Rigzone - Unsung Gulf of Mexico Tracks New Crude Oil Production Record

April 25, 2017 – Rigzone

Unsung Gulf of Mexico Tracks New Crude Oil Production Record

By: Deon Daugherty

Far from the $40,000 per acre land rush for shale in the Permian Basin, operators in the Gulf of Mexico are toiling offshore to outpace their own production records.

In January, Gulf of Mexico (GOM) production totaled 1.75 million barrels per day, less than a percentage point away from the previous record set in 2009, according to Housley Carr, an analyst at RBN Energy LLC. Within the next month or so, the 2009 record is expected to fall.

By 2018, the U.S. Energy Information Administration (EIA) expects a total of 1.9 million barrels per day in 2018, Carr noted in an April 24 report.

“Admittedly, that’s an increase of only [300,000 barrels per day] from 2016, which might not be groundbreaking news, but it sure puts the kibosh on any suggestion that production off the coasts of Texas, Louisiana, Mississippi and Alabama is dead in the water,” he said. “It’s not – by a long shot.”

The EIA has projected growth in the GOM between 2016 and 2018 to be 300,000 barrels per day (bpd), which will account for roughly 30 percent of the total U.S. production increase forecast.

Although no major projects have started in the GOM through the downturn, offshore exploration and production (E&P) companies have adapted during the downturn – similar to onshore E&Ps. In the GOM, producers have benefited from lower cost drilling and equipment, and also shifted to sub-sea tie-backs, Carr said…

Read the full article here: http://www.rigzone.com/news/oil_gas/a/149843/Unsung_Gulf_of_Mexico_Tracks_New_Crude_Oil_Production_Record