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AutoBlog: REPORT: BP finds big oil in Gulf of Mexico

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Filed under: Plants/Manufacturing

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Even during the recession, oil is hovering at around $70 per barrel. There are many reasons for elevated oil prices, such as emerging markets demanding more crude and market speculators. Perhaps the biggest reason of all, however, is that oil is just harder to come by, as all the obvious spots have already been drilled.

So when a massive oil reserve is uncovered, it's big news. British Petroleum has made just such a find, as it has reportedly discovered between three and six billion barrels of crude oil and natural gas in the Gulf of Mexico about 250 miles off the coast of Texas. The find was made after BP drilled down a record seven miles, giving the oil giant another massive reserve a few hundred miles from where the natural resource is used most.

Autoline Daily notes that BP already pumps about 400,000 barrels per day in the region, and experts say the find could result in another 250,000 barrels of black gold a day towards the end of the next decade. That sounds mighty impressive until you remember that the U.S. uses about 20 million barrels of oil every day. Follow the jump to watch the latest edition of Autoline Daily.

[source: Autoline Daily | Image: Roslan Rahman/AFP/Getty]

Continue reading REPORT: BP finds big oil in Gulf of Mexico

REPORT: BP finds big oil in Gulf of Mexico originally appeared on Autoblog on Sat, 05 Sep 2009 18:03:00 EST. Please see our terms for use of feeds.

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Like the article says, that 250,000 figure is a piss in the ocean when the total amount of oil used daily by the US is factored in.

I don't agree with peak oil much, because there is quite a bit of the stuff around. However, extracting much of it will require enormous investment that will only be feasible with ever higher oil prices.

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