Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Promising New Oil Find in Gulf of Mexico
http://biz.yahoo.com/ap/060905/major_oil_discovery.html?.v=7 ^ | Tuesday September 5, 9:24 am ET

Posted on 09/05/2006 7:03:34 AM PDT by BenLurkin

OSLO, Norway (AP) -- Tests of a deep-water well in the Gulf of Mexico could indicate a significant oil discovery, three companies announced Tuesday, in the first project to tap into a region that reportedly could boost U.S. oil and gas reserves by as much as 50 percent.

The Jack 2 well was drilled by U.S. oil company Chevron Corp., with partners Statoil ASA of Norway and Devon Energy Corp. of Oklahoma City.

"Test results are very encouraging and may indicate a significant discovery. The full magnitude of the field's potential is still being defined," Statoil said in a statement.

During the test, the Jack 2 well sustained a flow rate of more than 6,000 barrels of oil per day, Statoil said.

The Wall Street Journal reported Monday that the region where the well is located could become the nation's biggest new domestic source of oil since the discovery of Alaska's North Slope more than a generation ago.

The Journal said Chevron and Devon officials estimate that recent discoveries in the Gulf of Mexico's lower-tertiary formations hold up to 15 billion barrels' worth of oil and gas reserves, a total that would boost the nation's current reserves by 50 percent.

The well was drilled in the Walker Ridge area of the Gulf, about 270 miles southwest of New Orleans and 175 miles off the coast. It followed up a discovery made by Chevron in 2004.

"This area is one of the new and promising deep-water areas in the Gulf of Mexico," said Oivind Reinertsen, senior vice president of Statoil's Gulf of Mexico assets in Houston.

"The Jack 2 well test data are encouraging and may form the basis of future development projects in Walker Ridge," he said.

In a separate statement, San Ramon, Calif.-based Chevron said the well set a variety of records, including the deepest well successfully tested in the Gulf of Mexico. Chevron said it was drilled to a total depth of 28,175 feet in waters that are 7,000 feet deep.

Chevron has a 50 percent stake in the field, while Statoil and Devon own 25 percent each.


TOPICS: Business/Economy; News/Current Events; US: Louisiana
KEYWORDS: chevron; drilling; energy; oil
Navigation: use the links below to view more comments.
first 1-2021-4041-42 next last

1 posted on 09/05/2006 7:03:36 AM PDT by BenLurkin
[ Post Reply | Private Reply | View Replies]

To: BenLurkin

Lets see what this does to open interest numbers today...


2 posted on 09/05/2006 7:06:50 AM PDT by Eric in the Ozarks (BTUs are my Beat.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BenLurkin

Are there any caribou in the Gulf of Mexico? :)


3 posted on 09/05/2006 7:22:40 AM PDT by P-40 (Al Qaeda was working in Iraq. They were just undocumented.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Eric in the Ozarks

Good news but I sure hope it doesn't slow the search for alternative fuels. I want to see the "jittery speculators" pay for their greed.


4 posted on 09/05/2006 7:23:15 AM PDT by mcshot ("If it ain't broke it doesn't have enough features." paraphrased anon.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: BenLurkin

It's in international waters.

Cuba and China will drill it dry before our 'betters' will allow us to touch it.


5 posted on 09/05/2006 7:26:06 AM PDT by null and void (Islamic communities belong in Islamic countries.- Eric in the Ozarks)
[ Post Reply | Private Reply | To 1 | View Replies]

To: P-40

No, but there's a little green fish that only swims in waters where oil can be found, and there's only a few hundred of these little fishies, and...


6 posted on 09/05/2006 7:30:04 AM PDT by theDentist (Qwerty ergo typo : I type, therefore I misspelll.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: BenLurkin

I'm sure the Democrats will find some way to block this. After all, we wouldn't want to see the price of gas dropping at the pumps.


7 posted on 09/05/2006 7:35:13 AM PDT by Cicero (Marcus Tullius)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BenLurkin; potlatch; ntnychik; Smartass; Boazo; Alamo-Girl; PhilDragoo; The Spirit Of Allegiance; ..

last one there's a rotten egg........


8 posted on 09/05/2006 7:36:00 AM PDT by bitt ("And an angel still rides in the whirlwind and directs this storm.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: mcshot

Believe me, they have been. There were hundreds of bets on $75 crude that got clobbered over the last couple of weeks. Ditto gasoline contract hedgers.


9 posted on 09/05/2006 7:38:59 AM PDT by Eric in the Ozarks (BTUs are my Beat.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: theDentist
Yeah, I had some of those with a little cilantro. They're pretty tasty blackened. Or I should say, they were tasty.
10 posted on 09/05/2006 7:39:38 AM PDT by domenad (In all things, in all ways, at all times, let honor guide me.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: bitt

Sniff, sniff, I smell rotten eggs. Oh, it's just the United States, last on the scene. Well behind China, Cuba and India.


11 posted on 09/05/2006 7:40:47 AM PDT by Enterprise (Let's not enforce laws that are already on the books, let's just write new laws we won't enforce.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Dog Gone
During the test, the Jack 2 well sustained a flow rate of more than 6,000 barrels of oil per day, Statoil said.

6,000 bbls a day? Dang, that's like a Saudi well.

12 posted on 09/05/2006 7:43:02 AM PDT by dirtboy (This tagline has been photoshopped)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bitt

Thanks for the ping!


13 posted on 09/05/2006 7:46:05 AM PDT by Alamo-Girl
[ Post Reply | Private Reply | To 8 | View Replies]

To: Enterprise
Oh, it's just the United States, last on the scene. Well behind China, Cuba and India.

Well, that's one way to look at it, I guess.

But somebody has drilled to a TD of 28,000+ feet in 7000 feet of water, and the Jack 2 tested at 6000 barrels of crude per day.

Getting to 28,000 feet in deep water isn't exactly to be sneezed at, and it undoubtedly has taken considerable time.

14 posted on 09/05/2006 8:02:09 AM PDT by Ole Okie
[ Post Reply | Private Reply | To 11 | View Replies]

To: BenLurkin
BP once estimated that there could be more oil than the entire Middle East combined just in the Gulf of Mexico. Once the technology to do automated deep sea floor extraction becomes practical, that--combined with heating oil shale using the method Royal Dutch Shell developed--could mean North America may have 2-3 times all the oil in Iraq, Iran, Saudi Arabia, Kuwait, Qatar, and the UAE combined. That could mean OPEC could end up losing 25% of their customer base.
15 posted on 09/05/2006 8:11:30 AM PDT by RayChuang88
[ Post Reply | Private Reply | To 1 | View Replies]

To: null and void
It's in international waters.

Cuba and China will drill it dry before our 'betters' will allow us to touch it

Absolutely, "Right on!!"

It would not make any difference if this "find" was 1,000 miles of the tip of Florida/California or bumf*cked Egygpt, the environmental wackos and their enablers/supporters (of which there are legions) would somehow manage to obstruct and delay (for years) any possible drilling and establishing a new source of oil/gas which would help make us less dependent on our "allies"--Mexico, Venezuela, Saudi Arabia, et al.

Regardless, I wish this article had been more specific as to the location of this potential new discovery.

16 posted on 09/05/2006 8:12:25 AM PDT by seasoned traditionalist (ALL MUSLIMS ARE NOT TERRORISTS, BUT ALL TERRORISTS WHO WANT TO DESTROY OUR COUNTRY, ARE MUSLIMS)
[ Post Reply | Private Reply | To 5 | View Replies]

To: dirtboy

Dang, that's an impressive test. I'd love to know what the cost of drilling it was. I'll bet it was well north of $50 million.


17 posted on 09/05/2006 8:13:19 AM PDT by Dog Gone
[ Post Reply | Private Reply | To 12 | View Replies]

To: null and void
It's in international waters

The law of the sea treaties probably put this off limits for everybody.

18 posted on 09/05/2006 8:18:20 AM PDT by RightWhale (Repeal the law of the excluded middle)
[ Post Reply | Private Reply | To 5 | View Replies]

To: RightWhale

As Vanderbilt said, "What do I care about the law?"


19 posted on 09/05/2006 8:22:56 AM PDT by null and void (Islamic communities belong in Islamic countries.- Eric in the Ozarks)
[ Post Reply | Private Reply | To 18 | View Replies]

To: seasoned traditionalist

Bumf*cked Egypt would get a pass...


20 posted on 09/05/2006 8:24:56 AM PDT by null and void (Islamic communities belong in Islamic countries.- Eric in the Ozarks)
[ Post Reply | Private Reply | To 16 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-42 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson