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Oil and Gas 360 Articles

ENB Line 21 Replacement Project

Canada’s National Energy Board Approves $53 Million Enbridge Pipeline

The National Energy Board (NEB) will allow Enbridge Pipelines Inc. (ticker: ENB) to replace a 2.5 km segment of its Line 21 Norman Wells Pipeline located in the Northwest Territory of Canada. Enbridge applied to the NEB on March 10, 2017 after identifying a potential safety concern related to a shifting slope on the Mackenzie River. The approval includes Enbridge’s plan to leave the section of pipe that is being replaced under the Mackenzie River. The section of pipe that is to be left behind will be cleaned, filled with grout and capped – in accordance with NEB regulations and CSA standards. The new pipe will be installed using a trenchless crossing method called horizontal directional drilling (HDD). The NEB held a hearing in Fort Simpson, Canada in October 2017 to review the application. During the hearing, the NEB heard from Enbridge, six intervenors and nine commenters including: Indigenous groups,[Read More…]

Alaska Collects $21.2 Million from Dec. 6 Lease Sale, North Slope Nets $20 Million of Total

Alaska Collects $21.2 Million from Dec. 6 Lease Sale, North Slope Nets $20 Million of Total

Armstrong Energy, Repsol, ConocoPhillips among winning bidders The State of Alaska held a record-breaking oil and gas North Slope lease sale on Dec. 6, netting competitive bids from investors around the world. The Division of Oil and Gas reported that it had received 143 bids from companies and investors seeking oil and gas leases on state lands during the division’s annual North Slope, Beaufort Sea, and North Slope Foothills areawide oil and gas lease sales. Total winning bids totaled nearly $21.2 million. Ranked by dollar amount, this North Slope areawide sale is the third largest of its kind since 1998, when areawide oil and gas leasing began, Alaska’s Division of Oil and Gas reported. By bid value, it is the largest sale since 1998, netting an average of $110 per acre. “I am particularly pleased to see Repsol E&P adding to its promising North Slope portfolio and showing strong interest[Read More…]

Statoil Greenlights Largest Offshore Project This Year

Statoil Greenlights Largest Offshore Project This Year

Johan Castberg will cost $6 billion Norway’s Statoil (ticker: STO) approved the largest offshore development this year today, approving the Johan Castberg project in the arctic Barents Sea. Discovered in 2011, Johan Castberg is farther north than Prudhoe Bay in Alaska. Several exploratory wells have indicated the field has significant oil reserves, but its remoteness makes development a challenge. Original plans called for more than $12 billion in capital expenditures, and had a breakeven above $80/bbl. This was good enough before the oil price crash, but plans were overhauled after 2014. Statoil now expects to spend NOK 49 billion, or just under $6 billion developing the field. This means the project has a breakeven of $35/bbl, much more plausible given the current market environment. Statoil estimates it will be able to recover 450 – 650 MMBOE from the field using the new development plan. Johan Castberg will use a floating[Read More…]

Armstrong Energy Sells Alaska Interests

Armstrong Energy Sells Alaska Interests

Current sale involves half of interests, can be expanded to all Denver-based private E&P Armstrong Energy is selling its interest in its Alaskan properties, where it made a massive discovery earlier this year—the largest conventional onshore discovery in 30 years. Oil Search (ticker: OSH), from Papua New Guinea, will pay $400 million for minority interests in the Pikka and Horseshoe units, along with the adjacent exploration acreage. Armstrong and private GMT Exploration will each divest half of their respective interests in the fields. Repsol is not party to these transactions, and will continue to hold its minority shares. OSH has the option to double its holdings for another $450 million, which would give it a majority interest in all the available leases. Pikka will produce 100 MBOPD Pikka is one of the most significant projects under development in Alaska, with first phase production of about 100 MBOPD expected. Recent filings[Read More…]

Alaska’s Oil Production Decline Flattens, State Hopes for a Continued Upswing

Alaska’s Oil Production Decline Flattens, State Hopes for a Continued Upswing

Oil production rose in 2016, 2017, expected to rise in 2018 Most attention in the U.S. oil and gas industry has focused on unconventionals with the Permian basin being the hottest of the hot shale plays based on operator activity, industry employment and deal flow. However a mere 3,814 miles and 63 hours away by car, lies a conventional oil play haven that hopes to stage a comeback. Alaskan production peaked in 1998, when the state produced over 2 MMBOPD, and has generally been in decline since. Production bottomed in 2015, when the state pumped 483 MBOPD. However, recent activity has exceeded expectations, and production has grown in the last two years according to the state’s natural resources governing agency. According to the Alaska Department of Natural Resources, oil production growth is expected to continue further, with the department forecasting 2018 production 9 MBOPD higher than 2017. The department identifies[Read More…]

Gulf of Mexico LNG Shippers Have a $45,000-a-Day Problem

Gulf of Mexico LNG Shippers Have a $45,000-a-Day Problem

Dealing with costly delays in getting tankers through the Panama Canal may slow down U.S. LNG shipments, according to Octavio Simoes, president of LNG export terminal developer Sempra LNG & Midstream. Bloomberg reported that Simoes calculated that every day a cargo is held up at the canal can cost a trader $45,000. Simoes was speaking at Energy Dialogues LLC’s North American Gas Forum in Washington. More than one-third of ships are running up against delays in getting through the canal, Simoes said, warning that the holdup could limit the amount of LNG the U.S. can sell to Asia, according to Bloomberg. There is a way to ship U.S. natural gas to Asia and entirely avoid traversing the Panama Canal, however. The Alaska Gasline’s proposed pipeline and LNG export project would circumvent the Panama Canal by shipping LNG directly from Alaska’s Kenai Peninsula to Asia. The proposed project was exited by its major[Read More…]

October 3, 2017 - 6:50 pm Arctic, Closing Bell Story, LNG, Oil and Gas 360 Articles
First Lease Sale in Alaska’s Federal Waters Since 2008 Attracts $3 Million

First Lease Sale in Alaska’s Federal Waters Since 2008 Attracts $3 Million

Hilcorp Alaska top bidder in Cook Inlet federal lease sale with more than $3 million in high bids on 76,000 acres Cook Inlet Lease Sale 244 — the first lease sale held in Alaska’s federal waters since 2008 — garnered $3,034,815 in high bids yesterday for 14 tracts covering roughly 76,615 acres in Cook Inlet, off Southcentral Alaska. All bids were submitted by Hilcorp Alaska LLC. “Today was the first time in nearly a decade that parcels off Alaska have been leased,” said Vincent DeVito, Counselor to the Secretary for Energy Policy. “Today’s successful sale is another step in an America First energy strategy that puts us on our way toward energy dominance.” Cook Inlet Lease Sale 244 is the final to be held under the 2012-2017 Outer Continental Shelf (OCS) Oil and Gas Leasing Program (Five Year Program). It offered 1.09 million acres in Cook Inlet, comprising 224 blocks[Read More…]

Source: BLM

Zinke Signs Order to Jump-Start Alaskan Energy Production in the NPR

Order also calls for updating ANWR resource assessments U.S. Secretary of the Interior Ryan Zinke signed a secretarial order to jump-start Alaskan energy production in the National Petroleum Reserve – Alaska (NPR-A) and update resource assessments for areas of the North Slope, including the “1002 area” of the Arctic National Wildlife Refuge (ANWR). “Working with the Alaska Native community, Interior will identify areas in the NPR-A where responsible energy development makes the most sense and devise a plan to extract resources. We will do it in a way that both respects the environment and traditional uses of the land as well as maintains subsistence hunting and fishing access,” Zinke said in a statement. The order calls for an appropriate statutory balance of promoting development while protecting surface resources and an evaluation under the existing Integrated Activity Plan on efficiently and effectively maximizing the tracts offered for sale during the next NPR-A lease sale.[Read More…]

Electricity from the Sea is Real: the World’s Most Powerful Tidal Turbine Achieves 2 MW Peak Power in North Sea

Electricity from the Sea is Real: the World’s Most Powerful Tidal Turbine Achieves 2 MW Peak Power in North Sea

2 MW floating turbine sends power to the UK national grid You’ve probably heard of the concept—using oceanic tidal flows to generate electricity. After the concept lived a sci-fi storyboard kind of existence for decades, a concept for an affordable technology to generate electricity from the sea has evolved into reality, thanks to the efforts of a Scottish engineering firm that has been actively developing a novel technology for floating turbines since 2002. Scotrenewables Tidal Power Limited has announced it reached a milestone in tidal generation that is deployable and delivers power to the grid. Its floating turbine reached full rated power in operations at the European Marine Energy Centre in the Orkney Islands off the northern tip of Scotland, where the North Sea and the Atlantic Ocean converge.   According to reports from the company, the ‘SR2000’ was re-connected to its subsea cable in a low cost connection operation that[Read More…]

Repsol and Armstrong Energy Announce Largest U.S. Onshore Conventional Hydrocarbons Discovery in 30 Years

Repsol and Armstrong Energy Announce Largest U.S. Onshore Conventional Hydrocarbons Discovery in 30 Years

Horseshoe-1: massive Alaska North Slope oil discovery Repsol (ticker: REP) and privately held Denver based Armstrong Energy LLC announced today the discovery of a massive oil field in Alaska, with an estimated 1.2 billion barrels of oil recoverable. This is the largest U.S. onshore conventional hydrocarbons discovery in the last 30 years, Repsol said in a press release. Drilled during the 2016-2017 winter campaign, the Horseshoe-1 discovery well encountered more than 150 feet of net pay in several reservoir zones in the Nanushuk section. A sidetrack, Horseshoe-1A, also encountered more than 100 feet of net pay. Repsol and Armstrong Energy Repsol has been active in Alaska since 2008 and has made several discoveries in the North Slope with its partner Armstrong Energy. Multiple exploratory wells have been successful in the Pikka area, where the company has drilled 13 wells. Armstrong is the operator of both the Pikka unit and the[Read More…]

Alaska in Talks to Purchase ConocoPhillips’ Nikiski Kenai LNG Facility

Alaska in Talks to Purchase ConocoPhillips’ Nikiski Kenai LNG Facility

Alaska determined to be an LNG exporter even when the oil and gas companies have bailed Alaska’s KTVA11 reported last night that the Alaska Gasline Development Corporation (AGDC) said in a presentation before the Senate Resources Committee on Monday that it is in discussions with ConocoPhillips (ticker: COP) about purchasing its liquefaction plant in Nikiski. Rosetta Alcantra, an AGDC spokeswoman, told KTVA the ConocoPhillips facility could potentially replace a larger LNG facility that would have to be built under original Alaska LNG pipeline (AKLNG) project plans, for which AGDC is the sole remaining applicant. Alcantra said she didn’t have information regarding how much the ConocoPhillips plant would cost or where money for the purchase would come from. “That’s a detail that would need to be ironed out,” she said. “It would be something, maybe there would be opportunities through other partnerships that would make it more realistic.” Alaska Gasline Development Corporation is last[Read More…]

January 24, 2017 - 4:49 pm Arctic, Closing Bell Story, LNG, Oil and Gas 360 Articles
President Declares “Indefinite” Offshore Drill Ban for Alaska and Atlantic Coastal Waters

President Declares “Indefinite” Offshore Drill Ban for Alaska and Atlantic Coastal Waters

White House Issues Memorandum Withdrawing Bulk of Alaska’s Arctic OCS and Portions of Atlantic OCS from Oil and Gas Drilling Today the White House pulled the plug on offshore drilling leases in the bulk of the Arctic offshore Alaska and portions of the Atlantic outer continental shelf (OCS). “The United States is designating the vast majority of U.S. waters in the Chukchi and Beaufort Seas as indefinitely off limits to offshore oil and gas leasing, and Canada will designate all Arctic Canadian waters as indefinitely off limits to future offshore Arctic oil and gas licensing, to be reviewed every five years through a climate and marine science-based life-cycle assessment,” the White House said in a joint statement with Canada.   The Arctic withdrawal encompasses the entire U.S. Chukchi Sea and significant portions of the U.S. Beaufort Sea, according to a simultaneous statement put out by the Department of Interior. The[Read More…]

Alaska Celebrates Highly Successful Lease Sale this Week, Most Industry Bids Since 2010

Alaska Celebrates Highly Successful Lease Sale this Week, Most Industry Bids Since 2010

Industry made it abundantly clear they are interested in Alaska’s oil and gas–onshore and offshore: Eni, ConocoPhillips, Armstrong, Anadarko On Wednesday, the Bureau of Land Management (BLM) and the Alaska Division of Oil and Gas each held a lease sale in Anchorage, putting state and federal leases up for auction. Officials associated with the lease sale said they were surprised by the high number of bids they received.  The revenue associated with both of the lease sales is sizeable, according to reports by the Arctic Energy Center. At the Alaska Division of Oil and Gas sale, over 633,000 acres of Beaufort Sea and North Slope tracts were sold for $17.8 million.  BLM received $18.8 million from the NPR-A lease sale it conducted, and the state of Alaska will receive $9.4 million of that. At the BLM sale, the agency received 92 bids for 67 lease tracts – the most it has received since[Read More…]

President Withdraws More of Alaska from Future Oil and Gas Production

President Withdraws More of Alaska from Future Oil and Gas Production

White House  removes 43,000 sq. miles and 3 Tcf of natural gas potential from offshore Alaska On Nov. 9, the president signed an executive order creating the Northern Bering Sea Climate Resilience Area. “This area, encompassing 112,300 square miles, represents a hugely productive, high-latitude ocean ecosystem and supports one of the largest seasonal marine mammal migrations in the world, including thousands of bowhead and beluga whales, hundreds of thousands of walruses and ice seals, and millions of migratory birds,” the White House said in its announcement. The Northern Bering Sea Climate Resilience Area is delineated for the purpose of focusing a locally-tailored collection of protections related to oil and gas, shipping, and fishing. Norton Basin Planning Area and parts of St. Matthew-Hall are withdrawn from federal OCS leasing “Under the Outer Continental Shelf Lands Act, the president has withdrawn Norton Basin planning area and portions of the St. Matthew-Hall planning area from future oil and[Read More…]

Alaska will have No Arctic Offshore Federal Lease Sales: BOEM

Alaska will have No Arctic Offshore Federal Lease Sales: BOEM

Alaska reels as BOEM Announces Federal OCS Lease Schedule for 2017-2022 The U.S. government released its final list of federal lands offshore that it will open for lease sales for oil and gas development on the outer continental shelf (OCS). Excluded from the lease sales are the highly prospective areas offshore Alaska in the Arctic—the Chukchi Sea and the Beaufort Sea. “Based on, among other factors, current market conditions, evidence of a lack of industry interest, and the recent increase in onshore oil and gas production, the Secretary (of the Interior) decided that Arctic lease sales are not needed in the 2017-2022 program to best meet the nation’s energy needs,” the Department of Interior’s Bureau of Ocean Energy Management (BOEM) said in its final document. The proposed final program proposes a lease sale schedule of 11 lease sales, 10 in those portions of three OCS planning areas in the Gulf of[Read More…]

Offshore Alaska: DOI Adds More Drilling Regulations

Offshore Alaska: DOI Adds More Drilling Regulations

President Obama ‘turning his back on the livelihoods of Alaskans who depend on resource development’ Today, the United States Department of the Interior and the Bureau of Ocean Energy Management released 348 pages of new Requirements for Exploratory Drilling on the Arctic Outer Continental Shelf. Today’s rule addresses certain key factors associated with conducting offshore oil and gas activities on the Arctic Outer Continental Shelf, specifically adding regulations for the Beaufort Sea and Chukchi Sea Planning Areas. According to the BOEM executive summary: “Although there is currently a comprehensive OCS oil and gas regulatory program, there is a need for new and revised Arctic-specific regulatory measures for exploratory drilling conducted by floating drilling vessels and “jack-up rigs” (collectively known as mobile offshore drilling units or (MODU)) in the Beaufort Sea and Chukchi Sea Planning Areas (defined in this final rule as the Arctic OCS). “The United States (U.S.) Arctic region, as recognized[Read More…]

Offshore Pain Continues:  Shell Cancels $600,000/Day Transocean Rig

Offshore Pain Continues: Shell Cancels $600,000/Day Transocean Rig

Polar Pioneer was the Focus of Protests Just Months Ago Royal Dutch Shell (ticker: RDS.B) delivered some bad news for Transocean (ticker: RIG) as companies returned to their respective offices following an extended Christmas weekend. According to a RIG press release, Shell elected to cancel its contract for the Polar Pioneer rig, which was originally scheduled to expire in July 2017. The Polar Pioneer is a harsh environment semisubmersible rig with maximum drilling depth of 25,000 feet. Shell originally contracted the rig for operations in the Arctic, but it was returned to Washington State in October 2015 following exploration in Alaska’s Chukchi Sea. Day rates ranged from $561,000 to $624,000. A Foreseen Ending The Polar Pioneer received plenty of publicity in its time with Shell: the rig was greeted by hundreds of protestors when it was first docked in Seattle earlier this year. Hundreds of activists in petroleum-based kayaks embarked[Read More…]

Alaska’s $64.6 Million Purchase of TransCanada’s Interest in Alaska LNG is State’s “Number-One Get Well Card”

Alaska’s $64.6 Million Purchase of TransCanada’s Interest in Alaska LNG is State’s “Number-One Get Well Card”

Alaska hopes to make $400 million more per year after buying TransCanada’s share of the project Last week Alaska Governor Bill Walker said that the decision to purchase TransCanada’s share of the project was the “number-one get-well card” for Alaska’s $3.5 billion budget deficit. “Today is a historic day,” said Walker. “By gaining an equal seat at the negotiating table, we are taking control of our destiny and making significant progress in our effort to deliver Alaska gas to the global market.” The State of Alaska announced that it will officially buy TransCanada’s (ticker: TRP) share of the Alaska LNG (AKLNG) project for approximately $64.6 million, according to a release from the office of Alaska Governor Bill Walker. The decision required the backing of the Alaskan legislator, which authorized an appropriation allowing the state to purchase TransCanada’s 25% share of the project. In June 2014, Alaska’s Department of Natural Resources[Read More…]

Drill Rig in Alaska - Oil & Gas 360

Statoil Bails on Alaska Offshore Leases, Citing Competitive Reasons

Sen. Murkowski: Obama Administration at Fault for “Project Killer” Regulations Statoil (ticker: STO) is closing the door on its Alaska operations, the company announced in a press release on November 17, 2015. The Norway-based exploration and production company plans to shut its office in Anchorage and will walk away from 16 operated and 50 non-operated leases in the Chukchi Sea. The announcement comes less than two months after another supermajor, Royal Dutch Shell (ticker: RDS.B), exited the region based on an exploration well that was deemed uncommercial in the current commodity environment. In a Shell-issued release, the company cited high costs, potentially modest returns and “the challenging and unpredictable federal regulatory environment” as the main reasons behind its decision. Similarly, STO said that the leases were simply “no longer considered competitive within Statoil’s global portfolio.” Several other companies, including BP plc (ticker: BP), Chevron (ticker: CVX) and ExxonMobil (ticker: XOM)[Read More…]

Interior Department Puts Alaska Offshore Lease Programs on Ice

Interior Department Puts Alaska Offshore Lease Programs on Ice

Arctic Offshore Leases Cancelled Through 2017; Shell, Statoil Fail to Extend Leases The Chukchi Sea’s 29 billion barrels (U.S. Bureau of Ocean Energy Management’s estimate of BOE) will have to wait for better times. The U.S. Department of Interior announced last Friday that it will put a halt to future auctions for the current leasing program, which runs through 2017. In its announcement, the DOI said it would cancel the two potential Arctic offshore lease sales scheduled for the remainder of the leasing program due to “current market conditions and low industry interest.” In addition, the Interior Department denied lease suspension requests from two oil majors, further dampening the prospects for Arctic offshore development. The actions are effective for its current five-year plan, which runs from 2012 to 2017. An auction for Cook Inlet acreage (Lease Sale 244, located on the southern edge), is still scheduled to commence in late 2016.[Read More…]

October 19, 2015 - 6:05 pm Arctic, Offshore, Oil and Gas 360 Articles, Regulatory
Drill Rig in Alaska - Oil & Gas 360

Armstrong Oil & Gas Defies Industry Bears, Boosts Stake in Alaska with $800 Million Transaction

Repsol Sells Portion of Interest, Dials Back Development Plans Armstrong Oil & Gas, a private exploration and production company headquartered in Denver, Colorado, is backing up its optimism for hydrocarbon production in Alaska. On October 13, 2015, the company increased its stake in the Colville River Delta region on Alaska’s North Slope for total consideration of more than $800 million. A combination of cash, operational control, drilling commitments and contractual adjustments for monetary considerations were all implied in the transaction. The seller, Repsol (ticker: REPYY), is reducing its interest in the region. The agreement is somewhat complicated, as different interests are broken down according to the developed and undeveloped areas. Armstrong will acquire an additional 15% of interest (increasing its stake to 45%) in the Colville development area, where the majority of exploration and appraisals have already occurred. The company also holds an option to further increase its stake by[Read More…]

Greenpeace International Founder Says Environmental Movement has Left the Rails: an exclusive Oil & Gas 360® interview – Part One

Greenpeace International Founder Says Environmental Movement has Left the Rails: an exclusive Oil & Gas 360® interview – Part One

Former self-described “radical environmental activist” Dr. Patrick Moore tells Oil & Gas 360® why he left Greenpeace:  Teaching kids that humans are bad and that we are the enemies of the earth is an extremely self-defeating and scientifically incorrect concept The climate change movement is fueled by fear and fundraising Oil & Gas 360® interviewed Dr. Patrick Moore about his time in the early days of Greenpeace and what caused him to part ways with the organization. This is Part One of the exclusive interview.   OAG360: Can you just start off by telling us what prompted you to found Greenpeace or to be a part of that, and what was the original goal of the organization? In the Beginning: Stop Nuclear Bomb Testing and Save the Whales MOORE:  I’d grown up in a very remote wilderness village on northern Vancouver Island, Winter Harbor, and I had to come to Vancouver to boarding school[Read More…]

Secure Data Transmissions from the Digital Oilfield

Secure Data Transmissions from the Digital Oilfield

Secure Data Coverage across 55,000 Square Miles of U.S. Oilfields Two U.S. technology companies recently joined forces to launch a large-scale data/IoT communications network that provides secure data transmission in more than 55,000 square miles of U.S. oil and gas fields in several important shale plays. San Diego’s On-Ramp Wireless, a provider of long-range connectivity for the Internet of Things (IoT), and WellAware, a San Antonio based provider of oilfield monitoring and optimization solutions, are collaborating on the wide-area IoT communications network designed to communicate with 12 miles between access points, but the companies say the network is also capable of providing data communications on a much larger scale. “WellAware has designed and built a network on the North Slope of Alaska that reliably covers over 3,500 square miles with only five access points. That’s about 750 square miles per access point using a single omni-directional antenna, which unheard of with existing terrestrial[Read More…]

Shell Nearing Arctic Development – Under Watchful Eyes

Shell Nearing Arctic Development – Under Watchful Eyes

Huge Expectations, Huge Investment “If you talk about 500 million barrels, I don’t think that will cut it. It must be a multi-multi-billion barrel discovery that we have there.” After investing six years and $6 billion of its development capital, Royal Dutch Shell (ticker: RDS.A) is suddenly within earshot of obtaining final approval to begin offshore exploration for oil and gas on the leases it won in 2008 in the Chukchi Sea north of Alaska. On May 11, the federal Bureau of Ocean Energy Management issued conditional permits that would allow Shell to begin exploratory drilling on its federal leases in the Arctic. “After a comprehensive review and consideration of comments received from the public, stakeholders, and federal and state partner agencies and tribes, the Bureau of Ocean Energy Management (BOEM) today conditionally approved Shell Gulf of Mexico, Inc.’s revised multi-year Exploration Plan (EP) for the Chukchi Sea,” the BOEM[Read More…]

Murkowski Puts Forward New Offshore Legislation

Murkowski Puts Forward New Offshore Legislation

Pushing for larger share of offshore oil and gas revenues Alaska’s Senator Lisa Murkowski put forward new legislation last week that hopes to bring more revenue from oil and natural gas production on Alaska’s outer continental shelf (OCS) back to the state. The bill, S. 1278, will “ensure revenue sharing for the state and coastal communities and invest in the workforce development, science and infrastructure necessary to bring [Alaska’s] resources to market,” said Sen. Murkowski. In an interview with OAG360®, Alaska Governor Bill Walker said that the state would like to see a larger share of the revenue from offshore operations. “[Arctic exploration] will create some revenue in the private sector, [but] it doesn’t produce any dollars in the state. Sort of unique to Alaska is that our offshore development, we don’t receive any share of that revenue; it all goes to the federal government,” said Walker. “We’re certainly very[Read More…]

Source: Rosneft

Shell Prepares to Go Back to the Arctic

Shell exec has eyes set to the North Royal Dutch Shell (ticker: RDSA) is preparing to return to the Arctic and begin exploring for the first time since 2012, according to Chief Financial Officer Simon Henry. Henry said the oil major is preparing “an armada of 25 vessels” to begin a two-year program to explore two to three wells in the Chukchi Sea of the coast of Alaska, reports Reuters. Shell pulled out of the Arctic in 2012 after the drill vessel Kulluk ran aground off an island near Kodiak as it was being towed across the Gulf of Alaska. Shell drilled pilot holes and dug mudline cellars in both the Chukchi and the Beaufort seas prior to leaving the region. Shell submitted plans to explore the Arctic to the U.S. Department of Interior after the Obama administration upheld a 2008 Arctic lease sale, clearing a hurtle for the company.[Read More…]

Drill Rig in Alaska - Oil & Gas 360

At $51 Billion, Alaska’s Hydrocarbons Fuel the Country’s Largest Trust Fund: EIA

State’s Permanent Fund Pays Annual Cash Dividend to All Residents The 49th state has its perks. All Alaskans get an annual dividend check from the state. In 2014 their checks were $16 shy of $1,900 per resident. Residents can thank their state for the royalties generated by oil and gas production on state lands that go into The Alaska Permanent Fund, established in 1976. By retaining at least 25% of the royalties that energy companies pay to produce oil and natural gas on leased state lands, the Alaska Permanent Fund is now worth more than $51 billion, making it the largest trust fund in the United States, according to the EIA. So the only state that can boast that it has neither a state income tax nor a state sales tax pays an annual cash dividend to all residents, making it unique among natural resource permanent funds in the United States. The report says[Read More…]

Source: Rosneft

Report Urges Development of Arctic Assets

A report filed by the National Petroleum Council encourages the U.S. to develop Arctic energy reserves The National Petroleum Council (NPC) recently concluded a study at the behest of the United States’ Department of Energy about potentially tapping oil and gas reserves in the Arctic. The NPC’s report encourages developing Arctic assets in the very near future in order to ensure the future energy independence of the U.S. The report had seven key findings: Arctic oil and gas resources are large and can contribute significantly to meeting future U.S. and global energy needs. The arctic environment poses some different challenges relative to other oil and gas production areas, but is generally well understood. The oil and gas industry has a long history of successful operations in arctic conditions enabled by continuing technology and operational advances. Most of the U.S. Arctic offshore conventional oil and gas potential can be developed using[Read More…]

March 30, 2015 - 6:37 pm Arctic, Offshore, Oil and Gas 360 Articles
Source: Rosneft

Sanctions Prevent Russia From Resuming Drilling in the Arctic in 2015

Sources inside the company have confirmed that Rosneft will not be able to move forward in the Arctic for at least a year due to sanctions. State-owned energy giant Rosneft (ticker: RNFTF) will not be able to continue drilling in the Kara Sea in 2015 after Western sanctions halted its cooperation with ExxonMobil (ticker: XOM) in the arctic, two company sources told Reuters. In September, Rosneft announced that it had found oil in the Kara Sea after drilling the Universitetskaya-1 well in partnership with Exxon. The Kara Sea resources are estimated to be comparable in size to those found in Saudi Arabia, and were hoped to keep Russian production growing after setting a post-Soviet record in 2014. Rosneft was due to restart drilling this year but Exxon was forced to back out of the venture after sanctions from the West made it impossible for XOM to continue cooperating with the[Read More…]

Oil & Gas Development on the East Coast Takes Next Step

Oil & Gas Development on the East Coast Takes Next Step

The United States Department of the Interior, in conjunction with President Obama, Secretary of the Interior Sally Jewell and Bureau of Ocean Energy Management Director Abigail Ross Hopper, released a Draft Proposed Program for development of offshore properties in an official release on January 27, 2015. The Program opens up 14 potential lease sales in eight planning areas, including: 10 in the Gulf of Mexico Three off the coast of Alaska One in the mid to south Atlantic, spanning Virginia, the Carolinas and Georgia In the release, Secretary Jewell said: “This is a balanced proposal that would make available nearly 80% of the undiscovered technically recoverable resources, while protecting areas that are simply too special to develop.” ANWR = Off Limits Ms. Jewell’s quote implies the 12.28 million acres of Alaskan wilderness, which was effectively banned from development in a decision made over the weekend. “The President is taking thoughtful[Read More…]