20K technology to unlock more than 2 billion barrels of oil equivalent in resources in the US Gulf of Mexico

Chevron announced first oil at the Anchor field in the US Gulf of Mexico (GoM) deepwater, unlocking the potential for a considerable amount of new production, according to Wood Mackenzie.

Commenting on the announcement, Mfon Usoro, Principal Analyst at Wood Mackenzie, said: “First oil from Anchor is a major technological milestone in the US Gulf of Mexico, culminating from a decade-long effort from operators, service companies and regulators. The US GoM has repeatedly proven itself as a hub for technological innovation and the deployment of the ultra-high-pressure technology puts the region once again at the forefront of a technology breakthrough.”

"Chevron is leading the way to unlock ultra-high-pressure reservoirs in the Inboard Paleogene, which have never been produced. The Inboard Paleogene will herald a new chapter in the US Gulf of Mexico. Wood Mackenzie estimates that more than 2 billion barrels of oil equivalent could be unlocked as US GoM companies continue to advance the commercialization of discoveries in the frontier play."

“Production from the Inboard Paleogene has the potential to permanently change the landscape in the US GoM. Operators expect individual wells to recover at least 30 million barrels of oil equivalent. Success in the play could extend the life of the basin. However, if results fall short, it could mark the beginning of production decline in the basin and a blow to a resurgence in exploration for additional barrels in the play.”