Sen. Lisa Murkowski, R-Alaska, has attached to her energy bill a provision that would extend energy companies' Arctic development leases for 10 more years. Murkowski's bill would repeal the ban on crude exports, develop offshore revenue sharing for coastal states and broaden offshore drilling. The Senate Energy and Natural Resources Committee will take up the bill through next week.
Goodrich Petroleum on Monday said it entered a deal to sell acreage in the Eagle Ford Shale for $118 million. The deal, which is expected to be completed Sept. 4, includes leases and proved reserves of approximately 2,850 barrels of oil equivalent per day. The company did not disclose the buyer of the assets.
Economically distressed areas of Colorado would benefit from the proposed Jordan Cove Energy Project and Pacific Connector Gas Pipeline liquefied natural gas projects, Gov. John Hickenlooper wrote last week in a letter to Energy Secretary Ernest Moniz and Federal Energy Regulatory Commission Commissioner Cheryl LaFleur. Jordan Cove would be "the only LNG facility on the West Coast that would directly link Colorado to new energy markets via the Ruby Pipeline," he said.
U.S. District Judge Carl Barbier on Monday ordered BP to pay settlements of as much as $1 billion to local government entities for economic damages caused by the 2010 Gulf of Mexico oil spill. All the settlements must be paid within 30 days.
BP and ExxonMobil applied with the Alaska Oil and Gas Conservation Commission for a permit to increase the natural gas offtake from the Prudhoe Bay field in the North Slope, BP spokeswoman Dawn Patience said Monday. The field owners seek to boost the rate from 2.7 billion cubic feet of gas per day to 4.1 billion cubic feet per day to provide supplies for their Alaska LNG project. The commission is scheduled to hold a public hearing for the plan on Aug. 27, Patience said.
While members of congressional energy committees have maintained moderation in drafting their energy packages to gain bipartisan support and advance their legislation through the Senate floor, their efforts may not rule out controversial amendments, such as a repeal of the crude exports ban, observers say. Rep. Joe Barton, R-Texas, has expressed intent to offer a measure on crude exports once the House Energy and Power Subcommittee marks up its bill in September. Meanwhile, Sen. John Hoeven, R-N.D., said the Senate still lacks 60 supporters to allow crude exports.
Nebraska Gov. Pete Ricketts on Monday called on President Barack Obama to issue a permit for the construction of the Keystone XL pipeline. He told Obama in a letter that the project would "bring good-paying jobs and much-needed tax revenue to Nebraska counties during construction and for years to come." The pipeline would also "be the safest and most modern pipeline built in the United States," he wrote.
The global oil and natural gas industry deferred over $200 billion of investments in upstream projects due to the decline in oil prices, according to a Wood Mackenzie report. The delays, which affect approximately 20 billion barrels of reserves, "create a substantial hole in the industry's investment pipeline," the report said. Deepwater projects constitute more than 50% of the delayed investments, while Canadian oil-sands projects account for nearly 30%, the report added.
Oil production in Texas this year will surpass the record state output level set in 1972 in spite of industry job cuts and more idle drilling rigs, Karr Ingham, petroleum economist for the Texas Alliance of Energy Producers, said Monday. Output will hit 1.28 billion barrels, higher than the record 1.26 billion barrels, Ingham said.
U.S. shale oil producers have resisted the Organization of the Petroleum Exporting Countries' tactic of driving an oil-price slump to grab market share as they have quickly improved efficiency to gain profits even at low prices, KPMG analysts said last week. "Some [U.S. E&P companies] have hedged out to 2020 and will keep producing. Some will stop drilling but won't stop producing what they have. Others will keep going and wait for an upturn. I think it has [the Saudis] significantly befuddled," said Regina Mayor, head of Americas oil and natural gas at KPMG.