Offshore platforms facilitate Gulf of Mexico (GOM) production, but when their useful life is over they are typically decommissioned and dismantled to be sold as scrap or converted into an artificial reef. Not always, though. In certain cases, inactive rigs can be refurbished and used in new projects — a potentially inviting possibility, especially with GOM production expected to rise and drillers under pressure to keep costs down. In today’s RBN blog, we will examine the challenges (and potential benefits) of reusing an inactive platform and look at plans by LLOG Exploration to refurbish an existing facility for its upcoming Salamanca development, the first such project in a decade.
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The majority of U.S. offshore E&P business occurs in the GOM, which generates about 14% of U.S. crude oil output. The federal government regulates most of that activity along the Outer Continental Shelf (OCS). Its oversight begins about 3.5 miles off the coast of Alabama, Louisiana and Mississippi; for Texas and Florida, its jurisdiction starts about 10 miles offshore (see black line hugging the coast in Figure 1 below). The Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement (BSEE) are tasked with managing GOM activity, from overseeing lease sales to expanding production areas to issuing rules on what E&Ps must do with wells, platforms and associated infrastructure once their projects have run their course. (Note: Yellow dots in Figure 1 indicate active leases.)
Figure 1. Gulf of Mexico Offshore Production Areas. Source: Bureau of Ocean Energy Management
In Riders On The Storm, we noted that GOM drillers have nearly tripled the area’s oil output since the Energy Information Administration (EIA) started tracking data in the 1980s — production peaked at just under 2 MMb/d in 2019 and is expected to average 1.9 MMb/d in 2025, according to the EIA. There have been periods when offshore supply took a hit, like the Great Recession, the Macondo disaster and COVID-19, when weak markets challenged producers. However, the trendline shows supply is growing, with discoveries in progressively deeper waters more than offsetting receding supply in shallower coastal areas. As we have detailed in previous blogs, the deeper waters are primarily where there are still resources to discover; shallower areas are easier to develop but have limited potential after years of development activity. Deepwater production accounts for more than 90% of total GOM output. Also note that virtually all GOM production comes from areas not included in former President Biden’s decision to permanently ban new oil and gas drilling from 625 million acres of coastal waters — see Separate Ways (Worlds Apart) — an order that President Trump seeks to reverse.
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About the song
“Back To Life (However Do You Want Me)” was written by Jazzie B, Caron Wheeler, Nellee Hooper and Simon Law. It appears as the ninth song on Soul II Soul’s debut album, Keep on Movin’. Released as a single in May 1989, it went to #1 on the Billboard Hot Dance Club Play and #4 on the Billboard Hot 100 Singles charts. It has been certified Platinum by the Recording Industry Association of America (RIAA). Soul II Soul singer Caron Wheeler said the song was about a near-death experience she had. The song is built around reggae and hip-hop beats. It was featured in the opening scene of a 1998 film, Betty, and in the opening segment of the first episode of The Fresh Prince of Bel-Air television show, which premiered in 1990. Personnel on the record were: Caron Wheeler (vocals), Jazzie B (programming, sampling, production), Simon Law (keyboards, programming), Nellee Hooper (programming, production), Reggae Philharmonic Orchestra (instrumentation), and Ellen Blair (violin).
Keep on Movin’ was released under the title Club Classics, Vol.1, in the UK. It was recorded in 1988-89 at Addis Ababa, Lillie Yard and Britannia Row in London and produced by Jazzie B and Nellee Hooper. The album was released in the U.S. in April 1989 and went to #1 on the Billboard Top R&B/Hip-Hop and #14 on the Billboard 200 Albums charts. It was certified 2x Platinum by the RIAA. Two hit singles were released from the LP.
Soul II Soul is a British musical collective formed in London in 1988 by hip-hop DJ and producer Jazzie B (Trevor Beresford Romeo OBE). They are best known for their two 1989 hit singles, “Keep on Movin’” and “Back to Life (However Do You Want Me).” Twenty-seven members have passed through the group since its formation. They have released five studio albums, two live albums, two compilation albums and 18 singles and have won two Grammy Awards. Their last release was the single, “A New Day,” released in 2016. Their last live appearance was at Electric Brixton in May 2017. Founding member Jazzie B received an OBE from Queen Elizabeth II in 2008 and an Inspiration Award from the Ivor Novello Awards in the same year. He received a Lifetime Achievement Award at the Mobo Awards in 2024. He continues to DJ and produce records.
