• 3 days Nuclear Bomb = Nuclear War: Saudi Arabia Will Develop Nuclear Bomb If Iran Does
  • 2 days Statoil Changes Name
  • 3 days Tillerson just sacked ... how will market react?
  • 2 days Russian hackers targeted American energy grid
  • 2 days Is $71 As Good As It Gets For Oil Bulls This Year?
  • 3 days Petrobras Narrows 2017 Loss, Net Debt Falls Below $85bn
  • 3 days Proton battery-alternative for lithium?
  • 3 days Ford Recalls 1.38 Million Vehicles (North America) For Loose Steering Wheel Bolt
  • 2 days Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 2 days Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 3 days I vote for Exxon
  • 2 days HAPPY RIG COUNT DAY!!
  • 3 days UK vs. Russia - Britain Expels 23 Russian Diplomats Over Chemical Attack On Ex-Spy.
  • 3 days Why is gold soooo boring?
  • 3 days South Korea Would Suspend Five Coal - Fire Power Plants.
  • 2 days Spotify to file $1 billion IPO
Audi Unveils Its Flying Smart-Car

Audi Unveils Its Flying Smart-Car

The Geneva International Motor Show…

Chinese Oil Production Hits Record Low

Chinese Oil Production Hits Record Low

China is becoming increasingly dependent…

Platts Sees Gulf of Mexico Oil Output At 1.87 M Bpd by Year-End


Platts Analytics Bentek Energy has forecasted that crude oil output in the U.S. part of the Gulf of Mexico will reach 1.868 million barrels daily by the end of this year, jumping further to 2.296 million bpd by the end of 2022, thanks to expansion of existing projects and renewed interest in untapped, smaller fields.

The area yielded some 1.67 million bpd as of the end of 2016, but energy companies active in the Gulf are becoming bolder, encouraged by oil prices. Several new fields are also set to start producing this year, adding 15,000 barrels daily to total production.

These include Barataria and South Santa Cruz, both operated by Deep Gulf Energy, an independent energy player, and Crown the Anchor, property of LLOG Exploration.

At the same time, Big Oil majors are expanding production at seven fields, most of which were launched last year. Among these are Noble Energy’s Gunflint, Shell’s Stones, and Exxon’s Julia.

Platts’ forecast comes soon after Wood Mackenzie warned that deepwater projects will soon challenge shale oil and gas, as producers betting on offshore developments streamline their operations, cut costs, and use technology to make drilling and production more efficient.

According to Wood Mac’s upstream oil and gas research director Angus Rodger, this shift is essentially a shift in the mindset of Big Oil rather than a shift in innovation, with producers foregoing maximum profits for a more stable revenue stream.

Although Platts’ analysts admit—like Wood Mac’s—that there are fewer large-scale projects in the Gulf these days, and also fewer drillships and rigs in the area, the Platts team believe this is set to change next year and in 2019.

Related: Russia Reaches 2/3 Of Oil Output Cut Target

According to them, explorers will become more active in the next couple of years – “a modest but steady” improvement, Trevor Crone from Platts RigData said. An early sign of this trend was the sum of the bids attracted in the latest lease sale for the Gulf: at $275 million, the combined value of the bids was almost twice as high as the $156 million drawn in during last year’s tender of Gulf blocks.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

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