Feds Unveil Central GOM Oil & Gas Plan

BOEM
Thursday, January 26, 2012

Obama Administration Announces Proposed Central Gulf of Mexico Oil and Gas Lease Sale; sale Will Make Nearly 38 million Acres Available as Part of the President’s Blueprint for a Secure Energy Future.

 

The Obama administration has announced that the Department of the Interior’s Bureau of Ocean Energy Management (BOEM) will hold the consolidated Central Gulf of Mexico Lease Sale 216/222 in New Orleans on June 20, 2012.  The sale will include all available unleased areas in the Central Planning Area offshore Louisiana, Mississippi and Alabama. President Obama will discuss today’s announcement during remarks in Nevada later today, in which he will highlight his administration’s commitment to promoting safe and responsible domestic oil and gas production as part of a comprehensive energy strategy.  This is one of many steps that the Administration is taking, at the President’s direction, to increase responsible domestic production and reduce dependence on foreign oil.

 

“Expanding offshore oil and gas production is a key component of our comprehensive energy strategy to grow America’s energy economy, and will help us continue to reduce our dependence on foreign oil and create jobs here at home,” said Secretary of the Interior Ken Salazar.  “The President has made it clear that developing our domestic oil and gas resources is a significant part of this administration’s efforts to grow our economy and create jobs.  This lease sale is part of our commitment to safe and responsible development of the Outer Continental Shelf.”

 

Lease Sale 216/222 is the last remaining sale scheduled in the 2007 – 2012 Outer Continental Shelf Oil and Natural Gas Leasing Program.  As the President discussed in his State of the Union address on Tuesday, DOI is finalizing the next Five-Year Program for 2012-2017, which will make more than 75 percent of undiscovered technically recoverable oil and gas estimated on the OCS available for development.  The Proposed 2012-2017 Outer Continental Shelf (OCS) Oil and Gas Leasing Program schedules 12 lease sales in the Gulf of Mexico. 

 

“The Central Gulf of Mexico remains the area with the greatest offshore oil and gas potential in the entire United States outer continental shelf, and this proposed sale is another important step in making this area available for safe and environmentally responsible exploration and development,” said Director Tommy P. Beaudreau.  “We are moving forward with this sale based on careful analysis of the best scientific information available and consideration of all of the public comments we have received.”
 

The proposed lease sale includes approximately 7,250 unleased blocks covering nearly 38 million acres.  The blocks are located from three to about 230 miles offshore, in water depths ranging from nine to more than 11,115 feet (three to 3,400 meters) in the Central Gulf of Mexico, a region that BOEM estimates contains close to 31 billion barrels of oil and 134 trillion cubic feet of natural gas that are currently undiscovered and technically recoverable.  BOEM estimates that the Central Gulf sale could result in the production of 1 billion barrels of oil and 4 trillion cubic feet of natural gas.

 

The terms of sale will reflect recent administrative reforms to ensure fair return to taxpayers and encourage diligent development, consistent with policies articulated in the Obama administration’s Blueprint for a Secure Energy Future.  These include escalating rental rates to encourage prompt exploration and development of leases, as well as time under the lease if the operator demonstrates a commitment to exploration by drilling a well during the base period. The durational terms of leases are graduated by water depth to account for differences in operating at various water depths. 

 

In addition, BOEM recently increased the minimum bid for deepwater to $100 per acre, up from only $37.50, to ensure that taxpayers receive fair market value for offshore resources and to provide leaseholders with additional impetus to invest in leases that they are more likely to develop.  Rigorous analysis of the last 15 years of lease sales in the Gulf of Mexico showed that deepwater leases that received high bids of less than $100 per acre, adjusted for energy prices at time of each sale, experienced virtually no exploration and development drilling.
 

The terms of sale also reflect a series of conditions to protect the environment.  These include stipulations to protect biologically sensitive resources, mitigate potential adverse effects on protected species, and avoid potential conflicts associated with oil and gas development in the region.  BOEM completed a supplemental environmental impact statement relating to this sale, which considers the latest available information for the Central Gulf of Mexico Planning Area following the Deepwater Horizon oil spill. Proposed terms and conditions for the sale, which will be finalized in a Final Notice of Sale published at least 30 days prior to the Sale, are detailed in the Proposed Notice of Sale information package, which will be available at: http://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexico-Region/Lease-Sales/216-222/Central-Planning-Area-Lease-Sale-216-222-Information.aspx.  Copies can also be requested from the Gulf of Mexico Region’s Public Information Office at 1201 Elmwood Park Boulevard, New Orleans, LA 70123, or at 800-200-GULF (4853). 

The Notice of Availability of the Proposed Notice of Sale will be available for inspection today in the Federal Register at: http://www.archives.gov/federal-register/public-inspection/index.html.
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Offshore Casualty: Harkand Group Collapses

As the prolonged slump in energy prices continues to drag on a number of oil and gas and maritime players, word has it that Harkand Group has succumbed, according to staff reports and a report on www.

Louis Dreyfus, Amaggi Hire HSBC to Sell Terminal Stake

Agricultural commodity traders Louis Dreyfus Co B.V. and Amaggi Group have hired HSBC Holdings Plc to sell part or the entire 25 percent stake they hold in a terminal at the Brazilian port of Itaqui,

Shell Presents Crewmember Safety Awards

Shell Shipping and Maritime, Americas recently held its third annual Goal Zero Hero Awards dinner in Houston, recognizing the crewmembers of 21 contracted/chartered vessels,

Contracts

Asia Dry Bulk-Capesize Rates Under Pressure

Capesize rates fall in a quiet market as holidays weigh; 20 charter-free capesize ships could add to downward trend. Freight rates for large capesize dry cargo

Egypt to receive first LNG shipment from Rosneft in May

Egypt will receive the first of five agreed shipments of liquefied natural gas (LNG) from Russia's Rosneft this month, an official at the state gas board EGAS told Reuters on Thursday.

DNV GL 7 JIPs in North America

In a concerted drive to find smart solutions to safely reduce complexities and cost in the North American oil and gas industry, DNV GL is leading seven new joint

Legal

Yilport Acquires Sweden's Gavle Terminal

Turkish terminal operator Yilport Holding has gained full control of Gävle’s terminals.   Yilport Holding acquired 100% shares of Gävle Container Terminal (GCT) and Baltic Sea Gateway (BSG).

ICS Pushing For Balanced Update of York Antwerp Rules

At the Comité Maritime International (CMI) Conference, in New York this week, the International Chamber of Shipping (ICS) will be pressing to ensure that the proposed

OMB - Subchapter M Cleared for Publication

The Office of Management and Budget (OMB) completed its review of the draft final rule entitled Inspection of Towing Vessels, also known as "Subchapter M." The

Offshore

Offshore Casualty: Harkand Group Collapses

As the prolonged slump in energy prices continues to drag on a number of oil and gas and maritime players, word has it that Harkand Group has succumbed, according to staff reports and a report on www.

Skandi Paraty Delivered and On-hire

Skandi Paraty, owned by Norskan Offshore Ltda, has been delivered from the yard and went on-hire on a four years contract with Petrobras.   Skandi Paraty is an AHTS,

ABB Transformers for the Most Powerful Wind Turbines

ABB will deploy 40 special transformers to equip wind turbines for an offshore wind farm in the Irish Sea. The MHI Vestas Offshore Wind turbines are 195 m (640

Energy

Egypt to receive first LNG shipment from Rosneft in May

Egypt will receive the first of five agreed shipments of liquefied natural gas (LNG) from Russia's Rosneft this month, an official at the state gas board EGAS told Reuters on Thursday.

DNV GL 7 JIPs in North America

In a concerted drive to find smart solutions to safely reduce complexities and cost in the North American oil and gas industry, DNV GL is leading seven new joint

Dryad Maritime Unveil WxConnect

Today, 5th May 2016, Dryad Maritime release WxConnect, a new scalable, managed weather forecasting service for ships and fleets. The launch of the service comes

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1332 sec (8 req/sec)