BP's Revenge

Forward to a Friend Having trouble viewing this issue? Click here. Refer a Friend to Energy and Capital.

BP's Revenge By Christian A. DeHaemer | Thursday, October 31st, 2013 Three years ago, the BP oil spill in the Gulf of Mexico led the news for 85 days and virtually shut down drilling in the Gulf. But memories are short, and oil has value... Gulf drilling is back — and will account for 19% of U.S. oil production this year. Next year, due to improvements in technology, Gulf oil production will expand dramatically. The pent-up demand for offshore oil exploration will be unleashed and increase Gulf production to 1.55 million barrels a day. By 2017, production is expected to break the 2009 GOM peak of 1.8 million barrels a day. Denizens of the Deep The push for deepwater offshore drilling is driven by the fact that while fracking is booming, it is expensive. And wells run out relatively quickly. In the high seas, companies feel the siren call of the mother lode... Bloomberg has reported there are 12 to 15 new fields slated for production by 2020 that contain 78.86 billion barrels of oil equivalent. The upfront cost of production is astronomical, with lease rates alone for deepwater drillships pushing a million dollars a day. That said, big oil companies with deep pockets, like ExxonMobil (NYSE: XOM), can develop these fields and still be economical, even if oil drops to $30 a barrel. The economics are proven out by demand for GOM drilling leases. Leases for Gulf acreage this year sold for a total of $1.3 billion, drawing 468 bids for two million acres. Further evidence of a new Gulf boom is to be found in rig counts: Rigs looking for new discoveries have increased from 20% of the total rig count to 40%. Advertisement Four Gas Stocks You Need to Own Most investors are completely clueless. But right now, the largest energy deal in history is quietly unfolding... A deal that's about to let four tiny gas companies reel in profit margins 1,740% LARGER than anyone else in the business. A deal so profitable, we've never seen anything like it before. A deal that could hand you more money than you know what to do with! The short presentation — available here — reveals every last detail.  WATS the Future Part of the reason for the resurgence of Gulf oil is politics, but a large factor has to do with new technology. Wide azimuth towed streamer acquisition (WATS) has been a game-changer. WATS is defined by the Schlumberger Oilfield Glossary as: A marine seismic data acquisition method that uses one or more vessels to tow source arrays and streamers to record seismic signals, along with one or more source-only vessels sailing parallel to, but at some specified distance from, the recording vessel(s). The source-only vessels provide offset sources that generate reflections from a wide range of azimuths; these reflections are received by streamers towed by the recording vessel(s). WATS is the reason big oil companies like BP (NYSE: BP) can bet billions on deepwater drilling. When you are playing with that kind of money, you need to be sure that you have an accurate picture of where the oil is and how it can be recovered. WATS provides that clear picture. It sounds simple, but when you are talking about billions of deepwater and underground seismic images that move in real time, you get a vast need for computing power. This is why BP recently opened one of the largest supercomputing facilities on earth. Advertisement Warren Buffett Doesn't Want You to See This Did you know Warren Buffett has tried to prevent you from accessing information that could make you a fortune? I don't blame you if you find this hard to believe... In fact, if I hadn't seen the proof firsthand, I wouldn't have believed it, either. But once you take a peek at this information — and the reasons it could make you rich — I have no doubt you'll change your mind.  A Supercomputer's Supercomputer On Monday, BP announced it has opened a new facility to house the world’s largest supercomputer for commercial research. According to the press release: The Center for High-Performance Computing, located at BP’s US headquarters in Houston, will serve as a worldwide hub for processing and managing huge amounts of geophysical data from across BP’s portfolio and be a key tool in helping scientists to “see” more clearly what lies beneath the earth’s surface. Better imaging capability will also help the company more safely and efficiently appraise new finds and manage complex reservoirs once production starts. In addition, the center opens up new possibilities for research into other important aspects of BP’s business activities, from oil refining to enhanced oil recovery. For example, it will help facilitate BP’s industry-leading development of “digital rocks,” a proprietary technology for calculating petrophysical rock properties and modeling fluid flow directly from high-resolution 3D images — at a scale equivalent to 1/50th of the thickness of a human hair. The new facility was built with Intel (NASDAQ: INTC) and HP (NYSE: HPQ) and has a computing power of 2.2 petaflops. A petaflop equals one thousand trillion calculations per second. It also claims 1,000 terabytes of memory and 23.5 petabytes of disk space — the equivalent of 40,000 average laptop computers. BP scientists can now have the computing power to complete an imaging project in one day that would have taken four years using computing technology from just 10 years ago. Deepwater drilling is the future for big oil. It is the last frontier for oil exploration. Companies that make the drillships, the seismic systems, and the underwater robots will benefit. In fact, robotics and computing power are reaching a tipping point. These advances will not only change our lives in terms of providing energy, but they are accelerating the very pace of change. Those with the vision to get in early on the right companies will make a fortune. This is why I have created a new service to make you money by detailing these very companies for you... Keep an eye on your inbox for the opportunity to join this new service, called Technology and Opportunity. For profits, Christian DeHaemer @TheDailyHammer on Twitter Since 1995, Christian DeHaemer has specialized in frontier market opportunities. He has traveled extensively and invested in places as varied as Cuba, Mongolia, and Kenya. Chris believes the best way to make money is to get there first with the most. Christian is the founder of Crisis & Opportunity and Managing Director of Wealth Daily. He is also a contributor for Energy & Capital. For more on Christian, see his editor's page.   I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles BP (NYSE: BP) Beats Expectations, Increases Dividend Options Trading in 90 Seconds FMC Technologies Inc. (NYSE:FTI) Awarded Major Contract Recently... Natural Gas Investments This Company Will Crumble Introducing... the 51st State of the Union The Hammer's Crash Course to Options OPEC is Irrelevant

This email was sent to ignoble.experiment@arconati.us . You can manage your subscription and get our privacy policy here. Energy and Capital, Copyright © 2013, Angel Publishing LLC, 111 Market Place #720, Baltimore, MD 21202. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Energy and Capital does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription.