff to investigate the information, according to the tax consultancy BDO, so is instead blitzing the people named with speculative letters asking them to send details of their financial affairs.

The information is coming from 100 countries under common reporting standards (CRS) agreed by the international Organisation for Economic Co-operation and Development. The standards are designed to stop tax evasion, or avoidance, by making governments aware of overseas money held by their citizens. HMRC says in its annual report that the

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HMRC 'doesn't have time' to investigate offshore account tip-offs - The Times

(Map courtesy Murphy Oil Corp.)

Offshore staff

EL DORADO, Arkansas The prime minister of Vietnam has approved Murphy Oil Corp.s outline development plan for the Lac Da Vang (LDV) field on block 15-1/05 in the Cuu Long basin, the company revealed in its 3Q results statement.

Front-end engineering design work (FEED) has started.

Analysis of the LDT-1X oil discovery well continues, and it has the potential to add bolt-on resources to the LDV field development, the company said.

Murphy subsidiary Murphy Cuu Long Bac Oil Co. Ltd. is the operator of block 15-1/05 and holds 40% working interest. Partners in the block include PetroVietnam Exploration and Production Co. with 35% carried interest and SK Innovation with a 25% interest.

The company received initial government approval on the production-sharing contract for block 15-2/17 and expects formal signing by the end of the year.

In the Gulf of Mexico, the company completed the Nearly Headless Nick well on Mississippi Canyon block 387, which will be tied back to the Delta House FPS, and completed a workover on a Medusa well in 3Q. First oil is expected from both wells in 4Q.

It also tied-in the new Dalmatian #2 well on Desoto Canyon block 4, as well as the non-operated Lucius #3 well on Keathley Canyon block 875.

In 4Q, the company expects to start a workover project at the Chinook #5 well on Walker Ridge block 425 and launch three-well rig campaign at Front Runner.

In August, Murphy successfully bid on Green Canyon block 522 in Lease Sale 253.

Murphy expects to award subsea engineering and construction contracts for the Khaleesi/Mormont field development in the near term. Pre-FEED work for the Samurai field is ongoing.

Offshore Brazil, the company bid on blocks 505, 575 and 637 in the Sergipe-Alagoas basin, increasing total gross acreage in the basin to 1.7 million acres across nine total blocks. The company holds a 20% working interest with ExxonMobils Brazilian subsidiary at 50% as operator and Enauta Energia S.A. holding 30%.

Finally, the company farmed into blocks POT-W-857, POT-W-863 and POT-W-865 in the Potiguar basin. The company holds 30% and, operator Wintershall Dea holds 70%.

11/01/2019

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Murphy progressing Vietnam, Gulf of Mexico projects - Offshore Oil and Gas Magazine

Big oil and gas producers might finally have found a renewable energy they can fully embrace--largely because it has a lot in common with oil and gas.

Driving the news: Up to 40% of the costs of offshore wind, including construction and maintenance of massive structures, overlap with offshore oil industry costs, a new International Energy Agency report finds.

Where it stands: While the United States has just one (tiny) offshore wind farm, a boom is on the horizon with a slew of companies planning big projects.

By the numbers: About 30% of the leases that the Interior Department has so far auctioned for future U.S. offshore wind farms are tied to the oil industry (Equinor and Shell), according to BloombergNEF data.

Why it matters: These companies have deep pocketbooks and global reach. If they make big bets on offshore wind, which accounts for just 0.3% of global electricity today, the growth of this carbon-free energy source could exceed current expectations.

The big picture: Big oil and gas companies are under pressure from shareholders, lawsuits and the public to more readily acknowledge their role fueling climate change and more fully embrace a global, albeit uneven, transition to cleaner energy sources.

Between the lines: An increasing trend among these companies is to buy stakes in separate developers already focused on clean energy, such as solar and electric vehicle charging.

Go deeper: Troubles lurk for Americas emerging offshore wind boom

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Why some in Big Oil are looking to go big in offshore wind - Axios

Offshore work and liquefied natural gas projects helped to buoy Houston oil field service company Baker Hughes during the third quarter.

In an early Wednesday morning statement, Baker Hughes reported posting a $57 million profit for shareholders on nearly $5.9 billion of revenue during the third quarter. The figures were higher compared to the $13 million net income for shareholders on nearly $5.7 billion of revenue during the third quarter of 2018.

This years this quarter figures translated into earnings per share of 21 cents for stockholders, which were higher compared to the 3 cents per share during the same time period last year.

Baker Hughes nonetheless missed Wall Street expectations of $6.1 billion of revenue and earnings per share of 24 cents.

Shale Slump: Oil field service sector braces for more pain

The company's earnings report come at time when $50 per barrel crude oil prices have created a drilling slump in shale fields across the United States and Canada that has sent the rest of the oil field service sector hemorrhaging with losses.

In a statement, Baker Hughes CEO Lorenzo Simonelli said the company delivered a solid quarter based on contract wins from it turbomachinery and oilfield equipment divisions as well as improved margin from its oilfield services division.

Among the contract wins, Norwegian oil company Vr Energi tapped Baker Hughes to provide 16 underwater production systems in the Balder X field of the North Sea.

Venture Global LNG also awarded Baker Hughes a contract and granted a notice to proceed with construction for the Calcasieu Pass LNG export terminal in Louisiana.

A major oil company selected Baker Hughes as its sole artificial lift provider in the Permian Basin while Saudi Aramco signed a five-year contract with the Houston company for services in Saudi Arabia.

"Overall, we are very pleased with our execution as a team, and we believe Baker Hughes is firmly on the right path financially, operationally, and strategically, Simonelli said.

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With roots in Texas going back to 1907, Baker Hughes now employs more than 64,000 people in 120 nations. The company reported a $195 million profit on nearly $23 billion of revenue during 2018.

The earnings report comes roughly seven weeks after Boston industrial conglomerate General Electric reduce its ownership stake to below 40 percent, allowing Baker Hughes to become an independent company.

Seizing upon that momentum, Baker Hughes rolled out a new logo in early October, changed its stock ticker symbol to BKR and rebranded itself as an oilfield technology company.

Read the latest oil and gas news from HoustonChronicle.com

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Offshore, LNG buoy Baker Hughes in third quarter - Houston Chronicle

The wind farm in which PSEG is set to acquire an interest is expected to be commissioned in 2024.

Public Service Enterprise Group is looking to get back into offshore wind, and will enter into exclusive negotiations with rsted to acquire a one-quarter interest in its yet to be built 1,100-megawatt wind farm off Atlantic City.

The $1.6 billion Ocean Wind project is the first offshore wind farm approved in New Jersey. Located 15 miles off Atlantic City, it is projected to supply more than a half million homes with power. The wind farm is expected to be commissioned in 2024, subject to permitting and other factors.

The two companies announcement late in the day was a bit of a surprise, considering PSEG and rsted had previously disclosed the former had an option to buy an equity interest in the wind farm project this spring.

In a joint press release, the companies appeared to indicate the process of negotiations might be far along, although an rsted spokesman declined to confirm that this was the case.

Given PSEGs track record for success and history providing energy solutions for communities across the Mid-Atlantic region, we are thrilled at the prospect of having them join the Ocean Wind project, said Thomas Brostrm, president of rsted North America and CEO of rsted U.S. Offshore Wind.

rsted has emerged as the biggest force in the nascent offshore wind market in the United States, operating the first offshore wind facility in the country off Block Island in Rhode Island. It also has been awarded commitments to build more than 2,900 MW of capacity in six other projects along the Eastern Seaboard.

We are pleased about the opportunity to explore a partnership with rsted, a world leader in offshore wind development, and help New Jersey achieve its goal of carbon free generation by 2050, said Ralph LaRossa, president and chief operating officer of PSEG Power, a subsidiary of PSEG.

Offshore wind is a key, if not most crucial component of Gov. Phil Murphys goal of converting to a clean energy economy. By 2030, the administration wants to build 3,500 MW of offshore wind off the Jersey coast.

At one time, PSEG appeared poised to be a big player in the offshore wind sector, cementing a partnership more than a decade ago with developer Deepwater Wind, which rsted acquired a year ago. When former Gov. Chris Christies administration backed away from promoting offshore wind, PSEG seemed to steer away from the sector.

After the Deepwater acquisition, it was disclosed that PSEG had agreed to provide rsted with energy management services, which included allowing the Danish developer to lease land for use in its project development. The lease is expected to provide land around PSEGs three nuclear units in Salem County to assemble the huge turbines for the wind farms.

In a quarterly earnings call this spring, PSEG CEO Ralph Izzo talked more about the companys interest in building transmission for offshore wind, instead of developing the wind farms offshore. Nevertheless, PSEG, more than any other power company in the state, has embraced the Murphy administrations goal of transitioning to 100% clean energy by 2050 and has the financial resources to commit to that target.

The announcement also came on a day when rsted shares dropped 8% after the company announced long-term production values from its offshore wind farms may have miscalculated how much power they could produce.

Todays announcement is unrelated to our announcement updating our long-term financial targets, said Cam Stoker, a spokesman for rsted.

PSEG did not respond to calls for comment.

Clean energy advocates were not surprised by the announcement. This is the epitome of if you cant beat them, join them, said Doug OMalley, director of Environment New Jersey. This is a sign that offshore wind is no longer a niche market.

Paul Patterson, an energy analyst with Glenrock Associates who follows PSEG, however, cautioned PSEG will likely be very conservative in its investment in offshore wind. It is a lot different kettle of fish than building on land for wind energy, he said.

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PSEG Looks to Become Active Player in Offshore Wind Development - NJ Spotlight

Chester Seaborns Oct. 18 letter to the editor printed in The Enterprise runs the gamut from calling out Sen. Bernie Sanders, and by inference all Democrats, for publicly denouncing mismanagement of natural resources; to stating that his God placed natural resources so man could scar the environmental landscape with open pit mining and pollute the natural seashores with offshore drilling; to declaring everyone does not value human life because of peoples right to choose; to blaming people not identified for intentionally poisoning the minds of America youth setting them on the path perpetual despair; and of course, the lunacy of the Democratic Party.

Lets step back to April 20, 2010, and the BP Deep Water explosion. The 2010 BP Deepwater Horizon disaster spilled 205.8 million gallons of oil into the Gulf of Mexico killing, over 82,000 birds, 6,100 sea turtles and 25,000 other marine wildlife.

In response, the presiding administration, Barack Obama, put in place rules governing the offshore oil drill.

Now, Donald J. Trump and his self-serving Republican administration has rolled back most of those offshore drilling safety rules while drastically proposing to expand drilling in Americas offshore waters.

To paraphrase Matthew 8:23-27: You of little faith, why do you allow this destruction of natural resources and life to happen?

Mr. Seaborn should look at the ongoing congressional indictments in support seeking the ground truth about the Trump administrations concentrated lies and scare tactics to influence and circumvent the rule of law. He should also look at ongoing indictments to determine if high crimes and misdemeanors have been committed by the president warrant impeachment.

Maybe Mr. Seaborn is taking about indictments for those who, through their tactics have allowed the national debt to raise to $22 trillion from $2 trillion in 2016, thereby scaring Americans and affecting the hopes and dreams of all us.

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Most offshore oil drilling rules have been rolled back - SoMdNews.com

Erecting wind turbines on the worlds best offshore sites could provide more than enough clean energy to meet global electricity demand, according to a report.

A detailed study of the worlds coastlines has found that offshore windfarms alone could provide more electricity than the world needs even if they are only built in windy regions in shallow waters near the shore.

Analysis by the International Energy Agency (IEA) revealed that if windfarms were built across all useable sites which are no further than 60km (37 miles) off the coast, and where coastal waters are no deeper than 60 metres, they could generate 36,000 terawatt hours of renewable electricity a year. This would easily meeting the current global demand for electricity of 23,000 terawatt hours.

Offshore wind currently provides just 0.3% of global power generation, but its potential is vast, the IEAs executive director, Fatih Birol, said.

The study predicts offshore wind generation will grow 15-fold to emerge as a $1tn (780bn) industry in the next 20 years and will prove to be the next great energy revolution.

The IEA said earlier this week that global supplies of renewable electricity were growing faster than expected and could expand by 50% in the next five years, driven by a resurgence in solar energy. Offshore wind power would drive the worlds growth in clean power due to plummeting costs and new technological breakthroughs, including turbines close to the height of the Eiffel Tower and floating installations that can harness wind speeds further from the coast.

The next generation of floating turbines capable of operating further from the shore could generate enough energy to meet the worlds total electricity demand 11 times over in 2040, according to IEA estimates.

The report predicts that the EUs offshore wind capacity will grow from almost 20 gigawatts today to nearly 130 gigawatts by 2040, and could reach 180 gigawatts with stronger climate commitments.

In China, the growth of offshore wind generation is likely to be even more rapid, the IEA said. Its offshore wind capacity is forecast to grow from 4 gigawatts to 110 gigawatts by 2040 or 170 gigawatts if it adopts tougher climate targets.

Birol said offshore wind would not only contribute to generating clean electricity, but could also offer a major opportunity in the production of hydrogen, which can be used instead of fossil fuel gas for heating and in heavy industry.

The process of making hydrogen from water uses huge amounts of electricity but abundant, cheap offshore wind power could help produce a low-cost, zero-carbon alternative to gas.

In the North Sea, energy companies are already planning to use the electricity generated by giant offshore windfarms to turn seawater into hydrogen on a floating green hydrogen project, backed by the UK government. The clean-burning gas could be pumped back to shore to heat millions of homes by the 2030s. The UK has committed to reaching net zero carbon emissions by 2050.

The overlap between the UKs declining oil and gas industry and the burgeoning offshore wind sector could offer major economic benefits for the UK, Birol said.

Offshore wind provides a huge new business portfolio for major engineering firms and established oil and gas companies which have a strong offshore production experience, he said. Our analysis shows that 40% of the work in offshore wind construction and maintenance has synergies with oil and gas practises.

Originally posted here:

Offshore windfarms 'can provide more electricity than the world needs' - The Guardian

PARIS--(BUSINESS WIRE)--Regulatory News:

Total (Paris:FP) (LSE:TTA) (NYSE:TOT) has signed an agreement to sell wholly owned subsidiary Total E&P Deep Offshore Borneo BV which holds an 86.95% interest in Block CA1, located 100 kilometers off the coast of Brunei to Shell1 for $300 million. The transaction is subject to approval by the competent authorities and is expected to close by December 2019.

This transaction fits with our strategy of actively managing our portfolio and will contribute to our program to dispose of $5 billion of non-core assets over the period 2019-2020, said Arnaud Breuillac, President Exploration & Production at Total.

Block CA1 covers 5,850 square kilometers, with water depths ranging from 1,000 to 2,500 meters. Total currently operates the block alongside partners Murphy Oil (8.05%) and Petronas (5%).

* * * * *

About Total

Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.

Cautionary note

This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms Total, Total Group and Group are sometimes used for convenience. Likewise, the words we, us and our may also be used to refer to subsidiaries in general or to those who work for them.

This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.

1 Dordtsche Petroleum Maatschappij BV

Originally posted here:

Brunei: Total Sells Its Interest in Offshore Block CA1 - Business Wire

Beach lovers visit eastern Sussex County for the ocean, and a pristine view to the horizon is critical to beach enjoyment. In many ways, the view to the horizon would be recognized by Native Americans who fished on the beach a thousand years ago. We are about to lose that horizon view while no one is paying attention.

Two companies have leases in federal waters extending all the way from the Ocean City inlet to north Rehoboth. One company wants to build the tallest industrial offshore wind project in the world using wind turbines as large as the Chrysler Building in Manhattan. When shown visualizations of what the view could be when the leases are built out, and adjusting for the actual details of the proposed projects, 20 to 30 percent of beach lovers say they would go elsewhere, and 30 percent of homeowners would sell their homes.

Even more people will object when they see nighttime views of flashing red airplane warning lights. Imagine that field of lights stretching from Rehoboth to Ocean City. For perspective, the proposed industrial-sized turbines planned for this project are four times taller than the one in Lewes. Can we put a price on this loss of view? It turns out we can. The state estimates the direct economic value of beach tourism is about $2 billion a year, supporting over 18,000 jobs. In a worst-case scenario, counting direct and indirect losses in round numbers, the beach economy could lose a $1 billion a year in tourist revenue, and 9,000 jobs.

This is not about whether wind or solar projects are built. Its about where. During the Maryland approval process, a consultant concluded the offshore projects would simply replace onshore wind projects which sell electric power at one-fourth the price, requiring one-20th of the subsidies from electric customers. We could build a whole lot more wind and solar for what it is costing to build offshore.

The projects exist because of federal decisions to offer leases, and Marylands state government decisions to offer the offshore wind companies a guarantee of $5 billion in revenue backed up by Maryland electric customers. Ocean City, Md., opposes the state plan out of concern for lost tourism from the negative impacts of the view of wind turbines off the coast, and has refused to allow power transmission cables to come ashore if the turbines are visible from the coast.

The only leverage Delaware beach towns have to stop these projects is to follow Ocean Citys lead and work to change the state approval to bring electric transmission cables onshore. Our beach communities need to hold hearings, to receive public comment, and to vote for resolutions for, or against these offshore wind projects, just like they did when there was a threat from offshore oil drilling.

The towns passed resolutions opposing the drilling, and the state amended the Coastal Zone Act to prohibit pipelines from coming ashore.

DNREC is asking for comments on bringing electric transmission cables ashore at Fenwick Island State Park, and building two power substations. Planned improvements to the park infrastructure include adding a parking garage and pickleball courts.

Yet, the agreement with wind developer rsted was already signed July 18. Comments generally come before contracts are signed, not after. No environmental, navigation, geotechnical, or economic impact studies have been done. However, the agreement states numerous state permits will be granted with no mention of any studies. Is a flood-prone barrier island the right place for power transmission substations? Do the park neighbors have any real say in an already signed agreement?

The agreement with rsted leaves a five-year window to obtain permits. Significantly, the Maryland Energy Administration asked the Maryland Public Service Commission to reopen the approval docket. The PSC approval started with turbines about 300 feet high, increased to 459 feet, and as of September 24, to 853 feet, with even taller turbines on the drawing board. MEA believes these changes demand additional review.

Our state parks division signed the Fenwick Island agreement before the taller turbines were announced.

When the U.S Interior Department, Bureau of Ocean Energy Management put the leases up for bid, they had completed minimal studies on the environmental, navigational, fisheries, and economic impact needed to give final approval of offshore wind projects.

They still havent completed the final studies. In August, BOEM took a step back to review the cumulative impact of offshore wind, which is likely to further delay project permitting.

The National Oceanic & Atmospheric Administration, National Marine Fisheries Service has complained the BOEM initial studies did a poor job on the fisheries impact analysis. Impacts on tourism were not considered.

Bird and bat impacts have not adequately been covered.

Honestly, who in their right mind would put a 40-square-mile gauntlet of whirling turbine blades almost a thousand feet high directly in the middle of the Atlantic Flyway, one of North Americas major annual migration routes for millions of birds? The University of Delaware received hundreds of thousands of dollars from BOEM to conduct an East Coast survey of how tourists would react to offshore wind. This is a key issue in determining economic impacts.

The survey measured reactions to daytime and night visualizations of what the project would look like. The Delaware study did not publish the results of the nighttime images. Why not?

The rsted project requires the gathering of meteorological data for one year from an ocean-based tower. A special boat required to erect the tower arrived off the Delaware coast in September, but has sailed away without erecting the tower. This will result in another lengthy delay.

It is clear wind projects off the Delaware coast face major hurdles. Given all these concerns, why is the state in such a rush to sign a long-term agreement? We hope our beach towns will do their due diligence on this topic. We hope our Delaware politicians, including the federal delegation, will work to protect the ecology of our state parks, and the will of beach towns.

David T. Stevenson is the director, Center for Energy Competitiveness for the Caesar Rodney Institute.

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We must protect tourism from offshore wind power - capegazette.com

The Bank of N.T. Butterfield & Son Limited(NYSE:NTB) doesn't exactly roll off the tongue. Chances are, it's also not a bank that most people have ever heard of -- and for good reason since it doesn't do business with Main Street. Butterfield has its core operations in Bermuda, the Cayman Islands, and the Channel Islands Jersey and Guernsey.

It's also been in business for more than 160 years, and with $12.6 billion in deposits, it's well-known among the well-to-do and growing its presence. It's also less than five years into its life as a public company and still relatively below the radar of most investors.

Image source: Getty Images.

But when you look beyond the bank's relative obscurity with retail investors, you'll find a high-quality business that's well run, very profitable, and undervalued. It also pays one of the highest dividend yields you'll find from a bank. Keep reading to learn more about this easy-to-miss offshore bank that should probably be in your portfolio.

Butterfield's status as an offshore bank might make some investors look at it askance. After all, most people associate banking in the Cayman Islands or Bermuda with tax avoidance, at best, and illicit activities, at worst. However, the reality is more straightforward. More individuals and businesses now own assets or conduct business across many borders, and having established banking relationships in these localities simply makes things easier.

Butterfield has proven exceptionally good at conducting this business in a very profitable manner. Since going public in late 2017, it has delivered exceptional returns and has grown earnings sharply:

NTB Return on Equity (TTM) data by YCharts.

For context, most bank stock investors will tell you the benchmark targets are 10% and 1% on return on equity (ROE) and return on assets (ROA), and Butterfield simply blows past those metrics. Combine the strong returns it earns with solid operations, and Butterfield generates very strong earnings.

Soon after going public less than four years ago, Butterfield implemented a dividend. It has increased the payout three times, raising it by 340%. Over the same period, earnings per share have increased 153%.Going forward, investors shouldn't expect such aggressive dividend growth; the reality is, it's not sustainable to continue growing the payout more than twice the rate of earnings growth.

However, the dividend is still very secure, with a payout ratio -- the percentage of earnings paid in dividends -- below 50%:

NTB Dividend data by YCharts.

At recent prices, Butterfield's dividend yield is 5.4%, one of the biggest yields you'll find from any bank.

At recent prices, Butterfield shares trade for less than 9.4 times trailing earnings. Not only is that on the lower end of the multiple investors have paid for it since going public, but a single-digit earnings valuation for this bank is just plain cheap.

Moving over to book value -- how much its shares trade for compared to the carrying value of its assets -- it's also on the lower end of the range it has traded for.However, at nearly 1.8 times book value, it doesn't look as cheap as its earnings multiple.

NTB PE Ratio (TTM) data by YCharts.

Generally speaking, 1.5 times book value is often considered a good benchmark for banks. But here's the rub: You can't really look at Butterfield's book value through the same lens as most other banks. Let's go back to its ROE and ROA to help explain why, usingJPMorgan Chase(NYSE:JPM):

NTB Return on Equity (TTM) data by YCharts.

JPMorgan is one of the best-run, best-regarded banks in the world. And as the chart above shows, it also outperforms the returns benchmarks of 10% and 1%. However, Butterfield's returns leave even one of the world's best-run banks in the dust.

That's not to say that Butterfield is the betterbank. It's a difference in their core businesses. Simply put, Butterfieldshouldgenerate higher returns, and those higher returns should also be reflected in its valuation.Today, that valuation doesn't reflect the returns or the earnings power of Butterfield's assets and operations.

Put it all together, and investors would do well to add Butterfield to their portfolios. Between its strong business, cheap valuation, and high yield, it looks like a great way to grow your wealth with a bank that caters to the world's ultra-wealthy.

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The Ultrarich Have $13 Billion at this Offshore Bank: Here's Why You Should Buy - Motley Fool

In a statement on social media, the alliance said the full bench decision was a "massive win" and had "put the industry on notice that we will stop at nothing to ensure that offshore workers start getting a better deal".

"We have to move away from base line agreements being topped up by employment contracts ... the only proper security of wages and allowances comes in the form of an enterprise agreement which sets out the actual rates, allowances and conditions."

Unions have historically struggled to organise workers on offshore platforms due to logistical difficulties and coverage rules that prevent the MUA from representing workers on structures without a propeller.

But the alliance, formed last year, has allowed the unions to pool their resources and the AWU to employ the more militant MUA organisers, and so informally give the latter union expanded coverage and entry rights.

From late 2018 to mid-2019, the alliance recruited about 25 members from Rigforce as part of a public campaign that targeted the company's agreement for renegotiation once it expired.

But when it finally requested Rigforce recognise it as a bargaining representative in June the company refused.

Unknown to the unions, Rigforce had already negotiated a new agreement three months prior via a related corporate entity that was separate from the one that employed the bulk of its workforce.

The company reached the agreement with three newly hired casuals through individual discussions and successfully got Fair Work to approve the deal without opposition in a four-paragraph decision.

Once the unions found out, the AWU appealed the approval on the basis that the agreement was a sham and that Rigforce was now likely to move its workforce to the entity covered by the new non-union deal.

The full bench found that while it could be inferred that Rigforce had changed its employing entity to avoid bargaining with the AWU, the act's requirements did not deal with such situations.

However, the bench held the company had failed to explain the agreement when it incorrectly told workers their minimum pay would increase.

"It is a statement of the obvious that rates of pay are, to employees, likely to be the most fundamentally important aspect of an enterprise agreement," the bench said.

That position was no different where employees are paid higher than the agreement, it said, particularlysince "they were concerned about the prospect of their pay rates being reduced in the future ... and Rigforce advised them that this could possibly happen".

The bench referred the deal back to the commission to consider whether it was "genuinely agreed" and any potential undertakings.

Rigforce and the alliance, who are understood to be in discussions since the decision, declined to comment.

Original post:

Union halts 'race to the bottom' in offshore oil and gas - The Australian Financial Review

Wed, Oct 30, 2019 - 9:13 AM

NORWAY competition authorities have rejected the application for Keppel Corp's associate company Floatel International to merge with Oslo-listed Prosafe to create the world's largest offshore accommodation company.

FELS Offshore, a unit of Keppel's Offshore & Marine arm, owns a 49.92 per cent stake in Floatel.

In an exchange filing on Wednesday, Keppel said that Floatel and Prosafe are assessing whether to appeal against the decision.

It added that the transaction is not expected to have a material impact on the net tangible assets or earnings per share of the group for the current financial year.

Under the proposed deal, Prosafe was to acquire all of Floatel's outstanding shares and warrants in exchange for new Prosafe shares that will give Floatel's shareholders a 45 per cent stake in the merged entity.

FELS Offshore's resultant shareholding in the post-merger Prosafe will be about 22 per cent.

The merger would have combined Prosafe's existing nine semi-submersible vessels, and options for two newbuild semi-submersible vessels with Floatel's five semi-submersible vessels, Prosafe said in an announcement at the time.

The transaction was subjected to the fulfillment of certain conditions including clearances from competition authorities in Norway and the United Kingdom, along with creditor and shareholder approvals of both Floatel and Prosafe respectively. Prosafe was also to continue its listing on the Oslo Stock Exchange.

Keppel Corp shares closed at S$6.86 on Tuesday, down five Singapore cents or 0.7 per cent.

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Norway competition authorities reject Keppel associate's bid to form offshore housing giant - The Business Times

Businesses are being urged to explore opportunities to get involved with rapidly growing offshore wind sector in Cumbria and beyond.

Cumbria Local Enterprise Partnership, the Furness Economic Development Forum (FEDF) and Department for International Trade (DIT) have joined forces to host a major supply chain event at Barrows Abbey House Hotel next month.

Cumbria boasts one of the largest concentrations of offshore windfarms off the coast of Walney Island, with plethora of operations and maintenance bases in Barrow and further north of the West Cumbrian coast.

Businesses will be offered a briefing on emerging supply chain opportunities locally, nationally and internationally at the event, which takes place on Thursday, November 21 between 9am and 12.30pm.

As well as supporting developments in Cumbria, major exporting opportunities to countries including the USA, Taiwan, Korea, Australia and Northern Europe have also been identified.

Stuart Klosinski, FEDF Project Manager, said: This event will demonstrate how local companies can offer innovative solutions to enhance offshore wind operations and maintenance.

A massive pipeline of new wind farm projects is set to take place around the UK coast and internationally from 2020 onwards. Orsted anticipates developing 13,462MW overseas. A forecast additional 20,439MW UK capacity will be installed additional to the 8,012MW operational today.

The new Crown Estates Round 4 of offshore wind sea bed leasing, now underway, will pave a way for huge new wind farm projects on our doorstep in the Irish Sea. With early knowledge of emerging potential, firms will be able to pursue significant new business.

Miranda Kirschel, Cumbria LEPs head of business and innovation, added: There is a growing national and international offshore wind market that presents a fantastic opportunity for Cumbrian businesses, many of which are already leading in this field.

Representatives from the DIT will also be on hand at the event to offer their insights on how to enter overseas markets and outline the support that might be available.

The event will also introduce a new strategic partnership extending from the North West to Wales the Offshore Energy Alliance which will work to ensure economic opportunities through the offshore wind sector are maximised.

Businesses can register for the event at the Eventbrite website.

Here is the original post:

Event to set out offshore wind opportunities in Cumbria and beyond - NW Evening Mail

What GAO Found

GAO's analysis indicates that changes in the price of oil and in royalty rates drive changes in the amount companies in the offshore oil and gas industry bid for leases (the amount paid upfront at auction for the right to explore and develop offshore tracts of land). Specifically, between May 1985 and June 2018, peaks in industry bidding coincided with higher oil prices. Additionally, when the Department of the Interior's (Interior) Bureau of Ocean Energy Management (BOEM) offered leases at lower royalty rates, industry bid somewhat higher amounts per acre. For example, certain leases were sold from 1996 through 2000 with no royalties on initial volumes of production, which GAO estimates resulted in BOEM collecting, at most, nearly $2 billion in additional bid revenue. However, bureau estimates indicate these leases resulted in about $18 billion in foregone royalties through 2018.

BOEM's valuation process might not fully assure receipt of fair market value, based on GAO's analysis of BOEM data. BOEM develops valuations for offshore tracts it assesses to be economically viableassessments of their fair market valueand awards leases so long as the bid is greater than or equal to BOEM's valuation. BOEM's valuations for tracts were generally low relative to industry bids because, according to BOEM officials, they conservatively forecast to account for inherent uncertainties in, among other things, the quantity of oil and gas present as well as exploration and development costs. In addition, GAO identified two ways BOEM's valuation process results in lowering its already conservative valuations that might not fully assure receipt of fair market value:

Unreasonably high depreciation. BOEM forecast that tracts would lose a median of 23 percent of their value in between sales, leading the bureau to accept lower bids because it determined the tracts might be worth even less in the future. Bureau officials told GAO that lower future values are generally due to BOEM discounting the delayed collection of revenue. However, BOEM's forecasted depreciation increased even though tracts are now available twice as frequently as they were prior to August 2017, reducing the time for discounting. Officials said they were unaware of the high rates and the issue warrants further examination. Enlisting a third party to examine the extent to which the bureau's use of delayed valuations assures the receipt of fair market value, and making changes as appropriate, would help BOEM mitigate risks of continuing to accept bids based on poor information on tracts' future values.

Lowered valuations. BOEM officials told GAO that they lower some initial valuations that are slightly above industry's bids and which would therefore be rejected per procedures to assure fair market value. Officials said they prefer to accept bids unless there is high certainty that the bids are inadequate. However, GAO identified bias, or statistical anomalies, where BOEM lowered many valuations that were initially higher than industry's bids. Specifically, from March 2000 through June 2018, BOEM rejected 27 bids for tracts that it ultimately valued at up to double industry's bid whereas it accepted 359 bids in which industry's bid was up to double BOEM's valuation. Tracts for rejected bids are, on average, subsequently sold for more than twice the initial rejected amount, suggesting that BOEM could be forgoing hundreds of millions of dollars in bid revenue by accepting bids that are too low.

Production of oil and natural gas from offshore leases is a significant source of federal revenue, totaling almost $90 billion from 2006 through 2018. BOEM is required to seek a fair return from offshore leasing and production activities in federal waters. Companies generally pay (1) bids for leases for the right to develop tracts, (2) rents on leased but undeveloped tracts, and (3) royalties on revenues from the sale of oil and gas produced from leases. BOEM holds auctions to award leases to the company offering the highest bid so long as the bureau determines the bid represents fair market value.

GAO was asked to examine issues related to offshore federal oil and gas leasing. This report, among other objectives, (1) describes the effect of oil prices and royalty rates on industry bids for leases and (2) examines the extent to which BOEM's valuation process assures receipt of fair market value. GAO reviewed laws, policies, and regulations; interviewed BOEM officials; and developed an empirical model using BOEM data to analyze the effect of royalty rates and other factors on industry bidding.

GAO is making four recommendations, including that BOEM (1) enlist an independent third party to examine whether the use of delayed valuations assures the receipt of fair market value and (2) take steps to ensure its bid valuation process is not biased toward lowering valuations. Interior disagreed with the first and partially agreed with the second, disagreeing with GAO's characterization of BOEM's process. GAO maintains the recommendations are valid as discussed in the report.

For more information, contact Frank Rusco at (202) 512-3841 or ruscof@gao.gov.

See the article here:

Offshore Oil and Gas: Opportunities Exist to Better Ensure a Fair Return on Federal Resources - Government Accountability Office

New Hampshire, Maine and Massachusetts will work together on large-scale offshore wind development in the Gulf of Maine. Stakeholders from the three states met today in Manchester talk about the possibilities and obstacles for that new industry.

The event was hosted by the Environmental Business Council of New England at the state headquarters of Eversource, which is developing several large offshore wind projects elsewhere in the Northeast.

Taylor Caswell, commissioner of the states Department of Business and Economic Affairs, said at the meeting that he thinks Northern New England could add tens of thousands of jobs building these offshore turbine farms, and the transmission infrastructure to bring their power on-shore.

This is not just a project. This is not just an individual, were going to find a site and put a couple of turbines up, Caswell says. This is the establishment of, really, a whole new industry.

The Bureau of Ocean Energy Management plans to hold the first meeting of a three-state task force on the issue in mid-December. The New England group is the third regionalized wind group BOEM has formed, after ones in the New York area and the Carolinas.

The group's first job would be to help choose specific areas for offshore wind leasing in the federal waters of the Gulf of Maine likely at least 30 miles out to sea.

From New Hampshire state government, the task force will likely include Caswell, state energy program administrator Joe Doiron, marine fisheries chief Doug Grout, and watershed management bureau administrator Ted Diers.

It will also include Maine and Massachusetts officials, plus federal, local and tribal government representatives. Once the group begins its work, officials say turbine development in federal Gulf of Maine waters could happen within the next decade.

The area is thought to have one of the best potential wind resources in the world.

Onshore opportunities

Stakeholders say the best way to utilize that resource will likely be floating turbine platforms, anchored to the sea floor in deep water. Many of the installations huge components will be too big to travel over roads and will have to be made on the adjacent coast.

Its a real large-size industry, says BOEMs Daryl Franois. He says it requires high-tech installation vessels, large cranes, lots of steel and storage space, and turbine blades that could be longer than a football field.

Turbines and related infrastructure construction also poses risks for fisheries, marine science, habitat and wildlife. These have been big obstacles for wind developments in southern New England.

Bill White headed up wind development for the state of Massachusetts before becoming North American executive director for German wind developer EnBW. He says New Hampshire and its neighbors should aim to put up a unified front on the challenges ahead.

If theres a way, a proper way, for the states to reach consensus on these issues particularly on siting, which areas are the priorities and which should be avoided that would go a huge way toward accelerating [the process], White says.

New Hampshire officials emphasized that they hope to collaborate, not compete, with their neighbor states on developing and supplying wind components.

Asked how the state is working to ensure its piece of that pie, Caswell said officials are analyzing the expected needs of an offshore wind industry, and trying to build an ecosystem to bring it here, based on the states existing tech and aerospace sectors.

Eversource offshore wind vice president Ken Bowes says if the Granite State plays its cards right, it could wind up making major contributions to the many gigawatts of wind energy currently in the works across the East Coast, as well as to future projects.

"You have some natural abilities here with the seaport in Portsmouth, also with a tax structure that's very beneficial to manufacturing, Bowes says. So you do have an opportunity here that you should probably think about seizing on in the short-term."

Political uncertainty for state energy procurements

He and others say a key way to accomplish that would be for New Hampshire to set up a large-scale energy procurement program to agree to buy some of the wind power generated.

It could be similar to long-term energy contracts approved by lawmakers in southern New England states, under policies aiming to bring more renewable energy into the region.

Earlier this year, Republican Gov. Chris Sununu blocked a Democratic-led bill that proposed a study commission on renewable energy procurements. That bill was sponsored by state Senate Majority Leader Dan Feltes, who is now running for governor.

Sununu said in his veto message that creating the commission "would open the door to increased [energy] costs for decades to come.

But Caswell and others in Sununus administration now say they think offshore wind development will be a cost-effective opportunity for the state. They argue it will be cheaper for ratepayers than other renewables, in part due to its potential large scale.

From the environmental policy perspective, we want to advance a least-cost option in a region where theres a patchwork of aggressive greenhouse gas emissions reductions [policies], says Joe Doiron of the state Office of Strategic Initiatives. Offshore wind is going to be a big player, and we love this.

Caswell says its too soon to make detailed plans for a procurement program.

But he says the administration wants to proceed "anticipating that we want to have this industry enter Northern New England and New Hampshire, meaning they'll likely talk with the state legislature about issues like wind energy procurement.

State Senate Democrats, including Feltes, recently put out an energy agenda for the 2020 legislative session that emphasizes procurements and participation in regional energy issues, as well as solar power and offshore wind.

As part of that, Sen. David Watters of Dover says he hopes within the next week to propose a set of task forces to coordinate wind siting and industry development at the state level.

State-led aspects of that siting will include substations and transmission infrastructure to distribute power generated offshore. Stakeholders say they hope to build some of that on the New Hampshire Seacoast.

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'A Whole New Industry': N.H. To Work With Neighboring States On Offshore Wind in Gulf of Maine - New Hampshire Public Radio

The UK diving industry may need to reassess its reporting culture in light of a serious incident off the coast of Australia, according to a union boss.

Seven workers sustained chronic brain injuries while working 273m deep at the Ichthys project off Western Australia in 2017, which is the subject of an ongoing legal dispute.

An independent medical report, published last month by Dr Ian Millar of Melbournes Alfred Hospital, said one group of divers was pressurised excessively and inexplicably fast, however there was not one single obvious cause for the injuries.

The report highlights that the extent of the damage was not immediately known as many of the divers were hiding or at least not declaring their problems in hopes they would resolve and out of concern that their future employment might be compromised.

Dr Millar, with 35 years of industry experience, goes on to state that divers may not report health issues for fear of losing diving fitness certification and offers of diving employment.

Following that, Jake Molloy of the RMT union in Aberdeen said, although the UK has stronger safety standards, there remains an inherent fear among the diving community that challenging or stopping a job could lead to loss of employment.

Mr Molloy highlighted that he doubts incident like Ichthys would happen in the UK North Sea with standards being relatively good.

He said: It may be, in light of this event, and indeed in light of some events which have occurred here in the UK over the last couple of years, that we need to look at that, we need to change that culture.

We need to build-in a mechanism that enables divers to more readily challenge and more readily say no, thats wrong, were not doing that. I dont think weve got that at this moment in time.

There is an inherent fear amongst the diving community that refusal, which stop the job process could see them taken off the contract and not given more work.

It might just be a perception, it might simply be that we need to change the divers perception because management wouldnt let that happen. But until it is tested we dont actually know.

Well certainly be sharing it with the employers when we sit down with them, well be taking it through and talking about this report.

Moreover we need to talk to the divers about what would make them feel more able and more willing to avoid this kind of scenario because you dont want divers or indeed any worker to be carrying around this kind of trouble around with them.

With a lack of employment and persistent disability, Dr Millar reports several of the Ichthys divers are understood to be in severe financial difficulty, with more than one expressing suicidal intent.

Dr Millar was brought in after the first patient was referred to him.

He then assessed 13 of the 15 divers who participated, with seven suffering major, ongoing disability.

Several had not initially reported the symptoms, which included impaired cognitive functioning, severe headaches, balance disturbance and mood instability.

At certain depths it is expected that divers will suffer some form of high pressure neurological syndrome but the symptoms normally cease in time.

The divers reported issues including absence type seizures where awareness and movement ceases for several seconds, and uncontrollable jittering of jaw muscles in one individual.

The report also said some have symptoms of post-traumatic stress disorder (PTSD), similar to combat veterans who have experienced blast concussion injury.

Mr Molloy added: Theres a focus on mental health issues today and this goes to the heart of that issue that theyre carrying this burden and ill-health, this condition, but feel unable to talk about it until several months after the event. I think thats astonishing.

The report states is it not commissioned by any party and is intended to be shared as an expert opinion and general briefing document.

Several divers are in a legal battle with DOF Subsea Australia over the incident.

The firm has previously said it regards the ongoing safety, health and wellbeing of all its employees and contractors as being of paramount importance within the companys operations and among DOF Subseas core values and guiding principles.

More:

Ichthys incident highlights offshore divers' 'fear' to speak up - union boss - News for the Oil and Gas Sector - Energy Voice

Wind speeds off the coast of Humboldt County in Northern California are some of the strongest in the U.S. The region's steady gusts are so powerful, in fact, that the area was one of three potential offshore wind energy development zones in California included by the federal Bureau of Ocean Energy Management in a public pitch to developerslast year.

With around 140,000 residents, Humboldt County lacks one thing offshore wind developers like to see: a big demand for power. But the San Francisco Bay Area is a five-hour drive south along Highway 101.

If the wind energy zone off the shore of Humboldt County is fully developed, much of the estimated 2,100 megawatts of generating capacity would end up heading south to serve the 8 million residents of the nine-county San Francisco Bay Area. The question is how to get it there.

The existing transmission infrastructure in Humboldt County wasnt built to export power. An undersea transmission tracking the coastline could very well be the answer.

The entity tasked with providing guidance on transmission and interconnection, as well as other critical issues such as port infrastructure, environmental concerns and economic impacts, is the Schatz Energy Research Center at Humboldt State University. Researchers at the center are conducting three studies to assess offshore wind feasibility in Humboldt Bay. Results are scheduled to be released beginning in March 2020.

Asked in an interview about the regions limited transmission capacity, Schatz Center director Arne Jacobson said, Saying that we are somewhat constrained is very generous. I would say were connected to the rest of the electrical grid by a capillary.

Anything beyond a small pilot-scale deployment, he added, would require some sort of upgrade to the transmission infrastructure or for a fairly significant amount of local storage.

Part of what makes Humboldt County so appealing for residents and visitors the regions rugged natural beauty makes overland electricity transmission difficult.

Bisecting the coastal plain where the cities of Eureka and Arcata sit and the Central Valley in the interior, are a series of north-south running, densely forested peaks of the Northern Coast Ranges. Any potential upgrades to the existing transmission network must contend with this "Redwood Curtain."

The Schatz Center is studying three scenarios of offshore wind farm deployment: 50-megawatt pilot-scale, 150 megawatts and 2,100 megawatts, which is estimated to be the full build-out of Bureau of Ocean Energy Management's (BOEM) designated 536 km2 call area in Humboldt Bay.

In September 2018, Humboldt Countys community-choice aggregator, the Redwood Coast Energy Authority, submitted an unsolicited lease application to BOEM for a 100- to 150-megawatt floating offshore wind farm to be sited in waters more than 20 miles off the coast of Eureka. RCEAs partners include a consortium of private companies: Principle Power, EDPR Offshore North America and Aker Solutions.

In June, BOEM said it anticipates conducting a California offshore wind lease sale in 2020.

In any scenario beyond a pilot-scale project, the limited transmission capacity in what grid operators call the Humboldt pocket becomes a problem.

The primary grid link serving Eureka is a 115-kilovolt line running east-to-west along Highway 36, designed to carry around 70 megawatts of electricity. The 115 kV line can move a certain amount of energy, but its rather limited," Jacobson said.

"It wasnt really designed to necessarily export large volumes of energy, Jon Stallman, strategic projects manager in the grid innovation and integration unit of Pacific Gas and Electric, said at an energy planning workshop in Arcata conducted by the California Energy Commission in April 2018.

An even more constrained 60 kV transmission line runs along Highway 101 in southern Humboldt County toward the Central Valley.

To change that system to make it larger is going to be a fairly costly event, said Stallman.

The average load in Humboldt County is around 110 megawatts, and peak load is between 150 and 170 megawatts. So, even if wind energy development in the area was limited to the project proposed by the Redwood Coast Energy Authority up to 150 megawatts exporting at least some power would be necessary.

And a full build-out of Humboldt Countys 2,100-megawatt offshore wind potential would require a significant investment in transmission infrastructure.

The 115 kV line that serves Eureka connects with the larger California grid at a substation in Cottonwood, where it links to the 500 kV, north-south California-Oregon Intertie. If Humboldt Bay offshore wind farms are to export over land, PG&Es Stallman said grid operators will have to determine if that California-Oregon transmission backbone can carry the additional load.

Weve got to take a look at the contracted bandwidth and figure out how were going to make room, said Stallman.

No developer has yet proposed building a subsea transmission cable from a substation offshore Humboldt County to the San Francisco region, Jacobson said.

Even so, the Schatz Center is looking into the costs, as well as the technical and environmental challenges. A team in the Seattle office of the coastal engineering firm Mott MacDonald is handling the conceptual design of the undersea cable, while PG&E is tasked with estimating the transmission cost upgrades.

The challenges would be many, but the challenges are also many with the overland routes, Jacobson noted.

What is clear is that any offshore wind project in the region larger than pilot-scale and certainly at full build-out is contingent on transmission expansion.

If you were just trying to scale it to the local load, I dont think you would make it as large as 150 megawatts, said Jacobson.

On the other hand, he went on, from a profitability perspective, or a cost-viability perspective for investors, I dont know that its that interesting to just build something for this region without leaving a pathway for scaling to something larger.

My sense is, and what weve heard from developers, is that theyre very happy to do something at [150 megawatts] as a next step in their process, but, ultimately, to become profitable, they need something at a larger scale."

Unlike the Central Coast, Californias other promising offshore wind energy zone, Humboldt County does not face conflicts with active military uses.

The major constraint we have thats different from other parts of the state is the transmission one, said Jacobson. If theres not a solution to the transmission issue, there really wouldnt be a pathway forward at scale here.

***

Related report: 'Offshore wind operations and maintenance trends 2019' (May 2019, Wood Mackenzie).Wood Mackenzie is hosting an invite-only analyst briefing on the U.S. offshore wind sector in Boston the morning of Wednesday, October 23. Email power@woodmac.com to express interest in attending.

Read the rest here:

Unlocking Northern Californias Offshore Wind Bounty - Greentech Media News