Offshore rig contracts surpass $3.5B mark
	U.S.-based Pride International, Transocean, Ensco International and Rowan Companies have entered into lucrative offshore rig contracts totaling more than $3.5 billion, with some individual rig leases surpassing a half-million dollars per day, demonstrating continued market tightness worldwide for premium offshore rigs. (Posted: 04-05-08) More

Survey: oil and gas industry talent pool 'drying up'

The talent pool is drying up for some oil and gas companies, according to a recent survey. Ernst & Young LLP and Rice University surveyed human resources executives at 22 international oil and gas companies, and found that nearly 90% say the talent shortage has become one of the top five business issues facing their companies. About 88% of respondents said not finding enough talent could impede the growth and financial performance of their companies. (Posted: 04-01-08) More

McMoRan re-enters 'ultra-deep' shelf wildcat
	E&P independent McMoRan Oil & Gas Corp. has contracted Rowan's Gorilla IV jack-up rig to re-enter and deepen the "ultra-deep" Blackbeard No. 1 wildcat, perhaps the most closely watched exploration well on the globe until ExxonMobil and its partners gave up on the troublesome Gulf of Mexico well in August 2006. (Posted: 03-27-08) More

U.S. Gulf Lease Sale 206 sets record at $3.67B
	Bidders went on the mother of all shopping sprees at Central Gulf of Mexico Lease Sale 206, doling out a record $3.67 billion in apparent high bids on oil and gas exploration tracts. They even managed to outspend, by a huge margin, last year’s $2.8 billion extravaganza, at the time the best performance for a U.S. Gulf lease sale in more than two decades. (Posted: 03-20-08) More

Gulf of Mexico still tops for U.S. exploration

Top executives from America's energy industry continue to believe the Gulf of Mexico holds the greatest potential for new oil and natural gas discoveries, according to results of Grant Thornton LLP's 6th annual survey of upstream U.S. energy companies. However, the 2008 survey results also show that industry faces more global challenges in exploration, employee recruitment and retention and perception in their sector than ever before. (Posted: 02-22-08) More

Chukchi Sea lease sale draws $2.6B in high bids

Shell left no doubt about its interest in the remote Chukchi Sea, located in federal waters off Alaska's northwest coast. The company forked out a breathtaking $2.1 billion in the February 6  Chukchi Sea oil and gas lease sale, representing just over 80% of all high bids totaling more than $2.6 billion. Sale 193 drew a record 667 bids on 488 blocks, with U.S. major ConocoPhillips, Spain's Repsol, Norway's StatoilHydro and Italy's Eni also picking up blocks. (Posted: 02-06-08) More

U.S. Gulf production to rocket in 2008

The U.S. Gulf of Mexico could see oil production jump as much as 22% to 45% in 2008 due to new fields, according to an upstream review conducted by Platts, a leading energy news publication. However, the final results evidently depend on the progress of two very large but troubled deepwater developments: the BP-operated Thunder Horse field and the Chevron-operated Tahiti field. In fact, timing could throw off the projected 2008 production increase by more than 20%. (Posted: 01-23-08) More

Drillers cashing in on escalating rig rates
	Many of the world's major offshore drilling companies, led by the globe's largest, Transocean, continue to feed off financially frenzied exploration and production companies and increasing rig day rates, setting both revenue and income records during the first three quarters of the year and anticipating more of the same heading into the fourth quarter and beyond. (Posted: 11-15-07) More

Blackbeard may yet rise from the ashes
	Blackbeard West, for more than a year the world's most closely watched exploration well until it was abandoned in August 2006 short of its primary target more than 30,000 feet below the U.S. Gulf of Mexico's continental shelf, may soon be resurrected. (Posted: 10-26-07) More

Gulf blockbuster draws $2.9B in high bids

Companies opened their wallets in a spectacular display of spending at Central Gulf of Mexico Lease Sale 205, plunking down $2.9 billion in apparent high bids, by far the best showing for a U.S. Gulf lease sale in more than two decades. The number of winning and losing bids combined totaled $5.2 billion, demonstrating the highly competitive nature of the Oct. 3 sale in New Orleans, Louisiana. (Posted: 10-4-07) More

Majors on top in Platts global energy survey
	Major oil and gas companies have consolidated their position as the world's most effective energy businesses, dominating the rankings in the annual Platts Top 250 Global Energy Companies. (Posted: 09-25-07) More

Exxon's Tillerson raises red flag on energy security
	ExxonMobil Chief Executive Officer Rex Tillerson has raised the red flag on U.S. energy security and policy changes, asserting that rapid- fire changes by Congress are not promoting energy security. He called for the United States to focus more on boosting its domestic supplies. (Posted: 09-23-07) More

Upstream survey confirms reserve worry
	The latest upstream survey reflects what other independent surveys released earlier this year discovered: the ability to replace spent oil reserves, despite record capital investment, has evolved into a major concern for many exploration and production companies. The recent survey also confirmed that huge increases in operating costs also are pressuring companies. (Posted: 08-30-07) More

Statoil dominates Western Gulf lease sale
	Norway's Statoil took no prisoners in Western Gulf of Mexico Lease Sale 204, accounting for seven of highest single bids and nearly half of the entire $289.9 million in total winning bids submitted by companies participating in the Aug. 22 sale in New Orleans, Louisiana. (Posted: 08-24-07) More

Ultra-deepwater rigs set record in U.S. Gulf
	Exploration and production companies, despite a reported worldwide shortage of high-specification offshore rigs, have managed to set a new record for the number of “ultra-deepwater” floaters currently drilling prospects and development wells in the U.S. Gulf of Mexico. (Posted: 08/17/07) More

Transocean, Pride order new drillships
	Contract drilling companies Pride International and Transocean separately ordered new, state-of-the-art deepwater drillships at a combined cost of $1.320 billion, strongly indicating that the exploration and production industry remains alive and well. (Posted: 07-22-07) More

Third major deepwater project delayed
	A third major field development in deepwater Gulf of Mexico, Chevron’s $3.5 billion Tahiti project in Green Canyon, has been delayed because of problems associated with sub-sea equipment. Thunder Horse, Atlantis and now Tahiti represent billions of dollars in investment and hundreds of millions of barrels in stranded reserves. (Posted: 06-28-07) More

Poll: declining reserves irreversible and worsening
	Oil and gas executives believe government involvement in supporting the development of renewable energy sources is necessary to alleviate the problem of declining oil reserves, according to the results of a survey conducted by KPMG LLP, an audit, tax and advisory firm. (Posted: 05-21-07) More

Industry devouring deepwater Gulf of Mexico
	More than half of the active oil and gas leases in the Gulf of Mexico are now in water depths greater than 1,000 feet. And last year 70% of the oil and 40% of the gas produced in the entire region came from deepwater leases, according to a U.S. Minerals Management Service report. (Posted: 05-19-07) More

Contango comes up aces on Dutch prospect
	Contango Oil & Gas Co., an up-and-coming exploration and production independent based in Houston, Texas, was to launch its third deep-gas Gulf of Mexico exploratory well this month on its prolific Eugene Island Block 10 Dutch prospect, following the drilling of two successful natural gas wells on the prospect. (Posted: 05-19-07) More

Marathon captures more oil pay at Droshky prospect
	Marathon Oil Corp. has another 600-plus feet of pay to go along with 250 of initial pay the company announced in April at its 100% owned Droshky oil discovery on Green Canyon Block 244 in deepwater Gulf of Mexico. (Posted: 05-18-07) More

No more incentives for deep-gas drillers: MMS director
	Deep drillers on the Gulf of Mexico's gas-prone continental shelf, including those who have failed to penetrate the so-called "ultra-deep" zone below 25,000 feet, can forget about additional royalty relief on production and other incentives from Uncle Sam, due to the rich and lasting nature of the present commodity price environment. (Posted: 05-03-07) More

MMS sees Gulf oil production rising to 2.1-mil b/d
	Gulf of Mexico oil production is forecasted to increase over the next ten years to a possible high of 2.1 million barrels per day, according to a new report issued May 1 by the U.S. Minerals Management Service. (Posted: 05-01-07) More

Interior unveils 2007-2012 offshore lease program
	The U.S. Minerals Management Service (MMS) has released its final version of the 2007-2012 Outer Continental Shelf (OCS) oil and gas leasing program. The agency is proposing 21 lease sales in eight OCS planning areas offshore Gulf of Mexico and Alaska and in the Atlantic Ocean off Virginia's coastline. (Posted: 04-30-07) More

Schlumberger issues warnings on North America

Giant oilfield services company Schlumberger, which turned a better-than-expected profit for the 2007 first quarter, repeated its expectations for a pickup in natural gas activity in North America during its April conference call, but cautioned that extra capacity, especially in the pressure pumping market, will limit pricing power. Pressure pumping is used to fracture underground geologic formations to improve the flow of oil and gas. (Posted: 04-28-07) More

Floating production system orders to jump: report
	International Maritime Associates Inc. said orders will be placed for 119-149 floating production systems over the next five years, adding that there are 197 floating production systems in operation worldwide with another 62 systems on order. (Posted: 04-28-07) More

Oil production climbs as new reserves shrink

The world is currently producing more oil annually than it is replacing with new reserves. That sobering conclusion emerges from a new survey of global liquids reserves published by Energy Intelligence. In contrast to the gradual rise in global oil reserves that has been reported annually in most surveys based on public sources, the new assessment shows that the trend in worldwide liquids reserves is actually one of stagnation and modest decline. (Posted: 04-23-07) More

Shell tops bidding in ice-clogged Beaufort Sea
	For the second time in the federal government's current five-year offshore leasing program, Shell dominated the bidding in Alaska's remote and ice-clogged Beaufort Sea, this time plunking down $39.3 million in apparent winning bids in Outer Continental Shelf Lease Sale 202 held in Anchorage. Total high bids for the April 18 sale amounted to $42.2 million. (Posted: 04-23-07) More

Japan's Itochu Corp. gains foothold in U.S. Gulf
	Japanese business conglomerate Itochu Corp., true to a worldwide expansion strategy that includes carving a niche for itself in the lucrative U.S. natural gas market, has agreed to acquire E&P independent Range Resources' property interests in the Gulf of Mexico for $155 million. (Posted: 04-07-07) More

BP problems continue with Mad Dog shutdown
	BP’s upstream problems continue to mount in deepwater Gulf of Mexico. First it was repeated production start-up delays at Thunder Horse, the largest-ever oil discovery in the U.S. Gulf, followed by repeated start-up delays at Atlantis, another large discovery awaiting first oil. (Posted: 03-29-07) More

Beaufort Sea lease sale to highlight Kuvlum prospect
	All eyes will be on Shell Offshore and the still available Kuvlum prospect going into the third and final Alaska Beaufort Sea lease sale in the federal government’s current five-year oil and gas leasing program. (Posted: 03-22-07) More

Study examines menacing ocean currents in U.S. Gulf
	The U.S. Department of the Interior’s Minerals Management Service (MMS) has released findings from a year-long study of strong ocean currents in the northern Gulf of Mexico, where deepwater currents can cause havoc with drilling operations. (Posted: 03-20-07) More

Petsec makes million barrel discovery in U.S. Gulf
	Australia’s Petsec Energy said it made a million barrel oil discovery in the Gulf of Mexico, adding to the company’s recent four commercial gas discoveries in the area. Petsec said it would proceed with plans for a separate oil production and distribution facility on its successful Main Pass 18 lease block. (Posted: 03-19-07) More

Callon buys BP's 80% stake in U.S. Gulf Entrada field
	Mississippi-based E&P Independent Callon Petroleum has signed an agreement with BP Exploration and Production Co. to purchase BP's 80% working interest in the deepwater Entrada Field in the Gulf of Mexico for $190 million in cash, Callon said March 9. (Posted: 03-09-07) More

Computing power equals more production: Microsoft
	Empowering geoscientists with more deskside high-performance computing power could increase oil and gas production overall, according to a new survey released March 6 by Microsoft Corp. (Posted: 03-07-07) More

CEOs most concerned about oil and gas prices: survey

The top concern among energy executives is the uncertainty of natural gas and oil prices in the near future, according to a survey conducted by accounting, tax and business advisory firm Grant Thornton LLP and released to the public March 6. More than 80 companies responded to Thornton's 2007 Survey of Upstream U.S. Energy Companies. Forty percent were public companies and 60% private companies. (Posted: 03-06-07)  More

McMoRan well uncovers 'exceptionally' thick pay
	E&P independent McMoRan Exploration said its Hurricane Deep well on South Marsh Island Block 217 in the Gulf of Mexico appears to have uncovered "an exceptionally thick" upper Gyro sand totaling around 900 gross feet. (Posted: 03-01-07) More

Helix scores 100 bcfe discovery in Garden Banks
	Houston-based Helix Energy Solutions Group, Inc. said it has an estimated discovery of about 100 billion cubic feet of gas equivalent at its 100% owned Noonan prospect on Garden Banks Block 506 in deepwater Gulf of Mexico. (Posted: 02-28-07) More

MMS begins study for eastern Gulf lease sale
	The U.S. Department of the Interior's Minerals Management Service (MMS) has begun the planning process to gather information and conduct an environmental review of a small portion of the federal waters in the Eastern Gulf of Mexico (EGOM) Planning Area, with the publication of a notice in the Federal Register. (Posted: 02-28-07) More

Hydro takes $462M hit on Front Runner
	Norsk Hydro, whose exploration and production assets are being acquired by fellow Norwegian-based Statoil in a $30 billion stock deal, said it planned to write down the value of its Gulf of Mexico Front Runner field by after-tax $462 million based on a lower production profile and higher development costs than expected. (Posted: 02-26-07) More

Production costs soar 53% in two years
	The costs of major oil and gas production projects have risen on average more than 53% in the past two years, with offshore rigs leading the way with a nearly 310% spike in the past year alone and no significant slowing is in sight, according to a new benchmark index developed by IHS and Cambridge Energy Research Associates. (Posted:02-26-07) More

ATP expands in deepwater GoM
	Exploration and production independent ATP Oil & Gas Corp. has dramatically expanded its interests and operations in the Gomez area of Mississippi Canyon, where ATP is currently producing greater than 100 million cubic feet of natural gas equivalent per day. (Posted: 02-26-07) More

Pyramid reserves could more than double
	Pyramid Petroleum, Inc., a small exploration and production independent, has entered into an option agreement to purchase a 20% non-operated interest in a planned acquisition of undisclosed oil and gas properties in the Gulf of Mexico. (Posted: 02-26-07) More