Fuel discovery or discover fuel?
The good news is Chevron Corp. and partners Devon Energy Corp. and Statoil ASA are on the verge of discovering in the Gulf of Mexico the largest oil deposit this side of Alaska’s North Slope. This is incredibly great news, no doubt.
Those companies will rush to get as much oil out of the ground as possible and their competitors will likely use the same type of new technology to test other areas that may have more reserves.
The only problem that may come out of this is the fear oil companies will in effect put the kibosh on continuing the effort to find alternative fuels. There is no doubt about it, the U.S. needs this new oil discovery. But the U.S. also needs alternative fuels to keep one step ahead of becoming too reliant on foreign producers.
This discovery is the first successful oil production from the region, a 300-mile-wide swath of the Gulf that lies below miles of water and deep within the lower tertiary.
The company said the well sustained a flow rate of more than 6,000 barrels of crude oil a day during the production test.
The test paves the way for the development of the three partners’ Jack field, located 270 miles southwest of New Orleans, and ultimately for dozens of comparable discoveries under federal lease to companies that include Anadarko Petroleum Corp., Petróleo Brasileiro SA, Exxon Mobil Corp., BP PLC, and Royal Dutch Shell PLC.
Chevron and Devon officials estimate the discoveries in the Gulf of Mexico’s lower-tertiary formations hold more than three billion barrels’ and perhaps as much as 15 billion barrels’ worth of oil and gas reserves.
If the industry succeeds in finding 15 billion barrels of oil, it would boost the nation’s current reserves of 29.3 billion barrels by 50%.
This is all good news, but let’s not take our eye off the ball. We need to find a workable plan for alternative fuels for down the road.
Talk to me.
Those companies will rush to get as much oil out of the ground as possible and their competitors will likely use the same type of new technology to test other areas that may have more reserves.
The only problem that may come out of this is the fear oil companies will in effect put the kibosh on continuing the effort to find alternative fuels. There is no doubt about it, the U.S. needs this new oil discovery. But the U.S. also needs alternative fuels to keep one step ahead of becoming too reliant on foreign producers.
This discovery is the first successful oil production from the region, a 300-mile-wide swath of the Gulf that lies below miles of water and deep within the lower tertiary.
The company said the well sustained a flow rate of more than 6,000 barrels of crude oil a day during the production test.
The test paves the way for the development of the three partners’ Jack field, located 270 miles southwest of New Orleans, and ultimately for dozens of comparable discoveries under federal lease to companies that include Anadarko Petroleum Corp., Petróleo Brasileiro SA, Exxon Mobil Corp., BP PLC, and Royal Dutch Shell PLC.
Chevron and Devon officials estimate the discoveries in the Gulf of Mexico’s lower-tertiary formations hold more than three billion barrels’ and perhaps as much as 15 billion barrels’ worth of oil and gas reserves.
If the industry succeeds in finding 15 billion barrels of oil, it would boost the nation’s current reserves of 29.3 billion barrels by 50%.
This is all good news, but let’s not take our eye off the ball. We need to find a workable plan for alternative fuels for down the road.
Talk to me.
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