Another rocky week for oil prices, with $4 per barrel swings in both WTI and Brent over the course of just a few days. While the United States eased up on the trade tariffs that it was set to levy on September 1, it leaned harder on Venezuela, this time sanctioning anyone who does business with PDVSA - even foreign companies that have assets in the US. In the meantime, crude oil inventories in the US rose this week, putting further downward pressure on oil prices.
Geology Rules the Day: Why The Guyana-Suriname Basin Is Ground Zero
Exxon’s made 13 discoveries offshore Guyana. Now, Tullow has followed suit with the much-anticipated results in from its Jethro-1 wildcat well in the Orinduik license.
It wasn’t until Exxon’s 13 discoveries that one was tempted to think that the age of discoveries was over, and the threat of peak oil was truly upon us. But geology is a tricky beast. The Guyana-Suriname Basin is full of stratigraphic traps, rather than faulted traps, and while the former have typically been more challenging to work with and have seen a lower commercial success rate, this is a live and learn situation that Exxon has now perfected, and which others are likely to follow suit--beyond Tullow.
Tullow Guyana drilled its Jethro-1 exploration well to 4,400 meters in 1,350 meters of water, encountering 55 meters of net oil pay. That’s more than Tullow forecast in its own predrill assessment. Tullow is now evaluating discovery…