BP Amoco's Record-Breaking Oil Discovery in Gulf of Mexico

BP Amoco has made a significant oil discovery in the Gulf of Mexico, estimated to hold at least 1 billion barrels of oil equivalent. The find, dubbed "Crazy Horse," is considered the largest in the deep-water Gulf and highlights the company's expertise in exploring challenging waters. The discovery comes at a time when oil prices are rising, making it a profitable venture. BP Amoco's success in the Gulf of Mexico is expected to generate a new wave of enthusiasm for the region, leading to increased spending and activity among oil and gas companies.

Key Takeaways:

• BP Amoco's Crazy Horse oil discovery in the Gulf of Mexico holds an estimated 1 billion barrels of oil equivalent, making it the largest find in the deep-water Gulf.
• The discovery brings BP Amoco's reserve base in the area to 2.5 billion barrels of oil equivalent (boe), which is about 30% of the deepwater Gulf of Mexico reserves discovered so far.
• The find is significant for BP Amoco as it confirms the company's prowess in the challenging waters of the deepwater Gulf and comes at a time when the industry is emerging from a near two-year depression.
• The discovery highlights the region's potential and is expected to generate a new wave of enthusiasm for the deepwater Gulf.
• BP Amoco's success is likely to lead to increased spending and activity among oil and gas companies, benefitting oil field service and equipment operators.
• The company's chief executive, Sir John Browne, estimates that the discovery will significantly increase BP Amoco's reserve base in the area.

Statistics:

• 1 billion barrels of oil equivalent: Estimated oil reserves of the Crazy Horse discovery.
• 2.5 billion barrels of oil equivalent: BP Amoco's reserve base in the Gulf of Mexico area.
• 30%: Percentage of deepwater Gulf of Mexico reserves discovered so far accounted for by BP Amoco's reserve base.
• 800 million barrels: Estimated oil reserves of Shell Oil's Mars discovery.
• 800 million barrels: Estimated oil reserves of BP Amoco's reserve base in the area last year.

Sources:

• Financial Times Limited, 1999.