Gulf of Mexico Oil Production Could Reach 2.1 Million Barrels per Day
Gulf of Mexico (GOM) oil production is forecasted to increase over the next ten years to a possible high of 2.1 million barrels of oil per day. The Department of the Interior's Minerals Management Service (MMS) released its Gulf of Mexico Oil and Gas Production Forecast: 2007-2016, at the Offshore Technology Conference in Houston, Texas. In the report, GOM gas production is forecasted to recover from recent declines over the next three years to a possible high of 8.3 billion cubic feet of gas per day.
Taking into account currently producing projects, oil and gas companies' expectations for production over the next five years, and estimates of undiscovered resources in the Gulf of Mexico, the report provides forecasts for the area's production.
"The Gulf of Mexico is one of the largest single sources of oil and gas supply to the U.S. market," explained GOM Acting Regional Director, Lars Herbst. "With the continued interest and activity in the deepwater area of the Gulf, we anticipate that oil and gas production will continue to be strong with a large portion of the production coming from the projects in deeper water depths."
Activity used for the forecast included the expectation of 16 new deepwater projects coming to production by year-end 2007. A major contributor to the increased gas production forecast is the start-up of the Independence Hub facility. Gas production is expected to begin from that facility in the second half of 2007.