The report was updated to correct a bad link. (Mar. 22 7:45 pm PDT)
Just how deep is that oil?
Anadarko announced this week that it had discovered a “potentially giant” oil field in the deep waters of the Gulf of Mexico. The Shenandoah well is in 5,800 feet of water. From there they drill down another 26,500 feet below the seabed to reach the oil.
To give some perspective on just how far that is consider that if you could look down at the bottom of the well it would be like looking out the window of a commercial jet making a transcontinental flight at over 32,000 feet.
2012 ASPO-USA Conference Highlights. Other video presentations from the 2012 conference and past conferences are also available on the ASPO-USA web page.
Russian oil company is now the biggest
According to the Financial Times Russian oil company Rosneft is now the on top passing Exxon. “Rosneft’s acquisition of TNK-BP made it the world’s largest publicly traded oil producer, accounting for around 5 per cent of global production. The enlarged company will pump out between 4.2m and 4.3m barrels a day.”
That means that Rosneft is producing over 60% as much oil as the total production in the United States (7 mb/d) and more than any Opec member except Saudi Arabia (EIA).
It is interesting to note that BP decided to use the proceeds to buy back shares and pay down debt rather than pursue an acquisition.
US rig count falls by 30
According to Baker Hughes the U.S. rig count fell by 30 last week. The decline was 17 in oil directed and 13 in natural gas with all of it in horizontal rigs. Rigs drilling for gas are again falling towards 400.