PEMEX - Two US Deepwater GOM Fields May Suck Oil From Mexican Reserve - Marketwatch

[hatrack]

MEXICO CITY (MarketWatch) -- Two deepwater oil fields under development in U.S. Gulf waters may cause Mexican oil to leak into wells on the other side of the maritime border, said the head of Mexican state oil firm Petroleos Mexicanos on Thursday.

While the U.S. is busy developing deepwater oil reservoirs in up to 10,000 feet of water, Mexico is watching from the bleachers. Pemex, as the state firm is known, currently lacks the technology to drill deeper than 3,000 feet and is constitutionally prohibited from teaming up with outside firms who can.

"In the U.S., they are exploiting reservoirs that could be border fields," said Pemex Chief Jesus Reyes Heroles, speaking to lawmakers in the Senate. "The latest information we have suggests the possibility that two fields could eventually be confirmed as trans-border fields." Following the Senate hearing, Carlos Morales Gil, the head of Pemex's exploration and production division, told Dow Jones Newswires the two fields in question are Trident and Hammerhead.

Trident is currently being developed by Chevron Corp., which drilled a discovery well at the field in 2001. A Chevron spokesman said Trident is currently under evaluation. "We are looking at different development options going forward," said spokesman Mickey Driver.

EDIT

http://www.marketwatch.com/news/story/pemex-says-two-us-deepwater/story.aspx?guid=%7BE835753D-72E7-460C-A544-9E1EED885426%7D

[maxsolomon]

1. yay for slant drilling!

montomery burns would be proud!

[amandabeech]

4. No, the issue is oil and gas fields that straddle the border.

Pumping just from the U.S. side will drain oil and gas from the Mexican side. No slant drilling needed.

This is a common issue in oil fields. The two countries come to some sort of revenue sharing or co-development agreement. It's just not worth it to steal--look what happened to Kuwait.

The big oil companies can't go into Mexico now, but you can bet that they're hoping that Mexico will get so desperate for their expertise that the Mexicans will amend or reinterpret their Constitution to allow joint development arrangements.

Why piss the Mexicans off when they may very well give the oil companies lots of business in the next 5-10 years? It's a business decision.

[cosmik debris]

2. I suspect a misprint

The article says "currently lacks the technology to drill deeper than 3,000 feet"

I suspect that they mean "currently lacks the technology to drill IN WATER deeper than 3,000 feet"

Pemex can drill wells on land deeper than 3000 feet. But offshore drilling is a different kettle of fish.

The original sentence lacks credibility to anyone who has worked in the oilfield.

[Kolesar]

3. Isn't this how the first Gulf War started?

Iraq accused Kuwait of drilling into their oil reserves and ... :nuke:

[Javaman]

Shhhhh!!!!

can't let the truth out!! everyone knows saddam was all about taking over the world!

[Javaman]

5. dupe nt