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ImplicationsforoilpriceNewfocusonGulfBPUNVEILSGIANTOILDISCOVERYINGULFOFMEXICOBPNOTESRECORDDROPINOILUSAGE9servicestationaustraliasummer09ssa.org.auSeptember32009-1038AMAFPReutersBritishenergymajorBPhasmadeagiantoildiscoveryintheGulfofMexicoafterdrillingoneoftheindustrysdeepest-everwells.BPannouncedtodayagiantoildiscoveryatitsTiberProspectinthedeepwaterGulfofMexicothecompanysaidinastatementonWednesday.TheTiberwellwasdrilledtoatotaldepthofapproximately35055feet10685metresmakingitoneofthedeepestwellseverdrilledbytheoilandgasindustryitadded.TheannouncementsentBPssharepricerising3.4percentto537.15penceonLondonsbenchmarkFTSE100indexwhichwasdown0.6percentnearingtheclose.IainArmstronganalystatBrewinDolphinsaidthediscoverymayhaveimplicationsforlong-termoilprices.Itwilleaseconcernsaboutpeakoilbecauseitshowsthereislifeleftinthesematureareashesaidaddingthatitcouldbethesecondhalfofthenextdecadebeforethefindisproducing.ThediscoveryalsobodeswellforotherexplorationinthatpartoftheGulfofMexicoincludingatRoyalDutchShellsnearbyGreatWhitefieldsaidJasonKennyoilanalystatINGinEdinburgh.BPsdiscoverycomesastheindustrythisweekmarks150yearssincecrudewasfirstrecoveredfromadrilledwellanddaysafterScottishgroupCairnEnergybeganpumpingoilinIndiaasexplorationintheNorthSeadwindles.ThediscoveryislargerthanBPsKaskidafindwhichcontainsaroundthreebillionbarrelsinthesamegeologicalareathreeyearsago.Theindustrydefinitionofagiantoilfindreferstoafieldfromwhichmorethan500millionbarrelsofoilorgasequivalentcanberecovered.Muchoilfoundisneverextractedbecausebringingittothesurfaceistooexpensive.PeterHuttonananalystatNCBOilssaidWednesdaysannouncementwouldbeseenasconfirmationofBPsstrongfocusonGulfofMexicoexploration.IntheGulfofMexicoBPoperatesTiberinwhichithasa62percentstake.Itsco-ownersareBrazilianoilgiantPetrobraswith20percentandUSgroupConocoPhillipswith18percent.TiberrepresentsBPssecondmaterialdiscoveryintheemergingLowerTertiaryplayintheGulfofMexicofollowingourearlierKaskidadiscoverysaidAndyInglisBPchiefexecutiveforExplorationandProduction.ThesematerialdiscoveriestogetherwithourindustryleadingacreagepositionsupportthecontinuinggrowthofourdeepwaterGulfofMexicobusinessintothesecondhalfofthenextdecade.BPisthebiggestproducerofoilandgasintheGulfofMexicowithcurrentnetproductionofmorethan400000barrelsofoilequivalentperdaythecompanysaidinitsstatement.Thiscouldriseto650000barrelsdailywithinthenext15yearsthankstotheKaskidaandTiberwells.ThediscoveryalsobodeswellforotherexplorationinthatpartoftheGulfofMexicoincludingatRoyalDutchShellsnearbyGreatWhitefieldsaidJasonKennyoilanalystatINGinEdinburgh.TheGulfofMexicohasbecomeincreasinglyimportanttoWesternoilmajorsasoil-richcountriessuchasSaudiArabiaVenezuelaandRussiareservetheirrichestfieldstobedevelopedbytheirstate-ownedoilcompanies.EnergygroupsareincreasinglydrillingintheGulfofMexicoandelsewhereasNorthSeaoilfieldsdryup.CairnEnergyonSaturdaybeganpumpingfromavastoilfieldintheIndiandesertstateofRajasthanthatissettoincreaseIndiastotaloutputby20percent.CairnsfieldIndiaslargestonshoreandthebiggestfindinover20yearswillincreaseIndiasoiloutputbyafifthonceithitsitsinitialpeakproductiontargetof175000barrelsadayin2011.ThisisincontrasttotheNorthSeawhereexpenditureonexplorationwasdown70percentatthestartof2009accordingtoindustrybodyOilGasUK.BritishenergycompanyBPsaidonWednesdaythatglobaloilconsumptionfell0.6percentin2008thefirstannualdeclinesince1993andthelargestdropsince1982asthedownturnslasheddemand.BPaddedinanannualreportthatworldwidecrudeoilproductionclimbedby0.4percentin2008.Globalenergyconsumptiongrowthslowedin2008withslowereconomicgrowthandhigheraveragepricesbreakingastringoffiveconsecutiveyearsofabove-averagegrowthBPsaidinanannualreport.Celebrating75YearsSSA