Western Gulf of Mexico: 21 Million Acres up for O&G Development

MarineLink.com
Tuesday, August 27, 2013

As part of President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, Bureau of Ocean Energy Management (BOEM) Director Tommy P. Beaudreau announced that BOEM will hold a lease sale tomorrow that will make nearly 21 million acres offshore Texas available for oil and natural gas exploration and development.

BOEM estimates that Western Gulf of Mexico Lease Sale 233 could lead to the production of up to 200 million barrels of oil and 938 billion cubic feet of natural gas. During tomorrow’s lease sale, BOEM will open 61 bids submitted by 12 companies on 53 offshore blocks.

“Safe and responsible development of the Gulf of Mexico’s vital energy resources will continue to help power our nation and drive our economy, generating jobs, fostering economic opportunities for local communities and reducing America’s dependence on foreign oil,” said Beaudreau. “This sale underscores the Administration’s continuing commitment to promote domestic energy production through strengthened worker safety programs and environmentally-sound exploration and development of the nation’s domestic oil and gas resources.”

As part of the Obama Administration’s strategy, domestic oil and gas production has grown each year the President has been in office, with domestic oil production currently higher than any time in two decades; natural gas production at its highest level ever; and renewable electricity generation from wind, solar, and geothermal sources having doubled. Combined with recent declines in oil consumption, foreign oil imports now account for less than 40 percent of the oil consumed in America – the lowest level since 1988.

Tomorrow’s lease sale, which will be held at the Mercedes-Benz Superdome in New Orleans starting at 9:00 a.m. CDT, offers 3,864 blocks, located from nine to 250 miles offshore, in water depths ranging from 16 to more than 10,975 feet (five to 3,346 meters). The acreage includes all available unleased or non-protected areas in the Western Gulf of Mexico Planning Area. It will be the third of 12 Gulf of Mexico sales under the Administration’s new Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017, and the second of five Western Gulf of Mexico lease sales that will be held under the program.

The sale builds on the first two auctions in the current Five Year Program – a 39-million-acre sale held in March, which netted almost $1.2 billion high bids; and a 20-million-acre sale held last November that netted nearly $134 million. Announced in June 2012, the Five Year Program makes all of the offshore areas with the highest conventional resource potential available for exploration and development.  Together, this includes more than 75 percent of the Nation’s undiscovered, technically recoverable offshore oil and gas resources.

BOEM established the terms for the sale after extensive environmental analysis, public comment and consideration of the best scientific information available. Lease terms 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. 

The terms also continue a range of incentives to encourage diligent development and ensure a fair return to taxpayers, including an increased minimum bid for deepwater tracts, escalating rental rates and tiered durational terms with relatively short base periods followed by additional time under the same lease if the operator drills a well during the initial period.

Following the bid reading, Gulf of Mexico Regional Director John Rodi will hold a media availability to discuss the sale results.  The Final Notice of Sale for Western Gulf of Mexico Sale 233 details the lease terms and conditions, as well as all the environmental stipulations for this sale, is available at: http://www.boem.gov/Sale-233.

boem.gov
 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Environmental

Sunken Barge Salvage Stops Traffic on Chicago River

The U.S. Coast Guard said it is restricting vessel traffic on the Chicago River to allow for salvage of a sunken barge. All cargo has been removed from the sunken

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

Renewable Energy: Schottel Tidal Turbines Ready For Use

In the last months Schottel  successfully tested its hydrokinetic turbines in Strangford Lough, Northern Ireland. The full-scale tests included 260 operating hours under realistic conditions.

News

PES to Begin Operating Benzene Terminal in November

Philadelphia Energy Solutions plans to start operating a new benzene offtake terminal next month at its 335,000-barrel-per-day refinery in Philadelphia, two people familiar with the plans said.

Coast Guard Foundation to Honor USCG in Miami

The Coast Guard Foundation, a nonprofit organization committed to the education and welfare of all Coast Guard members and their families, announced today that

Sunken Barge Salvage Stops Traffic on Chicago River

The U.S. Coast Guard said it is restricting vessel traffic on the Chicago River to allow for salvage of a sunken barge. All cargo has been removed from the sunken

Government Update

Continership Alliance Expands to US Trades

The CKYHE Alliance (COSCO, "K" LINE, Yang Ming, Hanjin Shipping, and Evergreen Line) has announced they will expand their cooperation scope to U.S. Trades and CKYHE

Total CEO Killed in Moscow Runway Accident

Private jet collided with snow plow during takeoff; Total's CEO a defender of Moscow policies. Insiders Boisseau and Pouyanne long seen as potential successors.

India to Develop Iran's Chabahar Port

India will float a company to develop Iran's Chabahar Port, a government statement said on Saturday, as New Delhi aims to take advantage of a thaw in Tehran's relations with world powers.

Offshore Energy

Total CEO Killed in Moscow Runway Accident

Private jet collided with snow plow during takeoff; Total's CEO a defender of Moscow policies. Insiders Boisseau and Pouyanne long seen as potential successors.

Statoil: New Oil in the Grane Area

Statoil has together with PL169 partners proved new oil resources in the D-structure in the vicinity of the Grane field in the North Sea.   Well 25/8-18 S, drilled by the rig Transocean Leader,

Offshore Oil: Lamprell Completes Caspian Sea Drilling Unit

UAE-based Lamprell said that it completed construction of the second Caspian Sea jackup drilling rig, Mercury, for service in the Caspian Sea.   "I am delighted

 
 
Maritime Careers / Shipboard Positions Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1894 sec (5 req/sec)