• 5 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 1 hour Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 22 hours Something wicked this way comes
  • 9 hours America's Frontline Doctors - Safely Start Living Again!
  • 12 hours France Sees 10.6% EV Market Share In September — 4× Growth Year On Year
  • 1 day A sneak peak into the US election
  • 11 hours Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
  • 18 hours Permian in for Prosperous and Bright Future
  • 2 days covid. stop the carriers and thus stop the virus.
  • 21 hours Tesla Model 3 Is September's Top Selling Car of All Vehicles in Switzerland
  • 1 day California’s Electric Vehicle Dream Has A Major Problem: No
  • 2 days "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 2 days Vote Biden for Higher Oil Prices
  • 2 days Ethanol present in gasoline
  • 3 days Is the coal industry on the way out?
  • 3 days Tucker Carlson responds to CDC after agency critiques commentary about mask-wearing

Gulf Of Mexico Oil Industry Could Get A Boost From Trump

The Trump Administration is looking at the possibility of extending the limits for the length of tiebacks in the Gulf of Mexico to allow operators to connect more wells to existing oil and gas platforms, the director of the Bureau of Safety and Environmental Enforcement (BSEE), Scott Angelle, told Reuters.

The BSEE is currently is reviewing the policy that limits the length of the tiebacks to within 25 – 30 miles from existing offshore platforms, Angelle said.

The bureau is examining if there could be “a policy change that can make subsea tiebacks and investment into the Gulf of Mexico bigger, broader and bolder for the next decade,” BSEE’s director told Reuters.

The bureau also reviews if platforms in the Gulf of Mexico are being used to their full potential, the official said, noting that “The last thing we want to do is have an asset of the American people that is stranded and left behind.”

The U.S. Gulf of Mexico saw its crude oil production hit a record high last year, at an annual average of 1.897 million barrels per day (bpd), EIA data shows. The monthly production record was 2.045 million bpd in August 2019. After the price crash in March and April this year, crude oil production from the U.S. Gulf of Mexico slumped to 1.613        million bpd in May 2020, according to the latest available EIA data.

The U.S. Gulf of Mexico is better prepared now to ride out the oil crisis than it was in the 2015-2016 downturn, as 82 percent of oil production has a short-run marginal cost – operating costs, taxes, and royalties – of US$10 a barrel Brent, Wood Mackenzie said in June this year.

The Gulf of Mexico is now nimbler and leaner and more resilient, the consultancy said in research.

Despite the lower costs and leaner operations compared to the previous crisis, the Gulf of Mexico will not remain unscathed by this year’s price collapse as companies have cut budgets and recalibrated exploration and sanctioning plans. According to WoodMac, capital expenditure (capex) by Gulf of Mexico operators is expected to drop to US$7.4 billion this year, down by 22 percent or US$4 billion from 2019.

By Michael Kern for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Bill Simpson on August 18 2020 said:
    This is a perfect example of the ONLY thing I, and millions of others, like about corrupt, Trump. He believes in exploiting our God given natural resources, right here in our own country. That can create millions of jobs, since the United States still has a lot of energy and minerals left to mine. A rich, ignorant fringe shouldn't be allowed to stop that with lawsuits, and illegal demonstrations blocking legal construction of pipelines and new mines.
    Want to see what too much green gets you? Visit California right now, where they are limiting nuclear, and fossil fuel development. The lights are off for 5 million people. See that happening in China or Russia? Nope. Shifting too fast to green energy will do that. You need some sort of energy storage in place before you can switch to green energy, not that there is such a thing in the real world. Wind and solar hold great long term promise of reducing air pollution. But you need a long term plan to achieve cleaner energy. You can't just pass some laws, then hope for the best. Energy is too complex for that approach to work.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News