The U.S. Interior Department has introduced changes to pressure difference requirements in offshore drilling in a bid to stimulate greater production from the Gulf.
According to the department, the changes could add 10% to offshore U.S. oil production over the next decade, equal to some 100,000 barrels daily, by allowing greater pressure differences between reservoirs.
“Results from a University of Texas study on commingling show that commingled production maximizes per-well oil production compared to sequential schemes. Over 30 years, it provides 61% more oil recovery, and over 50 years, it yields 21% more,” the Interior said in a news release.
The change follows an upward revision of oil and gas reserves in the Gulf that the Interior announced earlier this month. According to an analysis conducted by the Bureau of Ocean Energy Management, the U.S. Outer Continental Shelf contains an extra 1.30 billion barrels of oil equivalent, compared to previous estimates done in 2021.
This means the total of oil and gas reserves in the area stand at over 7 billion barrels of oil equivalent. This is a 22.6% increase in recoverable reserves compared to earlier estimates, the BOEM said. The net addition in recoverable reserves was calculated by subtracting the total output since 2021—3.09 billion barrels of oil equivalent—from the gross new reserves, estimated at 4.39 billion barrels of oil equivalent.
In another recent move aimed at boosting oil and gas production in the Gulf, the federal government earlier this week cut approval times for new projects to a maximum of 28 days, down from several years, by invoking emergency regulatory powers.
“We are cutting through unnecessary delays to fast-track the development of American energy and critical minerals—resources that are essential to our economy, our military readiness, and our global competitiveness,” Interior Secretary Doug Burgum said.
Source: By Irina Slav from Oilprice.com