• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 32 mins China's Blueprint For Global Power
  • 2 hours Bloomberg: shale slowing. Third wave of shale coming.
  • 44 mins ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 2 hours Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 4 hours Brexit agreement
  • 1 min Disenfranchised people are angry people - map of global electoral systems
  • 13 hours Boring! See Ya Clowns, And Have Fun In Germany
  • 47 mins Erdogan Holds All The Cards ... 3.6 Million Of Them
  • 2 hours Spain Is On The Edge...Clashes Between Catalonia And "Madrid"
  • 16 hours the future
  • 13 hours 5 Tweets That Change The World?
  • 12 hours USA Carried Out Secret Cyber Strike On Iran In Wake Of Saudi Oil Attack
  • 13 hours Leftists crying to make oil patch illegal friendly: 'Broken system' starves U.S. oil boom of immigrant workers: CONGRESS DO YOUR JOBS INSTEAD OF PANDERING!
Alt Text

A Draconian Crackdown Looms Over Natural Gas

Natural Gas is coming up…

Alt Text

IEA Draws Gloomy Oil Demand Outlook For 2020

A weakening global economy and…

Oil & Gas 360

Oil & Gas 360

From our headquarters in Denver, Colorado, Oil & Gas 360® writes in-depth daily coverage of the North American and global oil and gas industry for…

More Info

Premium Content

Gulf Of Mexico Growth Second Only To Permian

GOM growth second only to Permian

Big projects are coming back, according to the U.S. government’s energy data compiler. Gulf of Mexico oil production is projected to have the second-largest growth among U.S. oil plays through 2018, according to a note released by the EIA.

While the U.S. shale boom, which shines particularly brightly in the Permian, has attracted the vast majority of market attention, shale plays are not the only locations of successful oil and gas operations in the country. The Gulf of Mexico is still popular enough to receive $275 million in a recent lease sale, and according to Wood Mackenzie breakevens in the region are below $50/bbl.

According to the EIA, Gulf oil output will grow by 344 MBOPD from June 2017 through December 2018. This makes the Gulf second only to the Permian itself in anticipated growth among U.S. oil plays. Surprisingly, all other regions of the U.S., including the Eagle Ford and Bakken, are expected to grow by a mere 48 MBOPD.

Source: EIA

Crude oil production in the GOM set an all-time high in 2016, with average annual production of 1.6 MMBOPD. Production has continued to rise, reaching 1.7 MMBOPD in January. Gulf oil production is much less sensitive to short-term oil price movements than most shale plays. While it may take years for a GOM project to be approved, drilled, completed and brought on production, a shale well may complete this process in months. Related: Oil Rises To 8-Week High Following Unexpected U.S. Inventory Draw

Source: EIA

Seven projects will come online through 2018

Seven major projects are expected to come online in 2017 and 2018, supporting GOM production. Based on anticipated output from these new fields, production from the Gulf will likely continue to break records in the next two years. The EIA predicts that production will average 1.7 MMBOPD in 2017 and 1.9 MMBOPD in 2018.

Source: EIA

Overall U.S. oil production is also on course to set records in 2018. Growth in the Permian and the GOM will drive average 2018 production to 9.9 MMBOPD, significantly above the previous record of 9.6 MMBOPD set in 1970.

By Oil and Gas 360

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Bill Simpson on August 04 2017 said:
    Good, because you don't want to be around when global oil production begins to decline and takes out the banking system by forcing the economy to continually shrink. Pull up a graph of total world oil and NGL production. It been going up for a long time because it takes fuel to do work. Less fuel available will mean less work will get done. The economy must shrink if less energy is used. It is physics. No politician, dictator, or Wall Street guru can change the laws of physics. Peak oil will mean we are screwed. Without both horizontal drilling, and advances in fracking, we might be in trouble already. Those advances probably pushed the peak out between 5 and 15 years. You would need to assemble a huge team of experts from all the major oil companies, including the government owned ones, to make a good guess on when the peak will hit. Obviously, that will never happen. So I'll stick with my prediction of between 2022 and 2025 for the peak. Oil production will take a while to begin to decline, so the complete economic collapse probably won't hit until sometime after 2030, at the earliest.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play