Just when it looked like the general public might wake up from its complacency over oil, Chevron makes an announcement:

Chevron Corp. said Tuesday it had successfully drilled for oil in the Gulf of Mexico’s deep waters, in what could be one of the most significant finds for the domestic oil industry in a generation.

The successful well, known as Jack 2, reached a record total depth of 28,175 feet, coming in 7,000 feet of water, and more than 20,000 feet under the sea floor. Analysts said the find suggested the success of that drilling may mean more oil than previously believed is available under the Gulf of Mexico, a region that already provides a quarter of U.S. output.

One published report suggested the breakthrough could increase U.S. oil reserves by as much as 50 percent.

Full article here. Looking for something that might subtly signal a shift in geopolitical thinking this morning? This could be it.

On the other hand:

The September 5th announcement by Chevron and Devon and Statoil of the huge Gulf of Mexico discovery should be clarified. The announcement claims that the discovery could increase US proven reserves of oil by as much as 50%. However, the total amounts are highly speculative. Additionally, the discovery likely won’t impact oil markets but could potentially impact natural gas markets since the discovery is probably mainly natural gas. The area will not come online for at least 4 years and, at a full rate, for at least 7 years. Further, it is likely that there are political motivations behind the announcement, as the vote to open offshore drilling in the United States is upcoming in the US Senate.

Full article, from Energy Bulletin, here.

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