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Page added on October 23, 2014

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Chevron Announces Oil Discovery in Deepwater U.S. Gulf of Mexico

Chevron Announces Oil Discovery in Deepwater U.S. Gulf of Mexico thumbnail

Chevron Corporation (NYSE: CVX) today announced a new oil discovery at the Guadalupe prospect in the deepwater U.S. Gulf of Mexico. The Keathley Canyon Block 10 Well No. 1 encountered significant oil pay in the Lower Tertiary Wilcox Sands. The well is located approximately 180 miles off the Louisiana coast in 3,992 feet of water and was drilled to a depth of 30,173 feet.

“The discovery further demonstrates Chevron’s exploration capabilities,” said George Kirkland, vice chairman and executive vice president, Upstream, Chevron Corporation. “Guadalupe builds on our already strong position in the deepwater U.S. Gulf of Mexico, a core focus area where we expect significant production growth over the next two years.”

Image: Discoverer IndiaThe Guadalupe well was drilled by Transocean’s Discoverer India deepwater drillship.

“The Guadalupe discovery adds momentum to our growing business in North America,” said Jay Johnson, senior vice president, Upstream, Chevron Corporation. “Our deepwater exploration and appraisal program continues to unlock important resources in the Gulf of Mexico.”

“Chevron subsidiaries are among the top producers and leaseholders in the Gulf of Mexico, averaging net daily production of 143,000 barrels of crude oil, 347 million cubic feet of natural gas, and 15,000 barrels of natural gas liquids during 2013,” said Jeff Shellebarger, president, Chevron North America Exploration and Production Company. “The company expects additional Gulf of Mexico production from the Tubular Bells and Jack/St. Malo projects by the end of the year.”

Chevron subsidiary Chevron U.S.A., Inc. began drilling the Guadalupe well in June 2014. More tests are being conducted on the discovery well and additional appraisal wells will be needed to determine the extent of the resource.

Chevron U.S.A., Inc., with a 42.5 percent working interest in the prospect, is the operator of the Guadalupe discovery well. Guadalupe co-owners are BP Exploration & Production, Inc. (42.5 percent) and Venari Resources LLC (15 percent).

Chevron



10 Comments on "Chevron Announces Oil Discovery in Deepwater U.S. Gulf of Mexico"

  1. Northwest Resident on Thu, 23rd Oct 2014 4:54 pm 

    Compare and contrast this feel-good article with another one over on oilprice.com:

    How Wall Street Is Killing Big Oil

    “Once reliable market beaters, Big Oil shares are lagging: Over the last five years, when the S&P 500 rose more than 80 percent, shares of Exxon and Shell rose just over 30 percent. The underperformance reflects oil majors’ inability to maintain steady cash flows and increase production in a world where much of the easy oil has already been found and project costs are rapidly escalating. Last year, Exxon, Chevron and Shell failed to increase oil and gas production despite having spent US$500 billion over the previous five years, $120 billion in 2013 alone. Under pressure from investors, the world’s largest oil companies are now forced to cut capital expenditure and sell assets to boost cash flows.

    Big Oil is, in short, heading towards liquidation. And this process has set in motion a tectonic shift in the global energy balance of power away from western international oil companies, or IOCs, and towards state-owned national oil companies, NOCs, in emerging markets. Not only do the NOCs – companies like Saudi Aramco; Russia’s Gazprom and Rosneft; China’s CNOOC, CNPC and Sinopec; India’s ONGC; Venezuela’s PDVSA; and Brazil’s Petrobras – control approximately 90 percent of the world’s known petroleum reserves, they are also immune to the market pressures constraining Big Oil.”

    ht tp://oilprice.com/Energy/Crude-Oil/How-Wall-Street-Is-Killing-Big-Oil.html

  2. Kenz300 on Thu, 23rd Oct 2014 5:07 pm 

    Last one out the door turn the lights off……

    The fossil fuel industry needs to develop a new business model that includes alternative energy sources. They need to become “energy companies” and not just fossil fuel companies.

    Fossil fuels are a finite resource and it is damaging the environment. Climate Change is real…..

    —————————

    Fossil Fuel Divestment Movement Continues To Grow

    http://www.huffingtonpost.com/2014/09/22/fossil-fuel-divestment_n_5861906.html?utm_hp_ref=climate-change

  3. Nony on Thu, 23rd Oct 2014 6:07 pm 

    How much oil did they find?

  4. DMyers on Thu, 23rd Oct 2014 10:33 pm 

    Our savior, the big one in the Gulf. Only about a mile of water overhead. No problemo.

    “Deeper, deeper,…” as my girlfriend used to say.

    Guadalupe,….I love you.

  5. rockman on Fri, 24th Oct 2014 8:26 am 

    Chevron significant oil pay in Paleogene age Wilcox sands at the Guadalupe prospect in the deepwater U.S. Gulf of Mexico. The company started drilling the well in June with the Discoverer India drillship. Drilled in 3,992 feet of water, the well reached a total depth of 30,173 feet. More tests are being conducted on the well, and additional appraisal activity will be needed to determine the resource’s extent. The well is located approximately 180 miles offshore Louisiana. BP has made three discoveries in the emerging Paleogene trend in the deepwater Gulf, including Gila in 2013, Tiber in 2009, and Kaskida in 2006.

    Cracking the code of the Paleogene play poses the next major challenge for oil and gas companies operating in the Gulf of Mexico. The deepwater Gulf still contains significant untapped oil and gas resources, but the industry must find ways to achieve the productivity it needs to justify the billion dollar investment required to tap these resources, a panel of industry officials told attendees at Hart Energy’s Gulf of Mexico Offshore Executive Houston conference last week.

    {It appears these reservoirs lack the pressure to lift the deep oil to the surface. Pumping offshore wells as described below is not common.}

    To crack the Paleogene, Statoil intends to take the most promising technologies and tailoring them for the Gulf of Mexico to bridge the technology gap. The company is working on a thru tubing submersible pump system, which it will debut at the 2015 Offshore Technology Conference.

    The concept is not new, but the pump and system are, and offer great potential for the deepwater Gulf. Statoil also is pursuing ECD management to reduce drilling risk, mud losses and costs while improving the speed of operations. The company is currently testing this technology on a rig it’s operating. Statoil has found that transferring to the Gulf technology developed for use elsewhere is not necessarily straightforward. But the company does have experience in high pressure, high temperature wells from the Norwegian Continental Shelf that is applicable to the Gulf.

  6. TIKIMAN on Fri, 24th Oct 2014 8:38 am 

    Way to give info as to how much oil they think they found.

    Fucking worthless article.

  7. ghung on Fri, 24th Oct 2014 9:35 am 

    Kenz: “The fossil fuel industry needs to develop a new business model that includes alternative energy sources. They need to become “energy companies” and not just fossil fuel companies.”

    They tried that years ago (I have PV panels from BP and Shell), but the Chinese kicked their butts. BP’s current strategy is biofuels/ethanol and they own interests in a few wind farms, but it’s a small part of their portfolio. Shell is doing some work on biofuels and hydrogen; again, a small part of their stragedy.

  8. Davy on Fri, 24th Oct 2014 9:51 am 

    G-Man, agreed, K-boy needs to realize Big O needs to focus on what they are good at and AltE is not one of those areas of expertise. Company and employee philosophy always get in the way. Try to make a fisherman into a dry land farmer. It works sometimes or a little but it is never exceptional. Energy companies as an idea may work on the grid level where I see nice supporting activities with the nature of the energy production. Wind farms with gas backup. Combined cycle coal production utilizing waste heat.

  9. JuanP on Fri, 24th Oct 2014 11:54 am 

    Ghung, I had an old BP panel for years, too. Excellent quality. I always thought BP made a mistake when it turned its back on solar, but I agree with you that the Chinese would have probably displace them.
    Kenz is right, but it won’t happen. Reality sucks!

  10. Nony on Fri, 24th Oct 2014 9:51 pm 

    How much oil did they find!?

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