_

NEW ORLEANS – Today, the newly established Back to Work Coalition met in New Orleans to develop and discuss aggressive strategies to address the recent federal regulatory and policy issues affecting the oil and gas industry’s efforts to resume operations in the federal waters of the Gulf of Mexico. The Back to Work Coalition is a working group established by Department of Natural Resources Secretary Scott A. Angelle under the direction of Governor Bobby Jindal. In November, Governor Jindal appointed Secretary Angelle the state’s liaison for federal oil and gas permitting issues.

“The deepwater drilling moratorium may have been lifted, but the federal regulatory challenges continue to delay the return of new drilling in the Gulf,” said Secretary Angelle. “By bringing together these trade associations and industry stakeholders, the Back to Work Coalition is a major step toward presenting a unified voice and finding solutions to those challenges.”

“This coalition is not just about deepwater drilling or shallow water drilling, it’s about organizing to do the tough work necessary to find a path forward,” explained Secretary Angelle. “It’s time to get the men and women of this industry back to work, as well as the other industries that are dependent upon drilling activity for survival – the welders, the boat captains, the pipefitters and caterers. There is a multitude of individuals on the coast who want to get back to work finding the fuel to energize America.”

The Back to Work Coalition is comprised of interested stakeholders from oil and gas trade associations and industry stakeholders. The Gulf Economic Survival Team (GEST), a nonprofit organization that was founded for the purpose of restoring the economic health of the industries affected by the deepwater drilling moratorium, will serve as the facilitating organization for the Coalition.

“I agree with Secretary Angelle and believe that a unified front is our best opportunity to move the permitting process forward and address challenges that the industry has encountered with regard to the permitting process,” said Don Briggs, Back to Work Coalition member and President of the Louisiana Oil & Gas Association (LOGA).

“The Back to Work Coalition is an innovative partnership that is absolutely necessary for making headway in the federal permitting process,” said Jim Noe, Back to Work Coalition member and Senior Vice President and General Counsel for Hercules Offshore. “It represents the best opportunity for us to band together and see real results.”

Today’s inaugural Coalition meeting was preceded by a meeting yesterday between Director Michael Bromwich of the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) and Secretary Angelle in Houma.

“I characterize yesterday’s meeting with Director Bromwich as productive, but I made it clear that we will continue to press for a resolution of obstacles. Director Bromwich did make the commitment to me that no new rules or regulations would be issued unless through an investigation it is determined that the failure to issue a new rule would be irresponsible,” said Secretary Angelle. “The ideas exchanged at today’s Coalition meeting exhibited to me the commitment that the industry and trade associations have to solving this issue.”

The Back to Work Coalition also recognized Governor Jindal for his dedication and leadership to finding solutions to the offshore issues that affect the livelihood of many Louisianians.

The Back to Work Coalition Leadership Advisory Committee includes: GEST, Louisiana Oil & Gas Association (LOGA), Louisianan Mid-Continental Oil and Gas Association (LMOGA), American Petroleum Institute (API), National Ocean Industries Association (NOIA), International Association of Drilling Contractors (IADC), Offshore Marine Service Association (OMSA), Offshore Operators Committee (OOC), Independent Petroleum Association of America (IPAA), Greater New Orleans, Inc (GNO, Inc), U.S. Oil and Gas Association and the U.S. Chamber of Commerce. Participating members of the Louisiana Congressional Delegation include: Senator Mary Landrieu, Senator David Vitter, Congressman Charles Boustany, Congressman Steve Scalise, Congressman Bill Cassidy and Congressman-elect Jeff Landry.

Original Article

_

Oil and gas producers, and the companies that support them offshore, were dealt another economic blow by the Obama Administration last Wednesday when U.S. Interior Secretary Ken Salazar placed a ban on new lease sales for drilling operations off the east coast and in the eastern part of the Gulf of Mexico for at least one year and as many as seven.

During an afternoon conference call, Salazar, along with Bureau of Ocean Energy Management, Regulation and Enforcement Director Michael Bromwich announced that in response to the April 20 BP Deepwater Horizon explosion and oil spill they felt it best to focus oil and gas production on existing leases and not expand to new areas at this time.

This action marked a reversal on previous policies set by federal agencies and for now placed on hold, scheduled lease sales in March 2011 and August 2011 for areas in the Gulf of Mexico.

When asked about those sales and the impact not conducting them would have on the central and western parts of the Gulf, Salazar said that the March 2011 lease sales would be pushed forward, but offered no timeframe as to when they might take place. He would only say that lease sales in the Gulf might resume in late 2011 or early 2012. Bromwich said that they would not be constrained by any deadlines.

The reason offered for this action by Salazar and Bromwich, after they came under fire last month by oil industry professionals and political leaders when they made a stop in Houma only to deliver what was reported as vague statements and no insight as to when full production might resume, was that they needed more time to conduct scientific research.

Salazar noted that for the eastern Gulf there remains a congressional drilling ban that would have to be lifted before any lease sales could take place. He did not comment on what had been termed a de facto moratorium taking place off the coast of Louisiana and neighboring states.

“It is also important to remember that there are already significant areas of the central and western Gulf of Mexico that have been leased to companies but which are not currently active,” the interior secretary said. “In fact, companies are moving ahead with oil and gas development on less than one third of the leases that they currently hold in the Gulf.”

Salazar said that the federal government wants to continue environmental and seismic research in the Gulf of Mexico and in the Atlantic Ocean during the duration.

Neither Salazar nor Bromwich offered details of their research plans although Bromwich had claimed that their announcement would offer clarity regarding their efforts for what he called, “responsible development of energy and mineral resources on the outer continental shelf.”

“As you know, we continue to implement important regulatory reform initiatives that set high standards for offshore energy development,” Bromwich said. “I want to emphasize that these standards are fully consistent with continued offshore oil and gas exploration development and production, but we will continue to emphasize the role of science and strong environmental analysis as we move forward.”

Independent Petroleum Association of America Chairman Bruce Vincent said that the announcement made by Salazar and Bromwich demonstrated a set agenda that is hostile toward domestic energy production companies.

“If there is any question as to whether or not this Administration is more interested in picking winners and losers in the energy market and waging an unbridled war on America’s oil and natural gas producers than creating jobs and putting our nation on a path toward energy security, they were put to rest with today’s misguided announcement that will keep even more taxpayer-owned energy resources further out of reach and under Washington’s lock-and-key,” Vincent said.

Vincent, who is also president and CEO of Houston-based Swift Energy Co., suggested that Salazar and Bromwich’s announcement only added to the frustration felt by oil producers, suppliers and industries that will be impacted both directly and indirectly because of another stall in offshore drilling.

“More uncertainty, less access to American oil and natural gas, and even more bureaucratic red tape is not a common sense energy plan,” Vincent said. “It is, however, an attack on the American economy and our nation’s energy security.”

Salazar and Bromwich said that the resumption of oil lease sales would only take place after BOEMRE had completed its environmental analysis. No timeline was given.

Original Article

-

ARLINGTON, Va., Dec. 7 (UPI) — Restricting oil and gas development in U.S. waters is a “major setback” in the effort to ease dependence on foreign resources, a trucking advocate complained.

Washington imposed a temporary ban on offshore drilling to make sure safeguards were in place to prevent a repeat of the BP oil spill in the Gulf of Mexico.

U.S. Interior Secretary Ken Salazar earlier this year said Washington had decided it was “appropriate” to lift the moratorium on deep-water drilling, however.

Nevertheless, Salazar announced last week that parts of the eastern gulf and Atlantic Ocean are no longer under consideration for exploitation through 2017.

Rich Moskowitz, vice president for the American Trucking Association, said the actions by Salazar dealt a blow to consumers and the U.S. workforce.

“Restricting offshore exploration is a major setback for our nation’s quest toward reducing our dependence on foreign energy sources,” he said in a statement. “Limiting access to domestic oil jeopardizes the efficiency of our supply chain, our economic health and ultimately harms American consumers.”

Simon Henry, chief financial officer at Royal Dutch Shell, said in October that gulf production from his company was 10,000 barrels of oil equivalent per day lower than it would have been without the moratorium.

Original Article

_

Oil and gas industry cautiously optimistic about 2011

Industry experts say the oil and gas industry is beginning to see signs of a global rebound in deep-water drilling:

23: The number of deep-water oil and gas discoveries announced by the industry through the end of October, one fewer than at the same point a year ago.

40: The number of additional deep-water oil and gas prospects outside the U.S. Gulf that companies plan to drill by the end of the year.

Read More