Deepwater oil starting to hold its own with shale, Chevron says
The idea is to force crude from newly drilled wells in the deepest parts of the Gulf of Mexico to flow through miles and miles of pipe to platforms built a decade or more ago, said Jay Johnson, Chevron’s executive vice president for upstream. By lopping off the billions it would cost to construct each new platform, offshore exploration begins to make economic sense again.
“So new areas like Anchor, Waterloo, Tiger, Gibson, Whale, Valleymore, we’ve got a portfolio of new discoveries waiting for development as we continue to bring these costs down,” Johnson said during a presentation Monday at the Scotia Howard Weil Conference in New Orleans. “There are a lot of questions whether deepwater can compete. But things are changing in deepwater quite dramatically.”
