Companies announce first oil from deep-water Gulf fields

Fuel Fix ^ | December 2, 2014 | Don Mason

[thackney]

Oil and gas production has begun at the Jack/St. Malo project in the deep-water Gulf of Mexico, companies involved in the project announced.

Chevron Corp. and Statoil said the fields are located about 25 miles apart in 7,000 feet of water 280 south of New Orleans.

Chevron said the fields, discovered a decade ago, eventually will reach daily production of 94,000 barrels of oil and 21 million cubic feet of natural gas.

Chevron has a 50 percent working interest in the Jack field, with Statoil and Maersk splitting the remaning half.

Chevron holds a 51 percent working interest in the St. Malo field, with co-owners Petrobras, Statoil, Exxon Mobil and Eni.

The companies expect to produce more than 500 million barrels of oil equivalent from the two fields over their 30-year lifespan, Chevron said. Production from the two fields flows to a single production facility located between them.

[thackney]

More detail at:
http://www.offshore-technology.com/projects/jackstmalodeepwaterp

http://www.subseaiq.com/data/Project.aspx?project_id=340&AspxAutoDetectCookieSupport=1

[Renegade]

Bring it up and let the Saudi bastards drink their oil.

[clintonh8r]

Amazing stuff. If we allowed ourselves to fully exploit our energy resources we could dominate the world market.

[KC_Lion]

Very Interesting Graphic!

Thank You for the Post!

I didn't know that Mt. Everest was taller than the Maximum Altitude of Helicopters.

That explains quite a bit actually.

[Sequoyah101]

Very few people have any concept of what is done to access this oil but even fewer people know or can understand how deep a cash hole you can dig in 11 years from discovery to first oil and how long it takes to dig out of it to become cash flow positive. These companies have spent billions of dollars to build these facilities and drill the wells for 11 long years and they have done it without a paycheck from the investment during that whole time. The “massive” profits from other investments made long, long ago have been paying the bills and dividends to share holders. All that money earned has been reinvested and distributed to investors and thus it has been spread around up to 6 times to provide jobs and income for thousands of people and companies in many, many states in the nation and not jut the oil patch.

The burn rate is phenomenal for these investments. The revenues are high but have to be to compensate for the sunk cash and time value of money.