Mr. Rawles
I read your blog often, thanks for the entertaining and informative site. I would like to comment on David from Israel’s post regarding Chevron’s oil strike in the gulf. I work for a very large E & P company and have many years experience in drilling and production. There is nothing holding back the exploitation of this field except time to build the facilities and and acquiring the drill ships (cost $500,000+ per day for the ship) to punch the holes. We routinely produce gas and oil from 24,000′; the depth of the water does not really matter any longer. The bottom hole temperatures and pressures are the main factors; and we have equipment to handle those at the depths Chevron is drilling. We should see production from this field in approximately five years; time for pipelines and sea bed production facilities to be put in place.
I am currently drilling 28,500′ on land, hence higher temps and pressures that Chevron is seeing on their well in the Gulf. However the general public simply does not realize the amount of money and the logistics it takes to perform these duties. We currently have falling oil and gas prices and the doubling and tripling of service company charges to the oil companies; you will start to see drilling rig idle at $50 per barrel oil and $5.00 [per gallon] natural gas. The comparison that David made ” cruising altitude for an airliner, compare that depth to the 69 foot depth of the first commercial oil well in the USA.” holds some insight the 69′ well could be drilled with a wooden derrick and steam power, today we have high tensile alloy, exotic fibers and 5,000 hp diesel electric motors; also computer power than all but the largest Universities and probably more people with doctorate degrees than those same institutions. We routinely spend $5,000,000 for a 15,000′ gas well! Higher fuel prices are here to stay. The SUV and the McMansion will ensure that. Thanks, – RJ
JW,
The letter you posted from David in Israel regarding the recent Chevron discovery in the Gulf is simply and flatly false. I have worked in the oil patch here in Texas for decades, although costly it is routine to not only drill to that depth but also easily produce and refine oil from that depth. He simply has zero knowledge of routine oil production processes. That well will be in production within 24 months if not sooner. In addition, the Gulf and other areas hold equally large deposits of both crude and natural gas. Cost is the only factor in determining whether or not a well is viable. – Doc in Texas