Koil Energy Solutions Inc. (KLNG)

[mazaniac]

Exerp from Senate Judiciary Committee hearing:

Peter J. Robertson
Vice Chairman
Chevron Corporation
Statement Prepared for the Senate Committee on the Judiciary
May 21, 2008


"Let me highlight an example to illustrate what we do. We are working on several deepwater crude oil and natural gas projects in the U.S. Gulf of Mexico. One of these, known as Tahiti, offers a typical case study in the risks facing this business today in terms of timing, scale and cost. We acquired the Tahiti leases in the 1990s. In 2002, we used leading-edge technology to drill in 4,000 feet of water and found an estimated 400 million to 500 million barrels of recoverable resources. It will take seven years to build the infrastructure required to produce the oil and gas more than a 100 miles offshore. When Tahiti finally comes online next year, we will have invested $4.7 billion—and dedicated personnel and resources for over a decade to manage exploration, permitting, engineering and development —before realizing $1 of return on our investment. Once in production, Tahiti is expected to produce for up to 30 years. Tahiti is expected to add 125,000 barrels of oil and 70 million cubic feet of gas per day to the U.S. domestic supply."