Posted: Fri Apr 04, 2008 8:46 am Post subject: 31,000 Feet - That's deep
"BP America announced today an oil discovery at its Kodiak prospect in the deepwater Gulf of Mexico. The well, located in Mississippi Canyon block 771 approximately 60 miles (95 kilometers) southeast of the Louisiana Coast, is in about 5,000 feet (1,500 meters) of water.
The Kodiak well was drilled to a total depth of approximately 31,150 feet (9,494 meters) and encountered about 500 net feet (152 meters) of hydrocarbon-bearing sands in Middle and Lower Miocene reservoirs.
The well was deviated with a horizontal step-out of 7,400 feet (2,250 meters). Further appraisal will be required to determine the size and commerciality of the discovery.
"This discovery, in the vicinity of our 2003 Tubular Bells discovery, further strengthens BP's resource base in the Gulf of Mexico and has the potential to become an important new source of production for the USA," said Andy Inglis, Chief Executive, Exploration and Production.
The well is operated by BP Exploration & Production Inc., a wholly-owned subsidiary of BP America Inc., with a 63.75 percent working interest, and includes co-owners Eni with a 25 percent working interest, and Marubeni Oil & Gas (USA) Inc. with an 11.25 percent working interest. The lease was acquired at federal OCS Lease Sale 182 in March 2002."
Just an FYI -- _________________ "It don't make no sense that common sense don't make no sense no more"
John Prine
Joined: Sep 16, 2004 Posts: 4446 Location: Southwest WI
Posted: Fri Apr 04, 2008 9:24 am Post subject: Re: 31,000 Feet - That's deep
6 miles below the surface... Not bad. How big is the pipe they shove down there (like the diameter)??? Would be fun to dig holes that deep. I have trouble digging a 4 foot hole in my yard. _________________ "Oil is going up because we use too much oil, and the capacity to replace reserves is dwindling"
-President Bush 11/07/07
Posted: Fri Apr 04, 2008 10:37 am Post subject: Re: 31,000 Feet - That's deep
Hawkcreek said:
Quote:
The Kodiak well was drilled to a total depth of approximately 31,150 feet (9,494 meters) and encountered about 500 net feet (152 meters) of hydrocarbon-bearing sands in Middle and Lower Miocene reservoirs.
Unless they hit nitroglycerine down there, this is going to be one of those wells that they will be putting more energy into than they will be getting out. As long as they can convince the Saudis and Nigerians to keep supplying them with high energy crude to make up the difference, they’ll pump it. We’ll just come one step closer to Peak - and all that will mean.
Posted: Fri Apr 04, 2008 11:03 am Post subject: Re: 31,000 Feet - That's deep
Do you know how long their time horizon has been? Beginning from building the rig to actual marketed production. It has to be quite a few years and not easily copied.
Joined: Sep 25, 2004 Posts: 4542 Location: Boston, MA
Posted: Fri Apr 04, 2008 11:24 am Post subject: Re: 31,000 Feet - That's deep
This could be useful as a chemical feedstock in the distant future.
But as an energy source, it's probably not worth it.
I would need to see what kind of profit/loss statements they are able to produce from this well. I think the capital inputs necessary to suck up oil from 6 miles down would make any attempt to do so highly unprofitable.
AKA, this looks a deep hole in ground to toss money into. _________________ "www.peakoil.com is the Myspace of the Apocalypse."
Posted: Fri Apr 04, 2008 12:11 pm Post subject: Re: 31,000 Feet - That's deep
Couple things to note. First they have not even determined if the amount of oil is commercially viable to extract. Given the depth of the find it has to be more rather than less to make it viable. Also, anything discovered in deep water at this point will probably have nil effect on the actual peak date due to the long lead in time for oil is pumped from sites like this.
As far as drilling ever deeper, eventually drilling deeper is pointless because geology sets a limit due to the temperature of the rock increases with depth. Eventually it gets too hot to oil in liquid form to form and survive.
Posted: Fri Apr 04, 2008 12:14 pm Post subject: Re: 31,000 Feet - That's deep
Quote:
I would need to see what kind of profit/loss statements they are able to produce from this well. I think the capital inputs necessary to suck up oil from 6 miles down would make any attempt to do so highly unprofitable.
Then why would BP drill the well in the first place? Oil companies, especially ones the size of BP don't do things that will not make them money. Prior to even approving bidding in the lease sale they would have run detailed economic models that take into account drill costs (a well like this is likely to cost in the $70 - $100 MM range I would think), completion costs, subsea tie-in, tarrifs, taxes etc.
Posted: Fri Apr 04, 2008 12:30 pm Post subject: Re: 31,000 Feet - That's deep
Quote:
As far as drilling ever deeper, eventually drilling deeper is pointless because geology sets a limit due to the temperature of the rock increases with depth. Eventually it gets too hot to oil in liquid form to form and survive.
They are already having problems with thermal shock when the hot oil hits the production piping in wells a lot shallower than this. Some cracking and lots of growth in the length of the string.
Yes, I agree --- this will be some high dollar oil - if it is ever produced. _________________ "It don't make no sense that common sense don't make no sense no more"
John Prine
run by some Norwegian guy, headquartered in London.
i believe Matt Simmons when he says a lot of the infrastructure is rusting. but i'm pretty sure Seadrill keeps their drilling riggings in good shape. _________________ http://www.LASIK-Flap.com/ ~ Health Warning about LASIK Eye Surgery
Posted: Fri Apr 04, 2008 3:18 pm Post subject: Re: 31,000 Feet - That's deep
That's twice as far as the oil producing depths needed to form oil - as described by Ken Deffeyes. He has said that beyond about 15,000 feet the organic precursor is cracked into natural gas by the high pressures and temperatures.
What's the deal with oil at 31,000 feet? I wonder how much deeper will it be found?
Posted: Fri Apr 04, 2008 3:38 pm Post subject: Re: 31,000 Feet - That's deep
I just read yesterday that the deepest well so far drilled is in Siberia by Exxonmobil and Neftegas. It is 37,000 and they found a good amount of NG. That is deep.
Joined: Sep 16, 2004 Posts: 4446 Location: Southwest WI
Posted: Fri Apr 04, 2008 3:40 pm Post subject: Re: 31,000 Feet - That's deep
Why couldn't they shove nuclear waste down one of these holes? _________________ "Oil is going up because we use too much oil, and the capacity to replace reserves is dwindling"
-President Bush 11/07/07
Joined: Sep 25, 2004 Posts: 4542 Location: Boston, MA
Posted: Fri Apr 04, 2008 3:55 pm Post subject: Re: 31,000 Feet - That's deep
rockdoc123 wrote:
Quote:
I would need to see what kind of profit/loss statements they are able to produce from this well. I think the capital inputs necessary to suck up oil from 6 miles down would make any attempt to do so highly unprofitable.
Then why would BP drill the well in the first place? Oil companies, especially ones the size of BP don't do things that will not make them money. Prior to even approving bidding in the lease sale they would have run detailed economic models that take into account drill costs (a well like this is likely to cost in the $70 - $100 MM range I would think), completion costs, subsea tie-in, tarrifs, taxes etc.
You're right.
I think based on the depth we're talking about natural gas here, not oil.
It just seems like an extremely expensive way to get natural gas. With gas that far down, the pressures must be higher than normal leading to the need for specialized processing equipment, right?
They must be predicting a pretty high future price for natural gas in order to justify this kind of investment.
This is something to watch over the next couple years, I suppose. _________________ "www.peakoil.com is the Myspace of the Apocalypse."
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