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  • Huge Oil Discovery in Gulf of Mexico Underscores Importance of Exploration

     

    President Obama’s decision to allow some deepwater drilling to resume in the Gulf of Mexico is already yielding impressive results. ExxonMobil announced yesterday it had discovered what amounts to 700 million barrels of oil in the Gulf — the largest find in 12 years.

    The discovery comes about two months after ExxonMobil had resumed drilling under new regulations put in place by the Obama administration. The company had drilled two wells at the site prior to last year’s oil spill, but was forced to cease work when the government imposed a moratorium on deepwater drilling. This new third well is 7,000 feet below water.

    “This is one of the largest discoveries in the Gulf of Mexico in the last decade,” said Steve Greenlee, president of ExxonMobil Exploration Co.

    The House Natural Resources Committee estimated the discovery would translate to 14 billion gallons of gas and more than two months of current U.S oil production.

    After nearly of a year of drilling delays — first with a government-imposed moratorium and then a months-long “permitorium” — the administration has only recently begun to issue permits for deepwater wells. However, the pace still lags significantly behind the historical average, causing economic harm to the region. (Watch our videos featuring business owners Leslie Bertucci of R&D Enterprises, Randall Stilley of Seahawk Drilling, and Thomas Clements of CNC Machining and Todd Hornbeck of Hornbeck Offshore.)

    New data from Greater New Orleans Inc. last week indicated that deepwater permit issuance from the Bureau of Ocean Energy Management, Regulation and Enforcement is down 88 percent from the previous year’s average. The agency is approving only 0.7 deepwater permits per month.

    Even shallow-water permits are down 15 percent from the historical average of 7.1 per month. The administration is currently approving six shallow-water permits per month.

    Given the news of ExxonMobil’s discovery, one can only wonder how much oil production was sacrificed as a result of the moratorium and the Obama administration’s subsequent delays.

    “Let’s remember that this successful project was approved and moving into location at the time the moratorium was put into place, and sat idle from 2010 through March 2011,” House Oversight Chairman Darrell Issa said in response to the news. “Lost time is lost opportunity and the economic price has been paid by workers in the Gulf region and consumers at the gas pump.”

    The U.S. House recently passed a trio of bills that would increase energy production that now await action in the Democrat-controlled Senate.

    Posted in Scribe [slideshow_deploy]

    16 Responses to Huge Oil Discovery in Gulf of Mexico Underscores Importance of Exploration

    1. Arch Stanton, USA says:

      700 million barrels ain't huge, not when global consumption exceeds 80 million PER DAY. Moreover, what is the flow rate. And, speaking as a former exploration geologist, every new well redefines the reservoir boundary. Thus, it can and will change. Please, an accurate assessment of reserves is in order for a stable economic future.

    2. Taint Boil says:

      700 million barrels is about 35 days of consumption in the USA ……….. WOW!

    3. Christopher Landrum says:

      It's great to see the Foundary equate some numbers doled out by a corporation's public relations campaign with genuine scientific fact. Volatire got it right: this is the best of all possible worlds.

    4. William Hearn, Alaba says:

      This find is a great beginning. Better in the Gulf than off the coast of Brazil as our President proposes. Let's keep the heat on Congress to drill!

    5. Lloyd Scallan (New O says:

      The point must be made that this particular lease sale had already been in place, thus the drilling operation was not further delayed waiting for Obama's lackeys to approve the sale.

      Arch – Would you prefer this 700 million barrels come from the Middle East or Obama's new revolutionary friends in Barzil, via hundreds of tanker vessels, at inflated cost for not only the product, but the cost of transportation? By the way, most spills world wide occure during transporation, (i.e. tankers).

      Of course the "reservior boundry" and the "flow rate" will change with the extraction of the product. But that doesn't mean the "reservoir" or "flow rate" will necessarily decreased since no one knows the size of the reservoir.

      More to the point, this is just one drilling operation. If you know the oil business as you suggest, then you know this platform could drill several wells into seperate reservoirs using "directional drilling", that could produce even more product.

      As for a "stable economic future", that will never be if we continue to allow this president to delibertly prevent any chance of energy independence and the loss of thousands of jobs by delibertly destroying this industry because of his hatred of all fossil fuels and to pay-back his radical environmentalist supporters.

      Taint – Would you prefer NOT to have this "35 days" of USA consumption or as

      I asked Arch, have it shipped in from the Middle East or Brazil, instead of our own sources? Or are you naive enough to think that by NOT having this additional 700 million barrels, this nation's energy system will be better off?

    6. larry, Idaho says:

      Both "Taint" and "Arch", above, are dismissive of a 700 million barrel find. I suggest that you two experts calculate the number of windmills or solar panels it would take to produce an equivalent amount of energy, and then give us your expert opinion on the Obama administrations energy policy.

    7. randydutton says:

      Arch – typical progressive to dismiss any good news when oil is mentioned.

      700 million barrels = $70 billion added to our economy; thousands of union jobs; lower fuel costs for Americans; and less money to oil rich tyrants..

    8. roger thomas califor says:

      There are at least 6 oil rigs off the coast of Huntington Beach. They are easily visible and have not been a source of leak or jeapordy to the environment for over 25 years. Drilling off the coast of California should be included. If we don't drill we lose the technical know how to the Norwegians. They drill in the North Sea, a lot more turbulent than the bath water environment of California. They have no spills. We need to keep up.

    9. Gary C, Waxhaw, NC. says:

      Great news! Which foreign country is going to get to drill for it?

    10. Hayes, Leland says:

      You people get just what the people voted for. This man was going to save the world. Remenber 2012!

    11. Mac, New Orleans says:

      If there was no moratorium and another oil disaster happened, everyone would be screaming, "Why did he allow this to continue?!?"

      He can't win for losin' on this one. And, after reviewing the Oil Spill Commission report regarding all the human errors related to the BP disaster, y'all should be ashamed for suggesting that he should have let the lax attitudes and corner-cutting continue without at least putting them in check.

      And yes, when I speak of lax attitudes and corner-cutting, I'm also referring to the MMS as well as the oil industry.

    12. Spiritof76, NH says:

      I am just tired fo waiting for the Obama administration to hand out licenses as though we are being ruled by a king or oligharky. Mr. Issa should have filed immediately a legislation to defund EPA, Dept. of Energy and Dept. of Interior. We need action on the regime and not handouts from the regime. The resources belong to the people and my children and grand children do not have to become economic slaves to this regime or any regime.

    13. Pingback: Huge Oil Discovery in Gulf of Mexico

    14. Sandy Olnhausen P O says:

      Employed by Sinclair and Amoco Oil in the 1950's we were told the planet would be out of low cost petroleum products by the year 2010. Now, even though world consumption has exponentially multiplied many times, we have more reserves than ever imagined with no end in sight. How's subsidized solar and wind working out for you now?

    15. Tommy, Tucson says:

      Wind and solar produce electricity. Oil runs our cars. Build all the windmills you want, they will only provide power to the Chevy Volt which is a "joke" as far as vehicles go. Sorry "Greenies", we need oil for our country to function.

    16. peter says:

      my cars nearly out of fuel drill more holes now

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