Posted on 09/06/2006 9:10:32 AM PDT by Tolerance Sucks Rocks
A trio of oil companies led by Chevron Corp. has tapped a petroleum pool deep beneath the Gulf of Mexico that has the potential to boost the nation's reserves by more than 50 percent. A test well indicates it could be the biggest domestic oil discovery since Alaska's Prudhoe Bay more than a generation ago.
But the vast oil deposit about four miles beneath the ocean floor won't significantly reduce the country's dependence on foreign oil and won't help lower prices at the pump anytime soon.
"It's a nice positive, but the U.S. still has a big difference between its consumption and indigenous production," said Art Smith, chief executive officer of energy consultant John S. Herold Inc. "We'll still be importing more than 50 percent of our oil needs."
Chevron yesterday estimated that the 300-square-mile region where its test well sits could hold 3 billion to 15 billion barrels of oil and natural gas liquids. The U.S. consumes about 5.7 billion barrels of crude oil in a year.
It will take many years and tens of billions of dollars to bring the newly tapped Gulf oil to market, but the discovery carries particular importance for the industry at a time when Western oil and gas companies are finding fewer opportunities in politically unstable parts of the world, including the Middle East, Africa and Russia.
The proximity of the Gulf of Mexico to the world's largest oil-consuming nation makes it especially attractive. And it could bring pressure on Florida and other states to relax limits they have placed on drilling in their offshore waters for environmental and tourism reasons.
(Excerpt) Read more at washingtontimes.com ...
Takes money to make money ...
New oil find? They've know about it for decades! The big problem is getting it refined.
Washington Times' take, or AP's?
Notice the negativity and inaccuracies.
This doesn't sound like easy oil.
Lot's of new taxes for the Govt!
Of course, it will read "New windfall profits found in Gulf, for Oil Execs".
They have four dimensional seismic, and now they have a good test well. This announcement would be the test well.
What needs to "git done" is to re-start drilling off the coasts of Florida and California.
If the oil around Florida was allowed to be tapped...USA would NOT have to depend on any other countries oil...at all. I bet the oil companies wouldn't have to go near as deep either.
...with China drilling in the neighborhood...
I guess they figured it was now or never
Amen. Hopefully, we can smash the Dem-RINO conspiracy against such activities.
The Cuban/Chinese drilling 45 miles off Florida is possible thanks to a Carter agreement.
I went back and checked the article, but I didn't find any credits given to wire reports, so maybe the writer doesn't like Big Oil.
It takes a commie to say "Supply increases 50% (domestic) but prices won't drop any time soon, blah blah blah"
It's not what is reality, it is the preception of energy speculators that dictate most of price...DUh!
And let's all remember that when people complain about the 10% margin that oil companies make on their revenues.
They say domestic, but the field is in international waters.
"But the vast oil deposit about four miles beneath the ocean floor won't significantly reduce the country's dependence on foreign oil and won't help lower prices at the pump anytime soon."
Although this find by itself won't eliminate the need to import oil, production from this find alone will reduce foreign oil imports by a moderate amount.
Such a reduction in our imports will leverage an even larger impact on world oil prices.
Chevron taps vast oil pool in Gulf
By Brad Foss
ASSOCIATED PRESS
September 6, 2006
Conservative Floridian here.
I will NEVER vote for offshore drilling near my state. I'd rather ride my bicycle. The beaches are the reason FL is one of the most successful states in the union. I don't want to see rigs and I doubt tourists do either.
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