Gulf of Mexico oil & gas drilling economics?
Does anyone know the average cost of drilling a well in the
Gulf of Mexico and the probibilities of success and the expected amount of oil & gas that should be discovered . I want to know what kind of money can be made now with the current price of oil/gas.
June 2nd, 2009 at 9:06 pm
sorry i don't know
June 2nd, 2009 at 9:06 pm
You don't just drill a well in the Gulf of Mexico. First you need to own the exploration rights that you get by bidding against other companies. Then you need to do exploration seismic and then drilling to confirm if there is any oil or gas on your lease.
If you believe there is commercial quantities of oil or gas then you can start building any off shore platform so you can drill the production wells.
Where much of the drilling is going on now you can easily spend a billion dollars for the platform and another billion for the wells.
I believe you can see this is a game for only the big boys because you might spend a billion dollars for a platform and have a Katrina come along and its all gone.
If you want detailed information I would start with the American Petroleum Institute. I'm sure they have they kind of information you want.