Justin Williams, Author at NOIA

Gulf of Mexico oil lease auction to test response to Trump-era regulations

August 13, 2018 by Justin Williams

Reuters | Jessica Resnick-Ault | August 10, 2018

NEW YORK (Reuters) - A federal auction of exploration leases in the Gulf of Mexico next week will test energy companies’ appetite for acreage after the Trump administration left royalty rates for deepwater parcels unchanged, bucking an industry call to lower them.

The U.S. Gulf of Mexico has faced waning interest in recent years as competition stepped up from other basins globally, as well as from onshore shale basins and Mexico’s waters in the Gulf.

Oil companies had lobbied for lower royalty payments for deepwater acreage because of the projects’ high cost and long lead time before production can begin. In February, the Interior Department’s Royalty Policy Committee had recommended lowering the rates.

Some companies may have bid on fewer parcels in March’s auction, waiting to see if the Interior Department would cut royalties, said William Turner, a senior research analyst at Wood Mackenzie. In that auction, only 1 percent of the 77 million acres (31.2 million hectares) on offer received bids.

Next week’s sale is the first since U.S. Interior Secretary Ryan Zinke said in April that he would leave deepwater royalty rates unchanged at 18.75 percent, rather than drop them to the 12.5 percent rate for shallow-water parcels.

Read the full story here.

NOIA Issues Statement Ahead of Gulf Oil and Gas Lease Sale

August 13, 2018 by Justin Williams

For Immediate Release: Monday, August 13, 2018
Contact: Nicolette Nye, (202) 465-8463, nnye@nullnoia.org

NOIA Issues Statement Ahead of Gulf Oil and Gas Lease Sale

Washington, D.C. – NOIA’s Vice President of Governmental and Political Affairs, Tim Charters, issued the following statement regarding Lease Sale 251 to be held in the Gulf of Mexico on Wednesday, August 15:

“This lease sale is a barometer and a step in the recovering health of the offshore oil and gas industry. While the recovery is neither uniform nor universal, efficiency improvements in the last few years are starting to bear fruit and some offshore sectors are showing profits, although the margins are slim. Unfortunately, the Administration’s decision to not lower future deepwater royalty rates to match shallow water and onshore royalty rates does nothing to hasten overall recovery.

“Companies will consider technological capabilities, operational efficiencies and oil futures as they weigh how much capital to invest in this lease sale. The good news is that higher oil prices are providing producers a sense of certainty that has been lacking in recent years. In addition, the Administration’s efforts to streamline and reduce some burdensome regulations, that do not enhance safety, will encourage companies to continue to invest in the U.S. Gulf of Mexico -- an integral slice of America’s economic and energy security pie.”

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ABOUT NOIA

NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of both traditional and renewable energy resources on the nation’s outer continental shelf. NOIA’s mission is to secure reliable access and a fair regulatory and economic environment for the companies that develop the nation’s valuable offshore energy resources in an environmentally responsible manner. The NOIA membership comprises about 250 companies engaged in business activities ranging from producing to drilling, engineering to marine and air transport, offshore construction to equipment manufacture and supply, telecommunications to finance and insurance, and renewable energy.

From rigs to reefs: Researchers encourage authorities to rethink oil rig removal

August 8, 2018 by Justin Williams

CBS News | Sarah Lynch Baldwin | July 31, 2018

Oil rigs have often been highly criticized for their negative impact on the environment. But now, researchers are encouraging authorities worldwide to rethink the idea of removing all obsolete oil rigs, as well as wind turbines and other offshore installations, from our waters given that marine life can benefit from the infrastructure.

Researchers who conducted a global survey of environmental experts found that nearly 95 percent of them — 36 out of 38 — agreed that a more flexible case-by-case approach to the decommissioning of offshore installations could benefit the environment in the North Sea, located in northern Europe. That approach would allow for more installations to be left in place or moved to what researchers described as a designated reefing location.

"Internationally, it has been decided that all artificial installations in the sea must be removed when they are no longer in use," according to a news release on the findings, which were published earlier this month in Frontiers in Ecology and the Environment, a peer-reviewed scientific journal. "But now almost 30 international researchers say that this decision perhaps should be reconsidered."

Oil rigs worldwide were built to "withstand pretty much anything — hurricanes, tsunamis. .... So they're sitting there quite firmly," said freelance journalist Lina Zeldovich, who recently wrote an article on the topic for JSTOR Daily. "They're outliving their age, they're done. Some of them need to be taken out. Some of them will have to be taken out soon."

"It is a multi-billion-dollar effort. Should we do it? So apparently, maybe not in some cases," she said on CBSN.

Fish have made oil rigs — in place for decades — home. The rigs are structured in ways that offer marine life shelter and protection, said Zeldovich. "And scientists in some cases are seeing this new diversity around these rigs, and they're saying: maybe we should leave them there or cut them in parts and leave parts of the rigs there, to keep these fish living," she said.

In the North Sea, for example, an old oil rig will have the same function as a stone reef, said Jonas Teilmann, a senior researcher from Aarhus University who was involved in the study.

Read the full story here.

The future of oil and gas: Eight bold industry predictions

August 8, 2018 by Justin Williams

Offshore Technology | Talal Husseini | August 3, 2018

As oil prices tentatively recover from the 2014 crash and investments in alternative renewable energy sources gain momentum, oil and gas companies need to innovate to stay competitive and keep the fuel flowing. Offshore Technology asks industry experts for their insight into how technological advancements will shape the future of oil and gas.

LTE: Support offshore energy

August 8, 2018 by Justin Williams

News & Observer | Derrick Hollie | August 5, 2018

North Carolina has a chance to land a one-two punch of affordable and reliable energy and accessible new jobs – and its minority community needs its elected officials to stand up to support offshore energy development.

In North Carolina, 23 percent percent of African Americans and 27 percent of Latino residents live in poverty, and the offshore industry could be a lifeline to a better life for countless families.

A recent study predicts that within 20 years of leasing, North Carolina could see nearly 56,000 new jobs and $4 billion in annual contributions to the state’s economy as a result of energy development and exploration.

Likewise, too many low-income North Carolinians cannot afford to keep up with their energy bills. Take Jones County, the poorest households in this county – the ones below 50 percent of the federal poverty level – are spending close to 43 percent of their monthly income on energy costs.

There is no sufficient reason why North Carolina should not fight to ensure energy is affordable, reliable and accessible. North Carolina needs its elected leaders to step up and fight for this chance to better the lives of countless residents.

Derrick Hollie is president of Reaching America, an organization addressing complex social issues impacting communities and host of Reaching America on Demand podcast.

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