Posted May 2, 2018
The most recent federal Gulf of Mexico oil and natural gas lease sale was described in some media reports as “disappointing,” “modest” and “tepid.” But there’s another, more positive way to look at it.
First, every offshore lease sale the federal government holds is welcome by industry, because each represents new opportunity for the market to work as it should – with companies making investment decisions based on the potential for significant natural gas and oil production.
A more important point underscored with the Gulf sale is one we’ve been making for some time – that the federal government needs to make available new offshore areas for study, research, exploration and development.
Posted April 28, 2017
Posted October 19, 2016
Posted May 25, 2016
Heidelberg and other offshore production facilities are integral to U.S. energy security. The U.S. Energy Information Administration (EIA) estimates Gulf production will average 1.63 million barrels of oil per day (mb/d) this year and reach 1.91 mb/d by December next year, accounting for 18 percent and 21 percent of total U.S. crude oil production in 2016 and 2017, respectively.
Output from Heidelberg and other platforms reflects decisions made years ago – to buy leases and to invest in exploration and development. That’s why it’s critically important for robust planning now, starting with the government’s 2017-2022 offshore oil and natural gas leasing program that’s currently being put together by federal officials.
Posted May 11, 2016
Some points for the Senate Energy and Natural Resources Committee to consider when it meets next week to review the Obama administration’s proposed 2017-2022 program for offshore oil and natural gas leasing.
First, offshore oil and natural gas production historically has played a major role in overall U.S. energy output. In 2010 more than 30 percent of U.S. oil and 11 percent of U.S. natural gas was produced in the Gulf of Mexico. So, while it’s great that the U.S. Energy Information Administration (EIA) estimates that Gulf production will increase to record high levels in 2017, every American must recognize that reaching record Gulf output next year would result because of leasing decisions made a decade or more ago.
In that context, let’s be clear: The federal offshore leasing program must reflect energy leadership and vision, and it must be focused on fostering opportunity. It must not reduce America’s offshore energy potential by keeping key offshore areas off the table for development.
Posted March 23, 2016
The Obama administration’s decision last week to eliminate the Atlantic from the next federal offshore leasing plan is a step backward for American energy policy. Despite bipartisan support in Congress and from voters in coastal states, the administration is doubling down on a shortsighted policy that keeps 87 percent of federally controlled offshore acreage off limits to energy exploration.
Expanding access to America’s energy resources – both offshore and onshore – is vital to our future energy security and economic growth.
Posted September 14, 2015
Safe, responsible energy development in the Gulf of Mexico is vital to the U.S. economy and job growth, as well as U.S. energy and national security. Each of these points likely will come up during a U.S. House Natural Resources Committee hearing on the impact of federal policies on energy production and economic growth in the Gulf, Tuesday in New Orleans.
Posted August 20, 2015
Some observations on this week’s federal oil and natural gas lease sale in the Western Gulf of Mexico, reported with alarm by some media outlets because it wasn’t as large as other recent sales.
First, every lease sale is welcome. Access to U.S. offshore reserves represents opportunity for energy development, job creation, economic growth and greater American energy security. We need more offshore opportunities to support the strategic, long-term energy security of the United States – advanced by a robust offshore energy sector.
Posted April 22, 2015
Just a few minutes after BP Group Chief Executive Robert Dudley addressed a CERAWeek luncheon crowd on post-Macondo efforts that have seen the company spend more than $44 billion on Gulf response and cleanup, I talked with Center for Offshore Safety Executive Director Charlie Williams about the center’s work to increase the safety culture in offshore energy development. Williams, who was named to his position in March 2012, talked about systems approaches to safety and what the center has learned about offshore safety in its first annual performance report, issued earlier this month. Highlights of the conversation below.
Posted April 9, 2015
Three zeroes stand out in the first annual performance report by the Center for Offshore Safety (COS), the oil and natural gas industry-led initiative to promote continuous offshore safety improvement following the 2010 Macondo incident: Zero fatalities, zero loss-of-well-control incidents and zero oil spills equal to or greater than 10,000 gallons in Gulf of Mexico operations.