Enbridge to Build Pipelines to Bring BP Kaskida's GOM Output to Shore

Deepwater and ultra-deepwater crude oil production projects in the Gulf of Mexico (GOM) are complex and take years to complete, so the several GOM projects on which exploration and production companies made final investment decisions in 2012-14 are only now coming online—just in time, it turns out, for the lowest oil prices in a dozen years.  So there’s this irony: Crude is selling for little more than $30/Bbl, but the new projects coming online in 2016 and beyond are likely to bring GOM production to record highs. Today, we continue our examination of still-rising production in the GOM with a review of more projects increasing the Gulf’s output.

Crude oil production in the U.S. Gulf of Mexico (GOM) is poised for a growth spurt through 2030 even as producers brace for a host of challenges, not least from forecasts that global oil demand will subside in the long term. But while the GOM’s supply accounts for a relatively small portion of total U.S. production, exploration and production companies (E&Ps) haven’t lost interest, in part because the Gulf offers key crude grades in high demand. In today’s RBN blog, we examine what is stoking the renewed interest in developing the GOM. 

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.