Bloomberg Businessweek examines a Norwegian oil company, Statoil, with plans to widen its natural gas capture program in North Dakota’s oil fields. As it stands, the company is forced to flare 30 percent of the natural gas produced, which is fairly standard in the state, but hopes to reduce it with further development. Indications show that in time terrestrial oil and natural gas production will only increase in the U.S. This,
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U.S. natural gas production rose 0.4 billion cubic feet per day from July during August. Production in the lower 48 states averaged 68.9 Bcf/ day, which is the highest monthly average on record. On Aug. 29, product set a one-day record of 69.4 Bcf/day. The previous record was established on July 30 at 69.3 Bcf/day. (Bentek Energy)
compare to the possibilities that have recently opened us with the recent decision by the U.S. Bureau of Ocean Energy Management (BOEM), which may also have a great impact on potential business for the undersea cable industry. As of July, BOEM has opened the outer continental shelf from Delaware to Florida to exploration by energy companies preparing to apply for drilling leases in 2018, when current congressional limits are set to expire. “The bureau’s decision reflects a carefully analyzed and balanced approach that will allow us to increase our understanding of potential offshore resources while protecting the human, marine, and coastal environments,” acting BOEM Director Walter Cruickshank said in a statement to the Associated Press. This change has created the potential not only for new business for the oil industry on the east coast, but for any companies providing services to newly built platforms.
According to the Energy Collective, a commentator on energy issues, “88.6 billion barrels of oil and 398.4 trillion cubic feet of natural gas are believed to be held in the Outer Continental Shelf, according to the Bureau of Ocean Exploration and Management.” Although these estimates are 30 years old and may change with the recent allowances given for new exploration. That being said, there are no standing guarantees that new leases will be sold for offshore building, either for oil platforms or wind farms. Instead, BOEM is in the
process of writing a new five year plan, for 2017 to 2022. Currently, about 87 percent of the outer continental shelf is off limits, including all of the eastern seaboard. Depending on what new surveys could find in the area, BOEM may decide to begin issuing new leases in previously off limits areas. “It’s been about 30 years since surveys were conducted in this region, and technology has vastly improved,” said Brian Straessle, media contact for the American Petroleum Institute. “You can get a clearer picture now about what resources are there and