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Page added on October 29, 2015

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Chevron Announces Discovery in the Deepwater Gulf of Mexico

Chevron Announces Discovery in the Deepwater Gulf of Mexico thumbnail

Chevron Corporation (NYSE: CVX) today announced the successful appraisal of the Anchor discovery in the Lower Tertiary Wilcox Trend.

“The positive results of our appraisal work at Anchor indicate a significant discovery of potentially hub class scale.” said Jay Johnson, executive vice president Upstream, Chevron Corporation.

The original Anchor discovery well, located in Green Canyon Block 807, approximately 140 miles (225 km) off the coast of Louisiana in 5,180 feet of water (1,579 m), was drilled in late 2014 to a depth of 33,750 feet (10,287 m) and it encountered 690 feet (210 m) of net oil pay.

map

Anchor is located approximately 140 miles (225 km) off the coast of Louisiana.

Appraisal drilling began in June 2015 and recently found 694 feet (211 m) of net oil pay. To date, Chevron has confirmed a hydrocarbon column of at least 1,800 feet (549 m) in the Lower Tertiary Wilcox reservoirs at Anchor. Complete appraisal of the field will require further delineation wells and technical studies.

“After the success of the discovery well announced earlier this year, we have pursued  appraisal work to further evaluate the results and assess development alternatives to optimize value creation,” Jeff Shellebarger, President, Chevron North America Exploration and Production Company added.

Chevron subsidiary Chevron U.S.A. Inc. is the operator of the Anchor Prospect, with a 55 percent working interest.  Anchor co-owners are Cobalt International Energy, L.P. (20 percent), Samson Offshore Anchor, LLC (12.5 percent), and Venari Resources LLC (12.5 percent).

Chevron



40 Comments on "Chevron Announces Discovery in the Deepwater Gulf of Mexico"

  1. Ted Wilson on Thu, 29th Oct 2015 6:50 pm 

    Is it a medium crude or heavy crude. Heavy crude will yield only fuel oil which has 24 or more carbon atoms and has to be blended with lighter hydrocarbons to produce motor fuels.

    Seems all these oil companies are losing money with the low oil prices.

  2. James Tipper on Thu, 29th Oct 2015 9:23 pm 

    But crude oil prices today hover around $46. Anyone care to start up multi-billion dollar projects on the assumption oil might go up in the future? No? Come on, it’s just a blip guys, an oil glut, no need to worry honest citizens. It’s certainly not a systemic problem! Such ideas are heresy!

  3. Go Speed Racer on Thu, 29th Oct 2015 10:34 pm 

    Kool. More oil. Gentlemen, start your engines.

  4. GregT on Thu, 29th Oct 2015 10:43 pm 

    Time to buy that urban assault vehicle that I always wanted. Vroom! Vroom!

  5. GregT on Thu, 29th Oct 2015 10:47 pm 

    “Seems all these oil companies are losing money with the low oil prices.”

    Would that be the same low oil prices that are close to 300% higher than 11 years ago, when the oil companies were still making money?

    Hmmm, something here does not compute, but I’m having a difficult time putting my finger on it.

  6. Davy on Thu, 29th Oct 2015 11:04 pm 

    ???WTF???

    “Oil Producers Curb Megaproject Ambitions to Focus on U.S. Shale”

    http://www.bloomberg.com/news/articles/2015-10-29/oil-producers-curb-megaproject-ambitions-to-focus-on-u-s-shale

    “Big U.S. oil companies are starting to think small.
    A stubborn 16-month crude rout with no end in sight is driving the largest U.S. oil producers away from costly, high-risk megaprojects long touted as the industry’s future and toward safer shale operations that generate the cash needed to satisfy anxious investors.”

  7. GregT on Thu, 29th Oct 2015 11:14 pm 

    ???WTF???

    Two words Davy,

    Bloom, and berg.

  8. coffeeguyzz on Fri, 30th Oct 2015 12:09 am 

    … and today XTO – wholly owned subsidiary of Exxon – applied for permits in the Bakken for an additional 394 wells.
    Not at all an unusual occurrence.

  9. coffeeguyzz on Fri, 30th Oct 2015 12:31 am 

    …made an error doing the math quickly. Total is 494 wells they are getting permits for.

  10. makati1 on Fri, 30th Oct 2015 1:10 am 

    More big oil bullshit.

  11. Davy on Fri, 30th Oct 2015 5:23 am 

    Bloomberg is actually not bad for a financial site. It is one of the better for objective reporting within American MSM limits. Forbes and CNBC are the whores. I go to Zerohedge for the dirty laundry. Zerohedge is generally anti-American and anti-status quo and in the alternative to Bloomberg. It is a combination of the Zerohedge and Bloomberg with the rubber boots of critical review I feel I get good financial news. If Zerohedge and Bloomberg start agreeing there is possibly some valid news.

    You can’t dismiss MSM completely like a makster. If you do that then you end up like the makster with his failed predictions of the brics. Witness China and then look back on the makster’s Asian agenda comedy.

    One must be careful with the alternative financial sources because they are full of agenda that matches the MSM of the status quo but in the alternative. Some of the best is what we share here on our board because we are dealing with the all-important issues of peak oil dynamics, economic decline, and climate issues. All these areas of discussion point to population and consumption overshoot issues that are profoundly important. These topics get digested by a variety of viewpoints on our board. I think we generally regurgitate a good narrative. This is why many of us remain here.

  12. shortonoil on Fri, 30th Oct 2015 7:16 am 

    “… and today XTO – wholly owned subsidiary of Exxon – applied for permits in the Bakken for an additional 394 wells.
    Not at all an unusual occurrence.”

    With a first year annual decline rate of 70% and over 6,500 producing wells only 494 new permits is really bad news for this field. It would take over 2000 new wells a year just to keep production flat.The Bakken is obviously dying!

  13. coffeeguyzz on Fri, 30th Oct 2015 8:30 am 

    Mr. Short

    There are actually 13,016 producing oil wells in North Dakota as of August, 2015 … with 10,112 of them being horizontals targeting the Bakken.

    There are close to 1,000 wells that have been drilled but not yet completed due, primarily, to the low price of the oil/gas.

    The projected numbers of future wells range from 30,000 to 100,000, but, as with future events … who knows?

    What is known, what HAS happened, includes events such as that described by EOG in their latest quarterly report.
    In recounting the completion of their just-turned online well, the Riverview 102 32H, they described a bit on their fracturing process they call ‘high density’.
    In addition to producing over 87,000 barrels of oil its first full month (a Bakken record), this well has an ultra short lateral of 4,300′.
    Biggest takeaway of this, and its relevance to future wells, is the frac radius extends only about 300′ from the wellbore, thus allowing far more down spacing to take place.

    The Bakken is most certainly not dying, Mr. Short.
    In fact, with 90/95% of the hydrocarbons NOT being recovered with the initial extraction procedures, the EOR potential is vast, as the current scope of research would validate.

  14. makati1 on Fri, 30th Oct 2015 10:13 am 

    An ocean of oil under the sea will not change our slide down the slippery slope.

    “Downsizing”.

    http://www.doomsteaddiner.net/blog/2015/10/29/downsizing/

    Deep water oil is too expensive and will likely never be recovered.

  15. FarQ3 on Fri, 30th Oct 2015 10:21 am 

    GregT “Would that be the same low oil prices that are close to 300% higher than 11 years ago, when the oil companies were still making money?
    Hmmm, something here does not compute, but I’m having a difficult time putting my finger on it”

    It’s called ‘depletion’ my friend. Lots of oil patches are going sub-economical … mine included.

  16. Kenz300 on Sat, 31st Oct 2015 7:04 am 

    All Fossil fuel companies need to transition to “ENERGY” companies and embrace safer, cleaner and cheaper alternative energy.

    Wind Power Now Cheaper Than Natural Gas for Xcel, CEO Says – Renewable Energy World

    http://www.renewableenergyworld.com/articles/2015/10/wind-power-now-cheaper-than-natural-gas-for-xcel-ceo-says.html

  17. ghung on Sat, 31st Oct 2015 8:18 am 

    So says the KenzBot. Earth to Kenz. Come in Kenz. You there?

  18. Boat on Sat, 31st Oct 2015 12:30 pm 

    short,

    With a first year annual decline rate of 70% and over 6,500 producing wells only 494 new permits is really bad news for this field

    Decline rates mean nothing like short would like to to believe. Why? Overall production of a fracked well is higher on average than a conventional well.
    I repeat, why does a time span matter if you get overall production gain.

  19. Boat on Sat, 31st Oct 2015 12:41 pm 

    GregT on Thu, 29th Oct 2015 10:47 pm
    “Seems all these oil companies are losing money with the low oil prices.”
    Would that be the same low oil prices that are close to 300% higher than 11 years ago, when the oil companies were still making money?

    300%? GregT, You have a history of not being able to read a chart and spreading disinformation. I supplied a chart that says 11 years ago the oil prices were about the same inflation adjusted. 300% is not to be found and the chart goes back to 1946.

    Let me see your 300% information please.

    http://inflationdata.com/Inflation/Inflation_Rate/Historical_Oil_Prices_Table.asp

  20. GregT on Sat, 31st Oct 2015 2:03 pm 

    http://static.incrediblecharts.com/images/2015/2015-01-29-crude-cpi.png

    I never said in annual average inflation adjusted prices Boat. I said prices that are close to 300% higher than 11 years ago, when the oil companies were still making money.

    From the site that you linked:

    http://inflationdata.com/articles/charts/inflation-adjusted-oil-prices-chart/

    In December of 1998, monthly average oil prices in inflation adjusted dollars to Mar of 2015, WTI was $12.45 USD/bbl. WTI this morning was at 46.59, or 374% higher. Oil companies were not losing their shirts at $12.45/bbl.

  21. Boat on Sat, 31st Oct 2015 2:37 pm 

    GregT
    Prove that. Should’t that come with cherry picking numbers? The nominal price during that era was $54, a far cry from 12.54. This is why you and short lose credibility. Just be honest about the numbers instead of trying to use stats to misrepresent trends.

  22. GregT on Sat, 31st Oct 2015 2:52 pm 

    I did not say “the nominal price”. I did not say “annual inflation adjusted prices”. I did not say priced in “1938 Mexican Pesos”. I said close to 300% higher than 11 years ago, when oil companies were still making money. I stand by exactly what I said, and I couldn’t fucking care less how you try to spin it. The oil companies, in many cases, need around $70/bbl to break even. The average inflation adjusted price, including during recessionary periods, going back to 1946 was $41/bbl. We have entered into a new era of unaffordable oil. Keeping your head firmly planted up your asshole does not change reality Boat.

    Grow up already.

  23. apneaman on Sat, 31st Oct 2015 2:54 pm 

    Boat, I don’t understand. Last month is was construction and mining equipment manufacturer Caterpillar and commodities and mining giant Glencore tanking and now Hitachi Construction is following suit. Is this one of them thar trends you speak of? What’s it all mean Boat? Please enlighten me with your chart reading and trend spotting powers.

    Hitachi Construction Slumps as Demand Slowdown Spreads Globally

    http://www.bloomberg.com/news/articles/2015-10-27/hitachi-construction-cuts-forecasts-as-slump-in-demand-deepens

  24. Boat on Sat, 31st Oct 2015 3:09 pm 

    apeman,
    There indeed may be a recession on the way. The numbers seem to point to it. I never argued otherwise. But a crash is an entirely different thing.

  25. Boat on Sat, 31st Oct 2015 3:15 pm 

    GregT

    Your dead wrong. The Saudi don’t need $70 to make money. Iraq does not either. It’s a global market idiot. I am willing to bet there is plenty if investment dollars available for Iran at $40-$50 oil. The oil market is still growing globally The cheapest producers will make money. Ask Rockman, he gave an example of a well kicking ass.

  26. GregT on Sat, 31st Oct 2015 3:27 pm 

    Global GDP growth has not exceeded 2.5% since Q2 of 2011. We are already in recession, and are heading for depression. A depression that we will never recover from. Crash would be an appropriate term, but you can call it whatever makes you feel more comfortable. Stay in debt, keep playing the market casino, and you will lose your shirt. You have been warned repeatedly. You have nobody to blame but yourself.

    http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG/countries?display=graph

  27. GregT on Sat, 31st Oct 2015 3:36 pm 

    Boat,

    You are a total comedy of errors. It’s “you’re”, not “your”. As in “You’re dead wrong.”

    “It’s a global market idiot.”

    Absolutely correct. It isn’t a Saudi market, or an Iranian market. It is a global market. Think about that for a few minutes, until it sinks in.

  28. onlooker on Sat, 31st Oct 2015 4:04 pm 

    Forget about someone who does not understand two intersection lines going in opposite directions. Limits Oil and growing thirst for oil. The producers may regret when finally the oil does skyrocket because then hardly anyone will be able to afford it!

  29. GregT on Sat, 31st Oct 2015 4:12 pm 

    It really is rather bizarre, isn’t it. No matter how many different ways it is explained, some people still can’t seem to figure it out. Given the fact that it is an extremely simple concept to understand, I constantly find myself shaking my head in complete disbelief. The human ape in general, isn’t very smart.

  30. Boat on Sat, 31st Oct 2015 4:24 pm 

    onlooker,
    The producers may regret when finally the oil does skyrocket because then hardly anyone will be able to afford it!

    And that would help with population control and push renewables faster along with nat gas.

    But don’t look for the supply of oil to decrease unless the middle east has geopolitical impact. Which is why oil prices rose to begin with.

  31. GregT on Sat, 31st Oct 2015 4:30 pm 

    You are one very confused individual Boat.

  32. Ed on Sat, 31st Oct 2015 4:32 pm 

    225 km offshore, 1.5 km water depth and 10 km well depth. What is the energy profit on this ? Confirmation that we are nearing the end of the oil age, I think.

  33. onlooker on Sat, 31st Oct 2015 4:47 pm 

    Okay one more time see if I can kick oops nudge some sense into Boat. I do agree with the population control point, but no renewables are coming to the rescue I would refer you to countless articles on this site and around the Net about the lack of feasibility of renewables on a large scale at this point. Oil will decrease because it is a limited resource and because the economic viability of extracting it and the flow rate will make it too expensive and uneconomic along of course with further depletion. Oil prices increased mainly because conventional oil peaked around 2005 and unconventional was still not around in sufficient quantities and contributed to a worsening economic picture which further increased oil prices in a bit of a self-reinforcing loop. A little dress rehearsal for real hard limits to come. Shew i hope all that brain wattage did not go to waste on the brain dead.

  34. Boat on Sat, 31st Oct 2015 4:53 pm 

    GregT

    As long as you call World GDP growth a recession. There is no reason to continue the discussion.

  35. GregT on Sat, 31st Oct 2015 5:15 pm 

    We have been through this ad nauseam Boat. You have been provided with ample evidence that anyone with two brain cells to rub together could figure out. You do not understand the exponential function, you do not understand how your own monetary system works, you refuse to acknowledge how GDP numbers are calculated, and you continue to ignore central bank monetary policies. You have refused to follow links that I have provided to you from the International Monetary Fund, the Bank of International Settlements, The World Bank, and the World’s Economic Forum in Davos Switzerland. You are living in a fantasy world Boat. You are beyond help, and as far as I am concerned, a complete waste of time and energy. A complete moron.

  36. Boat on Sat, 31st Oct 2015 5:21 pm 

    onlooker,

    Well you bought the narrative of most of the commentators of the site. I don’t.
    The rise of the price of oil was directly related to the Iraq war. Go look at a timeline.
    World production dropped along with the rise of fear. Israel and Iran added to this fear along with the nuke mess.
    Iraq has resumed production along with many other countries. Like the US, Canada, Russia, Saudie, etc. Then there was a 2.5 mbpd glut. Prices dropped. Iran will soon have more cheaper oil to sell. The high price producers are now hurting and have cut back on drilling but there is still a glut.
    None of this had anything to do with a lack of oil other than a geopolitical middle east non needed war. Not to mention problems in Nigeria and Libya who at some point will have oil to sell cheaper than fracked oil and tar sands.
    In fact when true oil depletion hits production, tar sands and fracking will be back in force. Is that $70 oil or $100. I don’t know but were good for a long time.
    I hope nat gas cars and trucks/electric cars have enough market share by then oil depletion isn’t an issue.
    So far I have read nothing to change that view.
    I hope like you, my views are not wasted on the brain dead. Lol

  37. GregT on Sat, 31st Oct 2015 5:37 pm 

    Boat,

    Most of the commenters on this site are intelligent, considerate, and rational people. You are none of the above.

  38. onlooker on Sat, 31st Oct 2015 5:44 pm 

    https://upload.wikimedia.org/wikipedia/commons/b/b0/Crude_oil_prices_since_1861.png
    https://gailtheactuary.files.wordpress.com/2013/01/us-crude-oil-prices-in-2012-dollars.png
    Okay, here are two oil time lines spanning the years 2000 to 2011 roughly. Notice how around 2005, the trend lines begin to rise inexorably. Also, notice around 2008 the dramatic downward movement coinciding with the financial crisis of that same year. Why do you think these wars in the Middle East are going on Boat? The OIL. I would ask you too also notice that from 1985 onward prices have always been below $60 per barrel. Now up until recently prices since 2005 have been over that price. So that has contributed to stall in economic growth along with other factors. Finally, I would ask why do you think US oil companies decided to get into the fracking and shale business when experts will tell you that it is relatively uneconomical unless it can be sold at high prices. Well lo and behold prices went down and now the fortunes and future of unconventional oil is not looking good. This all makes sense to me what about you Boat.

  39. onlooker on Sat, 31st Oct 2015 5:46 pm 

    Sorry made a big mistake. Also, notice around 2008 the dramatic (downward) should be upward spike movement

  40. GregT on Sat, 31st Oct 2015 5:46 pm 

    Third-quarter GDP lands with thud: just 1.5% growth

    “The U.S. economy cooled off in the third quarter as companies cut back production to prevent a worrisome buildup in inventories, particularly of goods destined for foreign markets.”

    “Gross domestic product — the value of everything a nation produces — rose at a 1.5% annual pace from July through September, the government said Thursday. The U.S. had grown at a crisp 3.9% rate in the second quarter.”

    “Economists predict consumer spending will show another healthy gain in the final three months of 2015, potentially pushing GDP back toward the 2.5% range or higher.”

    “Still, the third-quarter dropoff almost assures the U.S. will fail to break 3% annual growth in 2015 for the 10th straight year. The last time the economy expanded that fast was in 2005.”

    http://www.marketwatch.com/story/third- … 2015-10-29

    Coincidentally, the same time that “most of the commentators of the site” agree was the peak in conventional oil production.

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