Mexico

Petroleo Brasilerio (Petrobras), Brazil’s state-controlled oil company, has become a force to be reckoned with in the Gulf of Mexico (GOM). Over the past two years, the producer has quickly become a major foreign investor in the U.S. offshore, outbidding its rivals to obtain key tracts auctioned by the Minerals Management Services (MMS) in the western GOM.

An ultra-deep natural gas well being drilled in the Gulf of Mexico on the Treasure Island play by a consortium of producers will be temporarily abandoned after failing to reach its primary targets. The well failed to reach its targets because of higher than expected pressure, said 23%-stakeholder Newfield Exploration Co.

The controversial Western Gulf of Mexico (GOM) Lease Sale 200 by the Minerals Management Service (MMS) went on as scheduled Wednesday, despite legal maneuvers to delay or even prevent it. The MMS announced 381 bids were received for the 3,865 tracts offered offshore Texas and Louisiana. There were 52 producers submitting bids independently or jointly on about 2.1 million acres — more than 20.8 million acres had been offered for bid.

Because of unprecedented damage from last year’s record hurricane season, Gulf of Mexico (GOM) oil and natural gas production and infrastructure remain vulnerable to even modest storms this year, according to energy consultant Wood Mackenzie.

Devon Energy Corp. has increased its stake to 50% in the deepwater Cascade discovery of the emerging lower Tertiary trend of the Gulf of Mexico. Cascade was discovered by Devon and partners BHP Billiton and Petrobras America Inc. in mid-2002 (see Daily GPI, June 4, 2002).

Tropical Storm Chris, which was pointed straight at the southern end of Florida (and potentially the Gulf of Mexico production area beyond), and widespread heat kept cash quotes moving higher Tuesday at all points except a flat Iroquois Zone 2. However, the gains were diminishing in size from Monday’s spikes, and a screen dive of 63.7 cents Tuesday will put negative pressure on the market Wednesday.

A coalition of 19 Senate Democrats led by Sen. Jeff Bingaman of New Mexico has called on Interior Secretary Dirk Kempthorne to take a closer look at several issues surrounding an oil and natural gas lease sale that is scheduled for September in the National Petroleum Reserve-Alaska (NPR-A).

The energy industry has done all it can to prepare for possible hurricanes in the Gulf of Mexico this summer, but a “fragile people situation” remains, Chevron Corp. CEO Dave O’Reilly said Wednesday.

The energy industry has done all it can to prepare for possible hurricanes in the Gulf of Mexico this summer, but a “fragile people situation” remains, Chevron Corp. CEO Dave O’Reilly said Wednesday.