Rystad: Oil production in U.S. Gulf of Mexico set for record year

Oil production in the U.S. Gulf of Mexico is set to make new records in the imminent future, according to Norwegian oil and gas intelligence firm Rystad Energy.

Shell’s Appomattox platform. Image source: Crowley

Rystad said on Friday that GoM oil production was a mere 1.28 million bpd in 2013, whereas in 2018 production averaged a record high of 1.79 million bpd.

The intelligence company forecasted that 2019 production would average 1.95 million bpd, with some months potentially touching the 2 million bpd ceiling.

Joachim Milling Gregersen, analyst on Rystad Energy’s upstream team, said: “With earlier than planned production, Appomattox will be a key growth contributor to help push U.S. Gulf of Mexico oil production toward a new record high before year-end.”



To remind, Shell started production from its Appomattox floating production platform in the U.S. Gulf of Mexico earlier this month.

Production from the platform kicked off several months ahead of its expected startup in the third quarter of 2019.

Appomattox, Shell’s largest floating production system in the Gulf of Mexico, will host the adjacent Appomattox and Vicksburg hydrocarbon accumulations.

According to Rystad, plateau production at the development will be around 140,000 boe per day while Shell claims that the expected production will peak at 175,000 boe per day.

Shell is the operator of the project with a 79 percent stake, while China’s CNOOC owns 21 percent. Oil produced from the Appomattox will be moved by the Mattox Pipeline to the Proteus pipeline system and then onshore.

“The torch has been carried by large deepwater fields, of which Appomattox is the latest contribution,” Gregersen added.


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