Signs of Recovery in the US Gulf of Mexico
Today's U.S. auction of Gulf of Mexico exploration leases drew tepid response from oil companies, but marked notable progress for an industry still in a state of recovery.“While not a barn burner, Lease Sale 251 tops the previous Gulf sale in terms of increased participation, increased competition for offerings, and bid amounts,” said Randall Luthi, president of the National Ocean Industries Association (NOIA). “In addition, bidding activity demonstrates both continued interest in deepwater tracts and renewed interest in shallow water tracts.”Luthi continued…
Oil Companies Make Few Bids in US Offshore Lease Auction
Oil companies bid on less than 1 percent of the parcels offered in a sweeping U.S. auction of Gulf of Mexico exploration leases on Wednesday, showing tepid interest in the region for the second time this year.Oil giant Exxon Mobil Corp was awarded 25 blocks, the largest of any company, followed by BP Plc with 19 high bids and Hess Corp and Equinor, which each had 16.Smaller companies, including Talos Energy Offshore, Houston Energy and W&T Offshore were among the top ten high bidders. In total, 23 companies bid in the U.S.
OSV Scrapping Rates Up 153% YTD
As the severity of the offshore energy downturn has increased and the likelihood of older vessels returning to work begins to diminish, owners have slowly come round to the importance of scrapping these vessels. According to VesselsValue, U.S. owners might be leading the way.According to VesselsValue, an online valuation and market intelligence service for the maritime and offshore sectors, in this current period of downturn, critics of offshore shipowners will say that owners have been guilty of not scrapping older tonnage in order to maintain a young and advanced fleet.
BOEMRE Approves GOM Deepwater Exploration Plan
The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) announced the approval of a deepwater Gulf of Mexico Exploration Plan (EP) following the completion of a site-specific Environmental Assessment (SEA) for deepwater oil and gas exploration. Shell Offshore, Inc.’s Supplemental EP includes five proposed exploratory wells in approximately 7,160 to 7,259 feet water depth, as well as three previously approved wells approximately 72 miles offshore Louisiana. "This exploration plan was reviewed under the heightened standards we are now using to conduct site-specific environmental assessments,” said BOEMRE Director Michael R. Bromwich.
BOEMRE Approves GOM Deepwater Exploration Plan
The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) announced the approval of a deepwater Gulf of Mexico Exploration Plan (EP) following the completion of a site-specific Environmental Assessment (SEA) for deepwater oil and gas exploration. Shell Offshore, Inc.’s Supplemental EP includes five proposed exploratory wells in approximately 7,160 to 7,259 feet water depth, as well as three previously approved wells approximately 72 miles offshore Louisiana. "This exploration plan was reviewed under the heightened standards we are now using to conduct site-specific environmental assessments,” said BOEMRE Director Michael R. Bromwich.
New Discovery in GOM, Vito Appraisal
Statoil USA E&P Inc. announced that the Shell operated Vito appraisal well in deep water Gulf of Mexico has encountered more than 600 net feet of high-quality oil pay in thick subsalt Miocene sands. This sidetrack appraisal well, which is located in Mississippi Canyon block 940, is more than one mile from the 2009 Vito discovery well. Statoil holds a 25% working interest in the block. “The Vito oil discovery is located in an area of good reservoir development within the Miocene play. In addition to our participation in other large discoveries in this play, Statoil plans to test several new Miocene exploration opportunities through its current operated drilling campaign,” said Helen Butcher, head of Gulf of Mexico Exploration.
SOREC’s New Crane Disposes of Rigs, Platforms
Cleaning the Gulf of obsolete platforms is the goal of the Southern Recycling’s (SOREC) Morgan City, Louisiana facility. The yard’s new 420-ton land-based crane has increased the Gulf region’s capacity to manage disposal of obsolete rigs and platforms in an environmentally safe and cost-effective manner. The crane, engineered and manufactured by American Crane allows the yard to lift many platforms, up to 120 ft tall, directly from the material barge to the facility’s yard without pre-cuts.
