In the wake of the terrible oil spill in the Gulf of Mexico, Joe Terranova is hearing some big changes lie ahead in the oil services sector.
If you watch Fast Money regularly you know that Terranova is a highly accomplished energy trader and very connected in his field.
And his sources are telling him that going forward deep water drilling is off the table. “I’m talking about drilling 5,000 feet or more. That’s off the table going forward in this country,” says Terranova.
”I’m hearing that we see a moratorium on all new projects. In addition, current projects will be heavily inspected,” he says...
Joe Terranova is IMHO full of sh*t. Land drilling can not replace deepwater production. The Macondo well is currently producing 5 000 barrels of oil per day
on free flow. Besides Alaska there are no fields onshore US that could produce oil at that rate or anything near it from a vertical well. All the major oil discoveries made in recent years are in deepwater so a year long ban on deepwater drilling(exploration or development) would within five years result in production losses measured in hundreds of thousands of barrels.
from 2007
"The average GOM deepwater oil well currently produces at about 25 times the rate of the average shallow-water oil well, while the average GOM deepwater gas well currently produces at about eight times the rate of the average shallow-water gas well"
More info on GOM deepwater production from the MMS
No comments:
Post a Comment