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Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

How Low Can You Go? - Deep GOM Oil Discovery

For BP, drilling in 4,132 ft (1,259 m) of water is pretty deep. However, their Tiber well in the Gulf of Mexico (GOM) was drilled down to 35,055 ft (10,685 m) making it one of the deepest wells ever drilled. The well found oil in multiple Lower Tertiary reservoirs and is touted to be larger than the  Kaskida field holds an estimated 3 billion barrels.

Drilling a more or less vertical hole over 6 miles deep is an amazing accomplishment but finding enough oil to make it a profitable endeavor is even more impressive.

BP (BP) is operator of the Tiber project with a stake of 62 percent, while Petroleo Brasileiro SA (PBR), Brazil’s state-controlled oil company, holds 20 percent and ConocoPhillips (COP) 18 percent.

It is interesting to note that Petroleo Brasileiro (aka PetroBras) is moving towards a more state control in the development of their ultra-deep oil resources. The international oil field is not a level one.