The Gulf of Mexico (GOM) has long been a hotspot for crude oil and natural gas production, but technological advancements have pushed the boundaries of what’s possible in deepwater operations, opening previously inaccessible reservoirs. Chevron is the first to deploy new equipment capable of handling the more extreme pressures found very deep below the seafloor. In today’s RBN blog, we’ll highlight the project — known as Anchor — and explore how this new technology is paving the way for similar developments.
Before the Shale Revolution, the GOM was paramount to U.S. oil and gas production. When a major hurricane swept across the Gulf toward Louisiana and Texas, oil and natural gas prices spiked significantly because storm-related production shut-ins could squeeze supply for a few days or more, depending on whether offshore infrastructure was damaged (see Riders On The Storm). Today, the region remains important for energy resources and infrastructure, accounting for approximately 14% of total U.S. crude oil output and 5% of total U.S. dry gas production. Additionally, about half of U.S. refining capacity is located along the Gulf Coast, where GOM production — much of it heavier (and less abundant) than light sweet shale oil — is an important feedstock source.
(Offshore production will be a major theme at RBN’s upcoming NACON conference, to be held Thursday, October 24, at the Royal Sonesta Hotel in Houston. Click here for details.)
A decade after its discovery and five years after making a final investment decision (FID), Chevron, alongside its partner TotalEnergies, recently commenced production at their $5.7 billion Anchor platform (yellow star to lower left in Figure 1 below). Located about 140 miles off the Louisiana coast, the development consists of seven subsea wells at the seafloor tied back via risers — or pipes — to a semi-submersible floating production unit (FPU). Anchor operates in water depths of around 5,000 feet. While other platforms operate in greater depths — including Chevron’s Jack St. Malo, in waters 7,000 feet deep (yellow star just below Anchor) — what sets Anchor apart is its reservoir pressure. It is the first GOM project to produce at pressures reaching 20,000 pounds per square inch (psi), with reservoir depths reaching 34,000 feet and temperatures up to 250 degrees Fahrenheit.
Figure 1. Louisiana Offshore Crude Oil Infrastructure. Source: RBN
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