Chevron sanctions $4B Big Foot Project in the deepwater Gulf of Mexico
16 December 2010
Chevron Corporation has sanctioned development of its $4-billion Big Foot project in the deepwater US Gulf of Mexico.
Big Foot will be Chevron’s sixth operated facility in the deepwater Gulf of Mexico and located approximately 225 miles (360 km) south of New Orleans, Louisiana, in water depths of 5,200 feet (1,600 m). The development will utilize a dry tree Extended Tension Leg Platform with an on-board drilling rig and have production capacity of 75,000 barrels of oil and 25 million cubic feet of natural gas per day. First oil is anticipated in 2014.
Discovered in 2006, the Big Foot field lies in the Walker Ridge Area and is estimated to contain total recoverable resources in excess of 200 million oil-equivalent barrels. Primary pay sands are Middle to Upper Miocene ranging from 19,000 to 24,000 feet (5,800 to 7,300 m) and lie below a salt canopy ranging from 8,000 to 15,000 feet (2,400 to 4,500 m) thick. Three exploration and appraisal wells with multiple sidetracks have been drilled safely and successfully in the field to define the Big Foot structure. Chevron, through its subsidiary Chevron USA Inc., has a 60% working interest in the Big Foot project.
Chevron is one of the top leaseholders in the Gulf of Mexico, averaging net daily production of 149,000 barrels of crude oil, 484 million cubic feet of natural gas and 14,000 barrels of natural gas liquids during 2009.
Is oil drilling exponential(twice as deep, four times the cost)? If so, 24,000 feet down(+ Gulf depth?) sounds like over $150/barrel oil for sure.
Some say only a public enemy would help force oil use and keep proven EV scale NiMH battery patents off commercial scale.
Will Chevron at least try do better than the BP Deepwater Horizon did at a 5,000 foot depth?
Why should they care? Our gas fillups and oil tax loopholes will and always have paid for the answer.
Posted by: kelly | 17 December 2010 at 06:51 AM
The good news is that in spite of the myriad of jobs killing policies of the current regime, Chevron still has enough faith in domestic energy for America, which is better than having it come from the middle east.
Posted by: ejj | 17 December 2010 at 09:16 AM
"..the myriad of jobs killing policies of the current regime.." has yielded record corporate profits, but there just seems to be a reoccurring problem with "trickle down" economics.
Posted by: kelly | 17 December 2010 at 05:35 PM
"but there just seems to be a reoccurring problem with 'trickle down' economics" because there just seems to be a reoccurring with new government mandates, taxes and spending...the biggest of which is Obama Care, and lets not forget paying people not to work for three years now through unemployment.
Posted by: ejj | 18 December 2010 at 06:19 AM
*unemployment benefits.
Posted by: ejj | 18 December 2010 at 06:19 AM
If the private sector was such an unstoppable dynamo, this would just be a bump in the road. More false excuses about health care and tax uncertainty just do more to reduce credibility.
Posted by: SJC | 19 December 2010 at 01:49 PM