Abandoned gulf reservoirs provide low cost, low risk prospects

John D. Grace Scott Morris Tony Dupont Earth Science Associates Long Beach, Calif. Production growth of onshore unconventional oil and gas and of deepwater oil has headlined a fundamental change in US hydrocarbon supply in the last 6 years. Nevertheless, while continuing to increase, both sources face cost and regulatory obstacles to maintaining growth of output at recent rates. New resources in established fields can provide a low-cost, less regulated complement to existing supplies as well as opportunities for niche producers and particularly for companies that own leases under which most of these accumulations are located. A study by Earth Science Associates (ESA), based on decline...

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