GULF OF MEXICO

Michael Crowden
Houston

Deepwater success prompts Shell to boost spending

Success in the Gulf of Mexico is prompting Shell Oil Company to boost its 1996 budget to $3.7 billion, up $400 million from anticipated 1995 expenditures. Approximately $2.4 billion is allocated for exploration and production activities, up $600 million from expected 1995 levels.

"Based principally upon encouraging results from our existing operations in the Gulf, we believe we are now capable of growing domestic [US] production at a higher rate over the next several years through existing and planned developments and expected new opportunities," said Philip J Carrol, Shell Oil president and chief executive.

"Through 1998, our anticipated average annual growth rate is about 14% for oil production and 16% for gas production, as compared with earlier objectives of 4% and 11%, respectively. We anticipate continued production growth through the year 2000 primarily from new opportunities resulting from expected continued exploration exploratory success in the Gulf of Mexico."

Plans include development of the Ursa project utilizing a tension leg platform at a water depth of 3,950 ft in the Gulf. Ursa development cost is estimated at $1.45 billion. Reserves are between 250 million and 500 million bbl of oil equivalent. Shell owns 45% interest. British Petroleum owns 23%, Conoco, 16%, and Exxon, 16%.

Subcommittee to review OCS moratoria

The US Minerals Management Service has established a Joint Subcommittee on Environmental Information for Select Outer Continental Shelf Areas Under Moratoria. The subcommittee will include members from the OCS Policy Committee and OCS Scientific Committee of the Interior Department's Minerals Management Advisory Board.

"The subcommittee will provide an independent review and evaluation of specific information needs for areas where controversy has led to Presidential or Congressional restrictions on leasing on the OCS," said Cynthia Quarterman, MMS Director.

"This is a good example of how government should work," said Paul Kelly, chairman of the OCS Policy Committee. "These committees exist to provide advice and counsel and to act as a sounding board. When the talents and expertise of the federal government are combined with those in state government and the private sector in order to try and resolve a problem, only good things can result."

Garden Banks 72 drilling program begins this month

MidCon Exploration, an Occidental subsidiary, and Flextrend Development, a Leviathan subsidiary, in December installed a multiple-use platform in Garden Banks 72. Drilling is scheduled to begin in January. The project includes development of Garden Banks 117. About 3.5 miles of gathering lines will be installed from the subsea wellhead in block 117 to the Garden Banks 72 platform. The first well scheduled for production was drilled and tested in 1994, yielding a test flow of 10,500 b/d of oil and 11.9 million cu ft/day of gas.

Initial production from Garden Banks 117 is scheduled to commence in the second quarter of 1996. Flextrend plans to drill the second well after production begins.

1995 Hurricane season produced 19 named storms

The 1995 hurricane season ended officially on 30 November after a record 19 named storms. It was the stormiest season since 1933 when 21 named tropical cyclones were recorded. So busy was this year's season that researchers at Houston-based Weather Researcher center say there is still a slight change of yet another hurricane before year end.

Researchers at the Center use the Orbital Cyclone Strike Index (OCSI) to predict the probability as well as the number of tropical cyclones that will form in the Atlantic basin. This year's forecast called for 9.6 named storms with 5.3 becoming hurricanes. Officially there were 19 named storms with 11 intensifying into hurricanes.The last time that at least 10 storms became hurricanes was 1969 when there were 17 named storms, 12 that intensified into hurricanes.

Although this was a record year for storms, only five storms actually made land fall along the US coast. These included Hurricanes Allison, Erin, and Opal, and Tropical Storms Dean and Jerry. This is three fewer than the record year of 1985 when eight storms made land fall along the US coastline. Five hurricanes intensified into category three or greater on the Saffir/Simpson scale. Hurricane Opal was the strongest in the Gulf of Mexico with maximum sustained winds of 130 knots and a central pressure of

921 millibars. Significantly, this season also saw four tropical systems in the Atlantic Ocean at the same time.