Many people in Washington and New York apparently have short memories. A case-in-point is the Deepwater Royalty Relief Act, which was passed during the Clinton Administration to encourage energy companies to develop oil and natural gas in the deep waters of the Gulf of the Mexico.

At the time, deepwater drilling technology wasn't mature and the cost was prohibitive. The law made deepwater exploration more attractive by reducing the fees required to access energy resources. By providing a carrot, per se, the law worked.

Companies perfected technologies and invested billions of dollars in producing oil and natural gas in thousands of feet of water and well below the seafloor. The law encouraged the construction of platforms like Perdido, which are producing energy, creating U.S. jobs, and he... more »

A few days ago, Shell's new oil platform Perdido began producing "first oil" in the Gulf of Mexico. To get a better understanding of the technology and engineering required to produce oil from the deep waters of the Gulf, take a look at this video.

Oil companies spend millions of dollars every day to produce the oil and natural gas that power the U.S. economy. Perdido illustrates the expertise, environmental care, and investment that keeps America moving.

On the same day President Obama announced his offshore drilling plan, Shell announced that it "smashed the water depth record for an offshore oil drilling and production by over 50%" by starting oil production at its Perdido platform.

Perdido is the world's deepest offshore oil development project. Positioned in 8,000 feet of water on top of a mammoth floating steel cylinder, the platform is expected to produce about 100,000 barrels of oil equivalent a day, enough to fulfill the energy needs of 2.2 million households. Perdido is located about 200 south of Texas in the ultra-deep waters of the Gulf of Mexico. Chevron and BP are partners with Shell on the project.

Perdido will develop hydrocarbons from three fields called Great White, Silvertip and Tobago. Together they contain an estimated... more »