High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
Chevron Corporation (NYSE: CVX) together with BP announced Thursday a significant new oil discovery at the Guadalupe prospect in the deepwater U.S. Gulf of Mexico.
The Keathley Canyon Block 10 Well No. 1 encountered significant oil pay in the Lower Tertiary Wilcox Sands, both Chevron and BP said in separate statements. The well is located approximately 180 miles off the Louisiana coast in 3,992 feet of water and was drilled to a depth of 30,173 feet.
The Guadalupe is operated by Chevron U.S.A. with a 42.5% stake. BP Exploration & Production Inc. meanwhile has 42.5 percent working interest and Venari Resources LLC the remaining 15 percent.
“The discovery further demonstrates Chevron’s exploration capabilities,” said George Kirkland, vice chairman and executive vice president, Upstream, Chevron Corporation. “Guadalupe builds on our already strong position in the deepwater U.S. Gulf of Mexico, a core focus area where we expect significant production growth over the next two years.”
“Chevron subsidiaries are among the top producers and leaseholders in the Gulf of Mexico, averaging net daily production of 143,000 barrels of crude oil, 347 million cubic feet of natural gas, and 15,000 barrels of natural gas liquids during 2013,” said Jeff Shellebarger, president, Chevron North America Exploration and Production Company. “The company expects additional Gulf of Mexico production from the Tubular Bells and Jack/St. Malo projects by the end of the year.”
Chevron subsidiary Chevron U.S.A., Inc. began drilling the Guadalupe well in June 2014 using Transocean’s Discoverer India deepwater drillship. More tests are being conducted on the discovery well and additional appraisal wells will be needed to determine the extent of the resource.
BP has previously made three discoveries in the emerging Paleogene trend in the deepwater U.S. Gulf of Mexico: Gila in 2013, Tiber in 2009 and Kaskida in 2006.
“BP is pleased to be a part of another discovery in the Paleogene trend, an area of increasing importance to the future of the Gulf of Mexico and to America’s energy security,” said Richard Morrison, regional president of BP’s Gulf of Mexico business. “This again highlights BP’s strength in exploration and our commitment to the deepwater U.S. Gulf of Mexico where we are the leading energy investor and leaseholder, and a top oil and natural gas producer.”
Join the 67,656 members that receive our newsletter.
Have a news tip? Let us know.