Drill Baby Drill?

BP finds "giant" oil deposit in deep water Gulf of Mexico. At more than 35,000 feet (6.6 miles!) down, this is not low cost oil. But, as we at TILB have always said, the cure to high priced oil is high priced oil.

Here's the link to the press release.

The text follows:

BP Announces Giant Oil Discovery In The Gulf Of Mexico

Release date: 02 September 2009

BP announced today a giant oil discovery at its Tiber Prospect in the deepwater Gulf of Mexico.

The well, located in Keathley Canyon block 102, approximately 250 miles (400 kilometres) south east of Houston, is in 4,132 feet (1,259 metres) of water. The Tiber well was drilled to a total depth of approximately 35,055 feet (10,685 metres) making it one of the deepest wells ever drilled by the oil and gas industry. The well found oil in multiple Lower Tertiary reservoirs. Appraisal will be required to determine the size and commerciality of the discovery.

"Tiber represents BP's second material discovery in the emerging Lower Tertiary play in the Gulf of Mexico, following our earlier Kaskida discovery," said Andy Inglis, chief executive, Exploration and Production. "These material discoveries together with our industry leading acreage position support the continuing growth of our deepwater Gulf of Mexico business into the second half of the next decade."

Tiber is operated by BP (NYSE: BP), with a 62 per cent working interest with co-owners Petrobras (NYSE: PBR/PBRA, 20 per cent) and ConocoPhillips (NYSE: COP, 18 per cent).