In September, Biden issued offshore drilling rights, a large U.S. driller just made a big move into LNG, the U.S. pushed for better offshore oil and gas safety standards, and California lawmakers extend the life of the state’s last nuclear power plant. Continue reading our oil and gas news roundup to learn more about what’s happening in the industry this month.
Biden Issues Offshore Drilling Rights
The Biden administration has begun issuing Gulf of Mexico drilling rights to companies that nabbed oil and natural gas leases in a government auction later invalidated by a federal court.
Several companies that participated in that November 2021 sale have received notification of new leases as of the second week of September 2022. Leases have been issued to both independent oil companies and large majors.
For more information on these new leases click here.
Devon Energy makes a big move into LNG
Devon Energy announced a deal with Delfin Midstream on September 5th, to buy into a Floating Liquefied Natural Gas-FLNG vessel, yet to be FID’d and constructed. According to the press release, this project appears to be “shovel-ready” with no permitting hang-ups to run the meter up whilst waiting on some government agency to stamp an application. From the press release it also appears that with Devon on board, this project will meet FID sanctions later this year.
Click here to read the entire press release.
U.S. Pushing for Better Offshore Oil and Gas Safety Standards
The Department of the Interior has announced a new proposed rule to ensure offshore oil and gas operations on the Outer Continental Shelf are conducted with even higher safety and oversight standards.
This proposed rule from the Bureau of Safety and Environmental Enforcement (BSEE) builds on reforms instituted by the Department since the Deepwater Horizon tragedy that killed 11 offshore workers, caused billions of dollars of damage, and made lasting impacts on the Gulf of Mexico.
Proposed revisions to the 2019 Well Control Rule, focus on well integrity and blowout prevention. These innovations will help protect human lives and the environment by incorporating the latest technology and the lessons learned from operator experience and incident data since the current rule was adopted.
For more on these new proposed safety standards go to rigzone.com.
California Lawmakers Extend the Life of the State’s Last Nuclear Power Plant
Citing searing summer temperatures and expected energy shortages, California lawmakers approved legislation aimed at extending the life of the state’s last-operating nuclear power plant. The Diablo Canyon plant – the state’s largest single source of electricity – had been slated to shutter by 2025. The last-minute proposal passed by the state legislature could keep it open five years longer, in part by giving the plant’s owner, Pacific Gas and Electric (PG&E), a $1.4 billion forgivable loan.
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