[shortonoil]

May the Chevron execs plan on putting this albatross on their books as 15 billion barrels; then selling their stock to some yockum for $500/share. Hay, there’s more than one way to skin a cat; or make money in the oil business - just salt the mine.

[Wolfeman30]

This was posted a while back over at the drum. It is probably the best analysis of the Jack-2 well test and the lower GOM oil deposits.

http://www.theoildrum.com/story/2006/9/8/11274/83638

-Wolfe

[nth]

There defintely seems to be a pattern emerging concerning ANY new production. For me, and I am truly attempting to be objective, it is rapidly becoming evident that there is no "good" news. It seems the predictions and estimates of most new fields and projects are falling short more often than not. Is it just me or is this just indicative of the Peak?

Jack is going to do jack to extend date of peak oil.
The US GoM will not play any major role relating to preventing peak oil. Production is forecast to be flat and we are running out of exploration area.

CERA is forecasting just 800kbpd for all of the fields in this region like Jack. 800kbpd will not really do much for US much less global oil production. 2009 is the earliest date of any field to start producing and yet, they are only forecasting 7kbpd by 2009/2010 time frame. Ouch!

[cudabachi]

SAN FRANCISCO (MarketWatch) -- BP Exploration & Production Inc. on Wednesday announced a hydrocarbon discovery in an exploration well that tested its Isabela prospect in the Gulf of Mexico.

The well is located on Mississippi Canyon Block 562 in about 6,500 feet of water, about 150 miles southeast of New Orleans, the company said. Isabela was drilled to a total depth of about 19,100 feet into Miocene era sands. The well is operated by BP with a 67% working interest and is co-owned by Noble Energy Inc. with a 33% working interest, BP said.

[mekrob]

So what? I can fart and make a "Hydrocarbon Discovery" announcement also. Let's wait and see if this contains any more HC than my fart before we start refilling the tanks of our SUV's.

Anyone knowledgable about porosity, permeability and general overall production levels and reserves of Miocene oils?

[DantesPeak]

So what? I can fart and make a "Hydrocarbon Discovery" announcement also. Let's wait and see if this contains any more HC than my fart before we start refilling the tanks of our SUV's.

Anyone knowledgable about porosity, permeability and general overall production levels and reserves of Miocene oils?

If this is anything like the "Jack" #2 discovery, we'll be waiting for a long time just to see if anything comes out. Jack #2 is now just a covered over hole in the deep, dark bottom of the Gulf where hurricanes frequently thread, far above on the surface. They must be serious about "Jack" because drilling starts in the middle of hurricane season.

April 24 (Bloomberg)

Chevron's $3 billion Jack prospect, located in the deepwater Gulf, was the first well to tap into the Wilcox trend, a 200-mile long formation some geologists estimate could hold 3 billion to 15 billion barrels of oil. The company expects to resume drilling on the project in July, after a shortage of rigs forced the company to halt work in September.

[shortonoil]

from DantesPeak:

Chevron's $3 billion Jack prospect, located in the deepwater Gulf, was the first well to tap into the Wilcox trend, a 200-mile long formation some geologists estimate could hold 3 billion to 15 billion barrels of oil. The company expects to resume drilling on the project in July, after a shortage of rigs forced the company to halt work in September.

I have trouble taking BP seriously on this field, five and a half miles deep is a long way down. They obviously have put a whole lot of money into this thing, but I wonder how much is publicity to sweeten things up after its mess-ups at Prudoe, and how much is a serious interest in developing this beast. If they are seriously interested in developing this field, it tells us one thing for certain; oil is getting dam hard to come by.

[nth]

Geez people. No GoM oil will change PO date. Not even CERA believes GoM oil will add any significant amount.

Now, about this announcement, this field is nothing major. The oil is easy to get to because they already have production in local area. This field will be tied back to existing production. The existing production has a limit of 110kbpd and no plans to boost this. This means this field will just enable this production facility which went online in 2003 to continue producing for awhile longer. Actual reserve numbers were not disclosed.

[shortonoil]

nth said:

The oil is easy to get to because they already have production in local area. This field will be tied back to existing production.

According to a Devon Energy analyst (sorry, looks like I lost the link) additional Jack #2 wells will run $100 million per well, it will require $250 to $500 million of additional production facilities to support them, and its 28,000 feet deep. That is easy to get to? Where do you think we will find a hard one, on the moon!

Oh yea, I forgot to mention, it is smack-dab in the middle of the most active hurricane region on the planet - piece of cake!

[shortonoil]

pstarr said:

shortonoil you are just another doomer looking at the empty half of the glass

A couple of more winners like Jack #2, and we can all go back to squeezing whale blubber to light the night.

[Homesteader]

pstarr said:

shortonoil you are just another doomer looking at the empty half of the glass

A couple of more winners like Jack #2, and we can all go back to squeezing whale blubber to light the night.

Yeah, except for the fact that we are about 15 decades past "peak whale"

[Rogozhin]

Peak whale! Funny as hell but sad

Rogo

[TheDude]

Why'd they name a well nearly as deep as Everest is high after a True Sociopath, anyway?

[shortonoil]

Homesteader said:

Yeah, except for the fact that we are about 15 decades past "peak whale"

I think, I sense a trend in that statement! I sure hope we can get something worthwhile out of Bull Shit, because that seems to be the only commodity we have, that is not displaying signs of “peaking”!

[Ebyss]

So what? I can fart and make a "Hydrocarbon Discovery" announcement also. Let's wait and see if this contains any more HC than my fart before we start refilling the tanks of our SUV's.

Quote of the week.

[nth]

nth said:

The oil is easy to get to because they already have production in local area. This field will be tied back to existing production.

According to a Devon Energy analyst (sorry, looks like I lost the link) additional Jack #2 wells will run $100 million per well, it will require $250 to $500 million of additional production facilities to support them, and its 28,000 feet deep. That is easy to get to? Where do you think we will find a hard one, on the moon!

Oh yea, I forgot to mention, it is smack-dab in the middle of the most active hurricane region on the planet - piece of cake!

I am not talking about Jack. If you want to talk about Jack, you should read up on my posts on Jack on the Jack thread. I have gone in detail about this new frontier in that thread. I don't want to rehash all that as I have nothing new to add.

This thread is about BP's new discovery. The new discovery has nothing to do with Jack. Jack's oil is from Tertiary, which is unproven for offshore GoM. Tertiary fields onshore production exists, but not offshore. Miocene play has been in production for a few years already and most producing deep water fields are from Miocene if not all. This new discovery is not very big and will be tied back to existing platforms.

[shortonoil]

nth said:

This thread is about BP's new discovery.

Isabela was drilled to a total depth of approximately 19,100 feet into Miocene era sands.

Schlumberger

OK, a 19,100 ft well, with no report on the wells flow rate, API, sulfur content or the fields EUR - you got me!

[nth]

nth said:

This thread is about BP's new discovery.

Isabela was drilled to a total depth of approximately 19,100 feet into Miocene era sands.

Schlumberger

OK, a 19,100 ft well, with no report on the wells flow rate, API, sulfur content or the fields EUR - you got me!

I am puzzled by you.
The link you gave me says the same thing that I am talking about.
This field is going to be tied into Na Kika. If you look up Na KiKa, you will see the oil fields tied to this platform are all miocene and similar depths as this new discovery. The reason no flow rate and no other information is disclosed is that this is not a major field. Na Kika can only produce 110kbpd. It already has 4 oil fields and 2 gas fields tied to it. They are going to tied this latest discovery to Na Kika without expanding Na Kika's lift capabilities.

I think it is pretty clear what this oil find means. It is just a small discovery.