Gulf of Mexico crude oil production to continue at record highs
U.S. crude oil production in the Federal Gulf of Mexico increased slightly in 2017, reaching 1.65 million b/d, the highest annual level on record. Although briefly hindered by platform outages and pipeline issues in December 2017, oil production in the Gulf is expected to continue increasing in 2018 and 2019, based on forecasts in the EIA's latest Short-Term Energy Outlook (STEO). EIA expects the Gulf to account for 16 percent of total U.S. crude oil production in each year.
Based on STEO's expected production levels at new fields and existing fields, annual crude oil production in the Gulf will increase to an average of 1.7 million b/d in 2018 and 1.8 million b/d in 2019.
In 2016, producers brought seven new projects and expansions on line and ramped up production in 2017, collectively contributing to an average of 126,000 b/d of production in 2017. Another two projects came on line in 2017, contributing 10,000 b/d of new production last year.
For more information, visit www.eia. gov or call (202) 586-8800.
DOI to hold OCS Gulf of Mexico Lease Sale 251
The Department of the Interior (DOI) will offer 77.3 million acres offshore Texas, Louisiana, Mississippi, Alabama and Florida for oil and gas exploration and development. The region-wide lease sale scheduled for Aug. 15 would include all available unleased areas in federal waters of the Gulf of Mexico.
Lease Sale 251, scheduled to be livestreamed from New Orleans, will be the third offshore sale under the National Outer Continental Shelf (OCS) Oil and Gas Leasing Program for 2017-2022. 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.
For more information, visit www. boem.gov or call (504) 736-2599.
ConocoPhillips unveils results of 2018 winter exploration program in Alaska
ConocoPhillips has concluded its 2018 winter exploration and appraisal program in Alaska.
The company's original plan was to drill five wells on the Western North Slope comprising two appraisal wells of the Willow Discovery announced in January 2017, plus three exploration wells. Due to improved drilling efficiencies, the company was able to drill a total of six wells, including an additional Willow appraisal well. All six wells, plus a sidetrack, encountered oil and verified the potential of the play.
The three Willow appraisal wells support the previously announced estimate of a recoverable resource potential of at least 300 million barrels of oil.
The three exploration wells represent new discoveries for the company and further extend the play concept across the Western North Slope.
For more information, visit www.con ocophillips.com or call (281) 293-4028.
DOI will not lower offshore oil and gas royalty rates
Due to the success of President Trump's "America-First" energy strategy, U.S. Secretary of the Interior Ryan Zinke said the Department of the Interior will not lower royalty rates for future offshore oil and gas lease sales at this time.
On February 28, the Royalty Policy Committee, re-chartered by Secretary Zinke in 2017, made its initial recommendations, including one to set a royalty rate of 12.5 percent on all Outer Continental Shelf lease sales at all water depths through 2024.
Since then, an improving economy, federal tax reforms, higher energy prices and greater regulatory certainty have led to positive market conditions, prompting Secretary Zinke's determination to keep the royalty rate in 200 meters of water or deeper at 18.75 percent.
For more information, visit www.doi. gov or call (202) 208-3100.
Canyon Creek to drill 18 wells targeting stacked pay in Arkoma Basin
Canyon Creek Energy - Arkoma LLC (CCEA) has entered into a joint development agreement (JDA) with Pivotal Petroleum Partners II LP to jointly fund the development of wells on CCEA's acreage in Atoka, Coal, Hughes and Pittsburg Counties, Oklahoma, targeting the stacked pay formations in the expanding Arkoma STACK play.
CCEA and Pivotal plan to drill 18 wells in 2018, targeting the Woodford shale and Mayes shale in various locations throughout the Arkoma Basin of Southeastern Oklahoma. Pivotal will fund 75 percent of CCEA's working interest in all wells covered by the JDA. Once Pivotal achieves a preferred return, the majority of the wellbore working interest and net revenue interest will revert back to CCEA. This new partnership will accelerate CCEA's drilling activity across the company's 100,000-grossacre operated leasehold position.
For more information, visit www.canyoncreekenergy.com or call (918) 561-6737.