Crude oil production in the U.S.’s portion of the Gulf of Mexico is poised to top 2 MMb/d for the first time in six years — and only the third time ever. New projects keep coming online. And a newcomer to the U.S. GOM, U.K.-based Harbour Energy, just announced a deal to acquire LLOG Exploration.
Genesis Energy is poised to generate higher earnings and free cash flow following the successful startup of the Shenandoah and Salamanca floating production units (FPU) in the Gulf of Mexico, CEO Grant Sims said during the company’s quarterly earnings call October 30.
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.
