We’ll conclude our week with Shell by noting the exciting, if hard to imagine, news that the company intends to drill for oil in ultra-deep water in the Gulf of Mexico, a development that could cost as much as $4 billion:
[The] Perdido project is notable because it marks one of the first times an oil company has moved beyond the discovery and planning stages to commit to actual production in super deep water. “This is a major development even by Shell’s historical standards,” Russ Ford, a Shell vice president with the company’s exploration and production division, said in a conference call Thursday with the news media.
The Perdido hub design is known as a “spar,” — the platform will float on a huge sunken cylinder that is moored to the sea floor. It will sit in 8,000 feet of water, making it the deepest spar production facility in the world, Shell said.
This major investment is expected to produce eventually about 130,000 barrels of oil per day and marks a possible trend of oil companies investing more heavily in domestic production. Good news, made possible by advances in drilling technology and by, dare we say, those much-maligned oil company profits.