Drilling

Houston-based Noble Affiliates said Tuesday it would reduce its capital budget for the year, dumping 29% from its downstream projects and cutting more than half of its domestic offshore budget. However, domestic onshore exploration and development was almost doubled from last year’s allocation to $136 million, with the focus on properties picked up through its acquisition last year of Aspect Resources LLC of Denver.

Due to the recent drilling successes in the deepwater play of the Gulf of Mexico, Energy and Environmental Analysis Inc. (EEA) said it expects total deepwater production to grow from the year 2000 rate of 3.6 Bcf/d to 6.1 Bcf/d by 2003, and into the 9-10 Bcf/d range by 2010.

Due to the recent drilling successes in the deepwater play of the Gulf of Mexico, Energy and Environmental Analysis Inc. (EEA) said it expects total deepwater production to grow from the year 2000 rate of 3.6 Bcf/d to 6.1 Bcf/d by 2003, and into the 9-10 Bcf/d range by 2010.

Sen. Frank Murkowski (R-AK), a leading proponent of oil and gas drilling in the Arctic National Wildlife Refuge (ANWR), threatened Thursday to mount a filibuster to the economic-stimulus bill or other legislation, in order to force a vote on the ANWR issue before Congress adjourns for the year.

Senate Majority Leader Tom Daschle (D-SD) has indicated that he will allow a vote on oil and natural gas drilling in the Arctic National Wildlife Refuge (ANWR) if the pro-ANWR forces in the Senate can pick up 60 votes to bring the proposal to the floor.

Senate Majority Leader Tom Daschle (D-SD) indicated Friday that he will allow a vote on oil and natural gas drilling in the Arctic National Wildlife Refuge (ANWR) if the Senate gets behind a measure to build a long-line gas pipeline from Alaska to the Lower 48 states.

El Paso Corp. said Tuesday that because of increased drilling activity near Sable Island, it is on track to develop a $1.6 billion pipeline to transport natural gas supplies off the coast of Nova Scotia to markets in Canada and the northeastern part of the United States. The proposed Blue Atlantic Transmission System, anticipated to be in service by the fourth quarter of 2005, would be 750 miles long, and its 36-inch pipe would carry up to 1 Bcf/d along a subsea route from the southern coast of Nova Scotia to landing points in New York and New Jersey.

Anadarko Petroleum Corp. confirmed last week that it had shut down two exploration and production projects in the Halfway River First Nation territory in northeastern British Columbia after its employees were asked by the Indian tribe to leave. The shutdown by the world’s largest independent added to growing concern throughout Canada’s oil and gas industry, which could lead to projects being canceled during the upcoming winter season.

The U.S. Minerals Management Service (MMS) last week highlighted the economic incentives for deep gas exploration in its final notice for the Western Gulf of Mexico (GOM) Lease Sale 180 and Sale 178, Part 2, to be held concurrently on Aug. 22 in New Orleans. The sales include an incentive to drill for deep gas deposits located in the shallow water shelf area of the Gulf.