New Oil Field in Gulf May Yield Billions of Barrels

By JOHN HOLUSHA
Published: September 5, 2006

What could be a major discovery of domestic oil in the Gulf of Mexico was announced today by a trio of companies led by Chevron Corporation.

The discovery, in the deepest water yet explored in the Gulf, could be the biggest domestic oil field since the northern Alaska field opened a generation ago. Its location near the coast of the United States makes it particularly attractive, said J. Larry Nichols, the chairman of Devon Energy Corporation of Oklahoma City, which holds a 25 percent interest in the find. The discovery “could not have happened in a better place,” he said in a news conference.

The the prospective yield of the area, called the lower Tertiary, could approach six billion barrels of oil, Devon said. The other owner, with a 25 percent interest, is Statoil of Norway. Chevron owns 50 percent.

This discovery represents less than a year's worth of our domestic consumption of oil. Fire up your SUVs, everyone, because you won't have much longer if this discovery is cause to celebrate.

-janelane, energy nerd