• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 51 mins Satellite Moons to Replace Streetlamps?!
  • 20 hours US top CEO's are spending their own money on the midterm elections
  • 35 mins EU to Splash Billions on Battery Factories
  • 6 hours U.S. Shale Oil Debt: Deep the Denial
  • 7 hours The Balkans Are Coming Apart at the Seams Again
  • 22 hours OPEC Is Struggling To Deliver On Increased Output Pledge
  • 7 hours The Dirt on Clean Electric Cars
  • 18 hours Uber IPO Proposals Value Company at $120 Billion
  • 8 hours 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 20 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day Petrol versus EV
  • 23 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 1 day 10 Incredible Facts about U.S. LNG
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

First Drilling In 30 Years For This Forgotten Petro-Play?

Critical policy shift announced by the U.S. government this week. Opening the door for oil and gas drilling in a place that hasn’t seen any activity for three decades.

That’s the Atlantic Ocean. Where legislators from the Department of the Interior are now looking at conducting a historic leasing round for petroleum exploration.

The Department released Tuesday a draft strategy for offshore oil and gas leasing, covering the five-year period from 2017-2022. Related: Spain To Consider Fracking Following Canary Islands Failure

As expected, much of the planned activity for this period focused on the Gulf of Mexico–with 10 lease sales planned here for the time frame. An additional three lease sales were contemplated for Alaska.

But the big surprise came in the Atlantic. Where Interior said it is planning for one lease round during the 2017-2022 period–likely covering areas of offshore Virginia, North and South Carolina, and Georgia.

That’s a major shift from policy over the last 30 years. With the last wells in the Atlantic having been completed in the early 1980s. Since that time, the area has been completely closed to petroleum exploration.

The move potentially opens up some very interesting targets for E&P firms. With the Atlantic margin in places like Florida having exposure of possible carbonate reservoir rocks, which are deeply buried and largely inaccessible in the Gulf of Mexico region. Related: Oil Industry Withdraws From High Cost Areas

Drilling along the Atlantic could thus tap into some plays the modern U.S. petroleum sector has never seen. Creating the potential for major discoveries here.

The Interior Department qualified its Atlantic plan, saying that it will now consider public comments on the suggested lease sale. The leased area will also reportedly include a 50-mile “coastal buffer” zone along the shore–with drilling taking place only in deeper waters.

The Department said that it sees the sale happening “late” in the 2017-2022 period. We thus may not see movement soon on specific licenses here–nonetheless, given the potential scale of opportunities, it’s worth watching to see whether this movement gains momentum.

Here’s to a new lease,

Dave Forest

More Top Reads From Oilprice.com:


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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