Chevron finds oil 6 miles below Gulf sea level

Fuel Fix:

Chevron struck oil in a well drilled more than 6 miles deep in a new field off the coast of Louisiana, the company said Monday.

Operating in 6,000 feet of water, Chevron drilled through a thick underground salt layer to find oil at a depth of 31,866 feet below sea level.

The well found 400 feet of net oil pay. Feet of net pay is a measurement used by oil companies to gauge the vertical thickness of the hydrocarbon-bearing area found in an exploration well.

The so-called Coronado prospect is located more than 190 miles south of Louisiana and is a part of a region dubbed the Lower Tertiary Trend, which is especially challenging to drill in because a thick underground salt layer makes seismic scans challenging to read.

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The cost of operating an ultradeepwater drillship to work in those conditions can exceed $600,000 per day.

Chevron has other major discoveries in the deep water Gulf area.  They seem to have developed the kind of expertise in these waters that evaded BP.  Getting this oil to market should be interesting.  This is another area where we should be encouraging exploration.