All this is premature speculation it takes months for them to determine how
much oil we are talking about. That can be a good or bad thing but in my
mind it's a false sense of hope that prevents us from finding an alternative
means of energy until we know for sure.




> wrote in message
ups.com...
> Chevron says Gulf drilling a success
>
> Well could become the nation's biggest new domestic source of oil,
> according to newspaper report. September 5 2006: 12:36 PM EDT
>
> NEW YORK (Reuters) -- 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.
> In Focus: Energy
> Betting billions on liquefied natural gas
> Slacking crude reserves and rising demand are driving what some are
> calling one of the biggest investment trends in the world. (more)
> Bailing on Big Oil
> Oil stocks just won't quit, but with crude prices slowing along with
> the economy, is now the time to sell? (more)
>
> One published report suggested the breakthrough could increase U.S. oil
> reserves by as much as 50 percent.
>
> During the test at record depths and pressure, the Jack No. 2 well
> flowed at more than 6,000 barrels of crude per day, Chevron (Charts)
> said. That puts it on a par with discoveries in exploration hot spots
> such as the waters off Angola.
>
> With U.S. oil output in decline, big new fields are increasingly rare,
> and oil companies are widening their search to more difficult places
>
> Chevron, the No. 2 U.S. oil company after Exxon Mobil (Charts), did not
> give an estimate of the field's reserves.
>
> The Wall Street Journal cited Chevron officials as estimating recent
> discoveries in the Gulf of Mexico could hold as much as 15 billion
> barrels of oil and gas reserves. That would boost U.S. current reserves
> by 50 percent.
>
> The region could become the nation's biggest new domestic source of oil
> since the discovery of Alaska's North Slope more than a generation ago,
> the Journal said.
>
> "This region is proving quite prospective. Certainly the test well
> results are on the top end of most analysts' ranges," said Jason
> Kenney, an analyst at ING in London.
>
> Mike Wittner of investment bank Calyon cautioned that until the size of
> the field was known it was difficult to draw conclusions.
>
> "It seems to be a significant find and there is still life left in the
> deepwater Gulf of Mexico, particularly as you move into ultra-deep
> water," he added.
>
> Chevron is the operator of the Jack prospect with a 50 percent working
> interest. Devon Energy (Charts) and Statoil (Charts) each own a 25
> percent working interest.
>
> "The results of the Jack test allow Chevron and its co-owners to better
> understand the deliverability of the emerging lower tertiary trend, a
> trend where Chevron is the largest leaseholder," said Gary Luquette,
> Chevron's President, North America Exploration and Production.
>
> Chevron was not immediately available for further comment.
>
> Chevron first announced the discovery of the Jack prospect in September
> 2004. It is 270 miles southwest of New Orleans and 175 miles offshore.
> The test on Jack 2 broke Chevron's 2004 Tahiti well-test record as the
> deepest successful well test in the Gulf of Mexico.
>
> More than half a dozen world records for test equipment pressure, depth
> and duration in deep water were set during the Jack well test, Chevron
> said.
>
> Chevron and its co-owners plan to drill an additional appraisal well in
> 2007.
>
> Chevron said it is the largest leaseholder in the deepwater Gulf of
> Mexico and is currently developing the $3.5 billion Tahiti project,
> scheduled to commence production in 2008.
> ----
>
> Patrick
>