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The Gulf of Mexico accounted for about 29 percent of U.S. crude oil production and 11 percent of natural gas output last year, according to the U.S. Energy Department. About 24 percent of America’s total oil production came from wells in Gulf waters more than 1,000 feet deep. About 5 percent of U.S. gas output came from wells at such depths. In addition to cancelling the Virginia lease sale, the US government has also cancelled a lease sale that was planned for the western Gulf of Mexico in mid-August, an area that could have produced up to 423 million barrels of oil. Energy consultants Wood Mackenzie previously estimated a six-month extension of the ban would delay 80,000 Amazing colorful cat all over printed hawaiian shirtbarrels a day in U.S. oil production that was expected in 2011. While that is only about 5 percent of the Gulf’s total output, any delay to future development could elevate long-dated oil prices and would increase demand for imported crude, something President Barack Obama has sworn to curb. This could increase costs and delay development plans for companies like Royal Dutch Shell, which is among the biggest Gulf explorers, while major contract drillers who could be left with idled rigs include Transocean Ltd and Noble Corp. Brazilian state oil company Petrobras said the suspension could slow the development of its Gulf of Mexico Cascade-Chinook fields that were originally scheduled to begin
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