Chevron plugging offshore well in Brazil

[Roland99]

Source: MarketWatch

Chevron said it’s plugging and sealing an appraisal well in a setback for its offshore Frade field in Brazil, after a leak of crude oil was discovered.

Chevron CVX -0.44% said late Tuesday it would plug the well at a depth of nearly 1,200 meters about 230 miles off the coast of Rio De Janeiro in the oil-rich Campos Basin.

Chevron said well-control operations have been successful and that any fluid flow from the well appears to have ceased.

“This is the first sign of progress in efforts to contain an oil spill,” analysts at Credit Suisse said in a note to clients on Wednesday.

Read more: http://www.marketwatch.com/story/chevron-plugging-offshore-well-in-brazil-2011-11-16?link=MW_home_latest_news

[bhikkhu]

1. This was a project with a $5.2 billion price tag

http://www.epcengineer.com/news/post/2555/chevron-executive-brazil-oil-field-producing-65000-barrels-per-day

...for a little background. I know its not a popular idea here, but the price of oil is high because the cost of producing oil is very high, and its going to stay that way. Brazil is sometimes given as the bright hope of future production as other producers run dry, and it seems to have good deepwater reserves, but those are astronomically expensive and difficult to develop compared to what we are used to.

The cheap oil is truly gone.

[jwirr]

2. It certainly is when we are thinking for deep water drilling as the bright

hope of the future.