UPI Energy Watch

International attention is being paid to U.S. offshore oil drilling.

U.S. President George W. Bush lifted a presidential ban on offshore oil drilling to increase supplies and ease gas prices but also reportedly with the intent of convincing Congress to reverse its separate ban on offshore drilling.

Since the beginning of the year record-high oil prices have caused an increase in the price of everything from fuel to food. Many analysts have said new supplies, possibly from offshore sources, could help bring down prices and reduce dependence on foreign oil, British newspaper The Guardian reported.

Offshore oil drilling in the United States originally was banned by former President George H. W. Bush in 1990 and by the 1982 Congress, The Guardian reported. The debate over drilling stems from the possibility of a negative environmental impact in the areas where drilling occurs.

Many oil industry leaders are saying newer technology allows for the removal of offshore oil without environmental degradation.

While the Republican argument has been over money and security, the Democrats argue offshore drilling is just a temporary solution and in the long term, new energy and fuel technologies are needed.

Shell has purchased Duvernay Oil.

The Dutch oil major reportedly has bought the Calgary-based oil firm for about $6 billion.

Duvernay is in the business of removing non-traditional oil and natural gas reserves. As many experts believe the world may be approaching peak oil, and the price of oil continues to increase, companies like Duvernay are becoming more attractive, The Telegraph reported.

Shell officials told The Telegraph the company is looking to expand in non-traditional exploration.

Even with the record-high cost of oil leading to bigger profits for oil companies, firms are having difficulty affording the high, and ever-increasing, cost of extracting difficult-to-reach reserves.

Duvernay currently is producing about 25,000 barrels of oil a day, which will be added to Shell Canada's reserves.

Gazprom, NIOC sign a new deal.

Gazprom, the Russian oil and gas giant, reportedly has reached an agreement with the National Iranian Oil Co. for the development of oil and gas in Iran.

The deal reportedly reaches from exploration to production of gas and oil fields and construction of refineries.

The agreement was signed during a meeting between Gazprom Chief Executive Alexei Miller and Iranian President Mahmoud Ahmadinejad in Tehran, the Sydney Morning Herald reported.

The announcement came just days after Total and other European firms pulled out of possible investment deals in Iran. The United States and its sanctions had put pressure on other nations to stay out of Iran.

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Closing oil prices, July 15, 3 p.m., London

Brent crude oil: $143.27

West Texas Intermediate crude oil: $143.85

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(e-mail: energy@upi.com)