Huge Oil Find In Gulf

red states rule

Senior Member
Joined
May 30, 2006
Messages
16,011
Reaction score
573
Points
48
The libs and greens have been bellowing how the world is running out of oil, and how we need to start driving golf carts with bucket seats to conserve oil.

Well, this blows their talking points out of the water

Lets start the drilling and start building new refineries to process the oil.



http://www.chron.com/disp/story.mpl/front/4163472.html

Test suggests huge Gulf of Mexico oil discovery
By BRAD FOSS
Associated Press

WASHINGTON — U.S. oil and gas reserves could grow by more than 50 percent as three companies said today that results from a deep-water exploratory drilling project in the Gulf of Mexico indicate a significant oil discovery.

Chevron Corp. estimated the 300-square-mile region where its test well sits could hold between 3 billion and 15 billion barrels of oil and natural gas liquids. Analysts are calling it the most significant domestic discovery since Alaska's Prudhoe Bay more than a generation ago.

It will take many years and tens of billions of dollars to bring the oil to market, but the discovery carries particular importance for the entire 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.

The country's reserves currently are more than 29 billion barrels of oil equivalent, according to the U.S. Energy Department. But the U.S. imports more than half of its oil from countries with much larger reserves, such as Saudi Arabia whose reserves are nearly 10 times those of the United States.

Chevron's well, called "Jack 2," was drilled about 5.3 miles below sea level. Chevron has a 50 percent stake in the field, while partners Statoil ASA of Norway and Devon Energy Corp. of Oklahoma City own 25 percent each.

During the test, the Jack 2 well sustained a flow rate of more than 6,000 barrels of oil per day, but analysts and executives believe the payoff could be much larger than that.

The financial implications of the prospect are most significant for independent oil and gas producer Devon, which is the smallest of the three partners. Devon's shares soared more than 10 percent on the New York Stock Exchange.

"This could not have happened in a better place," Devon CEO Larry Nichols said in a conference call with analysts.

The successful test well does not mean a huge supply of cheap oil will hit the market anytime soon.

Oppenheimer & Co. analyst Fadel Gheit estimated that the first production for the Chevron-led partnership might not come on line until after 2010, depending on how many more test wells the companies drill. That said, many companies, including BP PLC, Exxon Mobil Corp. and Anadarko Petroleum Corp., stand to benefit from their own projects in the so-called lower tertiary, a rock formation that is 24 million to 65 million years old.

"They may be the first ones to hit the jackpot, but if the current thinking is correct, this is only a beginning," Gheit said.

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.

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 the well was drilled more than 20,000 feet under the sea floor below 7,000 feet of water for a total depth of 28,175 feet.

Shares of Devon rose $6.24, or 9.7 percent, to $70.39 in midday trading on the New York Stock Exchange, above the top end of the stock's 52-week range of $48.94 to $70.35. Shares of Chevron rose $2.04, or 3.2 percent, to $66.87.
 

Bullypulpit

Senior Member
Joined
Jan 7, 2004
Messages
5,849
Reaction score
382
Points
48
Location
Columbus, OH
We still can't drill our way out of our dependence on foreign oil. Nice try though.

If you look at the reserves Venezuela is sitting on, though, viable now that oil is well above the level which would make production profitable, the center of OPEC power could shift from the Middle East to Venezuela.
 
OP
red states rule

red states rule

Senior Member
Joined
May 30, 2006
Messages
16,011
Reaction score
573
Points
48
We still can't drill our way out of our dependence on foreign oil. Nice try though.

If you look at the reserves Venezuela is sitting on, though, viable now that oil is well above the level which would make production profitable, the center of OPEC power could shift from the Middle East to Venezuela.


Up to 15 billion barrels in this ONE find. Given all the other reserves we have within our own boarders, we can drill our way out of foreign dependence.

Crank up the drills, build the refineries, and watch the price of oil drop and our economy grow.
 

JeffWartman

Senior Member
Joined
Jul 13, 2006
Messages
1,309
Reaction score
102
Points
48
Location
Suburban Chicago
We still can't drill our way out of our dependence on foreign oil. Nice try though.

If you look at the reserves Venezuela is sitting on, though, viable now that oil is well above the level which would make production profitable, the center of OPEC power could shift from the Middle East to Venezuela.

This could be a very lucky find to hold us over until we develop alternative energy, though.

Alternative energy will come. We just need time.
 

JeffWartman

Senior Member
Joined
Jul 13, 2006
Messages
1,309
Reaction score
102
Points
48
Location
Suburban Chicago
Given all the other reserves we have within our own boarders, we can drill our way out of foreign dependence.
There still isn't enough within our own borders. Let's use this find to reduce our dependence on foreign oil temporarily while we develop alternative fuels.

Seems reasonable, no?
 

Mr.Conley

Senior Member
Joined
Jan 20, 2006
Messages
1,958
Reaction score
115
Points
48
Location
New Orleans, LA/Cambridge, MA
Okay, that's a supply of somewhere between 3 months and 2 years assuming no rise in demand. However, it's going to take a few years to build all the rigs needed to extract the oil at any significant rate so we're probably not going to see a major price drop soon. Since US domestic oil production has declined since the 70s and is 99% likely to continue to do so it's far better to look at this as more a replenishment of our oil stocks and less of an expansion. Plus, while this is a "big" US find, compared to a lot of foriegn oil sites it isn't very much. Certainly not the next Saudi Arabia. Otherwise good news though. Just don't start celebrating the end of our oil problems.
 

Gunny

Gold Member
Joined
Dec 27, 2004
Messages
44,689
Reaction score
6,852
Points
198
Location
The Republic of Texas
Okay, that's a supply of somewhere between 3 months and 2 years assuming no rise in demand. However, it's going to take a few years to build all the rigs needed to extract the oil at any significant rate so we're probably not going to see a major price drop soon. Since US domestic oil production has declined since the 70s and is 99% likely to continue to do so it's far better to look at this as more a replenishment of our oil stocks and less of an expansion. Plus, while this is a "big" US find, compared to a lot of foriegn oil sites it isn't very much. Certainly not the next Saudi Arabia. Otherwise good news though. Just don't start celebrating the end of our oil problems.
And along comes the Dem to piss on the campfire.
 

Mr.Conley

Senior Member
Joined
Jan 20, 2006
Messages
1,958
Reaction score
115
Points
48
Location
New Orleans, LA/Cambridge, MA
GunnyL said:
And along comes the Dem to piss on the campfire.
Sorry to ruin the parade, but this isn't the end to our problems. Maybe if this field was 5 to 10 times bigger than the biggest estimate it could replace our oil dependency, but this one ain't gonna cut it.
 

Gunny

Gold Member
Joined
Dec 27, 2004
Messages
44,689
Reaction score
6,852
Points
198
Location
The Republic of Texas
Sorry to ruin the parade, but this isn't the end to our problems. Maybe if this field was 5 to 10 times bigger than the biggest estimate it could replace our oil dependency, but this one ain't gonna cut it.
Who has suggested it as an end to our oil problems? I see it merely as a band-aid. It just buys us some time.

The only TRUE relief we will ever have from oil dependency is an alternative fuel source.

However, it IS good news and doesn't need to be pissed on.
 

JeffWartman

Senior Member
Joined
Jul 13, 2006
Messages
1,309
Reaction score
102
Points
48
Location
Suburban Chicago
Who has suggested it as an end to our oil problems? I see it merely as a band-aid. It just buys us some time.

The only TRUE relief we will ever have from oil dependency is an alternative fuel source.

However, it IS good news and doesn't need to be pissed on.
Which is the EXACT point of my above posts :mm:
 

Rico

Member
Joined
Apr 11, 2006
Messages
223
Reaction score
38
Points
16
Okay, that's a supply of somewhere between 3 months and 2 years assuming no rise in demand. However, it's going to take a few years to build all the rigs needed to extract the oil at any significant rate so we're probably not going to see a major price drop soon. Since US domestic oil production has declined since the 70s and is 99% likely to continue to do so it's far better to look at this as more a replenishment of our oil stocks and less of an expansion. Plus, while this is a "big" US find, compared to a lot of foriegn oil sites it isn't very much. Certainly not the next Saudi Arabia. Otherwise good news though. Just don't start celebrating the end of our oil problems.


Fot the left the glass isn't half full, it's not half empty either. There is no glass, there exists no fluid, there is no hope; all is lost. Why do folks keep voting for these "little rays of sunshine"?
 

Mr.Conley

Senior Member
Joined
Jan 20, 2006
Messages
1,958
Reaction score
115
Points
48
Location
New Orleans, LA/Cambridge, MA
GunnyL said:
Who has suggested it as an end to our oil problems? I see it merely as a band-aid. It just buys us some time.

The only TRUE relief we will ever have from oil dependency is an alternative fuel source.

However, it IS good news and doesn't need to be pissed on.
No, you misunderstand me, I'm VERY, VERY excited about this find. This is VERY GOOD.

I'm just saying that the world is still "running out of oil," and that no ones talking points are blown out of the water. There are people who don't know anything about oil and think that 15 billion barrels is more than we'll ever need. I'm just trying to let those people know that we're not out of the woods yet.
 

Mr.Conley

Senior Member
Joined
Jan 20, 2006
Messages
1,958
Reaction score
115
Points
48
Location
New Orleans, LA/Cambridge, MA
Rico said:
Fot the left the glass isn't half full, it's not half empty either. There is no glass, there exists no fluid, there is no hope; all is lost. Why do folks keep voting for these "little rays of sunshine"?
I'm a cynical person too!
 

ekrem

Silver Member
Joined
Aug 9, 2005
Messages
7,527
Reaction score
461
Points
93
No, you misunderstand me, I'm VERY, VERY excited about this find. This is VERY GOOD.

I'm just saying that the world is still "running out of oil," and that no ones talking points are blown out of the water. There are people who don't know anything about oil and think that 15 billion barrels is more than we'll ever need. I'm just trying to let those people know that we're not out of the woods yet.
USA is consumeing it alone about 20 million Barrels a day.
In 1 Year consumption is 7,2 Billion Barrels.

The truth is, that you can find oil and again and again find it.
It will be never sufficient for your consumption.
 

dilloduck

Diamond Member
Joined
May 8, 2004
Messages
53,240
Reaction score
5,795
Points
1,850
Location
Austin, TX
USA is consumeing it alone about 20 million Barrels a day.
In 1 Year consumption is 7,2 Billion Barrels.

The truth is, that you can find oil and again and again find it.
It will be never sufficient for your consumption.
There is no embargo or restriction placed on anyone interested in finding alternative energy sources ( except for the ones who suppress the construction of new nuclear facilitites).
 

Most reactions - Past 7 days

Forum List

Top