• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 1 min Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 1 hour Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 2 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 2 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 2 days Modest drop in oil price: SPRs vs US crude inventory build
  • 2 days 2019 - Attack on Saudi Oil Facilities.
  • 5 days NordStream2
  • 4 days Ukrainian Maidan after 8 years
  • 4 days Peak oil - demand vs production
  • 5 days "How the CO2 shortage is impacting the food and drink sector" - Specialty Food Magazine
  • 5 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
Canada's Ambitious New Plan To Save Its Oil Sands

Canada's Ambitious New Plan To Save Its Oil Sands

Canada is looking to harness…

Is It Fair To Ask Africa To Stop Pumping Oil And Gas?

Is It Fair To Ask Africa To Stop Pumping Oil And Gas?

Many wealthier countries which once…

Dave Forest

Dave Forest

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

More Info

Premium Content

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:


Download The Free Oilprice App Today

Back to homepage





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




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News