Oil Discovery in Gulf of Mexico Could be Major

Three companies say tests of a deep-water well in the Gulf of Mexico could indicate a significant oil discovery. It's the first project to tap into a region that reportedly could boost U-S oil and gas reserves by as much as 50 percent.

The Jack Two well was drilled by U-S oil company Chevron Corporation, with partners Statoil A-S-A of Norway and Devon Energy
Corporation of Oklahoma City.

It was drilled in the Walker Ridge area of the Gulf, about 270 miles southwest of New Orleans and 175 miles off the coast. It followed up a discovery made by Chevron in 2004.

The Florida Petroleum Council calls the discovery great news since global oil supplies are so tight.

Spokesman David Mica says it also highlights the need for more oil exploration to boost domestic production.

Opponents of drilling in the Gulf say they're concerned about the nation's dependency on oil.

Mark Ferrulo of Environment Florida hopes the discovery does not increase pressure to drill off Florida's coast.