Chevron and Partners Announce Significant Oil Discovery in US Gulf

Initial test results from a deep-water well in the Gulf of Mexico could indicate a significant oil discovery and eventually represent the nation’s biggest domestic energy find since production started from the Alaskan North Slope fields in the 1970’s. Chevron, along with Statoil ASA of Norway and Devon Energy Corporation, announced the promising oil find on Tuesday. Although the full potential of the field has yet to be fully defined, industry observers were saying on Wednesday that the discovery could boost U.S. oil and gas reserves by as much as 50 percent.

The test well sustained a flow rate of more than 6,000 barrels of oil per day, according to Statoil. The Wall Street Journal reported that Chevron and Statoil officials had estimated that the region could hold more than 15 billion barrels of oil and gas reserves. The well was drilled at a location approximately 270 miles southwest of New Orleans. Chevron maintains a 50 percent stake in the field and Statoil and Devon each own 25 percent.