Baker Hughes may have just solved one of the major problems facing oil and gas development in the Gulf of Mexico.

At the 2015 Offshore Technology Conference in Houston on Monday, Baker Hughes unveiled the result of two years of diligent engineering, a system it is calling Hammerhead, reports FuelFix. The new system is specifically designed to reach the most challenging part of the Gulf’s deepwater region: the Lower Tertiary.

Located more than 10,000 feet underwater and as far as six miles below the floor of the Gulf, the Lower Tertiary has been proving nearly impossible to take advantage of. At that depth, immense pressures and temperatures make for a harsh environment for equipment.

To tackle this obstacle and help deepwater projects recover more than a meager six percent of the oil, natural gas, and natural gas liquids from the Lower Tertiary, Baker Hughes collaborated with 100 top engineering minds to develop Hammerhead. Once deployed, the new technology will help companies cut down on costs and increase revenues.

Unlike previously used systems in the area, which required switch-outs in order to complete a well, the Hammerhead system will be the only system required to reach the target depth in the Lower Tertiary. In addition, its effective method of delivering proppant into the well during the hydraulic fracturing process will ensure more reserves are recovered from the dense, ultra-deep formation.

Although the technology has been given a practice run, it isn’t quite ready to hit the water on a commercial scale yet. However, according to FuelFix, Baker Hughes hopes to negotiate deals to get the new technology in the hands of its customers in the Lower Tertiary in the foreseeable future.

In related news, Diamond Offshore scraps rigs as demand weakens.

Source: Shale Plays Media