The New York Times reported that a group of companies led by Chevron announced that an oil field in the deepest regions of the Gulf of Mexico could potentially yield 6 billion barrels of oil.

Located just 270 miles southwest of New Orleans and 20,000 feet below the bottom of the Gulf, the oil well known as Jack #2 was able to sustain a flow rate of more than 6,000 barrels of crude per day.

J. Larry Nichols, chairman of Devon Energy Corporation which holds a 25 percent stake in the oil field, said it "could not have happened in a better place." At the same time, Chevron says, that "more than a half dozen world records for test equipment pressure, depth and duration in deep water were set during the Jack well test."

On news of those announcement, midday trading of crude oil fell to a 5-month low at $68.38 per barrel yesterday.

It's certainly a sign of relief for those weary of gas prices, however, the impact on the focus of alternative fuels remains to be seen.

[Source: New York Times]

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