AAPG FOUNDATION PRATT CONFERENCE: PETROLEUM PROVINCES, 21st CENTURY
January 12-15, 2000
San Diego, California

DEAN N. MALOUTA, Shell Deepwater Services Company, Houston, TX

Abstract: Opportunities in the Deepwater, Gulf of Mexico, USA

Conservative estimates of the expected ultimate recoverable reserves in the US Gulf of Mexico exceed 20 Billion Barrels Equivalent, and optimistically range well over 30 Billion Barrels Equivalent.

The US Gulf of Mexico covers an area of some 450,000 km² with about half of this in water depths exceeding 500 m. Approximately 400 wells have been drilled in this province and fewer than 100 of these have penetrated more than 5,000 m. The opportunities in the Deepwater Gulf of Mexico result from the variety of geologic settings providing multiple play opportunities and a competitive lease situation.

Brown field exploration possibilities in the shallower, inboard reaches of the Deepwater Gulf provide several billion barrels in opportunities. Shell Oil is responsible for over half of industry's more than 7 billion barrels equivalent discovered to date. Recent discoveries and large lease rolls in 2000 and 2001 continue to make this an attractive play area.

Industry has begun to probe major new play areas in ever more frontier areas of the Gulf. Recent lease acquisition has targeted play opportunities in the sub-salt environment, deep turtle structures, the Perdido fold belt and even some possibilities in the ultra-deep waters in front of the Sigsbee Escarpment. A major sector of the Eastern Gulf of Mexico moratorium area is expected to open for leasing in 2002, extending some of these major play areas.

Decreasing margins, price uncertainty, technical challenges and lower probabilities of success for the more frontier plays, require ever more diligent use of technology from imaging to infrastructure. Major efforts are underway in safety, environmental leadership, technical limit drilling, intervention and flow assurance, all key areas to success in the deepest waters of the Gulf of Mexico. 

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