Oil output slow, steady for U.S. in Gulf of MexicoStaff Writer | July 13, 2017
The slow, but steady, gain in oil production expected from the U.S. waters of the Gulf of Mexico shows the region is more stable than shale, a rig analyst said.
Oil exploration Production from the deep U.S. waters
The U.S. Energy Information Administration estimates about 20 percent of total U.S. oil production comes from the Gulf of Mexico.
Oilfield service company Baker Hughes reported 21 rigs in the Gulf of Mexico for the week ending July 7, unchanged from the previous week and up 16 percent from the same week in 2016.
Energy price agency S&P Global Platts offered a more fluid picture for the week, but added the region as a whole was stable.
"Offshore Gulf of Mexico is exponentially more stable than shale," Trevor Crone, a drilling rig analyst for Platts, told UPI.
EIA reported total 2017 production from the Gulf of Mexico should be about 6 percent higher than last year.
Production from the deep U.S. waters should reach 1.9 million barrels per day next year, an 11 percent gain from what's expected this year.
Eight new fields in the U.S. waters of the Gulf of Mexico started producing oil last year.
EIA reported that expansions to existing fields this year, and new production slated for next year, are contributors to the expected growth in offshore production. ■