Despite the drilling moratorium, despite the permitting delays, despite all the problems that we're experiencing in getting our offshore oil and gas professionals back to work -- Chevron delivered a major vote of confidence for offshore oil and gas in the US Gulf of Mexico.
Today, US super-major Chevron (NYSE:CVX) sanctioned the $7.5 billion development of its Jack-St. Malo ultra-deepwater fields in the Lower Tertiary. A major project moving forward for the US GOM, the integrated development will include three subsea centers tied to a massive semisubmersible production hub with the capacity to production 170,000 barrels of oil and 42.5 million cubic feet of natural gas a day.
Already, Mustang has been contracted to provide FEED and then detailed design of the topsides for the development. Also, Cameron won a $230 million contract to provide subsea equipment for the development.
There are billions of dollars of contracts yet to be awarded.
The oil and gas community is confident that it can move forward with deepwater offshore operations safely. Thank you, Chevron -- and partners. Thank you for believing in the US Gulf of Mexico, and thank you for bringing sorely needed jobs back to the Gulf Coast.
Hopefully, this development will help to encourage others to commit to the US GOM and move forward with more drilling, developments and contracts.
Thursday, October 21, 2010
Thursday, October 14, 2010
International players grab more shale acreage, as US fails to see its natural gas potential
The race is on. The first shale formations to really take off were the Marcellus and Haynesville, as well as the Fayetteville and Barnett. Now, liquids-rich shale and unconventional reservoirs are all the rage, with billions going to joint ventures, acreage acquisitions and drill carries in the Eagle Ford and Bakken. Niobrara is also popular, and others are gaining steam.
Just this week, Chinese major CNOOC agreed to pay US producer Chesapeake $1.1 billion to gain interest in its Eagle Ford shale acreage in South Texas, as well as an additional $1.1 billion in a drilling carry. Additionally, Norwegian company Statoil and Canadian major Talisman joined forces in another billion-dollar Eagle Ford shale acquisition.
All the while, T. Boone Pickens and others like the American Gas Association are pushing for a shift to using the cleaner-burning fuel for everything from power generation to natural gas-fueled truck fleets.
According to a report from Pickens, the US imported 60 percent of its oil, or 346 million barrels, in September 2010, spending some $26 billion on the crude imports.
Switching from foreign oil to other energy sources isn't as easy as fueling our cars with something other than gasoline. Our dependence on foreign oil largely is built on our dependence on refined products and petrochemicals, but we can start to make a shift -- to at least using domestic crude and that from our friendly neighbor Canada, which is swimming in oil sands.
While wind and solar and geothermal energy sources continue to grow, unconventional natural gas and shale is abundant in the US -- and the opportunities for change and energy independence are right in front of us.
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Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
Just this week, Chinese major CNOOC agreed to pay US producer Chesapeake $1.1 billion to gain interest in its Eagle Ford shale acreage in South Texas, as well as an additional $1.1 billion in a drilling carry. Additionally, Norwegian company Statoil and Canadian major Talisman joined forces in another billion-dollar Eagle Ford shale acquisition.
All the while, T. Boone Pickens and others like the American Gas Association are pushing for a shift to using the cleaner-burning fuel for everything from power generation to natural gas-fueled truck fleets.
According to a report from Pickens, the US imported 60 percent of its oil, or 346 million barrels, in September 2010, spending some $26 billion on the crude imports.
Switching from foreign oil to other energy sources isn't as easy as fueling our cars with something other than gasoline. Our dependence on foreign oil largely is built on our dependence on refined products and petrochemicals, but we can start to make a shift -- to at least using domestic crude and that from our friendly neighbor Canada, which is swimming in oil sands.
While wind and solar and geothermal energy sources continue to grow, unconventional natural gas and shale is abundant in the US -- and the opportunities for change and energy independence are right in front of us.
.......................................
Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
Thursday, October 7, 2010
Integrated Energy: Retail electricity provider Direct Energy buys Canadian natural gas field
As the editor of PennEnergy, a complete energy news, information, jobs and research portal, it's always nice to see a story that spans the petroleum/power industries, and this is a great example of an energy company integrating operations to save on costs.
Earlier this month, retail electricity provider Direct Energy closed a $367.5 million purchase of a producing natural gas field in Canada. Previously owned and operated by Suncor, the Wildcat Hills natural gas field consists of 97 producing wells, as well as 42,000 acres of undeveloped land.
With current production at 80 MMcf/d and reserves estimated at 241 Bcf of gas equivalent, the Wildcat Hills field along with earlier upstream assets will supply 35 percent of Direct Energy's load required by its North American retail natural gas customers.
Rather than pay another company, Direct Energy is going to produce, process and transport its own natural gas to supply to its customers.
Additionally, the company is on the search for more natural gas fields to acquire.
"Direct Energy intends to continue investigating opportunities for upstream investments in natural gas, including shale, and power generation assets in North America," said Badar Kan, president of Direct Energy Upstream & Trading. "In today's low natural gas price environment, well-capitalized companies, like ours, are in a strong position to acquire value-producing assets which is consistent with our strategy for greater integration and growth."
Direct Energy Upstream & Trading oversees natural gas production, power generation, wind power purchase agreements, midstream gas storage and transportation, commodity procurement and proprietary trading. The company currently owns and operate 4,550 natural gas wells in Alberta and three gas-fired power plants.
A subsidiary of Centrica, Direct Energy (LON:CNA) provides energy to more than 6 million customers.
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Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
Earlier this month, retail electricity provider Direct Energy closed a $367.5 million purchase of a producing natural gas field in Canada. Previously owned and operated by Suncor, the Wildcat Hills natural gas field consists of 97 producing wells, as well as 42,000 acres of undeveloped land.
With current production at 80 MMcf/d and reserves estimated at 241 Bcf of gas equivalent, the Wildcat Hills field along with earlier upstream assets will supply 35 percent of Direct Energy's load required by its North American retail natural gas customers.
Rather than pay another company, Direct Energy is going to produce, process and transport its own natural gas to supply to its customers.
Additionally, the company is on the search for more natural gas fields to acquire.
"Direct Energy intends to continue investigating opportunities for upstream investments in natural gas, including shale, and power generation assets in North America," said Badar Kan, president of Direct Energy Upstream & Trading. "In today's low natural gas price environment, well-capitalized companies, like ours, are in a strong position to acquire value-producing assets which is consistent with our strategy for greater integration and growth."
Direct Energy Upstream & Trading oversees natural gas production, power generation, wind power purchase agreements, midstream gas storage and transportation, commodity procurement and proprietary trading. The company currently owns and operate 4,550 natural gas wells in Alberta and three gas-fired power plants.
A subsidiary of Centrica, Direct Energy (LON:CNA) provides energy to more than 6 million customers.
.................................
Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.
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