BOEM, BSEE looking to boost Gulf of Mexico oil and gas output

first_imgIn 2019,facilities in deepwater Gulf of Mexico averaged a record-breaking 1.7 millionbarrels of oil per day. About 4 out of 5 deepwater facilities are producingless than 50 per cent of their daily oil production capacity, based on athree-year average of daily production rates. Deepwaterproduction, which comes from depths greater than 200 meters, accounts for 92per cent of total Gulf of Mexico offshore oil production, and 14 per cent ofall domestic oil produced in the U.S. The study wouldexamine specific economic parameters used by BOEM and BSEE for new andhigh-cost technologies like extended-reach subsea tiebacks. It is worthnoting that the BOEM team began to evaluate the specific features of deepwaterfacilities, examine whether changes to the economic parameters used by BSEEcould lead to expanded production or address other BSEE policy goals, and makerecommendations as appropriate. Throughcollaboration, BOEM and BSEE identified contingent resources that exist 30-60miles away from existing facilities. This research will identify anydifficulties that new technological advances may face, that could potentiallyhinder production and project economics. BOEM Acting Director Walter Cruickshank added: “BSEE has provided some important initial data, and our team will consider the economic parameters used to examine these extended-reach subsea tieback projects given the capacity that exists in the region. Based on that analysis, BSEE could then have more tools to minimize stranded resources”. Implementationof these parameters could minimize stranded or left behind hydrocarbonresources. This research would apply to developments that might connect todeepwater facilities that have additional production capacity. The Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement (BSEE) are advancing research regarding policies which could help increase oil and gas production from deepwater infrastructure already in place in the Gulf of Mexico. Scott Angelle, BSEE Director, said: “This research will help ensure our nation continues to achieve top oil and gas production by reducing stranded assets. A cursory review of the preliminary data suggests the time is right to usher in updated policies to ensure we are efficiently developing our natural resources and value for the American people”.last_img

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