Analysts report that a breakthrough in oil production technology could potentially make up to 5 billion barrels of previously inaccessible crude oil available for extraction. Chevron recently announced it has begun pumping oil from a field at unprecedented pressures of 20,000 pounds per square inch—significantly higher than any previous wells.
This advancement is part of Chevron’s $5.7 billion Anchor project, which utilizes specialized equipment from NOV, Dril-Quip, and drillships from Transocean. The initial well commenced production on Sunday, with a second well already drilled and nearing operational readiness.
The industry has learned from past disasters, such as the 2010 Macondo blowout, which resulted in tragic loss of life and environmental damage. New drillships and equipment have been designed to handle the extreme pressures associated with these ultra-high pressure fields, which are expected to drive production growth in the Gulf of Mexico.
Chevron’s project, along with similar initiatives by Beacon Offshore Energy and BP, could add 300,000 barrels of new oil production and unlock 2 billion barrels of previously unreachable U.S. oil reserves. BP also aims to utilize high-pressure technology to access an estimated 10 billion barrels of known oil, particularly in its Kaskida project.
Worldwide, over 5 billion barrels of known oil and gas resources could benefit from this new technology, which could significantly impact global production levels.