Analysts say that new drilling technology could bring billions of barrels worth of oil within reach.

Analysts said that a breakthrough in oil production which producers claim can safely tap fields with ultra-high pressure could bring up to 5 billion barrels previously unaccessible crude into production.

Chevron announced on Monday that it had successfully pumped the first oil out of a field with a pressure of 20,000 pounds per sq. inch, which is a third higher than any previous well. The $5.7 billion Anchor Project uses specially-designed equipment from NOV Dril-Quip, and drillships by Transocean.

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The 2010 Macondo blowout in the Gulf of Mexico killed 11 workers and contaminated fisheries. It also covered beaches with oil.

Transocean operated the Deepwater Horizon vessel, while BP owned the Macondo project. Both companies are involved in new developments of higher pressure wells.

The industry uses new drillships, and other equipment to deal with extreme pressures a third higher than those experienced in the Macondo disaster.

Mfon Usoro is a principal researcher at Wood Mackenzie who specializes in Gulf of Mexico operations.

She said that the new gear will allow producers to access 2 billion barrels previously unavailable U.S. crude oil through projects like Beacon Offshore Energy, Anchor, and Chevron.

Usoro said that "these ultra-high-pressure fields will be a major driver for the growth of production in the Gulf of Mexico."

The Gulf of Mexico's production has fallen below the 2 million barrels a day record set in 2019. Additional oil could return the region to peak output.

BP hopes to tap into 10 billion barrels known of oil with its high-pressure technology. Kaskida was its first 20k project discovered in 2006. It was put on hold because it lacked high-pressure technology.

Aditya Ravi is a Rystad analyst. He said that similar high-pressure and high-temperature oilfields off the coasts Brazil, Angola, and Nigeria would benefit from 20k technology. The Gulf of Mexico is the testing ground for this new gear.

He said that Brazil's offshore developments "are prime candidates for the future 20k technology due to their complex, high-pressure and high-temperature environments."

Ravi stated that the technology could be used to benefit more than 5 billion barrels (including non-U.S. oil and gas fields) of known global resources. These volumes are equivalent to 50 days' worth of global production.

(source: Reuters)