Drilling

Coast Guard Photo
Oil

Salerno: Shell's future Arctic plans face 'fine tooth comb'

The day after the Coast Guard issued critical findings on the grounding of Shell's floating drill rig in Alaska 15 months ago, the Interior Department's chief offshore safety officer on Friday pledged to hold the company and others to a tough standard for any future Arctic exploration.

At a House appropriations hearing, Bureau of Safety and Environmental Enforcement Director Brian Salerno stressed that after the grounding of the Kulluk vessel, the department ordered drillers to submit audited integrated operations plans. He said any such plan by Shell will face heavy scrutiny.

"We will go over this with a fine tooth comb, because we do not want a repeat of that lack of internal coordination within their organization that contributed to this event," Salerno said of Shell.

Oil

Exxon says it will report on fracking risks by September

Source: 
The Wall Street Journal

In response to shareholder pressure, Exxon Mobil Corp. says it will publicly report on risks associated with hydraulic fracturing by September, The Wall Street Journal reports.

Oil

Report: Poor management led to Shell rig grounding

ANCHORAGE, Alaska (AP) — Poor risk assessment and management were among factors that led to the grounding of a Shell oil drilling rig in the Gulf of Alaska in 2012, the Coast Guard said in a report released Thursday.

The report also says Alaska's tax laws influenced the decision to tow the Kulluk to Seattle for maintenance. Royal Dutch Shell PLC believed the drill vessel would have qualified as taxable property on Jan. 1, 2013, if it was still in Alaska waters.

Oil

Report: 2014 Bakken oil output 1.1M barrels a day

WILLISTON, N.D. (AP) — Oil production in North Dakota and Montana's Bakken and Three Forks formations will average 1.1 million barrels per day this year, according to estimates announced Wednesday by a research firm.

Wood Mackenzie anticipates that oil production in the North Dakota and Montana sections of the Bakken and Three Forks formations will grow to 1.7 million barrels per day in 2020.

"We're very confident on the future of the Bakken," said Jonathan Garrett, an analyst at Wood Mackenzie. He added that the expected lifetime of a Bakken well is 25 years to 30 years.

Oil

North Dakota town grows to meet oil boom

Source: 
The Wall Street Journal

The Wall Street Journal examines oil boom-driven population growth in Williston, N.D., and how the town is adapting to thousands of new residents each year.

Oil

March output was Pemex lowest since Oct. 1995

Source: 
Bloomberg

Petroleos Mexicanos, Mexico's state-owned oil company, said its crude output was down to 2.47 million barrels a day in March, the lowest in nearly 20 years, Bloomberg reports, noting that the country hopes energy reform, which opens up the sector to private investment, will turn things around.

Oil

Calley signs bills cutting taxes for oil drilling in Michigan

LANSING, Mich. (AP) — Michigan's Lt. Gov. Brian Calley has signed legislation aimed at encouraging a type of oil drilling using carbon dioxide.

The new laws lower taxes for drilling projects involving carbon dioxide, using it to push oil from wells that otherwise can't be recovered. It's a process that has divided environmental groups. 

The new laws also allow oil and gas companies to construct carbon dioxide pipelines and expand their authority to build them on private property.

Oil

BOEM extends comment period for Atlantic testing

RICHMOND, Va. (AP) — The federal government has added 30 more days for the public to weigh in on its guidelines for seismic testing in Atlantic waters for oil and gas reserves.

The Bureau of Ocean Energy Management says the public now has until May 7 to comment on the rules.

Oil

Kashagan oilfield project in Kazakhstan years late, millions over budget

Source: 
The Wall Street Journal

The Wall Street Journal explores the reasons why the project to develop the Kashagan oilfield in Kazakhstan is years late and at least $30 million over budget, but concludes that it is possible to get the crude flowing and have it be profitable.

Oil

Myanmar awards 20 oil exploration blocks

YANGON, Myanmar (AP) — Major oil companies including Total, Chevron, Woodside Energy and Shell have won bids for offshore oil and gas exploration blocks off Myanmar's western and southern coasts, the country's Energy Ministry said Wednesday.

An announcement on the ministry's website said 13 oil companies won bids to explore in 10 shallow water blocks and 10 deep water blocks in the Gulf of Martaban and Tanintharyi, off the western state of Rakhine.

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