First Offshore Sale Under 2012-2017 Leasing Program Announced

Financial Market Forecast is Looking Bleak

The U.S. Bureau of Ocean Energy Management (BOEM) will offer over 20 million acres offshore Texas as part of the Western Gulf of Mexico Lease Sale 229, Secretary of the Interior Ken Salazar and Bureau of Ocean Energy Management Director Tommy P. Beaudreau announced Monday.

The sale, scheduled to take place in New Orleans on Wednesday, Nov. 28, will be the first offshore sale under the Obama administration's new Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017.

"We are moving forward expeditiously to create jobs by implementing the President's offshore oil and gas strategy for the next five years, a smart plan that focuses on the areas that contain the overwhelming majority of the energy resources," Salazar said in a statement Monday.

"With comprehensive safety standards in place, this sale will help us to continue to responsibly grow America's energy economy and reduce our dependence on foreign oil," Salazar said.

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Ken Salazar in Alaska....President Obama Backs Additional Oil Drilling in Alaska

Interior Secretary Ken Salazar came to Anchorage on Monday and said the Obama administration supports more oil drilling in Alaska, potentially including offshore Arctic development.

Salazar joined Alaska Sen. Mark Begich and Rhode Island Sen. Jack Reed, both Democrats, for a meeting with Alaska businesspeople and said the president's feeling toward Arctic offshore drilling is "Let's take a look at what's up there and see what it is we can develop." But any Arctic oil development must be done carefully, he said. Salazar said the Arctic lacks needed infrastructure for responding to potential offshore oil spills and cited painful lessons from the Deepwater Horizon spill in the Gulf of Mexico last year.

"Not the mightiest companies with multibillion dollar pockets were able to do what needed to be done in a timely basis, and the representations of preparation simply turned out not to be true from the oil companies that had a legal obligation to shut down that kind of an oil spill. ...

When you look at the Arctic itself, we recognize that there are different realities - the ocean is a much shallower ocean, conditions are very different than we had in the Gulf of Mexico. (But) there are challenges that are unique to the Arctic," Salazar told Alaska reporters......Read the entire article.

Salazar Threatens To Dropkick The Natural Gas Revolution

It might just be tough talk, but Interior Secretary Ken Salazar has warned the energy industry that expansion could be much harder than under the Bush administration.

Americans should be amply rewarded when companies win exploration and production rights, but let's hope this doesn't mean that new exploration will be significantly restricted.

Especially when it comes to natural gas, which could provide the U.S. with an enormous source of relatively cheap energy.....Read the entire article.

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Interior Boss Says No to Drilling on 8 Utah Parcels

Eight of the 77 oil and gas lease parcels sold during a December auction that a saboteur wrecked and a federal judge later halted will be off limits to drilling, Interior Secretary Ken Salazar has decided. Allowing development on the 7,670 public acres near Canyonlands and Arches national parks, Desolation Canyon and Nine Mile canyon could harm critical sage grouse habitat with little obvious benefit to oil and gas development, concluded a 39 page analysis released Thursday.

During a Washington news conference, Salazar said 52 parcels would be held back pending further study and 17 would be allowed back at upcoming auctions. Drawing from the report compiled by an 11 member team from the U.S. Bureau of Land Management, National Park Service and Forest Service who examined more than 103,000 acres from the ground up Salazar scolded the Bush administration for allowing the Dec. 19 auction in Salt Lake City to go forward.....read the entire article.

National Oil Well Varco Continues Shopping Spree, Crude Oil Lower After Mid Day Rally

"Louisiana Reps Urge Salazar to Authorize More Offshore Drilling"
Louisiana representatives encouraged U.S. Interior Secretary Ken Salazar to authorize more offshore drilling for oil and gas at a regional meeting held in New Orleans Wednesday. The representatives asked Salazar not to forget the importance of the oil and gas industry in the U.S. economy as a source of jobs and tax dollars....Complete Story

"National Oilwell Varco Snaps Up 2 European Service Companies"
National Oilwell Varco, Inc. has acquired ASEP Group Holding B.V. and Anson Limited.
ASEP, based in the Netherlands, develops and manufactures well service equipment, including wireline units, cranes, coiled tubing equipment, pressure control products, and automation products....Complete Story

"Energy Prices May Rise on `Slingshot' Effect After Credit Chills Drilling"
The credit crunch will keep U.S. oil and gas producers from ramping up exploration they do through drillers such as Nabors Industries Ltd., setting the stage for shortages and surging prices when demand recovers....Complete Story

"Aventine, U.S. Ethanol Producer, Files for Bankruptcy After Reporting Loss" Aventine Renewable Energy Holdings Inc., a U.S. ethanol producer that counts a unit of Citigroup Inc. among its biggest investors, sought bankruptcy protection from creditors after reporting a fourth-quarter net loss of $36.9 million on March 16....Complete Story

Changes Coming For Controversial Oil Leases, Total Denies Deal

"US Interior Sec to Review Oil Companies Controversial Leases"
U.S. Interior Secretary Ken Salazar said Friday that changes regarding oil companies' leases would likely be part of a comprehensive energy bill Congress is drafting....Complete Story

"Total CEO Denies 'Sealed Deal' with Iran for South Pars Development"
Total's Chief Executive Officer has denied that the French oil giant and Iran are signing a deal before the end of March for the next phase of development at the massive South Pars gas field....Complete Story

"AEA: Offshore Drilling Could Deliver Huge Payoff in Jobs, Revenue"
The American Energy Alliance said lifting the U.S. prohibition on new offshore drilling would provide 1.2 million jobs and substantial revenue....Complete Story

Crude Oil Industry Headline News For Monday

"Oil Falls on Speculation Fuel Demand Will Drop More as Recession Deepens"
Crude oil fell on speculation that the recession in the U.S., the world’s biggest energy consuming country, will deepen and reduce demand....Complete Story

"Gasoline Futures Fall, Narrowing Refiner Margins, as Strike May be Averted"
Gasoline futures fell the most in almost a month and refinery margins narrowed on speculation a strike by workers at U.S. fuel plants may be averted....Complete Story

"Oil Industry Wary of New US Interior Secretary's Policies"
Despite Interior Secretary Ken Salazar's vow to draft a comprehensive energy policy that includes new domestic oil and gas drilling, the industry is watching with a wary eye....Complete Story

"Iraq Oil Fields Ready for Revival, Await Foreigners"
Iraq has launched a bidding round for some of its largest oil and gas fields, which it hopes will attract multibillion dollar investments. There is still some confusion over the deals, scheduled to be awarded by June....Complete Story

Crude Oil Industry Headline News

"Exxon Allowed to Drill on Contentious Alaska Oil Field"
Alaska officials gave ExxonMobil permission to proceed with drilling on a dormant North Slope oil and gas field that had been the subject of a legal battle....Complete Story

"Obama's Interior Secretary Voices Openness for Offshore Drilling"
Interior Secretary Ken Salazar indicated Tuesday that the Obama Administration could be open to expanded offshore drilling and is considering doing away with the controversial "royalty-in-kind" program....Complete Story

"ConocoPhillips Has Big Loss But Shares Up"
ConocoPhillips reported a massive fourth-quarter loss on Wednesday compared with a year-earlier profit, but the company's shares rose about 1% in premarket trading....Complete Story

Crude Oil Industry Headline News

"Crude Oil Falls Below $34 a Barrel After OPEC Reduces 2009 Demand Forecast"
Crude oil fell below $34 a barrel to a four-week low after OPEC said that demand for its crude will decline 4.2 percent this year as the recession curbs fuel use....Complete Story

"Obama May Bar Offshore Drilling in Some Areas, Interior Pick Salazar Says" President-elect Barack Obama may ban offshore oil and gas drilling in some areas of the Outer Continental Shelf, according to Ken Salazar, Obama’s choice for secretary of the Interior Department....Complete Story

"Iraq Invites IOCs to Workshop on Oil Deals"
The Iraqi oil ministry will hold a workshop in Istanbul on Feb. 12-14 for international oil companies interested in bidding for the country's first licensing round to develop one of the world's largest oil and gas fields....Complete Story

"Chavez Reaching Across Ideologies for Oil, Looks to West for Help"
Venezuelan President Hugo Chavez is inviting Western oil companies to submit bids to develop new areas of the Orinoco Belt for petroleum production....Complete Story

"With Oil Use Off, Market Yawns at OPEC Talk"
Saudi Arabia, the world's largest oil exporter, said it plans to cut output next month to below its OPEC-assigned quota. Even so, oil markets essentially yawned and continued to move lower....Complete Story

"China, Iran Oilfield Cooperation to Help Stabilize Market"
Joint commercial oilfield development by China and Iran would help stabilize the oil market, China's Foreign Ministry spokeswoman Jiang Yu said here Thursday. Iran and China signed a US $1.76 billion deal....Complete Story