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Finding energy: deepwater deposits

Another potential major source of oil and gas for emerging nations are offshore deposits lying under very deep water. These deposits lie under water 10,000 feet deep or more, plus another 10,000 feet under the sea bed. Right to these endowments belong to Brazil, Ghana, Ivory Coast, Mozambique, Mexico and others.

These deepwater deposits are especially important for countries such as Mexico. Prospective reserves in deepwater and shale total 115 bbls of oil equivalent. The largest existing Mexican oil fields, such as the giant Cantarell Field, discovered in 1976 has been depleting rapidly since 1995. As a result, total Mexican oil output has decreased by 1 million bbls per day, at a time when Mexico has sizeable subsidies on domestic use of fossil fuels, and declining volumes of exports from oil.

Three features of these deepwater assets will require emerging nations to collaborate with foreign oil companies to reap the benefits. First, exploration and development in these locations will be quite costly: upwards of $1 billion to $3 billion per project. By 2014, deepwater and ultra deepwater hydrocarbon projects totaled $66 billion worldwide. Second, the life cycle for such projects extends over 15 to 25-30 years. Third, exploration costs will be heavy, and will be concentrated within the first 5-7 years of any deepwater project well before any sales of gas or oil. This means that initial cash flows from the undertakings will be negative, perhaps for as long as a decade. Fourth, significant price risks are involved.

The large private multinational oil companies are much better equipped to deal with market risk than are National Oil Companies in developing nations. The former are larger and stronger financially. The private multinations such as Chevron and Exxon take a very long-term view of prices because their investments, especially in deepwater deposit exploration and development, last not for years, but decades. The abrupt 50% fall in crude oil and gas prices in the latter half of 2014 has not materially affected the deepwater investment plans of the companies. Because these companies cannot be certain what will be the price of oil or gas when a major project finally comes on line, the firms build into their business models fluctuating oil prices. Exxon’s business plan tests its investments across a broad range of oil prices, from as low as $40/bbl to as high as $120. (Statement of Exxon CEO Rex Tillerson, January 11, 2015).

Other than perhaps Brazil, none of the emerging nations with rights to deepwater deposits will have sufficient capital to mount ambitious deepwater projects. For example, in deep waters in the Gulf of Mexico belonging to the U.S., over 1,600 wells have been drilled. But on the Mexican-owned part of the Gulf, only 50 wells have been drilled. And none of these countries, Brazil included, possess all of the technology required to successfully carry out the projects.

The life cycle of a deepwater deposit can be illustrated as in Figure 15-9 .

Questions & Answers

what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
How we are making nano material?
what is a peer
What is meant by 'nano scale'?
What is STMs full form?
scanning tunneling microscope
how nano science is used for hydrophobicity
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
what is differents between GO and RGO?
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
The nanotechnology is as new science, to scale nanometric
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
what school?
biomolecules are e building blocks of every organics and inorganic materials.
anyone know any internet site where one can find nanotechnology papers?
Damian Reply
sciencedirect big data base
Introduction about quantum dots in nanotechnology
Praveena Reply
what does nano mean?
Anassong Reply
nano basically means 10^(-9). nanometer is a unit to measure length.
do you think it's worthwhile in the long term to study the effects and possibilities of nanotechnology on viral treatment?
Damian Reply
absolutely yes
how to know photocatalytic properties of tio2 nanoparticles...what to do now
Akash Reply
it is a goid question and i want to know the answer as well
characteristics of micro business
for teaching engĺish at school how nano technology help us
How can I make nanorobot?
Do somebody tell me a best nano engineering book for beginners?
s. Reply
there is no specific books for beginners but there is book called principle of nanotechnology
how can I make nanorobot?
what is fullerene does it is used to make bukky balls
Devang Reply
are you nano engineer ?
fullerene is a bucky ball aka Carbon 60 molecule. It was name by the architect Fuller. He design the geodesic dome. it resembles a soccer ball.
what is the actual application of fullerenes nowadays?
That is a great question Damian. best way to answer that question is to Google it. there are hundreds of applications for buck minister fullerenes, from medical to aerospace. you can also find plenty of research papers that will give you great detail on the potential applications of fullerenes.
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Source:  OpenStax, Economic development for the 21st century. OpenStax CNX. Jun 05, 2015 Download for free at http://legacy.cnx.org/content/col11747/1.12
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