Deep Drilling for Oil

The excitement off a deep-water rig in the Gulf of Mexico this month brought the old Texas oil-strike jubilation images to mind. Oil! Oil! But in this case, the now-celebrated "Jack 2" well was pulling oil from miles beneath the ocean surface.

An extraordinary five miles down, the Gulf's deep-water Jack oilfield looks like it might be the biggest find since Prudhoe Bay. The deep-water technology is amazing, and now racing to deep oil worldwide.

Critics of the view that oil supplies are peaking out are crowing. Environmentalists are shuddering at the thought of new oceans of global-warming crude. Crude oil prices are falling.

Hear about the rush and implications of deep-water oil.

Quotes from the Show:

"We made the original discovery about two years ago. It certainly opens a new trend in the Gulf of Mexico." Paul Siegele

"It's risky but it will be a secure source of oil for the United States." Paul Siegele

"This is the last great frontier [in deep oil drilling]." Roger Anderson

"It will take the better part of a decade to drill the lower tertiary in the Gulf of Mexico." Matthew Simmons

"This one particular find was overhyped and misinterpreted by analysts." Mike Lynch

Guests:

Paul Siegele, VP of Chevron's Deepwater Gulf Exploration and Projects

Roger Anderson, Senior Research Scientist at Columbia University

Matthew Simmons, Chairman of the energy investment banking company, Simmons and Co. International

Michael Lynch, President of Strategic Energy and Economic Research Inc.

Robert Kaufmann, Director at Boston University's Center for Energy and Environmental Studies.