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Page added on October 4, 2012
Gulf of Mexico Poised for Oil Resurgence
The U.S. Gulf of Mexico is on track to surpass by 2019 the peak production levels last seen before the 2010 Deepwater Horizon disaster, analysts at energy consulting firm Wood Mackenzie said Wednesday.
With operators working full time to expand oil and gas production, Wood Mackenzie expects commercial deepwater production in the gulf will reach 2 million barrels of oil equivalent a day by 2019.
Before the Deepwater Horizon disaster, deepwater production in the Gulf peaked at 1.8 million barrels of oil equivalent a day, but is currently about 1.4 million barrels of oil equivalent per day, said Wood Mackenzie analyst Lauren Payne.
Ms. Payne said drilling in the Gulf is rebounding.
“We expect this trend to continue, driven primiarly by development drilling as operators seek to boost production levels and bring new projects onstream,” she said.
Wood Mackenzie projections estimate that through 2015, companies will spend $20 billion drilling development wells for projects already onstream.
Despite more stringent regulations and a more time-consuming permitting process for wells in the gulf, the area’s infrastructure and relatively risk-free environment above ground has attracted both small and large operators to the region, said Julie Wilson, senior analyst for exploration.
Wood Mackenzie’s projections don’t include potential oil discoveries offshore.
Ms. Wilson said she expects 12 billion barrels of oil equivalent to be discovered by 2013, the fruits of $70 billion in investments she anticipates comapnies making on gulf exploration.
4 Comments on "Gulf of Mexico Poised for Oil Resurgence"
BillT on Thu, 4th Oct 2012 4:18 am
Nasdaq…of course they have zero interest in oil or investments correct? And everything they print is 100% true, correct? And the “Market” is still independent and ‘free’ right? lol.
I have a bridge, slightly used, in Manhattan if you want to invest…or some ocean front property in Montana…
dsula on Thu, 4th Oct 2012 10:55 am
Looks like this PO is in fact a non-issue. So much NG, so much shale oil. And we can assume shale oil is to be found all around the globe. Maybe we should meet again in 20 years?
BillT on Thu, 4th Oct 2012 11:03 am
dsula, actually, it is big news and is reality. The rock oil bubble will crash and burn soon, as will these dreams of other oil resources that are left…and then we will be back to watching gas prices climb out of the reach of common people. The reality is the contraction of oil in ALL of the normal, existing fields all over the world. What is hyped is a lot of ‘maybes’ and ‘what ifs’. So we can add 2% with the gunk from sand and rock and 5 miles down under oceans. The decrease in existing fields is increasing and will ensure that the total (net) oil produced will continue to contract.
James A. Hellams on Fri, 5th Oct 2012 12:16 am
They expect to discover 12 billion barrels of oil equivalent? This WILL NOT RESCUE THE US!
Compared to the annual consumption of the US (8 billion barrels) the 12 billion barrels in this find would last 1 and 1/2 years! With the worldwide oil consumption running at 32 billion barrels annually, the 12 billion barrels of oil claimed in this article would last the world a LITTLE OVER ONE THIRD OF A YEAR!
WHEN the people finally wake up to the fact that the oil supply is in a state of net contraction, watch out. The rage and anger will be enormous and unquenchable!