Tag: oil and gas industry

More than a $500 billion investment in a joint venture ExxonMobil (XOM) and Rosneft, the U.S. and Russian oil giants, said Wednesday that they could invest more than $500 billion in a joint venture that would explore for and produce oil in the Arctic and the Black Sea.Under the Exxon-Rosneft deal, the Texas-based company will have access to some of the world's richest sources of crude oil and other hydrocarbons in the Russian Arctic and Black Sea. In turn, Rosneft subsidiaries will take minority stakes in two Exxon projects in the U.S. and Canada and will have an option to take a stake in a project in the Gulf of MexicoIn a presentation in New York, Rosneft said recoverable hydrocarbon reserves at the three key Arctic fields are estimated at 85 billion barrels of oil equivalent. The companies are planning to drill the first exploratory wells in the Arctic's Kara Sea, north of Siberia, as early as 2014.The final investment decision is expected between 2016 and 2017, they said.Russian energy czar Igor Sechin promised the government's support for the project, which he said would help modernize the whole Russian economy. The deputy prime minister said the Arctic project is a ...

Collaboration on projects over their Gulf maritime boundary The United States and Mexico agreed Monday to work together on oil and gas development in the energy-rich Gulf of Mexico, paving the way to end a long-running moratorium on their maritime border.Under the deal, companies from the United States and Mexico would be encouraged to collaborate on projects over their Gulf maritime boundary but would be able to go ahead on their own if they do not find a partner.Mexican President Felipe Calderon, signing the agreement with Secretary of State Hillary Clinton in the Pacific resort of Los Cabos, hailed the deal as a new sign of easing the historic distrust between the two countries."I will say this with great candor. We are setting aside the old fear that honestly exists among many Mexicans that Mexico's oil could be extracted unilaterally from the other side of the border," Calderon said.Calderon voiced hope that the agreement would stimulate investment, saying it "provides legal certainty in areas in which there were no clear rules and now there will be incentives for investment." Clinton was visiting Los Cabos for talks of the Group of 20 major economies, where she has voiced concerns about what ...

Global warming and its impact on Arctic

Scientists Urge Caution of US Arctic Drilling Plans Past energy sources continue plodding onward to an inevitable if slow demise, while the future of energy is researched in MIT labs, deployed in the California desert, and installed in Palestine even as Israel knocks it down.Scientists Urge Caution of US Arctic Drilling PlansTreeHugger's covered the significant risks over drilling for oil in the Arctic Ocean -words to the effect of 'we have no way of responding to a spill in icy waters' have been uttered in Congressional hearings by the head of the Coast Guard. Now a group of 573 scientists have weighed in, calling for more research before the Obama administration plans for drilling proceed.Mongabay quotes Chuck Clusen of NRDC:The Arctic is the last wild ocean on the planet. Its waters and the abundant life they support are simply too sensitive to be drilled, especially since neither the oil industry nor scientists have identified a proven way to contain or clean up a spill in the Arctic's extreme conditions. At the very least, there should be no plan to lease these areas until key scientific studies have been done and until the oil and gas industry can demonstrate its ability ...

Drilling in the Gulf of Mexico is expected to make a return before the end of 2012 U.S. independent oil and natural gas produces, Anadarko Petroleum Corp., has announced the find of more natural gas than initially expected at its Cheyenne East project in the Gulf of Mexico. There were more than 50 feet of gas-bearing rock discovered, exceeding expectations.This is Anadarko's first find in the Gulf since last year's BP Macondo offshore oil spill, which they had a stake in. Drilling in the Gulf of Mexico is expected to make a return before the end of 2012.The current plan is to complete Cheyenne East, in which they own 100 percent, and tie it to Independence Hub, a platform that handles flow from several Gulf fields. Production is expected next year. The company is also anticipating an extensive program next year, given it can get U.S. permits. The permit process is still very slow, according to oil executives.Source: Maritime Executive

Asia still requires the injection of profit-driven innovation from international oil companies Singapore - Asia needs international oil companies to continue to play a large and essential role in the oil and gas industry's research and development activity, despite the growth of national oil companies, a group of the region's oil and gas industry leaders has stated.The comments were made at an exclusive dinner and round table discussion event to generate research information for a forthcoming Economist Intelligence Unit (EIU) report on the outlook for the oil and gas industry in 2012 and beyond, commissioned by GL Noble Denton.The event, which was held in Singapore to coincide with Singapore International Energy Week, was attended by a mix of senior representatives from international oil companies, technical suppliers and industry associations who offered strong opinions on where the industry is heading and the challenges that await it in the future.Some of the key findings which emerged from the discussion were:The rise of Asia's national oil companies (NOCs) does not mean international oil companies (IOCs) will be marginalised in the region. State-owned oil companies have played a leading role in developing Asia's growing profile in the international energy market over the past decade. ...

Turkey-Cyprus Drilling Dispute Turkey is using its navy and air force to escort a ship conducting oil and gas exploration off Cyprus, an official said Tuesday, in the latest development in a dispute over the ownership of the divided island nation's natural resources.Cyprus is split into an internationally recognized Greek Cypriot south and a breakaway Turkish Cypriot north. The southern government began exploratory drilling for oil and gas last week, prompting strong protests from Turkey, which doesn't recognize the Greek Cypriot administration.In response, Turkey signed an oil and gas exploration deal with the Turkish Cypriots and sent a Turkish research ship to the Mediterranean to start exploration. The breakaway Turkish Cypriot state is only recognized by Turkey, which maintains 35,000 troops there.Cyprus joined the European Union in 2004, but only its south enjoys membership benefits."We will try all channels of peace, but we will also protect our country's interests until the end," Prime Minister Recep Tayyip Erdogan of Turkey said Tuesday at an unrelated ceremony to mark the delivery of the first Turkish-made corvette warship to the navy.The Turkish research ship, Koca Piri Reis, began its exploration Monday, but Turkish and Turkish Cypriots officials refused to reveal the ship's exact ...

Russia says it will start geological oil and gas exploration in one year Russia says it will start geological oil and gas exploration of the promising Barents Sea shelf near Norway in 2012.After reaching a key agreement with Norway over arctic maritime borders last year, Russia will embark on developing large fields in the border zones, Natural Resources Minister Yury Trutnev told RIA Novosti Thursday."Forty-year-long talks have finished. We can now start working jointly. Norway has already begun seismic surveys in its part of the shelf. Russia plans to begin work in 2012," Trutnev said.Analysts say the West Arctic oil and gas shelf province, which the Russian-Norwegian border agreement runs through, may compensate for falling oil production in the North Sea and the Gulf of Mexico.Forecasts suggest the region of the Barents Sea contains reserves of some 10 billion to 12 billion tons of fuel equivalent.The ecological safety of any drilling in the region and the subsequent transportation of oil and gas would be a top priority for Russia, Emergencies Minister Sergei Shoigu said.Source: UPI

Yıldız said Turkey would be exploring off the northern half of Cyprus Turkey's energy minister said on Thursday that a Turkish research ship will set sail for the Mediterranean to start oil and gas exploration.Taner Yıldız said the seismic research ship, the Piri Reis, would head for the Mediterranean on Friday.On Wednesday, Turkey marked its marine borders with Turkish Cyprus for offshore oil and gas drilling in response to a similar move by the internationally recognized Greek Cypriot half of the divided island.Yıldız said Turkey would be exploring off the northern half of the island.He said however, that some areas earmarked for exploration by Turkey "clashed" with those of the Greek Cypriot administration. He did not rule out future Turkish exploration in those areas too.Greek Cypriot leader urged the United Nations to tell Turkey to back off from threats over the divided island's offshore oil and gas drilling.Dimitris Christofias told the UN General Assembly on Thursday that Turkish naval maneuvers off the island's south coast where US firm Noble Energy is carrying out exploratory drilling constitutes a "provocative and real danger" for the region.Turkey strongly opposes drilling by the island's internationally recognized Greek Cypriot administration, saying it undermines the rights ...

New frontier acreage identified as biggest opportunity Access to reserves is currently the biggest risk for oil and gas companies, said Ernst & Young in its annual report on the top 10 risks for the global oil and gas sector. This is up one place from the 2010 report, replacing uncertain energy policy, which moved to number two."While limits on access are not new, a combination of factors has pushed this to number one: political unrest in North Africa and the Middle East; high oil prices and the growth of new government-backed rivals." said Dale Nijoka, Global Oil & Gas Leader for Ernst & Young, in a press statement.Meanwhile, energy policy is in a continued state of flux in many key geographies and the impact of last year's oil spill in the Gulf of Mexico still felt in the ongoing debate over new deepwater rules and regulations, Ernst & Young added.For the first time this year, health, safety and environmental risks made the list, at number five. This risk reflects companies focus on a more sustainable and robust operating model, more complex operational challenges and the rising power of local community stakeholders.Also for the first time this year, the report ...