We need exploration and new discoveries to maintain the production of oil and gas over time, which is important both for Norway and Europe. The applications in TFO 2022 show very good interest among the companies active on the Norwegian continental shelf in looking for new petroleum resources. This is very gratifying, says Oil and Energy Minister Terje Aasland (Ap)
Despite continuous legal and policy headwinds, and the absence of some historically important US companies, technological innovation is sustaining US offshore production at about 1.7 to 1.8 million BOPD. BOE will continue to monitor drilling, production, and safety performance and draw attention to the leading companies.
Think about where we would be today without the shale revolution and onshore production on private lands. Grateful!
bp ad showing workers on their Na Kika floating production platform in the Gulf of Mexico (6340′ water depth)
Is bp apologizing for the pictured workers and platform? With the demand for oil and gas expected to increase through 2050, and worldwide concerns about energy supply and security, ads like this make neither good business nor good social sense.
Moving away from oil and gas and becoming a “very different” company in the 2030’s won’t make bp the “leading energy company in the world.” On the contrary, a “very different” bp will likely be less influential, less profitable, and more dependent on government mandates and subsidies.
Contrary to the ad (and to the company’s credit), bp seems committed to Gulf of Mexico production well beyond the 2030’s. They are the number 2 oil producer in the Gulf (behind Shell), continue to drill exploration and development wells, and were the most active participant at Lease Sale 257. Bp was the high bidder on 46 tracts, 12 more than no. 2 Chevron. The Department of the Interior has been legislatively directed to award Sale 257 leases by 9/15/2022, but has yet to comment publicly on the matter.
To the extent that these numbers are honored and adhered to, attached is the OPEC+ production table (1000’s of BOPD). Note that Russia and Saudi Arabia have identical quotas – 11,004,000 BOPD.
“BOEM’s short-term (20-year) production forecast for existing leases shows steady growth from 2022 through 2024 and declining thereafter (see Section 5.2.1). The long-term nature of OCS oil and gas development, such that production on a lease can continue for decades makes consideration of future climate pathways relevant to the Secretary’s determinations with respect to how the OCS leasing program best meets the Nation’s energy needs.“
It’s disappointing that this statement was even necessary. Under the circumstances, the need for new UK offshore licenses would seem to be obvious and undeniable.
“The European energy sector right now is cracking at the seams. Without the contribution of UK oil and gas resources, that crack would be a gaping hole.”
Per legislation signed by the President on Aug. 16, 2022:
(b) LEASE SALE 257 REINSTATEMENT.— (1) ACCEPTANCE OF BIDS.—Not later 30 days after the date of enactment of this Act, the Secretary shall, without modification or delay— (A) accept the highest valid bid for each tract or bidding unit of Lease Sale 257 for which a valid bid was received on November 17, 2021; and (B) provide the appropriate lease form to the winning bidder to execute and return.
The SPR withdrawals are scheduled to end just prior to the mid-term elections. What happens if oil markets tighten further, perhaps with OPEC assistance?
Bud's Offshore Energy (BOE) 