Minerals

The Interior Department’s Minerals Management Service completed its two-phase bid evaluation process for Central Gulf of Mexico Lease Sale 178, Part 1 on Friday, awarding 534 leases worth a total of $499.6 million. MMS actually rejected 13 high bids worth $5.7 million, calling them “insufficient for fair market value,” but said the sale indicated a “continued strong showing” by both majors and independents.

The Interior Department’s Minerals Management Service completed its two-phase bid evaluation process for Central Gulf of Mexico Lease Sale 178, Part 1 on Friday, awarding 534 leases worth a total of $499.6 million. MMS actually rejected 13 high bids worth $5.7 million, calling them “insufficient for fair market value,” but said the sale indicated a “continued strong showing” by both majors and independents.

In a new report, the Minerals Management Service has updated its Gulf of Mexico forecast for daily oil and gas production, predicting that between now and 2005, gas production will be 11.10 Bcf/d to 16.54 Bcf/d and oil production will be 1.526 MMbbl/d to 1.967 MMbbl/d. The greatest potential for development, said the federal agency, is in deepwater of 1,000 feet or more.

In a new report, the Minerals Management Service has updated its Gulf of Mexico forecast for daily oil and gas production, predicting that between now and 2005, gas production will be 11.10 Bcf/d to 16.54 Bcf/d and oil production will be 1.526 MMbbl/d to 1.967 MMbbl/d. The greatest potential for development, said the federal agency, is in deepwater of 1,000 feet or more.

The U.S. Minerals Management Service may feel sort of like a push-me pull-you animal in the next few months as state and federal officials argue about December’s proposed Eastern Gulf of Mexico federal lease Sale 181. The proposed leases provide a 15-mile buffer zone off Baldwin County, AL, but most are more than 100 miles from Florida — a region where drilling is opposed by Gov. Jeb Bush.

Bidding is expected to be high for two Minerals Management Service Gulf of Mexico sales this summer, one that focuses on a region of the Central Gulf that has been a no man’s land for exploration and production, and another in the Western Gulf. Part of the attraction will be the added incentives for drillers, which MMS is using to increase domestic oil and gas production.

Bidding is expected to be high for two Minerals Management Service Gulf of Mexico sales this summer, one that focuses on a region of the Central Gulf that has been a no man’s land for exploration and production, and another in the Western Gulf. Part of the attraction will be the added incentives for drillers, which MMS is using to increase domestic oil and gas production.

In what could be a telling sign for making permanent a similar program for natural gas royalties, the Minerals Management Service reports that its crude oil royalty-in-kind (RIK) pilot program in Wyoming has successfully demonstrated that taking production in kind is a “viable alternative” to the traditional method of collecting royalties, in some circumstances.

In what could be a telling sign for making permanent a similarprogram for natural gas royalties, the Minerals Management Servicereports that its crude oil royalty-in-kind (RIK) pilot program inWyoming has successfully demonstrated that taking production inkind is a “viable alternative” to the traditional method ofcollecting royalties, in some circumstances.