More good news for energy diversification: Tullow Oil PLC and Royal Dutch Shell PLC have struck it big off the coast of French Guiana. The WSJ reports:
“The importance of this result cannot be overstated,” said Oriel Securities analyst Richard Rose. If drilling on these adjacent prospects is successful, Tullow might be sitting on 3.5 billion barrels of gross oil resources, which could boost the value of the company by around a third from its current share price, he said.
For perspective, the U.S. strategic petroleum reserve is 697 million barrels. French Guiana’s coast offers safe oil – good oil – and good tidings too. As we mentioned with the Canadian oil sands pipeline, increasing supply in the western hemisphere helps lessen American dependence on far away oil in bad places. Even news that Venezuela’s reserves could be twice as large as once thought is good news long term for the US; the oil will be there when Chavez has moved on.America’s geopolitical good luck seems to be continuing in the 21st century. With very large deposits in Canada, the Gulf, Mexico, Venezuela and offshore Brazil, the US looks to have the most stable and secure oil supplies of any major world power. Throw in new reserves here and the vast natural gas resources we keep finding, and the US energy picture seems to be getting brighter all the time.