Subscribe to our free daily newsletters
  Oil and Gas News from OilGasDaily.Com  

Subscribe to our free daily newsletters

Gavel pounds for first Gulf of Mexico oil and gas lease under Trump
by Daniel J. Graeber
Washington (UPI) Aug 16, 2017

An offshore trade group said the lower-for-longer climate for oil prices may keep bidders at bay for a lease Wednesday for the Gulf of Mexico.

U.S. Interior Secretary Ryan Zinke unveiled plans in July for an auction for 75.9 million acres off the southern coast for oil and gas exploration and development. Wednesday's auction is the first time that all territorial waters in the region are on the auction block. The lease includes a reduced royalty rate offered to attract bidders to shallow-water areas.

All told, the administration estimates the entire region holds about 550 million barrels of oil and 1.25 trillion cubic feet of natural gas. The lease is the first for President Donald Trump's administration and an advisor to Zinke said last month the lease would ensure U.S. energy dominance.

The U.S. Energy Information Administration estimates total average oil production for the year at 9.3 million barrels per day, making it one of the world's largest oil producers. The U.S. Gulf of Mexico accounts for about 20 percent of that total. Offshore oil production is on pace to increase nearly 9 percent next year to about 1.85 million bpd.

Randall Luthi, the head of the National Ocean Industries Association, said the lease is welcome, but bidders may stay away from the shallow water opportunities because of relatively low oil prices.

"Despite the new 12.5 percent shallow water royalty rate offered as a much-needed financial incentive, extended low commodity prices may dampen bidding on the shelf," he said in a statement. "Given current economic conditions and regulatory environment, offshore operators may choose to focus their capital on acquiring leases for longer range deepwater projects."

In a pre-bidding notification, the Interior Department said it's received 90 bids for the 14,177 blocks on the auction block. In terms of acreage, less than 1 percent of the total has drawn interest.

Crude oil prices have come under pressure in the second half of the year from strong U.S. oil and production, as well as doubts about whether the Organization of Petroleum Exporting Countries can balance the market through coordinated declines.

West Texas Intermediate, the U.S. benchmark for the price of oil, was trading near $48 per barrel early Wednesday, about $2 per barrel higher than when the lease was announced. Three years ago, WTI was around $98 per barrel, but has remained in the $40 range more or less since.

Capital push under way for Cuban oil campaign
Washington (UPI) Aug 15, 2017
Proceeds from an effort to raise new capital will be used primarily to start planning for a drilling program in Cuba next year, Melbana Energy announced. The company, which has headquarters in Australia, is one of the few with an established footprint in Cuba. Though a placement and entitlement offer, Melbana said it could raise as much as $6 million to finance operations at the island ... read more

Related Links
All About Oil and Gas News at

Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Contributor
$5 Billed Once

credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly

paypal only

Comment using your Disqus, Facebook, Google or Twitter login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Additive selectively converts CO2 to multicarbon fuels

New light-activated catalyst grabs CO2 to make ingredients for fuel

Biochar could clear the air in more ways than one

Algae cultivation technique could advance biofuels

ABB wins $30 million order to support integration of renewables in Germany

Solar glasses generate solar power

New method enhances broadband light absorption in solar cells

Lightweight catalyst for artificial photosynthesis

Night vision for bird- and bat-friendly offshore wind power

Norway's Statoil reshapes hold of giant wind farm off the British coast

Vertical axis wind turbines can offer cheaper electricity for urban and suburban areas

Annual wind report confirms tech advancements, improved performance, low wind prices

Analysis highlights failings in US's advanced nuclear program

RWE optimistic for 2017, boosted by nuclear tax refund

Clashes at anti-nuclear demo in France

The Roadmap for Increased Safety and Viability of Nuclear Power Plants

UNEP chief urges China to do more on climate

Warm periods in the 20th century are not unprecedented during the last 2,000 years

Can poor air quality mask global warming's effects

US to join climate talks despite Paris accord exit

Uber board spat over ex-chief Kalanick goes public

Shares of Fiat Chrysler surge on report of Chinese suitors

Electric vehicles to eat into global oil demand by 6 million barrels

Czech Republic aims for nation-wide vehicle charging points

Canada to contribute policing to liberated Iraq city

Conviction, sentences upended in Blackwater case

Iraq faces vast challenges securing, rebuilding Mosul

Two killed in IS-claimed attack on Iraq embassy in Kabul

Trump keeps Iran deal, but threatens more sanctions

S. Korea seeks rare talks with North to ease military tensions

US sending mixed messages on Iran nuclear deal: Zarif

US-China citizen gets 10 years for spying in Iran; 2 Iranians charged in US over hacking

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement