ALAMINOS CANYON BLOCK 857, GULF OF MEXICO
— Two hundred miles off the Texas coast, ribbons of pipe are reaching
for oil and natural gas deeper below the ocean's surface than ever
before.
These pipes, which run nearly 2 miles deep, are connected
to a floating platform so remote that Shell named it Perdido, which
means "lost" in Spanish. What attracted Shell to this location is a
geologic formation, found throughout the Gulf of Mexico, that might
contain enough oil to satisfy U.S. demand for two years.
Though
Perdido is isolated, it isn't alone. Across the Gulf, companies are
probing dozens of new deep-water fields, thanks to high oil prices and
technological advances that make it possible to tap them.
The
newfound oil won't do much to lower oil prices. But — along with
increased production from onshore U.S. fields and slowing domestic
demand for gasoline — it could help reduce U.S. oil imports by more than
half during the next decade.
Eighteen months ago, such a flurry
of Gulf activity seemed unlikely. The Obama administration halted
drilling and stopped issuing new permits after the explosion of a BP
well killed 11 workers and caused a massive oil spill.
But the
moratorium was lifted, and the Obama administration issued the first new
drilling permit in March. Now the Gulf is humming again, and oil
executives say it's the world's best place to drill.
"In the short
term and the medium term, it's clearly the Gulf of Mexico," said
Matthais Bichsel, a Royal Dutch Shell PLC board member who is in charge
of the company's new projects and technology.
By early 2012, there
will be more rigs in the Gulf to drill in "deep water" — defined as
2,000 feet or deeper — than before the BP spill.
In November,
Perdido began pumping oil from a field called Tobago; the well begins
9,627 feet below the Gulf's surface. No other well on Earth produces oil
in deeper water, and that's about as deep as the Gulf gets. For
drillers, that means the entire Gulf is now within reach.
"We are
at the point where ... depth is not the primary issue anymore," said
Marvin Odum, head of Royal Dutch Shell's drilling unit in the Americas.
"I do not worry that there is something in the Gulf that we cannot
develop ... if we can find it."
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