GoM eyeing record year

Gulf of Mexico oil production is expected to cross the 2M barrels per day threshold and reach a new high in this year assisted by three major deep-water developments set to deliver first oil. Wood Mackenzie projects the GoM will average roughly 2.3M barrels of oil equivalent a day (boed) surpassing the previous record of about 2M (boed) that the Department of Energy (DOE) documented in August 2019. Operators closed out 2021 with estimated production of just over 1.76M bbl/d. The damage caused by Hurricane Ida sunk Gulf production to a 10-year monthly low of 1.064 million bbl/d last September. Among new fields: Shell is ready to start production in the Mississippi Canyon Vito field in 4,000 feet of water, which is expected to peak production of 100,000 bbl/d by 2024. In early December, Shell added another discovery to its leading deep-water portfolio with the Blacktip North well in the Perdido Corridor. The prospect is one of 12 deep-water discoveries GoM operators recorded in 2021, according to S&P Global Platts Analytics. Additionally, Phase Two of the BP-operated Mad Dog field at Green Canyon is scheduled to begin flowing this year with peak oil at about 120,249 bpd and 147 MMcfd of gas in 2023. Murphy Oil plans to deliver about 80,000 bbl/d from the its Green Canyon development before the end of June. The trio will be tied into the King's Quay floating production system (FPS) that was installed just before Ida came ashore. New production couldn’t have come at a better time. Oil consumption has outpaced production for more than 12 months, according to DOE. Oil stockpiles have fallen six consecutive quarters. (Source: Work Boat 02/14/22) U.S. Gulf eyeing record year | WorkBoat