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“Oils Well” in the Crude Business




Chevron and its partners made an announcement today that preliminary tests of a new deep-water well in the Gulf of Mexico could boost U.S. oil and gas reserves by as much as 50 percent. If the findings prove out, this would be the nation’s biggest new domestic source of oil since the discovery of Alaska’s North Slope more than a generation ago. The well was drilled to a depth of 28,175 feet in waters that are 7,000 feet deep.

As they say, every little bit helps and something like this would be a shot in the arm for a nation searching for greater energy independence. Simply finding more oil isn’t the long term answer, but it would buy us more time in the search for suitable replacements.

With the summer driving season drawing to a close and gasoline prices starting to drop I certainly hope that our greater focus on fuel economy isn’t lost. I don’t believe that any decrease in prices at the pump will be sustained long term, but any time that prices start to fall I worry about consumers and manufacturers falling into complacency.

source: wsj