Chevron Breaks Offshore Drilling Record

Keith Kohl

Written By Keith Kohl

Posted September 4, 2010

Welcome to Energy and Capital’s weekend edition — our insights from the week in investing and links to our most-read Energy and Capital and sister publications.

How far are we willing to go for energy?

It’s a question I pose to my readers far too often these days.

Perhaps the question isn’t even fair to begin with… After all, every day it seems that companies are drilling further and deeper than ever before.

A few years ago, that question drove Russia to literally plant a flag on the Arctic seabed, proclaiming to the water, “All of your oil and gas resources belong to us.”

Anyone else remember that ridiculous publicity stunt?

russia flag arctic seabed

Countries have become more protective than ever of their precious hydrocarbon deposits — a lesson that the big oil is learning with every up-tick in prices.

This week, the answer to that question became even clearer, and the best part is that it’s presenting investors with another chance — the last one, perhaps, to buy back into the offshore industry.

Chevron: breaking offshore records

Somebody forgot to tell Chevron that drilling deepwater wells was a faux pas these days.

Chevron recently announced it has finished drilling Canada’s deepest offshore well to date. After four months of drilling, the Lona 0-55 exploration well reached a depth of 1.6 miles — nearly half a mile deeper than BP’s troublesome Macondo well.

Sadly, mum’s the word on any data concerning the well. Taking a page from OPEC’s playbook, Chevron is not releasing data on the well, including drilling costs and production levels for up to two years.

Others, however, aren’t feeling confident enough to drill in the deep water.

If you remember back in early August, Pemex delayed their deepest-ever offshore well until 2011. Mexico’s state-run oil company got cold feet in the wake of the BP disaster.

Maybe the public execution of BP’s image in the mainstream media was enough to scare Pemex…

But hey, at least the Mexican government can still afford their cable bill, so all is not lost… not yet.

Is drilling banned or not?

Whether we like it or not, our offshore industry will get back on its feet. Even the U.S. government — no matter how much of a mess the politicians make — will eventually revert its offshore drilling policy.

Of course, the government’s knee-jerk reaction was to ban deep-water drilling — twice.

Back in July, the U.S. Interior Department issued their second drilling moratorium. Earlier this week, however, a judge overturned that 6-month deep-water drilling moratorium.

Next week, I’ll tell you which offshore drilling stocks are ripe for the picking.

Enjoy your weekend,

keith kohl

Keith Kohl

Editor, Energy and Capital

P.S. You can catch up on the week’s top articles from Energy and Capital and our sister publication, Wealth Daily, below.

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The Nuclear Time Bomb: What They Won’t Tell You About Nuclear Energy
The last time this nuclear hit the mainstream news outlets, they completely missed the boat. But their mistake is our gain — and when you hear the latest evidence in this video report, you’ll be a step ahead of other energy investors.

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Focused on the world of environmental and sustainability finance, renewable energy and efficiency investment, application and implementation strategies in their major forms, this is an all-encompassing conference platform for sustainable investment, infrastructure, and regional management with a central focus on the global energy transition.

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