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Two-thirds of oil and gas leases in Gulf inactive
Associated Press ^ | 03/29/2011 | Julie Pace

Posted on 03/29/2011 11:25:31 AM PDT by safetysign

An Interior Department report to be released Tuesday says more than two-thirds of offshore oil and gas leases in the Gulf of Mexico are sitting idle.

According to the report, obtained by The Associated Press, those inactive swaths of the Gulf could potentially hold more than 11 billion barrels of oil and 50 trillion cubic feet of natural gas. The report also shows that 45 percent of all onshore oil and gas leases are inactive.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; Culture/Society; Front Page News; Government; News/Current Events
KEYWORDS: bhofascism; capped; corruption; democrats; domesticoil; drillheredrillnow; drilling; economy; energy; energyfacts; energyfascts; envirofascism; fraud; gulf; liberalfascism; liberals; naturalgas; obama; offshore; oil

1 posted on 03/29/2011 11:25:33 AM PDT by safetysign
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To: safetysign

Top Ten Ways Govt is Preventing Federal Onshore U.S. Production
http://www.freerepublic.com/focus/f-news/2694514/posts


2 posted on 03/29/2011 11:32:28 AM PDT by thackney (life is fragile, handle with prayer (biblein90days.org))
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To: safetysign

Explaining Exploration and Production Timelines (Offshore)
http://api.org/Newsroom/upload/51073205_Explaining_Exploration_and_Production_Timelines_Offshore1.pdf

A lease is only a rental agreement with no guarantee that the leased area contains any oil or The time line from lease to production in the OCS can vary from four to ten years depending on water depth at the lease location, the drilling depth needed to reach the target reservoir, the distance from shore and from infrastructure, the geological characteristics of the reservoir and complexity of production facilities design. Capital costs can be considerable for OCS projects, particularly those in deepwater. Marine seismic surveys can cost upwards of $200,000 per day.

The cost of offshore exploratory wells can range from $25 million to more than $100 million for some deepwater prospects. It is not unusual for a company to spend more than $100 million on an exploratory well only to come up empty with a “dry hole.” If a company actually finds commercial quantities of oil or natural gas, the subsequent design and installation of the deepwater production facilities may cost in excess of $1 billion to design and install.natural gas. In fact, most leased areas do not contain oil and gas in commercial quantities.

In this context, the timeline for OCS exploration and production can include:

• Six months to a year for MMS administration and execution of lease sales in unleased areas.

• One year for preliminary geological investigation and selection of areas of interest for additional seismic data acquisition.

• One year to two years to acquire and to process 3D (and new wide azimuth) seismic data, and to identify drillable prospects from this data.

• As much as a year or more to contract and schedule a drilling rig.

• Six to 10 months for drilling and completion of an exploratory well.

• Six months to a year for follow up evaluation of drilling results, which can include drilling a sidetrack well.

• Another two to three years for additional delineation drilling, and formulation of a plan for reservoir development if the exploratory well proves successful. During this time, the company also is working on pre-permit studies, permitting, and design and procurement for production facilities, including surface and subsurface equipment and systems,

• One year or more for facilities installation, followed by development drilling, which may take from one to two additional years. During this period, the company is involved in design, permitting, engineering, procurement and installation of a pipeline or offshore mooring system to bring the production to market.

One recent example is Anadarko’s Independence Hub, a natural gas facility located in 8,000 ft of water about 120 miles from Mississippi. The lease was purchased in the Sale 181 area in December 2001. The first exploratory well was drilled in 2003, with first production seen in mid-2007.


3 posted on 03/29/2011 11:39:08 AM PDT by thackney (life is fragile, handle with prayer (biblein90days.org))
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To: safetysign

Why are they inactive?
Story doesn’t say.

Seems like if there was money to be made, they’d be active.


4 posted on 03/29/2011 11:43:08 AM PDT by Lorianne (o)
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To: All

>>
According to the report, obtained by The Associated Press, those inactive swaths of the Gulf could potentially hold more than 11 billion barrels of oil and 50 trillion cubic feet of natural gas.
>>

Or potentially they hold nothing. In the richest of areas around the world, which those are not, 2 of every 3 holes (and each hole costs millions of dollars) drilled produce nothing at all.

The companies didn’t drill because their seismology analysis said the odds of success were poor. This is true in more and more places around the world.


5 posted on 03/29/2011 11:47:21 AM PDT by Owen
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To: Lorianne

The leases are inactive because Osama Obama BANNED offshore drilling a YEAR ago! The ban is STILL in place.


6 posted on 03/29/2011 11:51:16 AM PDT by 2harddrive
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


7 posted on 03/29/2011 11:57:11 AM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: Lorianne
Why are they inactive?

Probably because Obama banned drilling.

And even if they could drill, they will be slow to do so because of the power of the Federal Gov't which could crashing down on their head at the slightest "misstep".

8 posted on 03/29/2011 11:57:53 AM PDT by Siena Dreaming
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To: Siena Dreaming
It's the Lucy the “C” syndrome, Charlie can see the football, but is afraid to kick it.
9 posted on 03/29/2011 12:01:53 PM PDT by de.rm ("Once is happenstance, twice is coincidence, 3 times is enemy action.")
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To: safetysign

So the question now becomes, how long have they been idle? Is it directly related to the Obama administration’s policies or were they idle before he was inaugurated?


10 posted on 03/29/2011 12:01:53 PM PDT by K-Stater
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To: Siena Dreaming

It would be nice if the report would actually explain whey they are inactive.


11 posted on 03/29/2011 12:04:04 PM PDT by Lorianne (o)
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bttt


12 posted on 03/29/2011 12:05:27 PM PDT by Matchett-PI ("Freedom's Just Another Word For Nothing Left to Tax " ~ Gagdad Bob)
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To: safetysign

Why are they inactive?
How long have they been inactive?
Where they ever active?
Is so, when, how long and how much did they produce ?
Why did they stop being active?

Great reporting there.


13 posted on 03/29/2011 12:06:32 PM PDT by Lorianne (o)
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To: 2harddrive

Really? The posted story does not say that.
Do you have a cite for why these leases are inactive?


14 posted on 03/29/2011 12:08:00 PM PDT by Lorianne (o)
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To: K-Stater

No, that would be TMI.
Can’t have that


15 posted on 03/29/2011 12:09:23 PM PDT by Lorianne (o)
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To: Lorianne
It would be nice but, hey, this is the AP.

Reporting all facts would be too close to blaming Obama.

16 posted on 03/29/2011 12:14:12 PM PDT by Siena Dreaming
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To: Lorianne
The story doesn't say that. Of course. It's an AP story designed to make the Oil companies look bad. Especially with rising gas prices.

Previously reported:

http://www.freerepublic.com/focus/f-news/2687990/posts (US clears more deepwater oil drilling in Gulf (2nd permit in 2 weeks))

http://www.freerepublic.com/focus/f-news/2681457/posts (Interior issues first deepwater drilling permit since BP spill ) (posted end of Feb 2011, nearly a year after Macondo blowout)

Remember, all deepwater permits were revoked after the blowout. That one is still being fought in court, with the feds (Obama, Salazar) just winning an appeals court battle. Normally hundreds of permits would have been issued.

http://www.freerepublic.com/focus/f-news/2689317/posts (Appeals court issues a stay on drilling ruling)

Most AP reporters are ignorant, with memories of fleas. The intelligent ones have an agenda. And not a good agenda, either.

We *are* permitting Petrobras to drill however:

http://www.freerepublic.com/focus/f-news/2693388/posts (Petrobras gets permit for U.S. deep waters)

Because we need to *import* our own oil, from Brazil apparently.

17 posted on 03/29/2011 12:20:52 PM PDT by Black Agnes
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To: Black Agnes

How many of these inactive leases are deep water?


18 posted on 03/29/2011 12:31:01 PM PDT by Lorianne (o)
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To: Lorianne

From what I’ve heard in the industry, most of them. That actual number would have to be a government one though. Doubt you’ll see it printed anywhere unless they want you to see it.

Lots of unemployed former oil workers around these parts though. Their rigs are going to/have gone to Brazil and Venezuela. These rigs were running this time last year. Now, not so much with the working and running. Here, at least.


19 posted on 03/29/2011 12:35:59 PM PDT by Black Agnes
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To: safetysign

Ping


20 posted on 03/29/2011 12:44:40 PM PDT by 4Speed
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To: Black Agnes

Most of them are deep water? That doesn’t seem right.

I guess I’ll go digging for myself


21 posted on 03/29/2011 12:50:27 PM PDT by Lorianne (o)
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To: Lorianne

http://www.freerepublic.com/focus/search?m=all;o=time;q=quick;s=drilling


22 posted on 03/29/2011 12:53:44 PM PDT by Black Agnes
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To: Lorianne

Yes. I am in the oil and gas INDUSTRY! The so-called “moratorium” was lifted, BUT THEY STILL ARE NOT ISSUING DRILLING PERMITS! The OFFSHORE BAN lives on. Now we have a “Permitatorium”!


23 posted on 03/29/2011 1:40:44 PM PDT by 2harddrive
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To: Lorianne
Noble rig leaves U.S. Gulf for Brazil (from early March)

Last week, the Interior Department approved the first deep-water drilling permit since a five-month moratorium on the practice was lifted in October. But the oil and gas industry says the process must move faster or more rigs will leave, jobs will be lost and U.S. offshore oil production will decline.

http://www.freerepublic.com/focus/f-news/2683712/posts

24 posted on 03/29/2011 2:25:36 PM PDT by WOBBLY BOB ( "I don't want the majority if we don't stand for something"- Jim Demint)
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To: Lorianne; K-Stater; Siena Dreaming
There is a reason why the report and the story do not give any details. The purpose is to make Big Oil look lazy and greedy. If you were told how many of those leases are inaccessible, or how many are economically unfeesable then you would know why they are inactive. But it is better that you think ill of the oil companies and you would do well to remember that 0 and the EmoRats are your saviours.

Now shut up, get back to work and pay your taxes serf!

25 posted on 03/29/2011 2:36:51 PM PDT by Drill Thrawl (I don't prep for the disaster. I prepare for the rebuilding.)
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To: WOBBLY BOB
But the oil and gas industry says the process must move faster or more rigs will leave, jobs will be lost and U.S. offshore oil production will decline.

That is the goal!

26 posted on 03/29/2011 2:39:01 PM PDT by Drill Thrawl (I don't prep for the disaster. I prepare for the rebuilding.)
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To: Drill Thrawl

Seems to me the vagueness is being used here at FR to promote the “Obama is stopping all drilling” meme.

I’m sure the vagueness is being used elsewhere to promote the Big Oil is lazy and greedy” meme.

I don’t see much evidence of either one


27 posted on 03/29/2011 2:49:28 PM PDT by Lorianne (o)
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To: Lorianne

But you are aware that bans have been put in place. So, 1 + 1=. 2


28 posted on 03/29/2011 7:15:37 PM PDT by HollyB
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Or we can just give the rights over to Brazil instead...after all soros has big stakes in the Brazilian co that will be drilling in OUR gulf.


29 posted on 03/29/2011 7:17:56 PM PDT by HollyB
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To: HollyB

Are the bans related to the ‘inactive’ leases in the story?

No one will answer this, and the story craftily doesn’t say either.

That says a lot to me.


30 posted on 03/29/2011 8:01:29 PM PDT by Lorianne (o)
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To: Admin Moderator
I would argue this should be "breaking news" since Obama is claiming we need to reduce oil/gas imports by 10%...

But I guess we have an Idiot-In-Chief in the White House...

31 posted on 03/30/2011 10:44:45 AM PDT by topher (Traditional values -- especially family values -- are the values that time has proven them to work)
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