EIA Says GOM Production in 2024-2025 to be Flat with 2023

Crude oil production in the Gulf of Mexico (GOM) has been riding high in recent months, still surfing the wave of deepwater and ultra-deepwater projects whose development started in the “good ole days” of $100/Bbl oil. Some incremental output is still being added, keeping GOM production levels high even as onshore oil output is declining in response to low crude prices and drilling cutbacks. But exploration and production companies (E&Ps) are cutting their spending on offshore projects, and unless oil prices start to rebound soon the Gulf too will see a leveling off—and after that, a gradual fall--in production. Today, we conclude our series on resilient production levels in the GOM with a look at recent cutbacks and what they may mean for Gulf oil output in 2016 and beyond.

The Gulf of Mexico (GOM) has long been a hotspot for crude oil and natural gas production, but technological advancements have pushed the boundaries of what’s possible in deepwater operations, opening previously inaccessible reservoirs. Chevron is the first to deploy new equipment capable of handling the more extreme pressures found very deep below the seafloor. In today’s RBN blog, we’ll highlight the project — known as Anchor — and explore how this new technology is paving the way for similar developments. 

Crude oil production is off in most U.S. shale plays and at today’s prices will continue falling, but offshore Gulf of Mexico (GOM) output is resurging like a genie and it looks like 2016 will be another solid year. That means, with existing GOM wells producing at full throttle and new offshore production due online, U.S. production as a whole is down by less than you might expect, given that oil prices are stuck well under $35/Bbl. Today we begin a review of the resilience of GOM oil production, efforts to reduce costs, and new projects coming online.