Chevron Increases Gulf of Mexico Reserves

Chevron Corp. said drilling projects in the deep waters of the Gulf of Mexico should add more than 2 billion barrels of crude to its reserves over the next 10 to 20 years. New technology has opened water deeper than 1,000 feet to oil and natural gas production, making offshore fields in bodies of water such as the Gulf of Mexico among the hottest areas for drilling. Annual production from the gulf is expected to increase 42%, to 1.7 billion barrels over the next decade, primarily from deep-water projects, said Peter Robertson, president of Chevron USA Production Co. Genesis, Chevron’s first deep-water project in the gulf, is expected to start producing oil at the end of 1998, he said. At the end of 1996, Chevron’s worldwide proven oil and natural gas reserves were the equivalent of more than 6 billion barrels. Chevron shares fell $1.44 to close at $84.74 on the NYSE.