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Shell makes third large oil discovery in Gulf of Mexico

The global fuel giant Royal Dutch Shell recently announced that it had found large amounts of oil equivalent in the Gulf of Mexico.

The company’s Rydberg exploration well is located in the region’s Norphlet formation and this latest discovery, Shell’s third in the area, is estimated to contain around 100 million barrels of oil equivalent.

Around half of Shell’s US gas and oil production comes from the Gulf of Mexico, which has become one of the most important oil provinces in the world. Although deep water drilling ceased there for six months after the Deepwater Horizon disaster in 2010, oil companies have stepped up their exploration in the basin in recent years.

The Norphlet play dates from the Jurassic era and is a geological formation that extends through the Gulf of Mexico from onshore areas to deep waters. Shell’s Rydberg well was drilled to a depth of over 8,000 metres, meeting over 122 metres of net oil pay. Its estimated 100 million barrels of oil equivalent brings the total of Shell’s combined Norphlet discoveries to more than 700 million barrels.

Shell hopes that its latest find will help to increase its value for shareholders. The company manufactures oils and lubricants for cars, motorbikes and heavy transport vehicles, as well as for industrial and agricultural applications. Its reliable products, such as Shell Gadus S2 V100 3, a multipurpose grease used in electric motor bearings, have helped to make it one of the world’s leading brands.

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