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Gulf of Mexico Oil Output Targeting Record Year

Despite a massive downturn in investment in the U.S. part of the Gulf of Mexico (GOM), industry experts including Rystad Energy and the U.S. based Energy Information Agency (EIA) are anticipating that 2020 will be yet another record year. “2020 is expected to be another record year with average production above 1.9 million barrels per day,” states Joachim Milling Gregersen, an analyst on Rystad Energy’s Upstream team. This is an additional 100,000 barrels a day on 2019 despite the increasing ferocity of the regular hurricanes in the region, which force the entire industry to close down for days at a time. For example, Hurricane Barry caused a drop of 700,000 barrels of oil per day (bopd) in U.S. crude production during the week of July 19th, according to the U.S. EIA.

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What’s driving production?

Infill drilling, increasing production from existing fields and discoveries account for rising production. Much of the output has come from infill drilling in leading legacy producing fields such as Mars, Thunder Horse and Tahiti. Read more https://www.rigzone.com/news/gulf_of_mexico_oil_output_targeting_record_year-27-dec-2019-160641-article/

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