Chevron Achieves Technological Breakthrough in U.S. Gulf of Mexico Field
Chevron (NYSE:CVX) has made history with its latest project, Anchor, in the U.S. Gulf of Mexico. This $5.7-billion endeavor marks a significant milestone in deepwater oil production, as it is the first to operate under extreme subsea pressures of up to 20,000 pounds per square inch.
The Anchor development, a joint venture with TotalEnergies (EPA:), is expected to produce oil for the next 30 years. The floating platform will have the capacity to pump up to 75,000 barrels of oil and 28 million cubic feet of gas per day from a field located 140 miles off the coast of Louisiana.
Chevron’s Executive Vice President Nigel Hearne praised the project, stating that it will pave the way for similar high-pressure developments in the industry. Another oil company, Beacon Offshore Energy, is looking to replicate Chevron’s success with its own deepwater field, Shenandoah, with first oil expected in 2025.
BP (NYSE:) was the first to discover a 20,000-psi field in the Gulf of Mexico back in 2006, but lacked the technology to develop it at the time. However, recent advancements have allowed BP to move forward with its Kaskida project, aiming for first oil production in 2029.
Chevron’s Anchor development will feature seven subsea wells connected to the floating production platform, with an estimated 440 million barrels of recoverable oil and gas. Bruce Niemeyer, head of Chevron’s Americas oil and gas production, highlighted the company’s ability to deliver projects safely and within budget in the Gulf of Mexico.
In conclusion, Chevron’s groundbreaking achievement in deepwater oil production opens up new possibilities for the industry and demonstrates the potential for future high-pressure developments. This technological advancement could have a significant impact on global energy markets and investment opportunities in the oil and gas sector.