New offshore regulations targeted at preventing emergency situations like BP’s Macondo come with $31-billion price tag: API The Obama administration will issue new regulations for offshore oil and gas operators this Thursday. The regulations will require more preventative measures to be used in offshore oil wells in order to avoid blowouts like the one that took place at BP’s (ticker:
A federal judge has granted final approval of BP’s settlement over claims related to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico for $20.8 billion. The Deepwater Horizon rig explosion killed eleven workers and millions of gallons of oil spilled into the Gulf of Mexico. The settlement was reached with the federal government and state authorities in
Gulf of Mexico production will account for 21% of U.S. production next year Production from the Gulf of Mexico is expected to continue growing, despite the current price environment. With eight projects that came online in 2015, four expected in 2016, and two more anticipated for next year, the Energy Information Administration expects U.S. offshore production to continue playing a
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
Joaquin likely to be one of just a handful of storms this season With official hurricane season two-thirds over, Americans on the east coast are on watch today as Hurricane Joaquin brushes close to the seaboard after pounding the Bahamas. But large numbers of storms are not expected this season due to different wind and pressure patterns from El Nino. In
U.S. GOM share of global offshore rigs is falling The number of active offshore rigs in the Gulf of Mexico (GOM) has been steadily declining since 2000, according to a release from the Energy Information Administration (EIA). Over the past 15 years, the share of global offshore rigs in the GOM has declined from almost half of all active offshore
WTI Deals Permian Position for $376 Million to Private Equity Firm W&T Offshore (ticker: WTI), a Houston-based exploration and production company, has increased its focus on assets… offshore. On September 1, 2015, WTI divested the majority of its position in the Permian Basin to Ajax Resources, LLC, for gross pre-tax proceeds of $376.1 million. WTI retains an overriding royalty interest
American Majors Avoid Shallow Water Round Mexico offered its first auction for oil and gas rights in 77 years today. It presented a total of 14 blocks in the shallow Gulf of Mexico. A handful of bids were received but only two blocks were sold, a result of some bids not measuring up to requirements from Mexico’s Energy Ministry. Only
BP will pay its record setting settlement over the course of the next 18 years BP (ticker: BP) will pay $18.7 billion in settlements to the U.S. and the five states along the Gulf of Mexico to resolve the Deepwater Horizons oil spill that took place in 2010. The agreement is “the largest settlement with a single entity in American
Liquidity Pushing $1 Billion Energy XXI (ticker: EXXI) announced its second asset sale in the last 10 days in a company press release on July 1, 2015. The Gulf Coast operator closed on its East Bay Field for $21 million and will retain a 5% overriding royalty interest for no more than five years, along with a 50% interest for
The Supreme Court has decided not to hear the case for BP and Anadarko, upholding lower court’s liability decision Appeals by BP (ticker: BP) and Anadarko Petroleum (ticker: APC) will not be heard by the Supreme Court, meaning the decision to hold the two companies liable for the Deepwater Horizon oil spill in the Gulf of Mexico in 2010 will
Energy XXI (ticker: EXXI), one of the largest operators in the Gulf of Mexico, announced significant liquidity-enhancing measures in two separate press releases on June 22, 2015. The first announcement, released prior to market opening, confirmed an agreement with the Bureau of Ocean Energy Management (BOEM) regarding supplemental bonding requirements. As explained by Capital One Securities, “In April, EXXI received
