• 10 hours Shell Oil Trading Head Steps Down After 29 Years
  • 14 hours Higher Oil Prices Reduce North American Oil Bankruptcies
  • 16 hours Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 17 hours $1.6 Billion Canadian-US Hydropower Project Approved
  • 19 hours Venezuela Officially In Default
  • 21 hours Iran Prepares To Export LNG To Boost Trade Relations
  • 23 hours Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 1 day Saudi Oil Minister: Markets Will Not Rebalance By March
  • 1 day Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 2 days Rosneft Announces Completion Of World’s Longest Well
  • 2 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 2 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 2 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 2 days Santos Admits It Rejected $7.2B Takeover Bid
  • 2 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 2 days Africa’s Richest Woman Fired From Sonangol
  • 3 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 3 days Russian Hackers Target British Energy Industry
  • 3 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 3 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 3 days Lower Oil Prices Benefit European Refiners
  • 3 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 4 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 4 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 4 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 4 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 4 days OPEC To Recruit New Members To Fight Market Imbalance
  • 4 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 4 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 4 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 5 days GE Considers Selling Baker Hughes Assets
  • 5 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 5 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 5 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 5 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 5 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 7 days The Oil Rig Drilling 10 Miles Under The Sea
  • 8 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 8 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 8 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Alt Text

Is Peak Permian Only 3 Years Away?

Texas’ Permian Basin is the…

Alt Text

Norway’s Oil Sector Faces Existential Crisis

As exploration activity falls in…

Alt Text

OPEC Sees Oil Demand Soaring In 2018

OPEC's latest monthly oil report…

Oil And Gas Drilling Is Now Back Off Again In This Hot-Button Play

Oil And Gas Drilling Is Now Back Off Again In This Hot-Button Play

One of the biggest stories in offshore oil and gas recently has been a potential opening of the U.S. Atlantic to drilling. With lawmakers having proposed the first lease sale in decades here as part of an overall energy strategy for 2017 to 2022.

But yesterday officials did an abrupt about-face on Atlantic drilling.

U.S. Secretary of the Interior Sally Jewell confirmed at a press conference that the Obama administration will remove the Atlantic from areas offered for exploration over the next five years. With this area not being listed amongst regions planned for lease sales as part of the Outer Continental Shelf Oil and Gas Leasing Program 2017-22. Related: Argentina’s YPF Ousts ‘’Magician’’ In Favor Of Banker

Jewell said there was simply too much opposition to Atlantic drilling — coming from environmental groups and local communities on the U.S. East Coast. As well as from groups like the Department of Defense and NASA, who said that drilling could interfere with their operations.

The move is a major disappointment for the oil industry. That had been looking at some potentially major prizes in this little-explored part of the offshore.

But those plans will now have to wait until at least 2023, when the next 5-year energy plan will be due. Related: Oil Won’t Stage A Serious Rebound Until This Happens

As it stands, the current plan calls for 10 potential lease sales in the go-to exploration climes of the Gulf of Mexico. As well as three sales in U.S. Arctic waters.

But Secretary Jewell cautioned that even the Arctic sales could be dropped from the final version of the leasing program. Saying that the government is still examining these areas and considering additional protections or even a complete withdrawal of the Arctic. Related: Putin’s Dilemma: To Sell Or To Nationalize Oil Assets

Of course, lower oil and gas prices likely played some role in this decision. With interest in frontier regions almost certain to be much lower these days than a few years ago when Atlantic drilling was first proposed.

But the move is also a signal that American lawmakers are unwilling to defy bad press to open new areas for exploration. Offshore activity may be confined to its traditional stomping grounds for some time to come.

Here’s to sticking firm,

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News