The affect of the BP (NYSE:BP) oil spill on the attitude of competitors like Chevron (NYSE:CVX) is little if any, as far as continuing operations in the area, as the oil giant will continue to open up drilling projects in the area, including Jack field and Malo field.
Chevron has a 50 percent working interest in the Jack field and a 51 percent stake in Malo field.
Initial capital expenditure for the two fields is $7.5 billion. The fields sit in 7,000 feet of water, a little less than 300 miles south of New Orleans.
Oil demand isn't going to go away for a long time, and those that think the Gulf oil disaster will affect that are only fooling themselves.
That doesn't mean changes won't be made to improve safety, but demand is what is driving the market, nothing else.
Net daily production by Chevron in the Gulf is about 149,000 barrels of oil and 484 million cubic feet of natural gas for 2009.
Production for the two fields is expected to launch in 2014. Recoverable barrels of oil equivalent are estimated to be about 500 million.
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