Here's good news from the Gulf of Mexico: big new oil reserves in deep water, with the promise of more to come.
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....
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.
Related:
• Chevron - press release
• Wall Street Journal - In Gulf of Mexico, Industry Closes In On New Oil Source (subscribers only)