New Gulf of Mexico Projects Will Increase Productivity
Researched by Industrial Info Resources (Sugar Land, Texas)-- Crude oil production in the U.S. Federal Gulf of Mexico is expected to increase this year and next, thanks to a number of projects that are to be brought online during this time, the U.S. Energy Information Administration (EIA) said on Wednesday.
According to the EIA, U.S. Gulf of Mexico oil production accounts for about 15-16% of oil production in the country. Gulf production averaged 1.65 million barrels per day (BBL/d) in 2020. This is expected to rise this year to 1.71 million BBL/d, and even more in more in 2022, to 1.75 million BBL/d. By the end of 2022, 13 projects brought online this year and next could account for 12% of total U.S. Gulf of Mexico oil production, or about 200,000 BBL/d.
Among the largest projects set for completion next year is Royal Dutch Shell's (NYSE:RDS-A) (The Hague, Netherlands) Vito grassroot crude oil and natural gas production platform, which is expected to come online in 2022. The Vito field, which potentially contains 300 million barrels of oil equivalent (boe), has been known for some time, and Shell had previous plans for its development, but in 2015, began to redesign the project, reducing cost estimates by more than 70% from the original concept. The development is expected to have a peak production of 100,000 boe/d and is Shell's 11th platform in the Gulf. The development is expected to be completed in summer 2022. For more information, see Industrial Info's project report.
Other Gulf developments include BP plc's (NYSE:BP) (London, England) Mad Dog 2 oil and gas field development, which consists of a 140,000-BBL/d semi-submersible floating production platform. A drilling program, consisting of two wells, was completed earlier this year, and another program is set for completion later this year. The platform, which just arrived at the Ingleside facility after a 15,000-mile journey from South Korea, is expected to be operational later this year. Samsung Heavy Industries Company Limited (Seoul, South Korea) is providing engineering, procurement and construction services. Construction began in 2018. For more information, see Industrial Info's project report.
Murphy Exploration & Production Company (Houston, Texas) is underway with its King's Quay floating production system, which will include a four-column semi-submersible production platform to serve as the production hub for the Khaleesi, Mormont and Samurai subsea tieback projects, which represent a combined resource of 230 million boe, consisting of 90% liquids. The Mormont and Samurai tiebacks will include three subsea wellheads, and Khaleesi will include two. All of the projects are expected to be completed in 2022. For more information, see Industrial Info's project reports on King's Quay, Khaleesi, Mormont and Samurai.
Other Gulf developments include Shell's PowerNap field, which includes a drilling campaign, platform modification and subsea infrastructure installation. While the projects were delayed due to the COVID-19 pandemic, they are now expected to be complete by the end of next year. Click here for project reports.
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