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.
The world must have been up to its ass in dinosaurs at one time for all this oil to be down there, right?
And I guess they must have been the burrowing kind to get so deep.
Doesn't matter. The more oil on the open market, the cheaper it is for everyone. The more oil china drill for itself, the less they have to purchase from others, bringing the price down.
It is nice for the overall economy if US companies can get a good chunk of it, but it doesn't really effect the price of oil. My guess is that American and European companies are very well equipped to take advantage of this find. Probably far more ready than Chavez.
E85 Cuts Into Mileage, Magazine Reports [Consumer Reports]
Goes beyond just E85....
I could go for that.
"Are there any caribou in the Gulf of Mexico? :)"
No, just Jew Fish (Now called the politically correct Goliath Grouper). :-)
Mmmmmmmmmm Fried Grouper sandwich.........
Mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
U.S. Oil Reserves Could Grow by 50 Pct
http://biz.yahoo.com/ap/060905/major_oil_discovery.html?.v=16
This story should be in the sidebar...it's a big story today!
I must borrow that.....thanks....
how can it be "off limits to everyone" if test wells are being drilled there now?
Any time. I borrowed it as well.
It's Elk City with water!
We have the technology. They don't.
I disagree. It matters very much when our dollars go to buy oil from people who want to hurt us.
Right now our friends, the Saudis, are using our money to fund world wide Wahhabi indoctrination centers.
China and Cuba are not our friends either.
This may be just the tip of the ice berg.
This find is probably enough to fuel Al Gores private jet - global warming tours.
A few more finds like this in the Gulf of Mexico would be enough to heat one of John Kerrys(Teresa Hines) mansions for a few years!
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