BP PLC (NYSE:BP) announced what they call a major technological breakthrough finding an additional 200 million barrels of additional resources in their Atlantis oil field in the Gulf of Mexico.
This is yet another example of how BP is using technology to enhance shareholder value. BP seems very excited about this latest success and states that they will be deploying this same technique to other oil fields around the world including Azerbaijan, Trinidad, Angola and Tobago.
The company is very excited about the success of this new technology that allows the company to enhance the clarity of images that it collects through seismic surveys. This enhanced data and sharper images of the subsurface will allow BP to drill wells with more success and for less money.
Here is what Bernard Looney, BP’s chief executive of globalupstream had to say about the success: had to say: “This technological breakthrough has essentially allowed our team to find a new oil field within our existing Atlantis field. Given the overwhelming success of this project, we are now deploying this technology across BP’s global operations.” Interested investors can click here for more info from the company’s website.
In my view this is huge news for BP and the oil industry. I believe BP’s share price is significantly undervalued at this price under $35. This oil discovery alone adds extra value to the company that is about to increase production through 7 new major projects this year.
How does this technology work?
From the company’s website.
Proprietary algorithms developed by BP’s Subsurface Technical Center were applied on seismic data run at BP’s Center for High Performance Computing, one of the largest supercomputers in the world dedicated to commercial research. The algorithms allowed data that would normally take a year to be analyzed to be processed in only a few weeks, accelerating BP’s development decisions for the field.
The algorithms enhance a technique known as Full Waveform Inversion (FWI), which matches seismic simulations with existing seismic data to produce high quality subsurface images.
“This innovation again shows that BP remains at the forefront of advanced seismic imaging and digital technologies,” said Ahmed Hashmi, BP’s head of upstream technology. “The new technique has produced the best images of this reservoir that we have ever seen.”
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