News has leaked that Obama will impose and/or continue a 7-year ban on drilling in the eastern part of the Gulf of Mexico in response to the BP (NYSE:BP) oil spill.
The announcement should officially come from Ken Salazar sometime soon.
This is a continuation of the assault upon drilling for oil of the coast of the United States, and in essence keeping the oil moratorium going, even though it has allegedly been lifted.
The fact that there are no permits being allowed shows the ban is effectively still in place, even though it has "officially" been lifted.
Showing posts with label Oil Moratorium. Show all posts
Showing posts with label Oil Moratorium. Show all posts
Wednesday, December 1, 2010
Thursday, November 4, 2010
Transocean (NYSE:RIG) Earnings Crushed on Gulf Spill Effects
Earnings for Transocean fell of the cliff to the tune of 48 percent from the same quarter last year, as effects of the BP (NYSE:BP) Gulf oil spill linger, and uncertainty over liability and when drilling in the Gulf will resume weighs on the company, as it does on all with exposure to the oil spill.
Particularly harmful was the oil moratorium, which while officially lifted, effectively remains in place because of the permitting process and time it will take to comply with new regulations put in place.
Net income for the quarter plummeted to $368 million, or $1.15 a share, down from $710 million, or $2.20 a share last year.
Revenue was also down, falling from $2.82 to $2.31 year over year.
While analysts had expected a drop in performance, it was much worse than the expected $2.47 billion in revenue and $1.36 earnings per share looked for.
Costs were a major factor, with an increase in insurance premiums, lawsuits, one-time costs, and retiring debt all taking a toll on the company's performance.
Particularly harmful was the oil moratorium, which while officially lifted, effectively remains in place because of the permitting process and time it will take to comply with new regulations put in place.
Net income for the quarter plummeted to $368 million, or $1.15 a share, down from $710 million, or $2.20 a share last year.
Revenue was also down, falling from $2.82 to $2.31 year over year.
While analysts had expected a drop in performance, it was much worse than the expected $2.47 billion in revenue and $1.36 earnings per share looked for.
Costs were a major factor, with an increase in insurance premiums, lawsuits, one-time costs, and retiring debt all taking a toll on the company's performance.
Tuesday, November 2, 2010
BP (NYSE:BP) Will Stand in Line before Restarting Gulf Drilling
BP (NYSE:BP) CEO Bob Dudley recently reiterated his commitment to continue drilling in the Gulf of Mexico, but noted it wouldn't be wise to be the first company to resume operations since the oil moratorium was lifted, and so will stand in line while others begin drilling in Gulf waters before they start drilling again.
To prepare for a successful and safe reboot in the Gulf, the company said they'll go through all their equipment and procedures before getting back into the game.
Dudley stated, “It would not be sensible for us to raise our hand and rush with the first permit application.”
After completing their preparations, the oil giant will at that time get a better picture on the length of time it'll take to start drilling again, and from there make a decision on what to do with their idle Gulf rigs.
“We’re waiting to see the pace at which things progress in the Gulf before making a decision,” Dudley added.
To prepare for a successful and safe reboot in the Gulf, the company said they'll go through all their equipment and procedures before getting back into the game.
Dudley stated, “It would not be sensible for us to raise our hand and rush with the first permit application.”
After completing their preparations, the oil giant will at that time get a better picture on the length of time it'll take to start drilling again, and from there make a decision on what to do with their idle Gulf rigs.
“We’re waiting to see the pace at which things progress in the Gulf before making a decision,” Dudley added.
Monday, October 25, 2010
BP (NYSE:BP) Shares Hurt by Moratorium
Being the largest energy company operating in the Gulf of Mexico, BP (NYSE:BP) was hit hard by the oil drilling moratorium imposed by the Obama administration. Their next quarter will reflect that with lower revenue and earnings.
Expectations for the performance of BP for the last quarter are being lowered, as it looks like they'll be generating a profit of $4.8 billion, down from $5.4 billion in profits last year in the same quarter.
This will be measured against BP's peers, who are expected to have improved quarters, and which will put the pressure on new CEO Bob Dudley to do something to improve the performance of the company and reinstate the dividend.
Most industry observers say if BP doesn't reinstate the dividend soon, they will probably incur a loss of major shareholders like pension funds who have held onto their shares in light of hopes of the dividend being instated soon; the only reason they invest in BP in the first place.
BP has historically paid out more than their competitors in dividends.
BP will report their earnings on November 2.
Expectations for the performance of BP for the last quarter are being lowered, as it looks like they'll be generating a profit of $4.8 billion, down from $5.4 billion in profits last year in the same quarter.
This will be measured against BP's peers, who are expected to have improved quarters, and which will put the pressure on new CEO Bob Dudley to do something to improve the performance of the company and reinstate the dividend.
Most industry observers say if BP doesn't reinstate the dividend soon, they will probably incur a loss of major shareholders like pension funds who have held onto their shares in light of hopes of the dividend being instated soon; the only reason they invest in BP in the first place.
BP has historically paid out more than their competitors in dividends.
BP will report their earnings on November 2.
BHP (NYSE:BHP) Spending $900 Million on Gas and Oil Exploration in Fiscal Year
In their fiscal year ending June 2011, BHP Billiton Ltd. (NYSE:BHP) said they plan on spending a record $900 million in oil and gas exploration.
The 2010 fiscal year exploration budget of BHP was $817 million. Spending in the quarter ending September 30 was only $74 million, as the bulk of the spending will occur in the second half of their fiscal year.
On the company website, BHP says their primary gas and oil exploration focus going forward will be the Gulf of Mexico, Australia, Canada, the Falklands and Malaysia.
Even with Gulf operations being slowed by the Obama administration moratorium, BHP still sees results being in line with 2010's.
Overall production for last year increased by 15 percent to 158.6 million barrels.
The 2010 fiscal year exploration budget of BHP was $817 million. Spending in the quarter ending September 30 was only $74 million, as the bulk of the spending will occur in the second half of their fiscal year.
On the company website, BHP says their primary gas and oil exploration focus going forward will be the Gulf of Mexico, Australia, Canada, the Falklands and Malaysia.
Even with Gulf operations being slowed by the Obama administration moratorium, BHP still sees results being in line with 2010's.
Overall production for last year increased by 15 percent to 158.6 million barrels.
Friday, October 22, 2010
Will Diamond Offshore (NYSE:DO) and Noble (NYSE:NE) Halliburton (NYSE:HAL) and Weatherford (NYSE:WFT) Rebound After Moratorium Lifted?
While the earnings of oil field services like Diamond Offshore (NYSE:DO) and Noble (NYSE:NE), Halliburton (NYSE:HAL) and Weatherford (NYSE:WFT) could have been worse, overall they didn't fare too badly in light of the conditions they faced in the latest quarter.
The question is will they start to improve now that the Gulf oil moratorium has been lifted by the Obama administration.
The quick and easy answer to that is no they won't improve. At least as to how the Gulf limitations affect their businesses.
In reality, as far as effectively, the moratorium is really still in place, as the permitting process and new regulations will limit drilling and work in the Gulf for some time.
That's why Obama lifted the moratorium, as he could keep things as they are while permits and regulations force companies to take a lot of time to adjust and be approved.
So Obama can say he lifted the moratorium before the November elections, while keeping the affect of the moratorium on the companies who want to work in the Gulf.
Short-term the companies will still continue to struggle depending on their exposure to the Gulf.
The last quarter should be the same as this quarter for productivity in the Gulf of Mexico for the oil field services companies.
The question is will they start to improve now that the Gulf oil moratorium has been lifted by the Obama administration.
The quick and easy answer to that is no they won't improve. At least as to how the Gulf limitations affect their businesses.
In reality, as far as effectively, the moratorium is really still in place, as the permitting process and new regulations will limit drilling and work in the Gulf for some time.
That's why Obama lifted the moratorium, as he could keep things as they are while permits and regulations force companies to take a lot of time to adjust and be approved.
So Obama can say he lifted the moratorium before the November elections, while keeping the affect of the moratorium on the companies who want to work in the Gulf.
Short-term the companies will still continue to struggle depending on their exposure to the Gulf.
The last quarter should be the same as this quarter for productivity in the Gulf of Mexico for the oil field services companies.
Thursday, October 21, 2010
Worst of BP (NYSE:BP) Oil Spill Over Says Government
At the annual Clean Gulf Conference, government officials and executives from the oil industry said the worst of the BP (NYSE:BP) Gulf of Mexico oil spill in now behind us.
Other comments asserting the oil spill was never as bad as media hype has been communicated by the government, as scientists said most of the oil had dispersed from the Gulf, fisheries have been reopened, and the moratorium on drilling in the region lifted.
The moratorium was considered more of a hindrance than a help from the beginning, so it's not something that should be cited as a confirmation everything is better.
It probably hurt the area economically as much as anything else, and still will as little drilling will resume any time because of the permitting process and new regulations. That's why it was safe for the Obama administration to appear to lift restrictions through abandoning the oil moratorium before the November elections.
Assertions to the contrary have been made by so-called independent scientific sources, but very little has been proven, while a lot has been proffered through media outlets.
Other comments asserting the oil spill was never as bad as media hype has been communicated by the government, as scientists said most of the oil had dispersed from the Gulf, fisheries have been reopened, and the moratorium on drilling in the region lifted.
The moratorium was considered more of a hindrance than a help from the beginning, so it's not something that should be cited as a confirmation everything is better.
It probably hurt the area economically as much as anything else, and still will as little drilling will resume any time because of the permitting process and new regulations. That's why it was safe for the Obama administration to appear to lift restrictions through abandoning the oil moratorium before the November elections.
Assertions to the contrary have been made by so-called independent scientific sources, but very little has been proven, while a lot has been proffered through media outlets.
Noble Corp.'s (NYSE:NE) Earnings Crushed by Obama's Moratorium
In their latest quarterly report, Noble Corp.'s (NYSE:NE) profits plummeted by 80 percent, as the toll from the Obama administrations' oil moratorium continues to rise.
Even though the moratorium was lifted before the November elections, it is effectively still in place because of the permitting process and new regulations which will keep oil companies from drilling in the deepwater portions of the Gulf of Mexico for some time.
Profits in the quarter for Noble dropped to $86 million, or 34 cents a share, far below the $426 million, or $1.63 a share they produced last year in the same quarter.
Revenue for the third quarter also dropped to $613 million.
Analysts had been looking for revenue of $635 million, and profits of 35 cents a share.
The guidance from Noble Chief Executive David Williams was ominous: "We recognize that the effects of U.S. policies related to offshore drilling will be felt into 2011 and beyond."
Noble closed Wednesday at $35.00 a share, gaining $0.27, or 0.78 percent.
Even though the moratorium was lifted before the November elections, it is effectively still in place because of the permitting process and new regulations which will keep oil companies from drilling in the deepwater portions of the Gulf of Mexico for some time.
Profits in the quarter for Noble dropped to $86 million, or 34 cents a share, far below the $426 million, or $1.63 a share they produced last year in the same quarter.
Revenue for the third quarter also dropped to $613 million.
Analysts had been looking for revenue of $635 million, and profits of 35 cents a share.
The guidance from Noble Chief Executive David Williams was ominous: "We recognize that the effects of U.S. policies related to offshore drilling will be felt into 2011 and beyond."
Noble closed Wednesday at $35.00 a share, gaining $0.27, or 0.78 percent.
Wednesday, October 20, 2010
Judge Martin Feldman Throws Out New Government Deepwater Drilling Regulations
U.S. District Judge Martin Feldman is the judge who rejected the first attempt by the Obama administration to impose a moratorium on deepwater drilling in the Gulf of Mexico after the BP (NYSE:BP) oil spill, and he again chastised the administration by throwing out the new regulations accompanying the moratorium, which weren't addressed in the original moratorium case.
Feldman based his ruling on the administration not giving oil and gas companies notice and a chance to make comments on the 10 new rules.
“NTL-05 imposes additional duties on operators and lessees. Notice and comment were required by law. The government did not comply and the NTL-05 is of no lawful force or effect,” said Feldman.
While the second moratorium was recently lifted, the Interior Department rules known as NTL-05 remained in force, that is until the judge threw them out.
On November 3 a lawsuit which challenged the moratorium will be considered for whether or not it will be allowed to go forward. The government has asked for it to be dismissed.
Feldman based his ruling on the administration not giving oil and gas companies notice and a chance to make comments on the 10 new rules.
“NTL-05 imposes additional duties on operators and lessees. Notice and comment were required by law. The government did not comply and the NTL-05 is of no lawful force or effect,” said Feldman.
While the second moratorium was recently lifted, the Interior Department rules known as NTL-05 remained in force, that is until the judge threw them out.
On November 3 a lawsuit which challenged the moratorium will be considered for whether or not it will be allowed to go forward. The government has asked for it to be dismissed.
Wednesday, October 13, 2010
BP (NYSE:BP), Shell (NYSE:RDS-A), Noble (NYSE:NE), Seahawk (Nasdaq:HAWK) Working to Comply with Gulf Regulations
BP (NYSE:BP), Shell (NYSE:RDS-A), Noble Corp. (NYSE:NE) and Seahawk Drilling Inc. (Nasdaq:HAWK), among others, are all working to get in compliance with new government regulations in order to resume drilling in the Gulf of Mexico.
Although the oil moratorium was lifted by the Obama administration, it's largely irrelevant, and effectively still in place, as it could take companies months to before being given the go ahead to continue drilling in Gulf waters.
The permitting process is another tool the government can use to have the same affect as the oil moratorium, as they can be refused and/or delayed, keeping companies in limbo as long as they want.
This is why the Obama administration lifted the Gulf oil moratorium, as it gives the appearance of not being so stubborn while hurting the Gulf region, while still being able to control the drilling in the area, as far as keeping things on hold.
Noble Corp., Seahawk Drilling and Royal Dutch Shell have all said they're working hard to company with the new rules in order to begin drilling ASAP.
BP said they're not going to comment on its future plans in the Gulf at this time, which would entail not only drilling on its existing projects, but also possible application for exploration permits too.
Although the oil moratorium was lifted by the Obama administration, it's largely irrelevant, and effectively still in place, as it could take companies months to before being given the go ahead to continue drilling in Gulf waters.
The permitting process is another tool the government can use to have the same affect as the oil moratorium, as they can be refused and/or delayed, keeping companies in limbo as long as they want.
This is why the Obama administration lifted the Gulf oil moratorium, as it gives the appearance of not being so stubborn while hurting the Gulf region, while still being able to control the drilling in the area, as far as keeping things on hold.
Noble Corp., Seahawk Drilling and Royal Dutch Shell have all said they're working hard to company with the new rules in order to begin drilling ASAP.
BP said they're not going to comment on its future plans in the Gulf at this time, which would entail not only drilling on its existing projects, but also possible application for exploration permits too.
BP (NYSE:BP): Oil Moratorium Lifted by Obama
The decision to lift the controversial oil drilling moratorium in the deep waters of the Gulf of Mexico as a result of the BP (NYSE:BP) oil spill, was for the most part irrelevant, and the time it was in place and the added regulations in essence effectively keep the ban in place even though it has been officially lifted.
This doesn't mean there won't be the resumption of drilling for oil in the deep waters of the Gulf, just that it'll take a long time to vet the process and jobs will continue to be scarce for some time in the region.
Shallow-water drilling is experiencing that very thing now, as the permitting process has slowed things way down from normal, and is being used as a tool in place of an actual moratorium, which would have generated even more of an outrage from the region.
We at Dripping Oil thought Obama was going to wait a little longer to lift the moratorium because of politics and the election, but this is still a political move in that it would have remained in place into November, but there still won't be much activity through that time, making it more symbolic than useful.
It'll take a long time to get things ramped up again and people back to work. And there's no guarantee oil companies will be able to quickly have everything in place to pass the new regulations, which the Interior Department promises will increase as time goes on.
This doesn't mean there won't be the resumption of drilling for oil in the deep waters of the Gulf, just that it'll take a long time to vet the process and jobs will continue to be scarce for some time in the region.
Shallow-water drilling is experiencing that very thing now, as the permitting process has slowed things way down from normal, and is being used as a tool in place of an actual moratorium, which would have generated even more of an outrage from the region.
We at Dripping Oil thought Obama was going to wait a little longer to lift the moratorium because of politics and the election, but this is still a political move in that it would have remained in place into November, but there still won't be much activity through that time, making it more symbolic than useful.
It'll take a long time to get things ramped up again and people back to work. And there's no guarantee oil companies will be able to quickly have everything in place to pass the new regulations, which the Interior Department promises will increase as time goes on.
Chevron (NYSE:CVX) Lowers Earnings Guidance on Weak US Dollar, Drilling Moratorium
Chevron Corp. (NYSE:CVX) lowered its earning guidance for the third quarter Tuesday, citing the collapsing U.S. dollar and the deepwater oil moratorium imposed by the Obama administration which drove up the costs for the period. Lower crude prices were also cited as a reason for the lowered guidance.
Together it will slash earnings for the quarter by close to $400 million, said the energy giant.
This isn't a surprise to most people, as Wall Street had already lowered their profit estimates to $2.27, down from the second-quarter earnings of $2.70 a share.
Chevron noted the declining value of the U.S. dollar will hit their International Upstream business the hardest.
U.S. upstream earnings were the most negatively affected by the oil moratorium, resulting in a drop of 16,000 barrels of day in production on average in the country, while costs rose.
Chevron has been lowering their investment in small-margin businesses in order to target exploration to find new gas and oil fields.
The company closed Tuesday at $83.84, gaining $0.13, or 0.16 percent.
Together it will slash earnings for the quarter by close to $400 million, said the energy giant.
This isn't a surprise to most people, as Wall Street had already lowered their profit estimates to $2.27, down from the second-quarter earnings of $2.70 a share.
Chevron noted the declining value of the U.S. dollar will hit their International Upstream business the hardest.
U.S. upstream earnings were the most negatively affected by the oil moratorium, resulting in a drop of 16,000 barrels of day in production on average in the country, while costs rose.
Chevron has been lowering their investment in small-margin businesses in order to target exploration to find new gas and oil fields.
The company closed Tuesday at $83.84, gaining $0.13, or 0.16 percent.
Tuesday, October 12, 2010
BP (NYSE:BP): Decision on Oil Moratorium Approaching
The highly controversial decision by the Obama administration to impose a deepwater oil drilling moratorium for the Gulf of Mexico after the BP (NYSE:BP) oil spill may be coming to an end, although it's doubtful whether it'll help to get people who lost their jobs as a result back to work anytime soon.
White House Press Secretary Robert Gibbs said he believes the process will be over fairly quickly.
Gibbs said, "I believe this process will wrap up very soon." He didn't say what type of time-frame is being dealt with.
New regulations for shallow-water drilling are having an effect of a moratorium as well, as it has slowed down significantly the permitting process, which has cost a lot of jobs in the region as well.
So if the moratorium is lifted and the same misguided permitting process is left in place, the Obama administration gets to make it look like they dropped the moratorium before the elections, while essentially holding back the entire region in connection to the oil and gas industry.
It would be surprising to see the moratorium still be in place after the elections. More than likely several days before the voting the announcement will be made.
White House Press Secretary Robert Gibbs said he believes the process will be over fairly quickly.
Gibbs said, "I believe this process will wrap up very soon." He didn't say what type of time-frame is being dealt with.
New regulations for shallow-water drilling are having an effect of a moratorium as well, as it has slowed down significantly the permitting process, which has cost a lot of jobs in the region as well.
So if the moratorium is lifted and the same misguided permitting process is left in place, the Obama administration gets to make it look like they dropped the moratorium before the elections, while essentially holding back the entire region in connection to the oil and gas industry.
It would be surprising to see the moratorium still be in place after the elections. More than likely several days before the voting the announcement will be made.
Monday, October 11, 2010
BP (NYSE:BP) Fund Not Helping Obama Moratorium Victims
Victims of the oil moratorium in the Gulf of Mexico, imposed by the Obama administration in response to the BP (NYSE:BP) oil spill, aren't going to get any help from the compensation fund of the oil giant, as it's disguised as a permitting process for shallow water drilling, rather than the “de facto shallow-water drilling ban," as described by Sen. Mary Landrieu (D-LA).
BP had set up a Rig Worker Assistance Fund of $100 million, which wasn't tapped into that much because many companies were keeping their workers on payroll even though they were shut down.
Because there is no official oil moratorium for shallow water drilling, that fund and the $20 billion compensation fund, doesn't pay for people out of work because of the Obama oil moratorium.
What the Obama administration has done is imposed draconian restrictions on shallow water oil drilling to the point it is effectively a moratorium.
To give an idea how much it has strangled the industry, only 53 new wells have been permitted this year, while last year 96 passed through the process.
Either shallow water drillers must also keep workers on payroll while seeing if they eventually are permitted, a very expensive decision, or they must let the workers go, which is what is happening at this time.
Industries indirectly related to the oil industry have been dramatically affected as well, with an unknown number of jobs and revenue lost because they served the oil workers no longer working.
BP had set up a Rig Worker Assistance Fund of $100 million, which wasn't tapped into that much because many companies were keeping their workers on payroll even though they were shut down.
Because there is no official oil moratorium for shallow water drilling, that fund and the $20 billion compensation fund, doesn't pay for people out of work because of the Obama oil moratorium.
What the Obama administration has done is imposed draconian restrictions on shallow water oil drilling to the point it is effectively a moratorium.
To give an idea how much it has strangled the industry, only 53 new wells have been permitted this year, while last year 96 passed through the process.
Either shallow water drillers must also keep workers on payroll while seeing if they eventually are permitted, a very expensive decision, or they must let the workers go, which is what is happening at this time.
Industries indirectly related to the oil industry have been dramatically affected as well, with an unknown number of jobs and revenue lost because they served the oil workers no longer working.
Monday, October 4, 2010
BP (NYSE:BP) Won't Pay Shallow-Water Drilling Workers
With the Obama administration's disastrous oil moratorium in the Gulf, many workers have been taking a beating, and BP (NYSE:BP) has rightly stated at this time they're not going to pay for those out of work because of Obama's policies.
It's not that the oil moratorium explicitly stops drilling in shallow water, it's the fallout from the slowing permitting process which is the culprit behind hundreds of lost jobs in that segment of the industry.
Sen. Mary Landrieu (D, La.) blames the Obama administration for the job losses, saying it's a "de facto moratorium" on new drilling permits which is behind it.
Landrieu added, "It may be the federal government that has to step up and provide relief to the shallow-water rig workers that they've put out of business."
Responding to a request by Landrieu to pay for the shallow-water workers, BP said through fund spokesman Mukul Verma, that after paying for deepwater workers starting in the early part of 2011, there probably won't be enough money left over for shallow-water workers.
It's not that the oil moratorium explicitly stops drilling in shallow water, it's the fallout from the slowing permitting process which is the culprit behind hundreds of lost jobs in that segment of the industry.
Sen. Mary Landrieu (D, La.) blames the Obama administration for the job losses, saying it's a "de facto moratorium" on new drilling permits which is behind it.
Landrieu added, "It may be the federal government that has to step up and provide relief to the shallow-water rig workers that they've put out of business."
Responding to a request by Landrieu to pay for the shallow-water workers, BP said through fund spokesman Mukul Verma, that after paying for deepwater workers starting in the early part of 2011, there probably won't be enough money left over for shallow-water workers.
Chevron (NYSE:CVX) Completes Deepwater Well, a Month Ago
Chevron (NYSE:CVX) completed drilling the first deepwater well in North America, quietly finishing the well a month ago, which they had started in May.
They got around the foolish oil moratorium of the Obama administration because the well of drilled off the coast of Canada, about 260 miles from Newfoundland.
According to Chevron, the the Lona O-55 well is the deepest well ever drilled in Canadian waters.
Provinces in Canada get royalties from commodity resources, and that's the case with this project as well, as the government rejected the paranoia which emerged from the BP (NYSE:BP) oil spill in America causing emotion-driven overreaction.
Chevron did say through a spokesman that throughout the operations they were extra careful to make sure all safety equipment and measures were working correctly.
The oil giant deliberately went about the drilling quietly to not attract unwarranted attention.
Chevron is 50 percent owner of Lona O-55, Shell has a 20 percent stake, ExxonMobil (NYSE:XOM) has a 15 percent stake, as does Imperial Oil (AMEX:IMO).
The oil well was drilled by Stena, a Swedish-based company.
They got around the foolish oil moratorium of the Obama administration because the well of drilled off the coast of Canada, about 260 miles from Newfoundland.
According to Chevron, the the Lona O-55 well is the deepest well ever drilled in Canadian waters.
Provinces in Canada get royalties from commodity resources, and that's the case with this project as well, as the government rejected the paranoia which emerged from the BP (NYSE:BP) oil spill in America causing emotion-driven overreaction.
Chevron did say through a spokesman that throughout the operations they were extra careful to make sure all safety equipment and measures were working correctly.
The oil giant deliberately went about the drilling quietly to not attract unwarranted attention.
Chevron is 50 percent owner of Lona O-55, Shell has a 20 percent stake, ExxonMobil (NYSE:XOM) has a 15 percent stake, as does Imperial Oil (AMEX:IMO).
The oil well was drilled by Stena, a Swedish-based company.
Wednesday, September 29, 2010
Shell (NYSE:RDS-A) Expanding in Gulf Even in Tough Environment
Even though the BP (NYSE:BP) oil spill has created a tough environment to work in for the oil industry in the Gulf of Mexico, that isn't stopping Royal Dutch Shell Plc (NYSE:RDS-A) from focusing on significant expansion in the region.
According to Marvin Odum, who directs exploration and production at Shell in North and South America, by 2015 and further down the road, he sees the company increasing production by over 250,000 barrels of oil equivalent a day in the Gulf.
Odum said, “In the Gulf of Mexico we’ve increased our efforts in the deepwater in recent years with encouraging results. The longer-term outlook for deepwater remains positive, despite the current drilling moratorium.”
Shell CFO Simon Henry concurs with that, saying the company has six oil discoveries they made recently which could “extend production to the 250,000 barrels a day level for quite some time to come.”
The company said the oil moratorium by the Obama administration has resulted in close to 8,000 barrels of oil less in production a day.
According to Marvin Odum, who directs exploration and production at Shell in North and South America, by 2015 and further down the road, he sees the company increasing production by over 250,000 barrels of oil equivalent a day in the Gulf.
Odum said, “In the Gulf of Mexico we’ve increased our efforts in the deepwater in recent years with encouraging results. The longer-term outlook for deepwater remains positive, despite the current drilling moratorium.”
Shell CFO Simon Henry concurs with that, saying the company has six oil discoveries they made recently which could “extend production to the 250,000 barrels a day level for quite some time to come.”
The company said the oil moratorium by the Obama administration has resulted in close to 8,000 barrels of oil less in production a day.
Tuesday, September 28, 2010
BP's (NYSE:BP) Don Suttles Sees Offshore Drilling Returning in Stages
The oil moratorium and new regulations imposed on the offshore oil industry by the Obama administration will probably result in a slow restart of drilling once the moratorium is lifted, according to BP's (NYSE:BP) chief operating officer Don Suttles.
Suttles said concerning interim regulations, that "Certain equipment, certain wells, certain rigs are going to find it easier to meet those requirements," adding that will probably ultimately lead to a "phased restart" of offshore drilling in the Gulf of Mexico.
William Reilly, a co-chair of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, said when asked about the speed with which drilling will resume and the moratorium lifted, that he and co-Chair Bob Graham "have both raised a number of questions" concerning "just how much one needs to do" to increase the quality of oversight of the 33 oil rigs remaining in the Gulf.
"It's not entirely clear what remains to be done," Reilly said.
In other words, this is an over-response, not matter how it's spun. What more can be done than to ensure equipment is working properly and workers are trained to do their jobs well, and there is testing and follow up to verify it?
While Reilly didn't say it, he does seem to be frustrated over attempting to make something perfect in a world where perfection is impossible.
Suttles said concerning interim regulations, that "Certain equipment, certain wells, certain rigs are going to find it easier to meet those requirements," adding that will probably ultimately lead to a "phased restart" of offshore drilling in the Gulf of Mexico.
William Reilly, a co-chair of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, said when asked about the speed with which drilling will resume and the moratorium lifted, that he and co-Chair Bob Graham "have both raised a number of questions" concerning "just how much one needs to do" to increase the quality of oversight of the 33 oil rigs remaining in the Gulf.
"It's not entirely clear what remains to be done," Reilly said.
In other words, this is an over-response, not matter how it's spun. What more can be done than to ensure equipment is working properly and workers are trained to do their jobs well, and there is testing and follow up to verify it?
While Reilly didn't say it, he does seem to be frustrated over attempting to make something perfect in a world where perfection is impossible.
Wednesday, September 22, 2010
BP (NYSE:BP) Rig Worker Fund Not Drawing Many People
The $100 million fund set up by BP (NYSE:BP) to pay for workers out of a job because of the Obama Gulf oil moratorium has drawn relatively few respondents, as only about 356 workers have applied for grants.
It seems the reasoning behind it is it's either not known too much, as there hasn't been much media coverage, or the possibility most employers have retained their workers despite the moratorium.
Expectations were as many as 9,000 people would seek the grants, which are offered in a range of $3,000 to $30,000.
Now the charity will move to the next stage and will offer support workers of the industry to apply for the grants. Those serving the sector, like supply boats, will be able to receive grants now.
BP finally permanently plugged the oil well after temporarily stopping the oil leak in July.
It seems the reasoning behind it is it's either not known too much, as there hasn't been much media coverage, or the possibility most employers have retained their workers despite the moratorium.
Expectations were as many as 9,000 people would seek the grants, which are offered in a range of $3,000 to $30,000.
Now the charity will move to the next stage and will offer support workers of the industry to apply for the grants. Those serving the sector, like supply boats, will be able to receive grants now.
BP finally permanently plugged the oil well after temporarily stopping the oil leak in July.
Friday, September 17, 2010
Fed Moratorium Study Blasted by Critics
The federal government released a so-called report Thursday saying the oil moratorium put in place in the Gulf of Mexico in response to the BP (NYSE:BP) oil spill isn't causing as much economic damage as originally thought.
The government says the moratorium has only caused the temporary loss of 8,000 to 12,000 jobs in the Gulf region, and about $1.8 billion less in spending.
Allegedly on 2,000 oil rig workers have been out of work during the six-month ban, and the other job losses from the Obama administration came from business serving the industry, such as suppliers.
Critics of the ban, which is just about everybody in the Gulf states, say the oil drilling ban has been devastating to the Gulf economy. They have estimated that as many as 50,000 workers would be affected by the ban.
The first estimate from the Interior Department was for 23,000 workers to be out of work from the moratorium.
I wonder if they're taking into account the four oil rigs already gone or leaving the area, with oil companies saying more will leave in the near future.
Those are thousands of jobs that will never return to the region.
The government says the moratorium has only caused the temporary loss of 8,000 to 12,000 jobs in the Gulf region, and about $1.8 billion less in spending.
Allegedly on 2,000 oil rig workers have been out of work during the six-month ban, and the other job losses from the Obama administration came from business serving the industry, such as suppliers.
Critics of the ban, which is just about everybody in the Gulf states, say the oil drilling ban has been devastating to the Gulf economy. They have estimated that as many as 50,000 workers would be affected by the ban.
The first estimate from the Interior Department was for 23,000 workers to be out of work from the moratorium.
I wonder if they're taking into account the four oil rigs already gone or leaving the area, with oil companies saying more will leave in the near future.
Those are thousands of jobs that will never return to the region.
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