The global oil market seems a little shaky at the moment due to low prices, but it appears that the future might be shining bright for the giant oil explorer Talos Energy. This is after plans were put in place for this energy giant to set up an appraisal drilling station for the exploration giant at the newly discovered ZAMA-1 oil wells. This recently discovered oil well is believed to have more than 1,000 feet oil bearing interval. Talos Energy plans to pull out between 400-800 MMbbl of oil from its operations in this well. The oil giant is set to begin the appraisal activity in 2019.
The bright future
This new well means that Talos Energy will have enough oil supply. This will lead to increased oil production and even better economies of scale. With more oil in their hands and with the economies of scale in their favor, Talos will be able to operate comfortably even with the low energy prices predictably going further into the future. In addition to that, this exploration giant plans to push the continued unity of NAFTA nations through energy production. The continued integration of these nations will mean better trade relations. The primary focus of this is to reduce tariffs for aluminum and steel to 10% and 25% respectively. These two metals are extensively used in oil exploration. The United States is also in support of this tariff reduction move, which is very likely to be implemented. The implementation will significantly reduce the cost of exploration and encourage more research in future.
About Talos Energy
Talos Energy is among the global industry leaders in the gas and oil exploration sector. As an independent company, the central area of focus for this exploration giant is the offshore exploration and production of gas and oil. This firm has a considerable investment in deep water exploration assets around the Gulf of Mexico. Talos Energy was established in 2012, as a successful child of two very successful exploration companies Gryphon Exploration Co. and Phoenix Exploration Co. The firm’s management team is well experienced in the exploration sector as it has worked with previously successful entities. To investors in the exploration sector, Talos Energy is a very lucrative company.