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 March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

GAIL Seeks 7 LNG Cargoes

GAIL (India) will buy seven liquefied natural gas (LNG) cargoes for delivery from October 2015 until December 2016, according to the tender document obtained by Reuters.

SAL Heavy Lift Performs Offshore Windfarm Work

MV Lone proves as project platform for Wikinger wind farm   SAL Heavy Lift informs it has completed the second phase of the Wikinger Pile Testing Campaign with DP II Class vessel MV Lone.

JIT Transit Slots Reduced at Panama Canal

The Panama Canal has experienced an unusual increase in the number of vessels awaiting transit during the past few weeks. Several measures have been implemented to reduce the backlog,

Environmental

Damen joins World Ocean Council

Dutch-based Damen Shipyards Group has become the latest member of the World Ocean Council (WOC).    The global shipbuilder headquartered in the Netherlands is

ABB, Samsung SDI JV to Develop Microgrids Globally

ABB and Samsung SDI have signed a Memorandum of Understanding to promote microgrid solutions globally. The two companies will establish a global commercial alliance

Icebreaker Murmansk Launched at Arctech Helsinki Shipyard

The 16 MW Icebreaker for the Russian Ministry of Transport was launched at Arctech Helsinki Shipyard on March 25th, 2015. Before floating the vessel, she was

Energy

GAIL Seeks 7 LNG Cargoes

GAIL (India) will buy seven liquefied natural gas (LNG) cargoes for delivery from October 2015 until December 2016, according to the tender document obtained by Reuters.

SAL Heavy Lift Performs Offshore Windfarm Work

MV Lone proves as project platform for Wikinger wind farm   SAL Heavy Lift informs it has completed the second phase of the Wikinger Pile Testing Campaign with DP II Class vessel MV Lone.

Huge Heavy Lift Project Wraps up in Colombia

Mammoet concludes multi-year heavy lifting and transport project for refinery in Cartagena, Colombia   Mammoet USA informs it has completed a heavy lifting and

News

Indonesia Partners with China on Maritime

Indonesian President Joko “Jokowi” Widodo and Chinese President Xi Jinping pledged increased maritime cooperation during the formers visit to China.   The joint

China Strengthens Maritime Ties with Pak

The Vice Chairman of China's Central Military Commission General Fan Changlong has pledged to deepen maritime security and military technology cooperation during

Cruise Giant Carnival to Expand its Fleet

The world's largest cruise ship company Miami-based Carnival Corp. has signed agreements with German and Italian ship builders to build nine new ships over a four-year period, starting in 2019.

Government Update

US Will Work to Ensure Bab-el-Mandeb Strait Remains Open

The U.S. military will work with Gulf and European partners to ensure the strategic Bab el-Mandeb Strait at the tip of the Red Sea remains open to commerce despite fighting and instability in Yemen,

Kenya Ready to Start Work at Northern Port

Kenya is ready to begin work on the first three berths at a long-delayed port on its northern coast, next to the historic trading town of Lamu, President Uhuru

No More State Funds, Russia Warns its Ship Builders

Russian Deputy Prime Minister Dmitry Rogozin came down heavily on country's shipbuilders criticizing them for doing a poor job to implement instructions from the

Offshore Energy

GAIL Seeks 7 LNG Cargoes

GAIL (India) will buy seven liquefied natural gas (LNG) cargoes for delivery from October 2015 until December 2016, according to the tender document obtained by Reuters.

SAL Heavy Lift Performs Offshore Windfarm Work

MV Lone proves as project platform for Wikinger wind farm   SAL Heavy Lift informs it has completed the second phase of the Wikinger Pile Testing Campaign with DP II Class vessel MV Lone.

Swiber Gains $405.6 mi Contracts

Business momentum is fast picking up at Swiber Holdings Limited despite the downturn in the oil and gas industry as the Group clinches a total of US$405.6 million for a series of contracts,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
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: 0.3612 sec (3 req/sec)