Bigfoot sighting: Chevron Corporation announced today that its Big Foot deepwater project in the Gulf of Mexico has started crude oil and natural gas production. The oil field is located approximately 225 miles south of New Orleans in a water depth of approximately 5,200 feet, and was discovered in 2006. The Big Foot field is estimated to contain total recoverable resources of more than 200 million oil-equivalent barrels and has a projected production life of 35 years. Read the full annoucement.
Meeting demands: A 2015 decision from the Interior Department’s Bureau of Safety and Environmental Enforcement has been upheld by the Interior Board of Land Appeals, meaning that Taylor Energy Co. could be legally required continue working to fix a 14-year-old leak in the Gulf of Mexico after failing to stop the leak. The board’s Oct. 30 decision wasn’t made public until Tuesday. The company now faces daily civil penalties of up to $40,000 if it fails to comply with the agency’s Oct. 23 order. Read the full story.
Numbers boost: The offshore rig market appears to be on the road to recovery after a slump, according to Westwood’s RigLogix service, Offshore reports, with the Gulf of Mexico and Norway leading worldwide numbers. While day rates generally have seen little improvement in the last few years, there are a few sectors where high demand has pushed day rates up substantially over the past year or so, one being Norway, where some harsh-environment semis are commanding $300,000 per day or more, in some cases double the rates from earlier in 2018. Day rates have also risen for jackups in the US Gulf of Mexico, with fixtures for high-end long-legged jackups up 23.5% compared to rates this time last year. Read the full report.
Editor’s note: The offices of Business Report will be closed Thursday and Friday in observance of the Thanksgiving holiday. Daily Report will not be published but will return on Monday, Nov. 26. Have a safe and happy holiday weekend.
