BOEMRE schedules next gulf lease sale

The US Bureau of Ocean Energy Management, Regulation, and Enforcement will hold the first Gulf of Mexico federal offshore oil and gas lease sale since the 2010 Macondo well accident and crude oil spill on Dec. 14 in New Orleans. The agency also is proposing a higher minimum acceptable bid for tracts in deeper water with this sale, it announced.

The sale, Lease Sale 218, will include all available unleased areas in the western gulf planning area off Texas, US Sec. of the Interior Ken Salazar and BOEMRE Director Michael R. Bromwich said in an Aug. 19 joint announcement. They said the proposed sale would encompass 3,000 unleased blocks covering 20.6 million acres.

Bromwich added that as part of the Obama administration’s commitment to provide incentives for diligent development, and to ensure fair returns from rights sold, the agency has proposed increasing the minimum bid for blocks in 1,312 ft or more of water to $100/acre from $37.50/acre.

The change was based on a rigorous historical analysis of the last 15 years of gulf lease sales, according to BOEMRE. The analysis, adjusted for energy prices at time of each sale, demonstrates that leases that received high bids of less than $100/acre have experienced virtually no exploration and development activities.

BOEMRE said in light of this, the increase would have little to no adverse impact on the timing or magnitude of production from tracts offered in this sale. Raising the minimum bid will discourage companies from purchasing leases they are unlikely to explore in the near term, it said.

“BOEMRE is proposing this increase in an effort to ensure that areas with the greatest resource potential are developed, and to decrease the amount of leased acreage that is warehoused and goes unexplored,” Bromwich said, adding, “The change in terms will better ensure that the nation’s resources are being developed in a timely manner.”

The minimum bid amount for leases in the much more heavily explored and produced shallower water depths will remain at $25/acre, BOEMRE said. The sale will include environmental stipulations requiring that operators protect biologically sensitive features, as well as marine mammals and sea turtles. These stipulations will require trained observers to ensure compliance and restrict operations when conditions warrant, BOEMRE said.

The sale is the last remaining western gulf planning area sale scheduled in the 2007-12 US Outer Continental Shelf oil and gas leasing program, it noted.

The National Ocean Industries Association applauded the announcement. “Having a firm date now gives a greater assurance that the sale will indeed take place,” NOIA Pres. Randall B. Luthi said on Aug. 19. “This sale marks a key step toward restoring American jobs.”

American Petroleum Institute Upstream Director Erik Milito also said he was encouraged by the news, but noted that the proposed higher minimum acceptable bid is more than double the previous amount, which he hoped would not discourage bids.

Related Articles

BPC report examines 40 possible options to reform RFS

12/16/2014 The Bipartisan Policy Center issued a report outlining 40 possible options for reforming the federal Renewable Fuels Standard in an effort to move ...

Senate passes Defense bill with BLM drilling permit program provision

12/15/2014 The US Senate approved a Department of Defense appropriations bill on Dec. 13 containing a provision extending and making permanent a drilling perm...

Mitigating methane

12/15/2014

Among greenhouse gases, methane should be particularly amenable to deliberate cuts in emissions.

Falling prices may pose new test for China oil policies, speakers say

12/15/2014 China, which successfully revised its oil strategy in response to new technologies since 2008, could face fresh tests if prices stay low for a prol...

Study finds small subset of wells accounts for most methane emissions

12/15/2014 A small subset of natural gas wells are responsible for most methane emissions from US natural gas production, said a study from the University of ...

API: Producers reducing methane emissions already

12/15/2014 US oil and gas producers are reducing wellhead methane emissions already and don't need ill-conceived, overly prescriptive federal regulations, Ame...

Speakers say methane controls just part of complete climate strategy

12/15/2014 Reducing oil and gas operations' methane emissions is an essential, but far from the only, part of a comprehensive climate strategy, speakers at a ...

EPA approves Magellan’s Corpus Christi splitter project

12/12/2014 The US Environmental Protection Agency has issued a final greenhouse gas prevention of significant deterioration construction permit to Magellan Pr...

US needs more data before ending crude export ban, House panel told

12/11/2014 Much more environmental impact information is needed before the US can reasonably remove crude oil export limits, a witness told a House Energy and...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected