It may be one of the biggest oil finds of the year, if not the decade. In recent weeks, executives at BP's exploration centers in Houston and London have been closely tracking the progress of a very deep well that BP contractors were drilling into the seabed of the western Gulf of Mexico. In late August the exploratory well, known as Tiber, was completed. On Sept. 2, BP announced that it had made "a giant oil discovery." BP's chief of exploration, Michael Daly, terms the Tiber find "very significant" and says it is even "better" than the Kaskida field, another huge BP property in the Gulf of Mexico, with an estimated 4 billion to 6 billion barrels of oil in place.
BP has struggled recently, the result of highly publicized battles with its Russian partners and a series of accidents in the U.S. at its Texas refinery and on Alaska's North Slope. Now it is getting a huge shot in the arm from its gulf finds, which are just coming onstream with highly profitable oil. Tiber provides further confirmation of BP's vanguard status among companies probing the ancient geological zones far below the seabed of the gulf in water a mile deep.
The London company's two-decade commitment to the gulf has helped resurrect a region that was being dismissed as "the Dead Sea" in the 1990s, after companies hit a series of dry holes. "With respect to the Gulf of Mexico, BP has done very, very well," says Richard Gordon, president of Gordon Energy Solutions, an Overland Park (Kan.) oil and gas consultancy.
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Two other huge deepwater Gulf of Mexico fields, BP's Atlantis and Mad Dog, have also come onstream in recent years. BP is now the lead producer in the gulf, and projects such as Thunder Horse have added about 1.2 million barrels per day to total U.S. output, arresting a long decline in American production and decreasing dependence on imported energy. The deepwater gulf is "one of the few bright spots in global oil production," says Bob MacKnight, an analyst at consultants PFC Energy in Washington. BP now reckons an additional 22 billion to 40 billion barrels of reserves are to be found there.

What BP?s giant oil strike means - Oil & energy- msnbc.com