Deepwater oil drilling is not for faint-hearted

As easier-to-reach oil deposits run dry, energy companies are venturing farther out into the frontier for new reserves to quench the growing thirst for oil.

Costs are high, as much as $100 million per well and $2 billion to develop a field, but production rates — and expectations — are high. Some deepwater platforms produce 200,000 barrels a day versus 5,000 or 10,000 bpd closer to shore.

“At $60 a barrel, you can get your money back pretty fast,” said Mark Burns, Noble vice president for Gulf operations.
Reuters