Chevron recently made headlines by starting oil production from a field with extreme pressure levels — 20,000 pounds per square inch (psi), which is three times higher than what was previously possible. This breakthrough could open up access to up to 5 billion barrels of oil that were previously out of reach.

Traditionally, drilling for oil was limited by how much pressure the equipment could handle. With new technology, we can now drill at much higher pressures. This involves using stronger, more advanced equipment designed to withstand these intense conditions. Essentially, it’s like using a super-tough drill to reach deeper, more difficult oil reserves.

This technology could have a big impact on the global oil market. For example, it could boost oil production in the Gulf of Mexico, potentially bringing it back to its peak levels. More oil on the market could affect prices and supply.

As more companies start using this new technology, it could shift how and where they drill for oil. Companies that adopt this technology first will have an edge because they can tap into new, previously unreachable oil fields.

The success of this technology could lead to more exploration in challenging areas like offshore Brazil, Angola, and Nigeria. These places have a lot of oil but accessing it has been difficult — this technology could make it easier.

The oil and gas industry is now using more advanced safety measures and better equipment to prevent accidents, such as Deepwater Horizon or the Piper Alpha Platform explosion. This includes improved blowout preventers and strict safety checks.

In the future, this technology might unlock even more oil and gas reserves. As it continues to develop, it could make it possible to reach even more difficult-to-access resources.

For companies like Chevron, this new technology will likely shape their plans. They’ll probably invest more in high-pressure drilling and explore new areas that were previously too challenging.

I think this new drilling technology is a game-changer for the oil industry. It opens up new possibilities for finding and producing oil, with the potential to significantly impact the global oil market and exploration strategies.

To learn more about King Operating Corporation or to speak with one of our SVPs, fill out your contact information here. You can also subscribe to our newsletter, The Upside, to get oil and gas news, and more.