Wood MacKenzie - GOM Oil Discoveries In 2007 "Disappointing" - Lowest In Past Decade - FT

[hatrack]

Disappointing oil exploration results in the Gulf of Mexico are upsetting the hopes of US oil majors for big new findings in an area free from interference by foreign, state-owned oil companies. Wood MacKenzie, the energy consultancy, said in a new report that findings in the Gulf in 2007 were the lowest of the past decade. With a total of 553m barrels of oil equivalent, these new reserves were less than half of what was found in 2006.

The deep-water Gulf of Mexico is one of the few areas to which the majors have access without the fear of intervention by state-owned oil companies. National oil companies now control more than 80 per cent of the world’s oil reserves and have used new-found wealth and skills developed under the majors to bar them from many new exploration sites.

“The Gulf of Mexico represents what many companies believed was the safest, most prospective area open to them in the world,’’ said Robin West, chairman of PFC Energy, the consultancy. Disappointing exploration results put more pressure on the companies’ portfolios, he said.

According to the report, exploration in the Gulf deep-water region is becoming more costly. The average quantity discovered per exploration well decreased in 2007 to 16m barrels of oil equivalent – well below the 10-year average for the region of 26m barrels of oil equivalent per exploration well.

EDIT

http://www.ft.com/cms/s/0/22b38f56-ee13-11dc-a5c1-0000779fd2ac.html?nclick_check=1

On edit: fixed headline spelling.


EDIT

http://www.ft.com/cms/s/0/22b38f56-ee13-11dc-a5c1-0000779fd2ac.html?nclick_check=1

[GliderGuider]

1. So in the last year they found a single week's worth of oil in the GOM.

I thought the economists promised us we'd start finding brazillions of barrels, given the new higher oil prices? :shrug:

[hatrack]

2. I remember getting a laugh with my question at ASPO Boston . . . .

I referred to media coverage of "Jack 2, the brave little 6,000b/d test well that saved the world." Looks like Jack et. al aren't quite up to the job. Gosh, who knew?

Still, LTGOM may be expensive - but at least there isn't all that much there!!!

[hunter]

3. Whadya' mean there's no money left?! I still have checks!!!

Ooops.