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 Today


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

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

Environmental

All Ships’ Ballast Water Checked in Great Lakes Seaway

Great Lakes Seaway Ballast Water Working Group releases 2015 ballast water management report    The Great Lakes Ballast Water Working Group (BWWG) released its

Tampa Bay Pilots Suspend Operations

Gale force winds and high sea conditions offshore making it unsafe for pilots to board have led the Tampa Bay Pilots to suspend all inbound and outbound vessel traffic as of about 5:20 a.

The Mississippi River and the 2016 Flood’s Impact on Dredging

The Mighty Mississippi River connects 31 states and 2 Canadian Provinces by a liquid superhighway that includes over 250 tributaries and features more miles of

Energy

OTC Names 2016 Award Winners

The 2016 Offshore Technology Conference (OTC) will honor this year’s Distinguished Achievement Award recipients on Tuesday, 3 May, in Houston.   As part of the

Wood Group Extends North Sea Chevron Contract

Wood Group has secured an extension to continue to support Chevron Upstream Europe across four offshore assets in the North Sea. Wood Group PSN (WGPSN) will deliver

QP, Chevron Ink Offshore Moroccan Deal

Qatar Petroleum has reached an agreement with Chevron Morocco Exploration Ltd., a subsidiary of Chevron Corporation, to acquire a 30% participating interest from

News

CMA-CGM and Cosco Alliance in the Offing?

The newly-formed shipping giant China Cosco Shipping Corporation and CMA CGM met recently in Shanghai to discuss the possibility of a new French-Asian alliance, say local Chinese media.

U.S. Okays ConocoPhillips LNG Exports

The U.S. Department of Energy has renewed authorization for liquefied natural gas (LNG) exports from the North Kenai ConocoPhillips facility, reports Reuters.   The

India to Import LNG from Australia

India may contract long-term supplies of liquefied natural gas (LNG) from Australia if price is comparable to Indian coal which remains the fuel of choice for power generation companies in New Delhi.

Government Update

U.S. Okays ConocoPhillips LNG Exports

The U.S. Department of Energy has renewed authorization for liquefied natural gas (LNG) exports from the North Kenai ConocoPhillips facility, reports Reuters.   The

India to Import LNG from Australia

India may contract long-term supplies of liquefied natural gas (LNG) from Australia if price is comparable to Indian coal which remains the fuel of choice for power generation companies in New Delhi.

Obama’s Budget ‘Grossly Imbalanced’ For US Ports -AAPA

Landside freight transportation funds would increase; navigation, port security and emission reduction funds would drop    The American Association of Port Authorities

Offshore Energy

OTC Names 2016 Award Winners

The 2016 Offshore Technology Conference (OTC) will honor this year’s Distinguished Achievement Award recipients on Tuesday, 3 May, in Houston.   As part of the

Wood Group Extends North Sea Chevron Contract

Wood Group has secured an extension to continue to support Chevron Upstream Europe across four offshore assets in the North Sea. Wood Group PSN (WGPSN) will deliver

QP, Chevron Ink Offshore Moroccan Deal

Qatar Petroleum has reached an agreement with Chevron Morocco Exploration Ltd., a subsidiary of Chevron Corporation, to acquire a 30% participating interest from

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction 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: 0.1918 sec (5 req/sec)