Offshore drilling for oil and gas will be moving into deeper and deeper waters according to Ronald L. Geer a consultant with Shell Oil Co. and president of the Marine Technology Society. Geer told a press conference at the Offshore Technology Conference that the technology existed to drill exploratory wells in up to 10000 feet of water. But he added that as the industry moves more and more to floating systems as opposed to fixed bottom supported structures the financial risks involved were greater. He said such projects involved six to nine year time frames and there was a reluctance for people to stick their necks too far out. Shell holds the world record for the deepest exploratory well at 6900 feet in the Wilmington Canyon in the Atlantic offshore New Jersey in 1984. The company is currently drilling a 6700 foot well in the Atwater Valley in the Gulf of Mexico offshore Louisiana. Meanwhile Brazils Petrobras set a world record for underwater production when they brought a well in 1350 feet of water offshore Rio de Janeiro state into production in January. Geer said the industry was particularly interested in the Green Canyon field offshore Louisiana where a number of companies including Shell a unit of Royal Dutch/Shell &lt;RD> Dupont Cos &lt;DD> Conoco Inc USX Corps &lt;X> Marathon Oil Co Standard Oil Co &lt;SRD> and &lt;Placid Oil Co> are working many of them testing new deep-water technologies. Of particular interest is the controversial Penrod-72 system being operated by the Dallas-based Hunt brothers who last year placed Placid Oil under bankruptcy court protection in order to avoid foreclosures on its valuable oil properties. They have been seeking the right to use assets to drill oil wells in the Green Canyon through Penrod arguing that continued development of the project is essential to their ability to get out of their financial crisis. Earlier this month the Hunts were granted permission by a bankruptcy court to pursue the Green Canyon project. The Penrod system involves a controversial floating production platform with well heads sitting 1350 feet down on the ocean floor. Some 24 wells will be attached to the wellhead with one satellite well sitting in a record 1700 feet of water. Geer said he could not comment on the Penrod project other than to note that it involves so many new technologies it might have a problem fitting all the pieces together within a specific time frame. He also said he believed the potential production from the project could be in line with what the Hunt Brothers have projected . The Hunts creditor banks have contended the Hunts have exaggerated the potential of the project. Theyre in the ballpark he said of the numbers adding that he did not have enough information to comment further.
OFFSHORE OIL DRILLING MOVING INTO DEEPER WATERS