• 6 minutes U.S. Shale Oil Debt: Deep the Denial
  • 12 minutes Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 17 minutes WTI @ $75.75, headed for $64 - 67
  • 8 mins Trump vs. MbS
  • 4 hours Nuclear Pact/Cold War: Moscow Wants U.S. To Explain Planned Exit From Arms Treaty
  • 55 mins Why I Think Natural Gas is the Logical Future of Energy
  • 2 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 7 hours Get on Those Bicycles to Save the World
  • 1 day The Dirt on Clean Electric Cars
  • 13 hours Can “Renewables” Dent the World’s need for Electricity?
  • 2 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day Owning stocks long-term low risk?
  • 15 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 3 hours Long-Awaited Slowdown in China Exports Still Isn’t Happening
  • 6 hours Can the World Survive without Saudi Oil?
  • 13 hours Satellite Moons to Replace Streetlamps?!
Alt Text

BP CEO: $80 Oil Is Unhealthy For The World

BP Chief Executive Bob Dudley…

Alt Text

UAE Boosts Production, Introduces New Crude Blend

UAE’s ADNOC is boosting production…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

The Deepest Exploration Well Ever Signals A Return For Offshore Oil

Oil prices have been a big item lately — with crude plunging below $45 per barrel in recent weeks.

But quiet reports across the industry show costs for oil and gas drillers may be falling even faster than that. With recent studies showing that offshore oil projects may actually be feasible at or near current prices.

That sentiment appears to be trickling through to project activity on the ground. With one first-of-a-kind exploration project announced this week showing that E&Ps are once again going big for offshore targets.

That project is in the Caspian Sea of central Asia. Where an international consortium of companies signed a “historic” deal this week to drill the deepest exploration well ever attempted by the global petroleum industry.

The so-called Eurasia project will be attempted by China’s CNPC along with Italy’s Agip, America’s NEOS GeoSolutions, Azerbaijan’s state oil firm SOCAR, and Kazakhstan’s RN-Exploration and KazMunayGas-Eurasia. With those partners having been cooperating for “several years” already in compiling data and geophysical studies on the play.

Here’s the plan: the partners will now prepare to drill an exploratory well up to 15 kilometers depth targeting oil under the Caspian depression. A feat that would eclipse the previous-deepest well ever drilled, the 12.3 kilometer Kola Bore Hole at Murmansk, Russia.

This will obviously be a massive technical challenge. But the consortium says the prize could be worth it — with estimates suggesting the deep basin here could hold up to 60 billion tonnes (429 billion barrels) of crude. Related: Goldman Sachs: Oil Crash Unlikely To Continue

Interestingly, the consortium is moving ahead with this target without the aid of any major names in the Western international E&P business. Meaning that a success here could mean a major shift in power away from the “big names” in the industry to rising players like CNPC.

No timeline was given for the drilling — watch for further announcements from the consortium on when exactly this record-breaker will come down. It won’t be immediate, but this is a potential gamechanger worth keeping an eye on.

Here’s to going deep.

By Dave Forest

More Top Reads From Oilprice.com:


x


Back to homepage

Trending Discussions


Leave a comment
  • Henry on June 29 2017 said:
    With the world awash in oil projects like this should not only be banned they should be illegal
  • Bill Simpson on July 01 2017 said:
    BP is also working on developing new technology for such deep drilling.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News