API cites growing support for opening areas to offshore drilling

Broad, bipartisan support is building among lawmakers at the state and federal levels for expanding access to offshore oil and gas drilling and development, said Erik Milito, American Petroleum Institute director of upstream and industry operations.

Speaking to reporters during a June 5 conference call from Washington, DC, Milito said increased offshore access would mean increased jobs and revenue for the states of Virginia, North Carolina, and South Carolina.

“The United States must pursue smart federal policies” that would expand the Outer Continental Shelf program, Milito said. “Developing our offshore resources is vital.”

Drilling off Virginia and other Atlantic states will be key to the energy plan that President Obama has promised, Milito said.

“The federal government must schedule lease sales and permit modern seismic surveys,” before oil and gas companies will invest in the activities needed to find and develop offshore oil and gas, he said.

“Part of the problem we see is that no lease sales are associated with the Atlantic,” Milito said. “We need lease sales to drive that seismic gathering…. When you have leasing, it makes investing all that much easier,” he said of API members.

Virginia’s two US senators, Democrats Mark R. Warner and Timothy M. Kaine, have proposed legislation that would revise the US Bureau of Ocean Energy Management’s 2012-17 Outer Continental Shelf program by restoring an oil and gas lease sale off Virginia’s coast (OGJ Online, May 23, 2013).

Previously, Virginia was included in a Department of the Interior lease plan, but that plan was deferred following the 2010 deepwater Macondo well blowout and resulting oil spill off Louisiana.

In April, US Rep. E. Schott Rigell (R-Va.) introduced a bill seeking to make Interior schedule a lease sale off Virginia’s coast as soon as practicable (OGJ Online, Apr. 29, 2013). Separately, Virginia Gov. Robert F. McDonnell (R) advocates oil and gas development off his state’s coast.

Offshore Alaska

‘Ultimately, the industry is committed to developing the offshore Alaska area,” Milito said when asked about US Arctic development.

BP PLC recently announced plans to add $1 billion in new investment and two drilling rigs to its Alaska North Slope fields over the next 5 years. Executives attributed the increased investment to changes in the state’s oil tax policy that Gov. Sean Parnell signed during May (OGJ Online, June 3, 2013).

Earlier this year, Royal Dutch Shell PLC announced it will “pause” its exploration drilling activity for 2013 in Alaska’s Beaufort and Chukchi seas to prepare equipment and plans for a resumption of activity at a later stage.

Shell continues to use its extensive experience in Arctic and sub-Arctic environments to prepare for safe activities in Alaska, the company said (OGJ Online, Feb. 27, 2013).

During 2012, Shell completed top-hole drilling on two wells in the Beaufort and Chukchi seas, marking the industry’s return to offshore drilling in the Alaskan Arctic after more than a decade.

The Kulluk conical drilling unit was driven aground by violent weather while under tow to Seattle. It was grounded Dec. 31, 2012, on the southeastern shore of Alaska’s uninhabited Sitkalidak Island. Contributing factors to the incident were discussed during a hearing hosted by the US Coast Guard in Anchorage.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

Shell cuts $15 billion in spending for 2015-17

01/30/2015 Royal Dutch Shell PLC has curtailed more than $15 billion in potential spending over the next 3 years, but is not “not overreacting to current low ...

Victoria extends drilling, fracing ban

01/30/2015 The new Victorian Labor government of premier Daniel Andrews has extended the coal seam gas (CSG) exploration and hydraulic fracturing ban in the s...

Chevron’s $35 billion capital budget down 13% from last year

01/30/2015 Chevron Corp. will allocate $35 billion in its capital and exploratory investment program for 2015, including $4 billion of planned expenditures by...

US Senate passes bill approving Keystone XL pipeline project

01/30/2015 The US Senate has passed a bill approving construction of the proposed Keystone XL crude oil pipeline by a 62-36 vote after 3 weeks of debate. Nine...

Oxy cuts capital budget by a third

01/30/2015 In the midst of falling oil prices, Occidental Petroleum Corp., Houston, expects to reduce its total capital spending for 2015 to $5.8 billion from...

MARKET WATCH: NYMEX natural gas prices drop after storage report

01/30/2015 US natural gas closed at its lowest price in more than 2 years on the New York market Jan. 29 following the government’s weekly gas storage report,...

Pennsylvania governor reinstates state forest drilling moratorium

01/29/2015 Pennsylvania Gov. Tom Wolf (D) signed an executive order fully reinstating a 2010 moratorium on new oil and gas leases in state forests and parks. ...

PwC: Low oil prices might drive surge in restructuring in 2015

01/29/2015 Mergers and acquisitions (M&A) in the oil and gas industry hit 10-year highs in terms of deal value and volume in 2014, according to a report f...

DOE could meet 45-day LNG export decision deadline, Senate panel told

01/29/2015 The US Department of Energy would have no trouble meeting a 45-day deadline to reach a national interest determination for proposed LNG export faci...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

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