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July 10, 2006

Noxal Not A Major Find After All Peak Oil

In March, there were reports that Mexico had discovered an offshore oil field with a potential yield of 10 billion barrels. Finds of that size are very rare these days. But what's that they say about things that seem too good to be true?

Oil & Gas Journal reports (via Oil Drum) that the supposed major oil find has turned out to be a "modest" natural gas find instead:

Noxal-1, a deepwater Gulf of Mexico well trumpeted in March by Mexican President Vicente Fox as being a major oil discovery, appears [instead] to be a modest gas find.

Speaking on Mar. 14 from the drilling rig in 935 m of water 63 miles off Coatzacoalcos, Fox said the then as-yet-untested well had the potential to produce 10 billion bbl of oil.

However, after the well operated by state-owned Petroleos Mexicanos reached a total depth of 4,000 m, the fourth interval tested has flowed 9 MMcfd of gas from a reserve estimated at 245 bcf, said IHS Energy, Houston. [Emphasis added]

One of the facts of life in a Peak Oil world is that the big oil fields have all been discovered. What remains are small fields in places where the oil is more expensive to extract. Get used to it.

Posted by Jonathan at July 10, 2006 10:49 PM  del.icio.us digg NewsVine Reddit YahooMyWeb