Cramped on Land, Big Oil Bets at Sea

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http://finance.yahoo.com/real-estate/ar ... ets-at-sea

Cramped on Land, Big Oil Bets at Sea
by Ben Casselman and Guy Chazan
Wednesday, January 6, 2010
provided by




Chevron

Chevron is leasing the Clear Leader, which floats in 4,300 feet of water in the Gulf of Mexico, to drill for oil through nearly five miles of rock.


Big Oil never wanted to be here, in 4,300 feet of water far out in the Gulf of Mexico, drilling through nearly five miles of rock.

It is an expensive way to look for oil. Chevron Corp. is paying nearly $500,000 a day to the owner of the Clear Leader, one of the world's newest and most powerful drilling rigs. The new well off the coast of Louisiana will connect to a huge platform floating nearby, which cost Chevron $650 million to build. The first phase of this oil-exploration project took more than 10 years and cost $2.7 billion -- with no guarantee it would pay off.

Read more at the link above

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Thanks mr. hillman!

Ya know I would venture to say that chevron probably doesnt care if the 2.7 billion they invested pays off or not. If they loose their money eather the price of fuel will go up or our goverment will bail them out.

Whew 4300 feet eh? That deepth will make your ears pop I bet.

Anyway good post E.

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I say screw the environmentalist and drill in the Dakotas where there is more oil than any place in the world. We let 14% of the population decide the welfare of the US. I am sure they are donating a bundle of cash to the politicians to get their issues past.