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Page added on March 30, 2017
Eni Has Over 800MM Barrels Of Oil In Place In Mexico Find
Italy’s Eni said on Wednesday it expected that its recent discovery off the coast of Mexico would hold more than the 800 million barrels of oil it originally estimated.
“This is an important find and we’ve found new layers of good light oil that make us think there’s more,” Chief Executive Claudio Descalzi said at an oil and gas conference.
Eni said earlier this month it had found “meaningful” reserves of oil off the coast of Mexico after becoming the first international oil company to drill a well in the country after a 2013 reform opening up the sector to investors.
State-controlled Eni, which in recent years has made major gas finds in Mozambique and Egypt, holds one of the best discovery track records in the industry.
Its organic reserve replacement ratio — a measure of its ability to find hydrocarbons — stood at 193 percent in 2016 compared to a 35 percent peer average.
“Eni’s Zohr discovery is a game changer,” Egypt’s oil minister Tarek El Molla said on Wednesday, referring to Eni’s discovery in Egyptian waters of the biggest gas field ever found in the Mediterranean.
Descalzi said Eni would follow the same strategy in Mexico as it had adopted in Egypt, using infrastructure already in place to help speed up time to market.
He said the discovery, some 6-7 km from the coast, was close to installations owned by Mexico’s state-owned oil company Pemex. He added he would speak to Pemex in coming months to discuss using some of their infrastructure in the area.
Royal Dutch Shell, Chevron and Exxon Mobil have recently signaled the oil industry’s return to Mexico’s deep waters with high bids in a government auction.
Since taking over as Eni CEO in 2014, oil veteran Descalzi has streamlined the company, focusing attention on the upstream job of finding oil and gas.
Asked about the group’s retail gas and power business which serves 11 million clients, he said a decision would be taken this year on whether or not to sell all or part of it. “There is a lot of interest from industrial players and funds,” he said.
Descalzi, former head of Eni’s upstream activity, is set to be re-appointed CEO of Eni in April for a second three-year mandate.
5 Comments on "Eni Has Over 800MM Barrels Of Oil In Place In Mexico Find"
dave thompson on Thu, 30th Mar 2017 9:04 am
800 million barrels is about ten days worth for the world consumption.
rockman on Thu, 30th Mar 2017 3:13 pm
dave – “800 million barrels…”. No, 800 million barrels of oil IN PLACE is not ten day’s worth of production.
But whatever is recovered how much of the global daily rate it represents is not relevant. The US is the third largest oil producer on the planet. Yet the average US well represents only 1/70 of one second of the daily global oil consumption. With respect to the dynamics how long it take to produce whatever portion of that 800 million bbls that’s recoverable isn’t important. What is important is how much that field will produce daily. That is the number that will impact our lives. And we don’t have that estimate even hinted at yet. And let’s not forget: Mexico is currently a NET FOSSIL FUEL IMPORTER.
dave thompson on Thu, 30th Mar 2017 8:42 pm
Yes but I said “consumption”, 800 million is about 10 days of world consumption.
rockman on Thu, 30th Mar 2017 9:09 pm
dave – Yes. But the field won’t produce 800 million bbls of oil in 10 days. So what’s noteworthy would be how much the field produce at its max rate. In that sense it really doesn’t matter very much if the URR is 800 mm bbls, 80 mm bbls or eve 8 billion bbls. The primary issue will be how much more oil it delivers daily to the market. That will have some impact but probably barely noticeable even at 1 mm bopd.
As you know so well: the subject is peak oil production rate…not peak oil reserves.
Boat on Thu, 30th Mar 2017 9:40 pm
Dave,
Go do some math. Google world proved reserves. Count the top 30 countries. Now take 97.6 Mbpd x 352 days in a year. Guess demand growth over the next few decades. If you use a number like 34 Mbpdy for consumption you’ll find the world has over 50 years of oil left. If you project much higher demand growth, less than 50 years.
It is expected autonomous cars will impact reduction in oil use, then there are biofuels, nat gas vehicles, hybrid growth, electric car sets that will impact FF for transportation. Then we have oil tech itself that will add to that 50 years and of course more oil will be found. Don’t worry, plenty of oil for many decades if needed.
Don’t forget the popular notion climate change may take out large chunks of the human herd, cutting demand.