Oil companies see big Gulf of Mexico discovery

[boise1]

Tests suggest huge oil field found in deep waters

Associated Press - Updated: 1 hour, 15 minutes ago

OSLO, Norway - 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.


-- Unless I'm wrong, 15 billion barrels will supply America's needs for just under two years at the current 21 Mbpd consumption rate (assuming it can all be extracted economically).

[Warpy]

1. Chevron located that in May, according to

my email. It's nice to know it's been confirmed by a second drill.

The oil field is huge and could tide us over until we come up with viable alternatives.

[wakeme2008]

2. Link

:)

[Selatius]

3. It's far less than 15 billion barrels then as far as calculations

"-- Unless I'm wrong, 15 billion barrels will supply America's needs for just under two years at the current 21 Mbpd consumption rate (assuming it can all be extracted economically)."

The point at which it costs more to extract one barrel of oil exceeds the price one can sell that barrel of oil is the point most companies will simply cap the well and move on. However, the higher the price of oil, the more oil can be extracted in an "economically feasible" fashion before this point is hit.

[LiberalEsto]

4. Oh boy!

Now we can use more fossil fuel in our SUVs, creating more carbon dioxide, causing increased global warming, resulting in more powerful hurricanes, which will destroy their Gulf of Mexico oil rigs. That'll show those Big Oil companies!


Suddenly it's all starting to make a twisted sort of sense.

[silverweb]

5. Okay.

So NOW will they leave ANWR the hell alone??

[boise1]

7. Of course not! -n/t

[boise1]

6. Don't look for cheaper gas just yet

"The successful test wells do not mean a huge supply of oil will hit the market anytime soon. Gheit estimated that the first production might not come on line until after 2010, depending on how many more test wells the companies drill."

http://abcnews.go.com/Business/wireStory?id=2395433

[Vogon_Glory]

8. After 2010? Isn't That When Oil From ANWR Was Supposed to Flow

After 2010, eh? Wasn't that to have been when oil would have started flowing from the Arctic National Wildlife Refuge had all the Democrats in Congress rolled over and played dead for Dubya's Duck Soup Posse and opened it for drilling?

[Strelnikov_]

9. That Far Out, It Is Not Going To Be Cheap Oil

[screembloodymurder]

10. We need to ration gasoline and quit ME oil cold turkey.

Pull out of Iraq and develop our own oil alternatives.

[Sven77]

11. peak oil blah blah blah

ZOMG!!!! We're All Gonna DIE. Can we please stop saying oil is gonna run out overnight and bring us back to the stone age. Global warming could be caused by sunspots, no way to stop that. I hate oil as much as anybody. The globalists control the flow and economy. I hope the transition to renewables accelerates.

Chevron successfully tests new US Gulf oil discovery

Gulf oil discovery may be bigger than Alaska's Prudhoe Bay

[Nihil]

12. Correct. We're all gonna die. Guaranteed.

One could even say it's *THE* fact of life.

Shame the rest of your post wasn't as accurate ...

[brokensymmetry]

13. Great! We now have SIX more months -

the world uses something like 25 billion barrels per year.
Surely no one thinks that the oil companies will reserve
the supply just for the U.S.?

So - congratulations, one and all!

Now all we need to do is find two fields of this size
every year.

[boise1]

14. A bit more perspective on this from Energy Bulletin

Hit the Road Jack

by Luke Burgess

To the austere headline reader, the latest test results coming from Chevron’s Jack oil well in the Gulf of Mexico is beyond optimistic. Examples include:
New Oil Field in Gulf May Yield Billions of Barrels
- The New York Times
and…
U.S. Oil Reserves Could Grow by 50 Pct.
- Houston Chronicle

And the initial resource estimate currently being touted by the talking heads on CNBC and other main-stream financial outlets -- somewhere between 3 and 15 billion barrels of oil and natural gas liquids -- seems monumentally positive.

But before we break out the noise makers and tequila to celebrate, let’s take a look at the big picture.

First, we should realize that a successful test well does not prove how much oil is actually in the ground. Determining an in-place reserve takes a highly skilled team of petroleum geologists several months to calculate.

more-> http://www.energybulletin.net/20119.html