Oil discovery triggers black gold rush
Here's how to find some winners, as oil companies turn their focus to the Gulf of Mexico.
The Lower Tertiary trend, with sub-regions such as Walker Ridge and the Shenandoah formation, is a very deep water play that could hold up to 15 billion barrels of oil. By deep, I mean deep and expensive. The Shenandoah-2 well was drilled through almost six miles of rock, in water 5,800 feet deep. Wells that deep cost big bucks; a deep-water well can cost $130 million and dry holes easily run to $10 million. That makes spending money on the best available seismic imaging technology a no-brainer.
One focus of those leases has been the Walker Ridge area of the Lower Tertiary trend.
Because this type of well has very little history, there is worry these wells will show very fast depletion rates. If true, that would mean the current U.S. oil boom would be very short-lived. So the discoveries in the deep water Lower Tertiary trend of the Gulf of Mexico should go a long way to alleviating those fears.
have stock in an oil company,get your gas for free with the dividends it pays out.
I love the dividends my stocks give me.Where are the dividends with gold.Us single
guys need goof off money.
I believe the accepted definition of a "major oilfield" is one billion barrels or more of recoverable oil. After all, the world uses one billion barrels of oil every 11 days.
For the most recent month for which data is available, October 2012, the world consumption of oil averaged 94 million barrels of oil per day.
94 million barrels of oil per day X 11 days = 1,034 million(1.034 billion) barrels of oil consumed in 11 days.
Excellent reporting. Thanks!
William B. Smith
This should bring down the price of gas to $0.99/gal. Well if we dare to dream.
"The oil industry is what keeps the world moving. I have been a pround member of it since 1968."
There's the oil, to be sure. But right up there with it are war and an unsustainable rate of population growth.
Your pride (and apparently your pround) well may be misplaced.
According to my morning e-mails...(which connect to this ARTICLE !!!)....Relate..!!
Statoil or (STO) just won about 85 bids on Wells and new Drilling locations in the Gulf of Mexico..
Obama, is doing a great job of getting more oil and selling it to the Oil Companies...
Bush just wanted to Fight Wars and get our Kids KILLED, In the name of OIL...
What a price, we have had to pay....For NOTHING !!!!!
Just what we F' ing need, MORE fossil fuels to trash the planet with. File this under further proof of human DE-evolution.
Robert F. Kennedy Jr: In the next decade there will be an epic battle for survival for humanity against the forces of ignorance and greed. It’s going to be Armageddon, represented by the oil industry on one side, versus the renewable industry on the other. And people are going to have to choose sides – including politically. They will have to choose sides because oil and coal, they will not be able to survive – they are not going to be able to burn their proven reserves. If they do, then we are all dead. And they are quite willing to burn it. We’re all going to be part of that battle. We are going to watch governments being buffeted by the whims of money and greed on one side, and idealism and hope on the other.
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