LOGA Industry Report - Winter 2009 - (Page 46) range of nominated tracts not receiving bids ran from about 60 percent to about 66 percent. For the November 2008 lease sale, the percentage of nominated tracts that did not receive bids was about 74 percent, a figure heavily skewed by the Haynesville Shale area tracts being offered for sale by local governments. Of 55 Haynesville Shale area tracts up for sale by local governments, only three received bids, meaning about 95 percent of those nominated tracts did not receive bids. The majority of the nominated tracts that were not bid on required a minimum bid of $27,500 per acre at a time in the market when oil and gas prices have fallen. For the rest of the state, including state-owned lands in the Haynesville Shale area, 38 out of 100 nominated tracts received bids, meaning about 62 percent of nominated tracts did not receive bids, more in line with the longstanding trend. “It’s common practice in the oil and gas industry for exploration companies to nominate more tracts than they actually intend to bid on in order to camoufl age their prospects in a competitive environment,” McKeithen said. For the past three November lease sales prior to Wednesday’s sale, the average collection has been about $2.4 million. For the first five months of 2008 prior to the first major Haynesville Shale area sale in June, the average lease sale day collection was slightly less than $2 million. “The mineral lease activity in the state in the summer and fall was a huge boost to the state’s economy and to the people of Louisiana, especially in the northwest, and the record numbers we were seeing for leases have come down as companies prepare to drill on the lands they have already leased, but that should not take away from a strong lease sale by the standards of what we have seen over the course of many years,” Angelle said. For the fiscal year that began in July, the total collected by the Mineral Board is 189.7 million. RIG COUNT Jan 2005 North Louisiana – Land South Louisiana – Inland Water South Louisiana – Land South Louisiana – Offshore Total Louisiana Total United States 39 21 27 77 164 1255 June 2006 55 18 36 61 170 1473 Jan 2007 53 19 46 68 186 1714 Jan 2008 52 22 27 48 149 1749 Oct 2008 82 21 29 60 192 1976 PETROLEUM FACTS AT A GLANCE U.S. petroleum imports (crude & products) in September 2008: 12,031,000 barrels per day (September 2007: 13,646,000 b/d). [API] Total imports in September 2008 as a percentage of total domestic petroleum deliveries: 62.8 percent (September 2007: 66.8 percent). [API] Persian Gulf petroleum imports in July 2008 as a percentage of total imports: 22.6 percent (July 2007: 17.1 percent). [DOE] Average price for a barrel of OPEC crude oil for the week ending October 3, 2008: $93.24. [DOE] Average U.S. refiner acquisition cost in August 2008 for a barrel of crude oil: $116.06. [DOE] U.S. crude oil production in September 2008: 4,054,000 b/d (of which 719,000 b/d was Alaskan) (September 2007: 4,884,000 b/d). U.S. natural gas liquids production in September 2008: 1,586,000 b/d (September 2007: 1,793,000 b/d). [API] U.S. marketed natural gas production in July 2008: 60.1 billion cubic feet per day (July 2007: 55.3 billion cf/d). [DOE] U.S. deliveries from primary storage of motor gasoline in September 2008: 8,899,000 b/d (September 2007: 9,245,000 b/d). [API] U.S. deliveries from primary storage of distillate fuel oil (home heating and diesel) in September 2008: 3,670,000 b/d (September 2007: 4,161,000 b/d). [API] Total petroleum products delivered to the domestic market in September 2008: 19,151,000 b/d (September 2007: 20,415,000 b/d). [API] Average active rotary drilling rigs in the U.S. as of October 10, 2008: 1,990 (all-time high of 4,530 announced 12/28/81; record low of 488 announced 4/23/99). (2007 average: 1,768) [Baker Hughes Inc., Houston] 46 | LOGA INDUSTRY REPORT | WINTER 2009 LOG_T0109_E.indd 46 12/16/08 8:14:29 AM
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