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BP Makes "Giant" Oil Find in Gulf of Mexico

Smiling JOe avatar
SoWal Expert
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BP Makes "Giant" Oil Find in Gulf of Mexico
 by Tom Bergin
Tuesday, September 1, 2009


LONDON (Reuters) - Oil major BP Plc said it has made an oil discovery in the Gulf of Mexico, which analysts believe could contain over 1 billion barrels of recoverable reserves, reaffirming the Gulf's strategic importance to the industry.


BP said in a statement on Wednesday that it had made the "giant" find at its Tiber Prospect in the Keathley Canyon block 102, by drilling one of the deepest wells ever sunk by the industry.


Further appraisal will be required to ascertain the size of volumes of oil present, but a spokesman said the find should be bigger than its Kaskida discovery which has over 3 billion barrels of oil in place.
Estimates of recoverable reserves range from around 20 percent of oil in place.


"Assuming reserves in place of 4 billion barrels and a 35 percent recovery rate, BP's proven reserves .. would rise by 868 million barrels -- equivalent to 4.8 percent of the group's 18.14 billion barrels of proven reserves," Aymeric De-Villaret, oil analyst at Societe Generale said in a research note.


BP, the biggest oil producer in the U.S. and biggest leaseholder in the Gulf of Mexico, has a 62 percent working interest in the block, while Brazilian state-controlled Petrobras owns 20 percent and U.S. oil major ConocoPhillips owns 18 percent....


(link to full story)




With this discovery, I bet we can see more drilling in the Gulf in coming years. Care to share your thoughts on how this could affect the environment, tourism and business in South Walton?:idontno:

Replies

20
John R avatar
needs to get out more
#2
wow, awesome find. GIANT - 41.97 days of US consumption, based on 2007 usage numbers. drill, baby, drill.
Everytime avatar
Beach Fanatic
#3
With this discovery, I bet we can see more drilling in the Gulf in coming years. Care to share your thoughts on how this could affect the environment, tourism and business in South Walton?:idontno:

I always have been, and remain, opposed to drilling in the Eastern Gulf of Mexico, which I think begins around Orange Beach, Alabama. In the past, I have written one of my Senators and my Congressman to express this. I appreciated the resistance of Jeb Bush and Scarborough to expansion of near-shore drilling (into the Eastern Gulf) several years ago when some of the Al, MS & LA governors, senators and congressman were trying to expand it and put in some pipeline from Mobile Bay.

I do not think it would be good for the local tourism economy nor for Eglin, Tyndal & McDill armament training and testing. Some people will point out that offshore rigs make good fishing spots, which they do, but I think the risk of putting more of these in the hurricane-infested warm Gulf waters outweighs the harm it could do to fishing, and for that matter marine life in whole, for the long term.

And I am conservative and I drive an SUV, but I think other options should be explored.

Edited

Smiling JOe avatar
SoWal ExpertAuthor
#4
Does anyone know where "Keathley Canyon block 102" is located in the Gulf?
DuneAHH avatar
Beach Fanatic
#5
Does anyone know where "Keathley Canyon block 102" is located in the Gulf?

250 miles southeast of Houston (according to Google).
Smiling JOe avatar
SoWal ExpertAuthor
#6
I saw the same in Wikipedia, but that doesn't tell me much. That would probably be somewhere below SoWal, I think, as is much of the Gulf.
Everytime avatar
Beach Fanatic
#7
According to the Google Earth maps search for Keathley Canyon, it is due south of the midpoint between Beaumont, TX and Lake Charles, LA. If they're going to expand drilling in the Gulf, do it ever there. Most of the muck will stay over there due to the Mississippi River and Mobil Bay.
Russ&Kimberly avatar
Beach Lover
#8
I worked on an offshore research vessel about 15 years ago. I was the computer guy for my boat. We were a part of a fleet of vessels that laid cable on the bottom of the ocean and created a 4D map of the ocean floor. We mostly worked offshore in LA or TX. There is tons of that going on out there every day, 24 hours a day. It is really nothing new. If you have never been on a boat off the coast of LA, then you probably would not believe all the stuff going on. There are boats, ships, and structures (production platforms, rigs, well heads, etc) everywhere. It looks like a city at night. That is not even counting the commercial fisherman.

This block is south of Cameron, LA which is just at the TX and LA border. It is in the normal oil field. It is not anywhere close to us. If you have have ever been to the beach in Cameron or Holly Beach then you will quickly see that you are not missing much. Holly Beach is nestled between Mud Lake and the muddy Gulf. There is a highway that runs between Cameron and Port Aurthur. It is much like 30A except it goes right along the waters edge. It is great for fishing and laying out on the rocks (that are there to keep the road from washing away). You can actually do a Google Maps street view of the area.

I am sure they would never turn our coast into something like that. Oil is LA and TX primary industry and tourism is ours. It just doesn't make sense to jeopardize our primary source of income.
Smiling JOe avatar
SoWal ExpertAuthor
#9
russ, are all of those read and green lines on the map, pipelines to the rigs?

Today, tourism is Florida's industry, but if we had year round industry such as oil, it may overtake tourism. Who knows, but I rarely use the word, "never."
Russ&Kimberly avatar
Beach Lover
#10
russ, are all of those read and green lines on the map, pipelines to the rigs?

Today, tourism is Florida's industry, but if we had year round industry such as oil, it may overtake tourism. Who knows, but I rarely use the word, "never."

It looks like the lines are pipelines and the dots are structures. There is so much stuff out there you would not believe it.

Here is another image that shows the platforms and how far east they go. The problem with this picture and most of the others that I can find is that it does not specify if it is a production platform, a drilling rig, drill ship, or pipe line connection or well head...

Edited

jack S avatar
Beach Lover
#11
If the coorporations can convince the gullible that its good for "business", then they will make our coastal water look like this article from surfrider soup. Of course they will lie as they always do, and say there are safe guards against that happening! Yea right!!!
​







[FONT=Geneva, Arial, Helvetica, sans-serif]AUSTRALIAN OIL RIG PREDICTED TO SPEW OIL FOR TWO MONTHS[/FONT]
[FONT=Geneva, Arial, Helvetica, sans-serif]A mixture of gas and condensate oil has been leaking from the West Atlas drilling rig in the Timor Sea since Friday morning.[/FONT]​


[FONT=Geneva, Arial, Helvetica, sans-serif]As further evidence that offshore oil exploration can be risky, a rig off the northwest coast of Australia recently suffered a catastrophic accident. Caused by a fractured well, the accident has caused oil to spill right into the middle of [FONT=Geneva, Arial, Helvetica, sans-serif][FONT=Geneva, Arial, Helvetica, sans-serif]an important nursery ground and migration route for whales and turtles and it will continue to contaminate this area for another two months![/FONT][/FONT] It will take more than three weeks to put a second replacement rig in place and four weeks of drilling before the rig can tap the leaking well. Authorities are still calculating the total amount of oil spilled to date. [/FONT][FONT=Geneva, Arial, Helvetica, sans-serif]​


[/FONT]
Lynnie avatar
SoWal Insider
#12
Is BP planning on placing rigs there? BP is also a leader in alternative energy sources.

I don't want drilling, but I don't think we should be dependent upon Middle Eastern oil either.
Smiling JOe avatar
SoWal ExpertAuthor
#13
I don't know that I would call BP a "leader in alternative energy sources." Yes, they are experimenting and testing with other energy sources, but a leader they are not.
Lynnie avatar
SoWal Insider
#14
You got me again. I should have said, 'research and development.' Thanks!
Russ&Kimberly avatar
Beach Lover
#15
Oil Tanker off Seagrove Beach

It is funny that we are talking about this today. We just looked out our window and saw an oil tanker passing by our house in Seagrove. I have never seen that before off our beaches. Does anyone know why a ship would be visible from shore?
DuneAHH avatar
Beach Fanatic
#16
I don't know that I would call BP a "leader in alternative energy sources." Yes, they are experimenting and testing with other energy sources, but a leader they are not.

Who are the leaders?
Smiling JOe avatar
SoWal ExpertAuthor
#17
They are small businesses, which may have a handful of employees, or even one, who are working in back yard garages, no different than when Michael Dell, Michael Buell, Bill Gates were starting in their own businesses. There are many people working on many technologies right now, because discovering the right engine or energy source/conversion, will rule the world in almost no time, relatively speaking. Other leaders in energy technology might be large, profitable companies like Google, which could give huge cash prizes as incentives to increase focus in the field, in the way of contests. They have already explored this on a small scale.
Lynnie avatar
SoWal Insider
#18
I just did a quick search and it appears that just this year all of the traditional cos., large and small, have tapered their funding for R&D regarding alternative fuel/energy sources. The main reason is the global recession. This is disappointing as I've always believed in alternative sources for energy.

However, and this I love, Michigan State and Univ. of CO are currently the leaders. They are well-endowed and have probably received strong grants, which in an academic atmosphere goes a little further than paying fat salaries. Interesting!
Smiling JOe avatar
SoWal ExpertAuthor
#19
Another leader might be the man who decided to tinker with battery technology and started making lithium ion battery motors for cars. He sold his idea to a few companies, and BMW brought him on board to make the 204 hp Mini "E" (E for electric), which can go 150+ miles on a single charge.

I guess technically speaking, this isn't alternative energy, since it would have to be plugged into the grid which is primarily fed by coal, which is probably a bigger polluter than oil.

Iris avatar
Beach Fanatic
#20
I worked on an offshore research vessel about 15 years ago. I was the computer guy for my boat. We were a part of a fleet of vessels that laid cable on the bottom of the ocean and created a 4D map of the ocean floor. We mostly worked offshore in LA or TX. There is tons of that going on out there every day, 24 hours a day. It is really nothing new. If you have never been on a boat off the coast of LA, then you probably would not believe all the stuff going on. There are boats, ships, and structures (production platforms, rigs, well heads, etc) everywhere. It looks like a city at night. That is not even counting the commercial fisherman.

This block is south of Cameron, LA which is just at the TX and LA border. It is in the normal oil field. It is not anywhere close to us. If you have have ever been to the beach in Cameron or Holly Beach then you will quickly see that you are not missing much. Holly Beach is nestled between Mud Lake and the muddy Gulf. There is a highway that runs between Cameron and Port Aurthur. It is much like 30A except it goes right along the waters edge. It is great for fishing and laying out on the rocks (that are there to keep the road from washing away). You can actually do a Google Maps street view of the area.

I am sure they would never turn our coast into something like that. Oil is LA and TX primary industry and tourism is ours. It just doesn't make sense to jeopardize our primary source of income.


Holy Beach vacation homes were wiped out during Hurricane Gustav or Ike (can't remember). We were there last fall and visited. It is now a ghost town, not that there was much there to begin with. One house remains and happens to belong to my sisters best friend.

And yes, you are right oil is their industy. It used to be fishing and shrimping also, but Katrina and Rita along with the foreign markets has taken most of that. My sister and I inherited timber land throughout SW LA and I say bring on the donkies and drills!!!

I also hope they stay over there. They have no beaches to really ruin.
DD avatar
SoWal Expert
#21
I worked on an offshore research vessel about 15 years ago. I was the computer guy for my boat. We were a part of a fleet of vessels that laid cable on the bottom of the ocean and created a 4D map of the ocean floor. We mostly worked offshore in LA or TX. There is tons of that going on out there every day, 24 hours a day. It is really nothing new. If you have never been on a boat off the coast of LA, then you probably would not believe all the stuff going on. There are boats, ships, and structures (production platforms, rigs, well heads, etc) everywhere. It looks like a city at night. That is not even counting the commercial fisherman.

This block is south of Cameron, LA which is just at the TX and LA border. It is in the normal oil field. It is not anywhere close to us. If you have have ever been to the beach in Cameron or Holly Beach then you will quickly see that you are not missing much. Holly Beach is nestled between Mud Lake and the muddy Gulf. There is a highway that runs between Cameron and Port Aurthur. It is much like 30A except it goes right along the waters edge. It is great for fishing and laying out on the rocks (that are there to keep the road from washing away). You can actually do a Google Maps street view of the area.

I am sure they would never turn our coast into something like that. Oil is LA and TX primary industry and tourism is ours. It just doesn't make sense to jeopardize our primary source of income.

Holy Beach vacation homes were wiped out during Hurricane Gustav or Ike (can't remember). We were there last fall and visited. It is now a ghost town, not that there was much there to begin with. One house remains and happens to belong to my sisters best friend.

And yes, you are right oil is their industy. It used to be fishing and shrimping also, but Katrina and Rita along with the foreign markets has taken most of that. My sister and I inherited timber land throughout SW LA and I say bring on the donkies and drills!!!

I also hope they stay over there. They have no beaches to really ruin.

Holly Beach was wiped out by Hurricane Rita. They are beginning to slowly rebuild, but it will never be the sleepy little hunting camp it used to be again. Thankfully, I did get to spend lots of time there when it was an experience in LA culture! :biggrin:
I loved it, but it was and still is one pretty nasty beach. Too much oil drilling just off shore and 5 rivers dumping into the Gulf nearby. I can imagine that even before the drilling it wasn't a pristine beach.
Good times though. :biggrin:

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