Gashostage.com

An oil discovery by Chevron Corp. has bolstered prospects that petroleum companies will be able to tap giant reserves that lie far beneath the deep waters of the Gulf of Mexico.

Oil analysts and company executives said newly released test results from a well 175 miles off the coast of Louisiana indicate that the oil industry will be able to recover well more than 3 billion barrels, and perhaps as much as 15 billion barrels, of oil from a geological area known as the lower tertiary trend, making it the biggest addition to U.S. petroleum reserves in decades. The upper end of the estimate could boost U.S. reserves by 50 percent.

More information here

 Hopefully such a discovery, something that expects are estimating could increase US Oil Reserves by up to 50%, will actually have an impact on the end users who buy the refined product. In the past, such discoveries have been very good for the companies who made the discoveries, but have had little impact on the prices you and I pay to fill up.

 Will that change this time? We can hope.

Oil fell more than a dollar to less than $68 a barrel on Monday, pulled lower by expectations that any sanctions against oil producer Iran were some way off and would not necessarily disrupt export flows.

U.S. light sweet crude was down $1.17 to $68.02 a barrel, just off a session low of $67.77.

London Brent crude settled at $67.71, $1.44 a barrel below Friday’s close. Its session low was $67.59, the lowest level since June 21.

Trading volumes were light as the New York Mercantile Exchange pit was closed on Monday to mark the Labor Day holiday. U.S. futures were only trading electronically and the ICE exchange, where Brent trades, closed early.

U.N. Secretary-General Kofi Annan on Monday stressed the need to avoid a confrontation with Iran.

He was speaking after a visit to the OPEC oil producer, during which he said Iranian President Mahmoud Ahmadinejad had reaffirmed Iran’s willingness to negotiate a solution to the nuclear dispute, although he said it would not suspend uranium enrichment.

Iran failed to meet an August 31 deadline to halt its enrichment program or run the risk of U.N. sanctions.

“All along the nuclear issue has been a lengthy play of many acts. Probably, we’re coming up to another act, which is sanctions, but there are likely going to be negotiations of what these sanctions are,” said Mike Wittner of Calyon bank.

Read more >>

This is good news.  I am happy to see that oil prices are starting to fall down to the pre-war levels but I still suggest that the prices for oil and gas are still to high.  This at least is a start.  Let us hope that Iran and Syria don’t start up another conflict.