Mexico

The Bush administration last Thursday signed new agreements with five major producers to remedy the flawed 1998 and 1999 Gulf of Mexico oil and natural gas leases that are costing the federal government billions of dollars in lost revenues. But the contracts call for the recovery of royalties only on new production (starting Oct. 1 of this year), and do not require payment of royalties on past production from the defective leases. As a result, the renegotiated deals failed to silence Capitol Hill critics.

It came down to the wire, but the House Friday passed omnibus legislation to open up parts of the eastern Gulf of Mexico to oil and natural gas drilling. The Senate was expected to take up the measure over the weekend .

It came down to the wire last week, but the House Friday passed omnibus legislation to open up parts of the eastern Gulf of Mexico to oil and natural gas drilling. The Senate was expected to take up the measure over the weekend.

The prolific Barnett Shale natural gas field, second only to the San Juan Basin in New Mexico, appears to extend much farther south than previously estimated, EOG Resources Inc. CEO Mark Papa said Wednesday. And based on its success in the Texas shale, Papa said EOG is going to focus on discovering new plays amenable to horizontal drilling — a key driver in the Barnett’s growth.

The Interior Department’s Minerals Management Service (MMS) is seeking comments on a proposal to significantly expand the acreage available for bidding in a Central Gulf of Mexico Planning Area lease sale to be held in September 2007. Comments on the expanded Lease Sale 205 are due at the agency on Dec. 29.

The Interior Department’s Minerals Management Service (MMS) is seeking comments on a proposal to significantly expand the acreage available for bidding in a Central Gulf of Mexico Planning Area lease sale to be held in September 2007. Comments on the expanded Lease Sale 205 are due at the agency on Dec. 29.

BP America Inc. is moving forward on plans to construct an 800-mile undersea fiber optic system in the Gulf of Mexico (GOM). The system, announced earlier this year (see NGI, Aug. 28), is expected to be operational in late 2007, offering continuous broadband connectivity to offshore oil and gas facilities. Eventually, the system could alleviate some storm-related shut ins.

BP America Inc. is moving forward on plans to construct an 800-mile undersea fiber optic system in the Gulf of Mexico (GOM). The system, announced earlier this year (see Daily GPI, Aug. 25), is expected to be operational in late 2007, offering continuous broadband connectivity to offshore oil and gas facilities. Eventually, the system could alleviate some storm-related shut ins.

Finding ways to make the Gulf of Mexico (GOM) offshore oil and natural infrastructure more resilient during hurricanes has been on the minds of many in the energy industry over the course of the past year. Now, BP plc has come up with a $100 million plan to build the first-ever undersea fiber-optic cable linking oil and gas platforms. It would improve communications and could eventually alleviate some shut ins.