Drilling

It pays to be a consumer — and even more to be the government — in Canada’s chief natural-gas producing jurisdiction.

The federal government’s royalty relief program for offshore oil and natural gas drilling has been a “failed experiment” that could cost taxpayers up to $80 billion with “precious little to show for it,” according to a report released by the congressional Joint Economic Committee (JEC) last Wednesday. Sen. Charles Schumer (D-NY), committee chairman, said it was time for the government to get rid of the “ill-conceived” program.

The federal government’s royalty relief program for offshore oil and natural gas drilling has been a “failed experiment” that could cost taxpayers up to $80 billion with “precious little to show for it,” according to a new report released by the congressional Joint Economic Committee (JEC) Wednesday. Sen. Charles Schumer (D-NY), committee chairman, said it was time for the government to get rid of the “ill-conceived” program.

Driven by strong results from its bread-and-butter natural gas pipelines and a 99% success rate in exploratory drilling, El Paso Corp. last week delivered 18 cents/share quarterly profit, two cents ahead of Wall Street expectations, and well ahead of the 50 cents/share loss a year earlier. Net income climbed to $126 million, versus a loss of $321 million in 3Q2005, and operating revenue rose 41% to $1.06 billion from $752 million.

Driven by strong results from its bread-and-butter natural gas pipelines and a 99% success rate in exploratory drilling, El Paso Corp. delivered 18 cents/share quarterly profit on Monday, two cents ahead of Wall Street expectations, and well ahead of the 50 cents/share loss a year earlier. Net income climbed to $126 million, versus a loss of $321 million in 3Q2005, and operating revenue rose 41% to $1.06 billion from $752 million.

A Helix Energy Solutions subsidiary has acquired a 100% working interest in the Typhoon, Boris and Little Burn oil and gas fields located in the Green Canyon blocks of the Gulf of Mexico from Chevron U.S.A. Inc., BHP Billiton and Noble Energy Inc. for an undisclosed amount. The massive Typhoon tension leg platform, which will be rebuilt by Helix subsidiary Energy Resource Technology Inc. (ERT), has been shut-in since before it was turned upside down during Hurricane Rita last September (see Daily GPI, Sept. 27, 2005).

Congressman Devin Nunes (R-CA) has introduced new legislation that would open up a portion of the Alaska National Wildlife Refuge (ANWR) to oil and gas drilling and would use the leasing revenue and the federal share of royalties from the ANWR production — estimated at $40 billion — to fund a number of renewable energy programs.

Congressman Devin Nunes (R-CA) has introduced new legislation that would open up a portion of the Alaska National Wildlife Refuge (ANWR) to oil and gas drilling and would use the leasing revenue and the federal share of royalties from the ANWR production — estimated at $40 billion — to fund a number of renewable energy programs.

A House Resources Committee bill (HR 4761) that would open up more areas of the Outer Continental Shelf (OCS) to oil and natural gas drilling and would give states a greater share of the royalties from offshore production would cost the federal government $11 billion over the next decade if enacted, the Congressional Budget Office (CBO) said in a new report.