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| Caribbean-Latin America |
| Mexico announces major new oil find |
| 2006-03-15 |
| President Vicente Fox climbed aboard a drilling platform in the Gulf of Mexico on Tuesday to formally announce a new deep-water oil discovery he said could eventually yield 10 billion barrels of crude oil. An exploratory well dubbed Noxal 1 was drilled at a depth of 3,070 feet below the water, and is seeking a depth of 13,125 feet. "With Noxal we will begin a new era of oil exploration in our country," Fox said aboard the "Ocean Worker 6 Britania" platform. Government estimates say the find could exceed reserves at the giant offshore field Cantarell, Mexico's largest oil field, which has seen its production decline but is still expected to yield 1.9 million barrels a day this year. Luis Ramirez, chief executive of Mexico's government-run oil monopoly Petroleos Mexicanos, or Pemex, said Noxal is the fourth deep-water well explored by Pemex. Ramirez said that while production tests will be conducted in coming weeks, "evidence found is sufficient to infer potential reserves to be discovered that could reach 10 billion barrels of crude oil equivalent." "This number, compared with annual production of 1.6 billion barrels of crude, shows its strategic importance," Ramirez said, adding that crude oil production at Noxal likely won't begin for eight to 10 years. Fox said his administration has invested more than $6.3 billion in exploration in the last five years. Pemex expects the new find to offset further production declines at Cantarell expected in coming years. Pemex contracted a private company to drill the well. The fastest way to get the oil out would be by Pemex forming alliances with companies that have the deep-water technology. However, current laws forbid private companies from exploration and production activities in Mexico except under contract to Pemex. The Fox administration has been attempting to ease foreign investment restrictions in the state-run energy sector. But those efforts have been blocked in Congress. Pemex produced 3.33 million barrels a day of crude oil last year, of which it exported 1.82 million barrels. This year, the company expects to raise production to about 3.42 million barrels a day. |
| Posted by:lotp |
| #10 Glenmore - So what are you trying to say? lol |
| Posted by: Laurence of the Rats 2006-03-15 18:44 |
| #9 BTW, I'm in the business, but know nothing about this discovery specifically. If I did know anything I would not be able to say anything. At all. |
| Posted by: Glenmore 2006-03-15 18:14 |
| #8 It's a poorly written article, but my guess is the 3070 feet referred to is the water depth where the well is being drilled and 13,125' is the depth to the bottom of the well. This is consistent with where we have recently made some large discoveries in the US Gulf of Mexico (eg. BP Thunder Horse). This is also consistent with the long lead time (8-10 years) to production - it takes a long time to build stuff to produce oil in that depth of water (though we do it a good bit faster here). Furthermore, the 10 billion barrel number is probably 'optimistic' - ie. 'about the biggest we can imagine fitting into this place' - but the presence of El Presidente still indicates they think it is pretty darn big. My guess - 2 to 4 billion barrels maybe? |
| Posted by: Glenmore 2006-03-15 18:12 |
| #7 that's how far Hugo's ass puckered.... Goodbye oil hegemony! |
| Posted by: Frank G 2006-03-15 15:04 |
| #6 I'm no Texas Geologist, but if you hit a "Presidential fly me out to the platform immediately" crude oil formation at 3,070 feet (which is a pretty shallow well) with a wildcat hole, why take er on down to 13,125 feet? Something ain't just right here. |
| Posted by: Visitor 2006-03-15 14:52 |
| #5 Whoopee! Another new source of corruption! |
| Posted by: borgboy 2006-03-15 14:49 |
| #4 Causing anxiety in some other parts of the world. Yup. |
| Posted by: lotp 2006-03-15 14:40 |
| #3 So, just this week we have announcements of large new reserves in Kuwait, Afghanistan and Mexico. Interesting. |
| Posted by: Iblis 2006-03-15 14:39 |
| #2 Given the oil business is nationalized, how much of the revenue will end up lining the pockets of all the corrupt government office holders, bureaucrats, and 'good o'amigos'? How much will be plowed into infrastructure, education, and health services for the people who in desperation seek 'El Norte'? |
| Posted by: Gloluns Hupeagum6020 2006-03-15 13:46 |
| #1 Was it in Fox's smile or his hair? |
| Posted by: Cheaderhead 2006-03-15 10:26 |