HAPPY DAZE ARE HERE AGAIN

Make that downstroke on the Hummer; get out the 12 cylinder car and gas it up. Oil prices are tumbling. And for a dam good reason. As oil prices fall again---today's low so far is 67.95---everybody is saying Iran relationships are getting better as the reason. Bullshit. Whenever something happens in any market the usual suspects have a reason. Today there was an announcement of the discovery of the largest oil deposit in a generation in the Gulf of Mexico. Keep in mind that the real insiders have known about this for weeks at the very least. Real insiders include every worker on every Chevron site as well as the company executives Devon and Chevron.

California-based Chevron said the well set a variety of records, including the deepest well successfully tested in the Gulf of Mexico. Chevron said it was drilled to a total depth of 8,587 meters (28,175 feet) in waters that are 2,133 (7,000 feet) deep. Chevron has a 50 percent stake in the field, while Statoil and Devon own 25 percent each. During the test, at record depths and pressure, the Jack No. 2 well flowed at a rate of more than 6,000 barrels of crude per day, Chevron said. That puts it on a par with discoveries in exploration hot spots such as the waters off Angola.

OSLO, Norway Tests of a deep and challenging offshore well in the Gulf of Mexico indicate a significant oil discovery, the partners in the field announced Tuesday.

The Jack 2 well was drilled by U.S. oil giant Chevron Corp., with partners Statoil ASA of Norway and Devon Energy Corp. of Oklahoma.

"Test results are very encouraging and may indicate a significant discovery. The full magnitude of the field's potential is still being defined," Statoil said in a statement.

During the test the Jack 2 well sustained a flow rate of more than 6,000 barrels of oil per day, Statoil said.

The well was drilled in the Walker Ridge area of the Gulf, about 435 kilometers (270 miles) southwest of New Orleans, Louisiana, and 280 kilometers (175 miles) off the coast, the company said. It followed up a discovery made by Chevron in 2004.

"This area is one of the new and promising deep water areas in the Gulf of Mexico," said Oivind Reinertsen, senior vice president of Statoil's Gulf of Mexico assets in Houston.

"The Jack 2 well test data are encouraging and may form the basis of future development projects in Walker Ridge," he said.

In a separate statement, San Ramon, California-based Chevron said the well set a variety of records, including the deepest well successfully tested in the Gulf of Mexico. Chevron said it was drilled to a total depth of 8,587 meters (28,175 feet) in waters that are 2,133 (7,000 feet) deep.

Fly in the ointment is that Devon Statoil, a partner of Chevron, is a Norwegian company and has a huge interest in not drilling at all so that their North Sea fields become dominant. Just look at charts and know that the real insiders have been shorting for weeks. From looking at the chart, I'd say the insiders started shorting August 10th. Corrected per comment