Chevron says Gulf drilling a success

emw

macrumors G4
Original poster
Aug 2, 2004
11,177
0
Interesting.

Well could become the nation's biggest new domestic source of oil, according to newspaper report.
September 5 2006: 12:36 PM EDT

NEW YORK (Reuters) -- Chevron Corp. said Tuesday it had successfully drilled for oil in the Gulf of Mexico's deep waters, in what could be one of the most significant finds for the domestic oil industry in a generation.

The successful well, known as Jack 2, reached a record total depth of 28,175 feet, coming in 7,000 feet of water and more than 20,000 feet under the sea floor. Analysts said the find suggested the success of that drilling may mean more oil than previously believed is available under the Gulf of Mexico, a region that already provides a quarter of U.S. output.

One published report suggested the breakthrough could increase U.S. oil reserves by as much as 50 percent.

During the test at record depths and pressure, the Jack No. 2 well flowed at more than 6,000 barrels of crude per day, Chevron (Charts) said. That puts it on a par with discoveries in exploration hot spots such as the waters off Angola.

With U.S. oil output in decline, big new fields are increasingly rare, and oil companies are widening their search to more difficult places

Chevron, the No. 2 U.S. oil company after Exxon Mobil (Charts), did not give an estimate of the field's reserves.

The Wall Street Journal cited Chevron officials as estimating recent discoveries in the Gulf of Mexico could hold as much as 15 billion barrels of oil and gas reserves. That would boost U.S. current reserves by 50 percent.
So, what does this really mean? It doesn't change the "peak oil" discussions, but it will be interesting to see the short term impact on pricing.

I almost put this in the political thread, but perhaps this can linger in current events for a little while at least.
 

jsw

Moderator emeritus
Mar 16, 2004
22,910
41
Andover, MA
I'm sure prices will go up over the news - they always do. ;)

Seriously, though, this is very good news. Obviously, it'd be best if we reduce our overall dependence on oil, but a reduction in our need for imports is nothing but good news.

Edit: according to my calculations, 6000 barrels of crude per day translates to roughly 2 milliliters of gasoline per capita per day (assuming ~24 gallons of gas per processed barrel and ~300 million citizens). So... I guess it's almost literally a drop in the bucket. That's maybe ~60 feet of driving in an average vehicle here (per person).
 

emw

macrumors G4
Original poster
Aug 2, 2004
11,177
0
jsw said:
6000 barrels of crude per day translates to roughly 2 milliliters of gasoline per capita per day
I'm assuming that's a "test" number, not a live output number. Otherwise, at 6K barrels a day, it would take awhile to get through the 15 Billion barrels they estimate is in there.

Although, even at 15B barrels of oil (on the wall, 15B barrels of oil...), that equates to about 1200 gallons per capita, which isn't much, using the 24 gallons/barrel figure you use.
 

Foxglove9

macrumors 68000
Jan 14, 2006
1,570
173
New York City
Oh boy more oil spills and more rich people making even more money than I'll ever see in 10 lifetimes combined.

Well, I guess if it saves me 10 cents on a gallon of gas it's worth it. :p
 

mcarnes

macrumors 68000
Mar 14, 2004
1,929
1
USA! USA!
Foxglove9 said:
Oh boy more oil spills and more rich people making even more money than I'll ever see in 10 lifetimes combined.

Well, I guess if it saves me 10 cents on a gallon of gas it's worth it. :p
:p True. True.
 

blueflame

macrumors 6502a
Apr 3, 2003
822
25
Studio City
it doesnt even matter

the price of gas is not going to go down no matter what. i think if they found the center of the earth were made of oil the price still wouldnt go down. its going to reach a point of something like the US equivelant $8 a gallon, and then it wil become economically viable to drill it out of rock (oil shale). they do this in cananda. ( I apoogize for not citing exact locations whre i got this info, i learned it in geology a few years ago.)
in any case, the only other thing would be some other source of power that gets adopted into every application. for example, if everything were nuclear powered, most everything would be very safe (other than to produce) and last unbelivable amounts of time. everthing. all batteries, everything can be electric
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2006/09/04/MNGIEKV0D41.DTL
 

pdpfilms

macrumors 68020
Jun 29, 2004
2,383
0
Vermontana
blueflame said:
in any case, the only other thing would be some other source of power that gets adopted into every application. for example, if everything were nuclear powered, most everything would be very safe (other than to produce) and last unbelivable amounts of time. everthing. all batteries, everything can be electric
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2006/09/04/MNGIEKV0D41.DTL
Here's one place to start:

http://www.sonyclassics.com/whokilledtheelectriccar/

Other than that though, it isn't about finding more oil. It isn't about drilling into shale. It isn't even about making nuclear safe or building 3 kazillion wind turbines in the mountains of greenland. It's about changing the mindset- about eliminating the "American Way". The per capita energy consumption of westerners is waaay waaaaaayy more than this planet can sustain, especially with the global population increasing exponentially as it is. This may be too political, and this may just be repetitive banter you've heard before, but this is the undeniable fact that we're beginning to be forced to face.

There are signs of it everywhere- Food scarcity in Africa, population control in China, global climate change, steadily increasing energy prices, etc., etc. Humans are going to be forced to move out of the plastic/combustion/petroleum age and into a more eco friendly, lower yield, and naturalistic one.

Again, this may be just banter to you. This is not a political forum, and I do not want to spark any fires. Take it as you will, but it's my opinion. And finally, if this sort of thing interests you, I HIGHLY recommend reading Ishmael by Daniel Quinn.
 

obeygiant

macrumors 601
Jan 14, 2002
4,020
3,787
totally cool
its so fraking stupid.

news of a war or hurricane will spike oil prices instantly
and news of them finding a million billion tons of oil doesnt do anything.

buul-*****