• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 1 hour Permafrost Melting Will Cost Us $70 Trillion
  • 11 mins California is the second biggest consumer of oil in the U.S. after Texas.
  • 2 hours Let's just get rid of the Jones Act once and for all
  • 1 hour Saudi, UAE Overstate Their Oil Capacities?
  • 21 hours At Kim-Putin Summit: Theater For Two
  • 1 hour Robots And Emotions: Simulated Love Is Never Love
  • 21 hours NAFTA, a view from Mexico: 'Don't Shoot Yourself In The Foot'
  • 1 day UNCONFIRMED : US airstrikes target 32 oil tankers near Syria’s Deir al-Zor
  • 19 hours "Undeniable" Shale Slowdown?
  • 1 day Nothing Better than Li-Ion on the Horizon
  • 1 day New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 1 day Russia To Start Deliveries Of S-400 To Turkey In July
  • 22 hours Gas Flaring
The Military Coups Moving Oil Markets

The Military Coups Moving Oil Markets

From Algeria to Libya and…

Does Germany’s LNG Strategy Make Sense?

Does Germany’s LNG Strategy Make Sense?

The construction of new LNG…

Chevron Quits Australian Deepwater Oil Exploration

CVX

Chevron has decided to drop its US$500-million exploration program in the Great Australian Bight off the coast of South Australia as low oil prices make the commercial viability of any potential discovery doubtful, the company said in a statement.

Chevron acknowledged that the Great Bight has great potential, but added that in the current price environment, other projects better deserved the capital that Chevron would have had to allocate for exploration in the frontier region.

The U.S. giant has become the second Big Oil player to quit the Great Australian Bight, after last year BP dropped its exploration plans there.

BP faced a lot of environmental opposition and pressure from local authorities to make one environmental assessment after another there, and now Chevron’s exit from the Bight is seen by the local energy industry as a painful blow: exploration spending in Australia, both onshore and offshore, is at a 30-year low, according to Reuters.

Chevron, made a point of noting in its statement that their exit from the Bight had nothing to do with regulations. "This is a commercial decision and was not due to government policy, regulatory, community or environmental concerns."

The Great Australian Bight is a challenging place for oil and gas exploration because of its notoriously rough waters. It is also home to a great diversity of marine life, which is what has set environmentalists’ sights on oil and gas companies with interests there. These interests are motivated by resources that Wood Mackenzie has estimated at up to 1.9 billion barrels of oil equivalent.

Related: Traders Are Betting On $100 Oil In 2018

The Australian Petroleum Production and Exploration Association lamented the lack of sufficient investment in Australia’s energy resources following Chevron’s statement, although it did acknowledge the challenging oil price situation.

For environmental groups, the news is excellent, and now their only target in the Great Australian Bight is Norway’s Statoil, which last year acquired two of BP’s exploration permits.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • DreadPirate on October 13 2017 said:
    Really have to wonder how any deep water makes sense.

Leave a comment

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