The 200 nm eez is split between countries when the distance between them is less than 400 nautical miles.
Posted on 07/22/2015 5:23:50 AM PDT by thackney
Ridgewood Energy is not letting $50 oil shift its aim. The energy company focused on the deep-water Gulf of Mexico closed a nearly $2 billion private equity fund that it contends will still prove profitable.
Houston- and New Jersey-based Ridgewood said its new $1.94 billion, Ridgewood Energy Oil & Gas Fund III is its biggest yet and exceeded its initial $1.5 billion target.
As other companies slow down their expensive deep-water Gulf investments, Ridgewood says it can find and develop oil there for $20 a barrel or less, although the break even is closer to $35 a barrel with other cost factors. Competitors moving out of the space will actually help the firm, said Kenny Lang, Ridgewood president and chief operating officer.
“We saw this actually as an interesting opportunity,” Lang said, noting that the costs of rigs and other services are deeply discounted now. “We’ve been able to step in and assume positions on all or some of their (other companies’) projects.”
While the price of oil will fluctuate, he said, “The best defense is keeping our costs down.” Often that involves paying to use existing platform and pipeline infrastructure.
The deep-water Gulf of Mexico is not homogeneous and their are a lot of high-value projects as long as you are willing to invest heavily in startup costs and avoid drilling dry holes, Lang said. Ridgewood has only had one dry hole out of about 13 tries in the last five years, he said.
“A lot of people confuse capital intensity with capital efficiency,” he said, and the deep-water Gulf can still be very efficient.
Lang said Ridgewood likely will spend about $1 billion through the end of the year and have seven projects launched by the end of 2016. Ridgewood is mostly focused on the Mississippi Canyon, Green Canyon and Ewing Bank regions offshore of Louisiana.
The first project, called Delta House, started producing this spring and is led by the LLOG Exploration Company. The next one that will start soon is the Dantzler Project operated by Houston-based Noble Energy.
Ridgewood was founded in 1982, but started focusing on the deep-water Gulf in 2008. Ridgewood also has managed significant capital from New York-based Riverstone Holdings since 2010.
Ridgewood’s last fund closed with $1.1 billion in early 2014.
"the break even is closer to $35 a barrel with other cost factors"
Other cost factors? Like cost to produce the oil and bring it to market?
Because this companies claims are not proved reality. But if you believe him, send them your money.
Because supply can meet demand at the lower prices. And Summer Driving season is not the peak demand for crude oil. World demand typically peaks in the winter.
It’s winter in one hemisphere or the other year round.
~90% of the world’s population lives in the Northern hemisphere. The energy usage isn’t equal between the regions.
By coal company, do you mean a mining company that produces coal?
If so, I don’t see them typically converting to natural gas drilling and production.
Electric Power companies have building more natural gas power plants for years. See generation chart at:
http://eia.gov/forecasts/steo/report/electricity.cfm
Let’s just hope obozo doesn’t give his new Cuban bff’s a 200 mile economic zone around every rock they claim
The 200 nm eez is split between countries when the distance between them is less than 400 nautical miles.
I’m just trying to understand what you are asking. We all can learn from each other. Short messages leads to confusion.
When the Shale Gas took off years ago, the price of Natural Gas dropped enough to make it more attractive to power companies. Combined with the increase coal regulations, it has been cheaper for a while for power companies to use more nat gas.
Makes good sense.
Any chance coal will come back or do we just ship it overseas?
That is a politics questions, not one of energy or technology.
In other words:
Their idea is to use the offshore technique of one rig at one location to drill several wells, in the neighborhood of 30,000 ft.
And the depth is 30,000 ft. vertical!
They have to be looking at the future and not the current price trend for sure, for such an expensive project (estimated 300-500 million).
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.