Interior offers 78 million acres in new Gulf lease sale
WASHINGTON -- At press time, the Bureau of Ocean Energy Management (BOEM) was offering 78 million acres for a region-wide lease sale. The sale includes all available unleased areas in federal waters of the Gulf of Mexico.
Lease Sale 252 is the fourth offshore sale under the 2017-2022 National Outer Continental Shelf Oil and Gas Leasing Program. Under this program, 10 region-wide lease sales are scheduled for the Gulf, where resource potential and industry interest are high and oil and gas infrastructure is well established. Two Gulf lease sales will be held each year and include all available blocks in the combined Western, Central and Eastern Gulf of Mexico Planning Areas.
Lease Sale 252 includes approximately 14,696 unleased blocks, located from 3 to 231 miles offshore, in the Gulf's Western, Central and Eastern Planning Areas in water depths ranging from 9 to more than 11,115 feet (3 to 3,400 meters).
For more information, visit www.doi.gov or call (202) 208-3100.
Smoother sailing ahead for upstream supply chain players
HOUSTON -- The global offshore upstream supply chain saw signs of recovery in 2018, and this looks set to continue in 2019, according to Wood Mackenzie. As project final investment decisions increase, demand for equipment and services are buoying the prospects for the upstream supply chain.
But the downturn left its mark on the sector. Projects remain leaner and phased, and cost discipline remains high on the agenda. The supply chain continues to focus on compact, modular and standard solutions as operators seek the shortest cycle times.
Mhairidh Evans, principal analyst, subsea supply chain, said, "Demand for subsea equipment is one of the best leading indicators of offshore market activity. Volumes are recovering, and Wood Mackenzie expects an approximate 40-percent increase in 2018 in comparison to the previous year. It's likely demand will remain steady for the next few years, averaging about 300 subsea trees per year, an encouraging sign for the sector."
For more information, visit www.woodmac.com or call (713) 470-1600.
ExxonMobil streamlining upstream organization to support growth plans
IRVING, Texas -- Exxon Mobil Corp. will streamline its upstream organization and centralize project delivery across the company to support previously announced plans to double operating cash flow and earnings by 2025.
The reorganization is effective April 1 and involves the creation of three new upstream companies: ExxonMobil Upstream Oil & Gas Co., ExxonMobil Upstream Business Development Co. and ExxonMobil Upstream Integrated Solutions Co.
For more information, visit http://corporate.exxonmobil.com or call (972) 940-6007.
WoodMac: Exploration is 'back in the black'
HOUSTON -- After a few difficult years, the exploration sector is "back in the black" -- and keen to stay there. New analysis from Wood Mackenzie shows explorers' success in 2018 reflects a disciplined approach that's set to continue this year.
Dr. Andrew Latham, vice president, global exploration, said, "We are seeing a long-overdue recovery in the sector. Last year, conventional exploration returns hit 13 percent -- the highest calculated in more than a decade. As 2018's discoveries are appraised and projects move through the development cycle, we expect these economics to improve further."
In 2018, exploration added at least 10.5 billion barrels of oil equivalent in conventional new field volumes. This was split 40/60 oil to gas.
For more information, visit www.woodmac.com or call (713) 470-1600.
BLM reports record-breaking onshore oil, gas lease revenue in 2018
HOBBS, N.M. -- The Interior Bureau of Land Management (BLM) state offices generated $1.1 billion from oil and gas lease sales in calendar year 2018, an amount nearly equal to the BLM's budget for fiscal year 2018, making it the highest-grossing year on record and nearly tripling what had been the agency's highest year ever in 2008, which generated approximately $408 million. Bonus bids from the 28 oil and gas lease sales held in calendar year 2018 came to $1,151,109,064 in preliminary figures released by the BLM. Among these, a total of 1,412 parcels, covering almost 1.5 million acres, were leased.
BLM New Mexico had the largest lease sale of 2018, generating approximately $972 million in bonus bids for 142 parcels. The two-day lease sale, held in September, brought in more revenue than all BLM oil and gas lease sales in 2017 combined and broke all previous records. A bonus bid is a one-time payment in exchange for exclusive access to explore for hydrocarbons on a parcel and grants an exclusive lease for a set period of time.
For more information, visit www.blm.gov or call (202) 208-3801.