MMS Pays States Record $2.2B in Production Revenues

The Interior Department’s Minerals Management Service disbursed a record $2.2 billion to 34 states during fiscal year 2006 for oil and natural gas and other mineral development, officials reported.
The payments were for production on federal lands within the states’ borders and on offshore tracts near their coastlines.
E&P Sector Stable,
But Cost Pressures Risky
Fueled by record oil and natural gas prices, investment-grade exploration and production companies in North America have accumulated record cash, which in turn has enabled both organic and acquisitive business growth, according to Moody’s Investors Service.
The E&P sector overall remains stable, but companies are being forced to spend more as costs have risen and commodity prices have softened, increasing risks going forward.

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