This week, BP revealed that during a routine inspection of its Forties oil pipeline offshore the UK in the North Sea, the company discovered an old World War II bomb.
Lying just feet from the Forties pipeline, is a 13-foot-long Nazi German mine.
"An unidentified object was observed lying next to the BP-operated Forties pipeline in the North Sea,” The Scotsman reported a BP spokesman said. “The object was subsequently identified by specialists as a piece of Second World War military ordnance. It is lying adjacent to the pipeline approximately 40 kilometers off the coast from Peterhead.”
A major North Sea oil transporter, the Forties pipeline delivers oil and gas liquids production from more than 50 offshore developments in both the UK and Norwegian North Sea. The pipeline system boasts a capacity of more than 1 million barrels a day.
According to reports, the mine has not yet detonated, and BP is mulling its options, which include leaving the bomb where it is or removing it. The latter would require that the Forties pipeline be shut-in for several days.
About a year ago, the Nord Stream Consortium reported discovering some 12 shipwrecks while performing extensive seabed surveys to map the pipeline route.
The vessel graveyard was discovered next to the Nord Stream pipeline route, and construction work was amended so as to not disturb the shipwrecks.
At least nine of the 12 ships discovered were of “great cultural historical value” and well preserved. Most of the vessels were commercial ships from the 18th and 19th century, but one is believed to be as old as the Middle Ages.
Nord Stream is a natural gas pipeline being built across the Baltic Sea to link Russian production with European markets.
.......................................
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
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Thursday, April 28, 2011
Thursday, April 21, 2011
The difference a year makes
On April 20, the oil and gas industry marked the one-year anniversary of the Deepwater Horizon accident in the deepwaters of the US Gulf of Mexico. Eleven people died, and the accident spurred the worst oil spill in US history.
Following the accident, the US government enacted a deepwater drilling moratorium and revamped the safety rules for drilling offshore – as did many other countries.
A year later, two rapid-response subsea oil spill containment systems have been developed, and a handful of deepwater drilling permits have been approved. While the number of offshore rigs actively drilling in the US Gulf is less than half of that at the time of the accident, industry sentiment continues to lean toward a Gulf rebirth.
While drilling and development in the US Gulf may look very different than what it did a year ago, the increased safety measures will help to protect environment and industry – and enhance global safety efforts and knowledge.
Additionally, the US Bureau of Ocean Energy Management, Regulation and Enforcement is working to complete the first lease sale in US waters since March of 2010. With an earnestness to hold the auction before the close of 2011, BOEMRE published a revised SEIS just this week.
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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.
Following the accident, the US government enacted a deepwater drilling moratorium and revamped the safety rules for drilling offshore – as did many other countries.
A year later, two rapid-response subsea oil spill containment systems have been developed, and a handful of deepwater drilling permits have been approved. While the number of offshore rigs actively drilling in the US Gulf is less than half of that at the time of the accident, industry sentiment continues to lean toward a Gulf rebirth.
While drilling and development in the US Gulf may look very different than what it did a year ago, the increased safety measures will help to protect environment and industry – and enhance global safety efforts and knowledge.
Additionally, the US Bureau of Ocean Energy Management, Regulation and Enforcement is working to complete the first lease sale in US waters since March of 2010. With an earnestness to hold the auction before the close of 2011, BOEMRE published a revised SEIS just this week.
.....................................
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, April 14, 2011
Brazil continues to steal the spotlight
Brazil is rich with oil -- there's no doubt about that.
Exploration and production in the country has mounted in the last decade as multiple companies have begun drilling the pre-salt fields offshore Brazil. It seems that every week is highlighted with a new discovery, billion-dollar award or production start-up in Brazil.
The EIA reports that "recent discoveries of large offshore, pre-salt oil deposits could transform Brazil into one of the largest oil producers in the world." Additionally, Oil and Gas Journal reports that Brazil boasts 12.9 billion barrels of proven oil reserves in 2011, the second largest in South America behind Venezuela; and production in the country is steadily rising.
Supporting this trend, the deepwater drilling moratorium in the US Gulf of Mexico has helped to disperse drilling rigs to other locations. Currently, Brazilian waters host a large share of the ultra-deepwater drilling rig fleet with some rigs working offshore West Africa and in Asia, as well.
Additionally, Petrobras has ordered the first seven of 28 planned deepwater drilling rigs from Brazilian shipyard Estaleiro Atlantic Sul (EAS) for $4.64 billion.
Unlike the US Gulf of Mexico, North Sea, West Africa and Asia Pacific, the majority of activity offshore Brazil is supported by Brazilian companies. That's not to say that majors, independents and NOCs aren't active as well, but Brazilian firms seem to certainly be enjoying the home field advantage.
Based largely on its pre-salt discoveries and developments, Brazilian producer Petrobras (NYSE:PBR) has climbed to the number four position in Platt's ranking of the 250 biggest global energy companies, to be listed only behind ExxonMobil, BP and Gazprom -- and ahead of many super-majors, NOCs and independents worldwide.
From the Campos Basin to the Santos Basin, shallow water to ultra-deepwaters, offshore Brazil is a hot spot for oil and gas activity, with not only Petrobras racking up millions of barrels in reserves.
Brazil's largest independent producer OGX has made myriad shallow-water discoveries and is bringing some of its first fields into production. The company's successes have mounted so high that rumors have surfaced of international firms offering billions for OGX.
Additionally, numerous international firms have earned interest in various blocks and projects, and are even operating some major offshore developments in Brazil.
For instance, Norwegian player Statoil (NYSE:STO) has just started up its 100,000-barrel-a-day Peregrino development and made a major oil discovery with Peregrino South in the same week.
International firms are also eager to participate in the next offshore licensing round in Brazil.
Look to the South American country for billions in exploratory and development projects, as firms continue to set their sights on Brazil.
...............................................
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.
Exploration and production in the country has mounted in the last decade as multiple companies have begun drilling the pre-salt fields offshore Brazil. It seems that every week is highlighted with a new discovery, billion-dollar award or production start-up in Brazil.
The EIA reports that "recent discoveries of large offshore, pre-salt oil deposits could transform Brazil into one of the largest oil producers in the world." Additionally, Oil and Gas Journal reports that Brazil boasts 12.9 billion barrels of proven oil reserves in 2011, the second largest in South America behind Venezuela; and production in the country is steadily rising.
Supporting this trend, the deepwater drilling moratorium in the US Gulf of Mexico has helped to disperse drilling rigs to other locations. Currently, Brazilian waters host a large share of the ultra-deepwater drilling rig fleet with some rigs working offshore West Africa and in Asia, as well.
Additionally, Petrobras has ordered the first seven of 28 planned deepwater drilling rigs from Brazilian shipyard Estaleiro Atlantic Sul (EAS) for $4.64 billion.
Unlike the US Gulf of Mexico, North Sea, West Africa and Asia Pacific, the majority of activity offshore Brazil is supported by Brazilian companies. That's not to say that majors, independents and NOCs aren't active as well, but Brazilian firms seem to certainly be enjoying the home field advantage.
Based largely on its pre-salt discoveries and developments, Brazilian producer Petrobras (NYSE:PBR) has climbed to the number four position in Platt's ranking of the 250 biggest global energy companies, to be listed only behind ExxonMobil, BP and Gazprom -- and ahead of many super-majors, NOCs and independents worldwide.
From the Campos Basin to the Santos Basin, shallow water to ultra-deepwaters, offshore Brazil is a hot spot for oil and gas activity, with not only Petrobras racking up millions of barrels in reserves.
Brazil's largest independent producer OGX has made myriad shallow-water discoveries and is bringing some of its first fields into production. The company's successes have mounted so high that rumors have surfaced of international firms offering billions for OGX.
Additionally, numerous international firms have earned interest in various blocks and projects, and are even operating some major offshore developments in Brazil.
For instance, Norwegian player Statoil (NYSE:STO) has just started up its 100,000-barrel-a-day Peregrino development and made a major oil discovery with Peregrino South in the same week.
International firms are also eager to participate in the next offshore licensing round in Brazil.
Look to the South American country for billions in exploratory and development projects, as firms continue to set their sights on Brazil.
...............................................
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, April 7, 2011
Energy industry stands ready for upcoming hurricane season
Colorado State University's Tropical Meteorology Project has updated its activity forecast for the upcoming 2011 Atlantic hurricane season, predicting 16 named storms, 80 named storm days and five major hurricanes (Category 3, 4 or 5).
Additionally, the group forecasts that the US has an above-average chance that a major hurricane will make landfall -- 72 percent. In fact, there is 48 percent chance that the East Coast will be hit and a 47 percent chance that the Gulf Coast will be hit.
As we've seen in Japan, natural disasters can spark major energy crises.
In 2005, Hurricanes Katrina and Rita destroyed 115 platforms and damaged another 52, as well as damaged 535 pipeline segments and caused the near total shut-down of the US Gulf of Mexico's oil and gas operations.
Despite the destruction, no offshore workers were harmed because operators and service companies quickly evacuated anyone in the path of the storm. Additionally, all production was effectively shut-in, and no hydrocarbon leaks occurred because of the storms. Producers and service companies quickly got to work following the storms to restart production in the Gulf.
"We go to work every day with the goal of operating safely and in an environmentally responsible manner," said Bill Mentz, director of public affairs for Apache Corporation (NYSE:APA), the largest producer on the Gulf of Mexico shelf. "Being prepared for storms is a part of that commitment."
In 2008, Hurricane Ike stormed ashore the Gulf Coast, affecting power distribution to 2.15 million of CenterPoint Energy's 2.26 million customers. T&D teams from across the nation swiftly traveled to the Greater Houston area to work to help restore power to millions of residents and commercial properties within weeks.
"In a way, CenterPoint Energy began preparing for Hurricane Ike a quarter century before its arrival," CenterPoint said of the massive effort. "The company's experience recovering from Hurricane Alicia in 1983 and more recently from the glancing blow of Hurricane Rita in 2005 helped strengthen our storm-recovery culture that has been honed by annual drills and scores of mutual assistance efforts on behalf of other utilities."
CenterPoint Energy maintains a comprehensive Emergency Operating Plan that is coordinated with state and local officials, reassigning critical emergency response roles to all employees and regularly conducting drills to perfect their response efforts.
From offshore oil and gas operations to onshore electricity distribution, the US energy industry is committed to mitigating any risks to safety, production and distribution hurricanes may pose.
......................................................
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.
Additionally, the group forecasts that the US has an above-average chance that a major hurricane will make landfall -- 72 percent. In fact, there is 48 percent chance that the East Coast will be hit and a 47 percent chance that the Gulf Coast will be hit.
As we've seen in Japan, natural disasters can spark major energy crises.
In 2005, Hurricanes Katrina and Rita destroyed 115 platforms and damaged another 52, as well as damaged 535 pipeline segments and caused the near total shut-down of the US Gulf of Mexico's oil and gas operations.
Despite the destruction, no offshore workers were harmed because operators and service companies quickly evacuated anyone in the path of the storm. Additionally, all production was effectively shut-in, and no hydrocarbon leaks occurred because of the storms. Producers and service companies quickly got to work following the storms to restart production in the Gulf.
"We go to work every day with the goal of operating safely and in an environmentally responsible manner," said Bill Mentz, director of public affairs for Apache Corporation (NYSE:APA), the largest producer on the Gulf of Mexico shelf. "Being prepared for storms is a part of that commitment."
In 2008, Hurricane Ike stormed ashore the Gulf Coast, affecting power distribution to 2.15 million of CenterPoint Energy's 2.26 million customers. T&D teams from across the nation swiftly traveled to the Greater Houston area to work to help restore power to millions of residents and commercial properties within weeks.
"In a way, CenterPoint Energy began preparing for Hurricane Ike a quarter century before its arrival," CenterPoint said of the massive effort. "The company's experience recovering from Hurricane Alicia in 1983 and more recently from the glancing blow of Hurricane Rita in 2005 helped strengthen our storm-recovery culture that has been honed by annual drills and scores of mutual assistance efforts on behalf of other utilities."
CenterPoint Energy maintains a comprehensive Emergency Operating Plan that is coordinated with state and local officials, reassigning critical emergency response roles to all employees and regularly conducting drills to perfect their response efforts.
From offshore oil and gas operations to onshore electricity distribution, the US energy industry is committed to mitigating any risks to safety, production and distribution hurricanes may pose.
......................................................
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, March 24, 2011
Gulf of Mexico activities start to pick up again
Oil and gas drilling and development in the US Gulf of Mexico took a one-two-three punch with the tragic Macondo accident, ensuing oil spill and deepwater drilling moratorium that followed.
As the MMS transformed into the BOEMRE and drilling and development rules and regulations underwent a major overhaul, deepwater development in the GOM screeched to a halt over the last year. But five new drilling permits have been awarded by BOEMRE and US GOM developments seem to be picking up.
Here's a run-down of recent US Gulf of Mexico developments:
February 28, 2011: Noble Energy earned the BOEMRE's first deepwater drilling permit in the US Gulf of Mexico for a bypass well in the Mississippi Canyon area offshore Louisiana.
March 14, 2011: BOEMRE issued the second deepwater drilling permit to BHP Billiton for a well on its Shenzi development in the Green Canyon area.
March 17, 2011: Petrobras wins final approval to use the US GOM's first-ever FPSO on its deepwater Cascade-Chinook fields.
March 18, 2011: ATP was granted the third deepwater drilling permit for a revised permit to drill a new well in the Mississippi Canyon area.
March 21, 2011: Shell wins the first approval for a deepwater exploration plan on the Auger field in the Garden Banks area.
March 22, 2011: ExxonMobil wins the fourth deepwater drilling permit for a well in Keathley Canyon.
March 24, 2011: Chevron was awarded the fifth deepwater drilling permit for exploration in the Keathley Canyon region of the US GOM.
Additionally, some deepwater projects have moved forward as of late, with contracts awarded and commitments made. A biggie for the GOM, Chevron sanctioned the ultra-deepwater development of Big Foot -- a $4 billion project. A number of contracts have already been awarded for this project.
Chevron also moved forward with the development of its ultra-deepwater Jack-St. Malo, awarding the detailed design for the development to Mustang Engineering and the subsea pipeline design contract to JP Kenny.
Industry Feedback
While encouraging, Offshore Marine Service Association (OMSA) has publicly called the Bureau of Ocean Energy Management, Regulation and Enforcement's announcements "misleading."
"There were 32 deepwater drilling operations already permitted when the President imposed his moratorium last year. Interior Secretary Salazar is merely allowing existing permit holders to resume their operations," said Jim Adams, president and CEO of OMSA. "This administration has yet to approve and permit a new deepwater exploration proposal submitted in the last 11 months."
US Interior Sec. Ken Salazar has stressed that more work needs to be done before oil and gas drilling in the deepwaters of the US Gulf of Mexico fully rebounds.
To that end, many groups are working to step up safety measuring in the US Gulf of Mexico. Recently, the American Petroleum Institute began the process of creating a Center for Offshore Safety to help operators and service providers improve safety, communication and teamwork.
“After extensive review and development, the oil and natural gas industry has approved the creation of the Center for Offshore Safety, which will promote the highest level of safety for offshore operations, through an effective program that addresses management practices, communication and teamwork, and which relies on independent, third-party auditing and verification,” said Jack Gerard, API president and CEO.
There are many reasons why drilling and activity in the US Gulf of Mexico has slowed, but the question really should be not why, but for how long.
Is the US GOM back?
As the MMS transformed into the BOEMRE and drilling and development rules and regulations underwent a major overhaul, deepwater development in the GOM screeched to a halt over the last year. But five new drilling permits have been awarded by BOEMRE and US GOM developments seem to be picking up.
Here's a run-down of recent US Gulf of Mexico developments:
February 28, 2011: Noble Energy earned the BOEMRE's first deepwater drilling permit in the US Gulf of Mexico for a bypass well in the Mississippi Canyon area offshore Louisiana.
March 14, 2011: BOEMRE issued the second deepwater drilling permit to BHP Billiton for a well on its Shenzi development in the Green Canyon area.
March 17, 2011: Petrobras wins final approval to use the US GOM's first-ever FPSO on its deepwater Cascade-Chinook fields.
March 18, 2011: ATP was granted the third deepwater drilling permit for a revised permit to drill a new well in the Mississippi Canyon area.
March 21, 2011: Shell wins the first approval for a deepwater exploration plan on the Auger field in the Garden Banks area.
March 22, 2011: ExxonMobil wins the fourth deepwater drilling permit for a well in Keathley Canyon.
March 24, 2011: Chevron was awarded the fifth deepwater drilling permit for exploration in the Keathley Canyon region of the US GOM.
Additionally, some deepwater projects have moved forward as of late, with contracts awarded and commitments made. A biggie for the GOM, Chevron sanctioned the ultra-deepwater development of Big Foot -- a $4 billion project. A number of contracts have already been awarded for this project.
Chevron also moved forward with the development of its ultra-deepwater Jack-St. Malo, awarding the detailed design for the development to Mustang Engineering and the subsea pipeline design contract to JP Kenny.
Industry Feedback
While encouraging, Offshore Marine Service Association (OMSA) has publicly called the Bureau of Ocean Energy Management, Regulation and Enforcement's announcements "misleading."
"There were 32 deepwater drilling operations already permitted when the President imposed his moratorium last year. Interior Secretary Salazar is merely allowing existing permit holders to resume their operations," said Jim Adams, president and CEO of OMSA. "This administration has yet to approve and permit a new deepwater exploration proposal submitted in the last 11 months."
US Interior Sec. Ken Salazar has stressed that more work needs to be done before oil and gas drilling in the deepwaters of the US Gulf of Mexico fully rebounds.
To that end, many groups are working to step up safety measuring in the US Gulf of Mexico. Recently, the American Petroleum Institute began the process of creating a Center for Offshore Safety to help operators and service providers improve safety, communication and teamwork.
“After extensive review and development, the oil and natural gas industry has approved the creation of the Center for Offshore Safety, which will promote the highest level of safety for offshore operations, through an effective program that addresses management practices, communication and teamwork, and which relies on independent, third-party auditing and verification,” said Jack Gerard, API president and CEO.
There are many reasons why drilling and activity in the US Gulf of Mexico has slowed, but the question really should be not why, but for how long.
Is the US GOM back?
Thursday, March 17, 2011
Japanese earthquake, tsunamis and nuclear power disaster may change global markets
Last Friday's deadly earthquake in Japan, followed by tsunamis, has caused a nuclear power disaster in the country. In addition to the devastation caused by the natural disasters, multiple explosions and deteriorating safety at the Fukushima Daiichi nuclear power plant operated by Tokyo Electric Power Co. (TEPCO) has gained international attention.
For comprehensive coverage of the Japanese nuclear power disaster and efforts under way to resolve it, visit PennEnergy’s Japan Earthquake and Nuclear Emergency 2011 special section.
While TEPCO works to install a new power distribution line to the affected nuclear plant, a few "heroes" are working to cool the reactors with seawater. Radiation threats have mounted, and many are being treated for over-exposure. Thousands have been evacuated from nearby cities and towns, and the US has now started evacuating embassy officials and their families from Japan for their safety.
Many across the nation are without power, and myriad companies are trying to boost natural gas production to be able to supply LNG to Japan for power generation.
All the while, countries worldwide, including China, India, Germany, Sweden and South Korea, are stopping nuclear power construction projects and reevaluating nuclear power plants for safety, risk factors and emergency preparedness.
Some analysts are predicting a "death knell" for the nuclear power industry, and although premature, the industry will likely undergo a lengthy transformation in the wake of this disaster, similar to the deepwater oil and gas drilling industry after the Macondo accident.
Should power generation shift away from nuclear, an opportunity arises for coal, natural gas, oil and renewable power generation. Some market analysts foresee an increased price of natural gas due to increased demand caused by this crisis, and OPEC has begun discussions to perhaps increase oil supply.
Additionally, oil refiners and petrochemical companies across Japan are working feverishly to produce enough to fuel emergency efforts and aid workers.
Although the effect is sure to be felt, it is currently unclear to what extent the earthquake in Japan will ultimately affect markets across the globe.
...............................................
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.
For comprehensive coverage of the Japanese nuclear power disaster and efforts under way to resolve it, visit PennEnergy’s Japan Earthquake and Nuclear Emergency 2011 special section.
While TEPCO works to install a new power distribution line to the affected nuclear plant, a few "heroes" are working to cool the reactors with seawater. Radiation threats have mounted, and many are being treated for over-exposure. Thousands have been evacuated from nearby cities and towns, and the US has now started evacuating embassy officials and their families from Japan for their safety.
Many across the nation are without power, and myriad companies are trying to boost natural gas production to be able to supply LNG to Japan for power generation.
All the while, countries worldwide, including China, India, Germany, Sweden and South Korea, are stopping nuclear power construction projects and reevaluating nuclear power plants for safety, risk factors and emergency preparedness.
Some analysts are predicting a "death knell" for the nuclear power industry, and although premature, the industry will likely undergo a lengthy transformation in the wake of this disaster, similar to the deepwater oil and gas drilling industry after the Macondo accident.
Should power generation shift away from nuclear, an opportunity arises for coal, natural gas, oil and renewable power generation. Some market analysts foresee an increased price of natural gas due to increased demand caused by this crisis, and OPEC has begun discussions to perhaps increase oil supply.
Additionally, oil refiners and petrochemical companies across Japan are working feverishly to produce enough to fuel emergency efforts and aid workers.
Although the effect is sure to be felt, it is currently unclear to what extent the earthquake in Japan will ultimately affect markets across the globe.
...............................................
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, March 10, 2011
Mexico licensing round may herald even more opportunities
Pemex has officially launched Mexico's first exploration licensing round in more than 70 years. With only three onshore blocks available, the lease sale is much smaller than originally anticipated, but a major step-change for the country.
Since the 1920s, oil and gas exploration and production in Mexico has been limited to the state-run firm Pemex -- by law. Recent legislation changes have been enacted to allow outside producers to develop waning oil and natural gas fields in the country.
With much of the country's income based on oil production, Mexico must increase production onshore and offshore to ensure enough is in the coffer. The dilemma is that Pemex and its employees lack the skills, experience and technology to redevelop their aging fields -- as well as deepwater prospects in the Gulf of Mexico.
Enter international firms that can teach Pemex how to properly maintain production, redevelop waning production and tap ultra-deepwater formations.
While the three onshore blocks offered in the first licensing round may not attract the biggest players, it certainly is a major shift and represents a blooming opportunity for firms looking to boost reserves.
Additionally, shale developments in Mexico may offer even more opportunities for production.
While Mexico is widely known to hold large amounts of oil and gas onshore and in the Gulf of Mexico, Pemex is currently drilling its first well into the liquids-rich Eagle Ford Shale. Reports that the well is testing dry gas likely interests companies eager to develop shale reserves via horizontal drilling and hydraulic fracturing.
........................................
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.
Since the 1920s, oil and gas exploration and production in Mexico has been limited to the state-run firm Pemex -- by law. Recent legislation changes have been enacted to allow outside producers to develop waning oil and natural gas fields in the country.
With much of the country's income based on oil production, Mexico must increase production onshore and offshore to ensure enough is in the coffer. The dilemma is that Pemex and its employees lack the skills, experience and technology to redevelop their aging fields -- as well as deepwater prospects in the Gulf of Mexico.
Enter international firms that can teach Pemex how to properly maintain production, redevelop waning production and tap ultra-deepwater formations.
While the three onshore blocks offered in the first licensing round may not attract the biggest players, it certainly is a major shift and represents a blooming opportunity for firms looking to boost reserves.
Additionally, shale developments in Mexico may offer even more opportunities for production.
While Mexico is widely known to hold large amounts of oil and gas onshore and in the Gulf of Mexico, Pemex is currently drilling its first well into the liquids-rich Eagle Ford Shale. Reports that the well is testing dry gas likely interests companies eager to develop shale reserves via horizontal drilling and hydraulic fracturing.
........................................
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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