The DOI has expanded the allowable pressure differential for single-wellbore oil production from multiple reservoirs in the Gulf of America's deep waters.
The DOI’s Bureau of Safety and Environmental Enforcement (BSEE) stated: “This change, the result of extensive technical consultation with offshore industry leaders, could increase production output by roughly 10 percent, which would translate into over 100,000 barrels per day production increase over the next 10 years.” The BSEE noted that further production gains are possible as operators submit additional data. The policy update is supported by a September 2023 study from the University of Texas’ Petroleum and Geosystems Engineering Department, which found that commingled production increases oil recovery by 61 percent over 30 years and 21 percent over 50 years compared to sequential methods.
The BSEE explained: “The policy shift is grounded in modern reservoir performance analysis and updates outdated guidance based on a 2010 government study.” Operators can now produce from multiple reservoirs with greater pressure differences, provided they meet requirements such as fluid compatibility certification, pressure monitoring, and regular performance reporting to the BSEE. This approach aims to enhance resource conservation and maximize the value of each well.
Interior Secretary Doug Burgum commented: “This is a monumental milestone in achieving American Energy Dominance. We’re delivering more American energy, more efficiently, and with fewer regulatory roadblocks.” The BSEE added: “This policy will not only increase production but also enhance resource conservation by expediting development from each reservoir - helping prevent waste and get more value from every well.”
Holly Hopkins, upstream policy president at the American Petroleum Institute, stated: “Today’s announcement ensures new technologies and innovation can be fully leveraged to support safe and efficient offshore oil production in the Gulf as a critical source of affordable energy, government revenue and national security.” The policy supports increased output without requiring new infrastructure, contributing to energy affordability.
The Gulf of Mexico accounts for 14 percent of U.S. crude production, with the Gulf Coast hosting over 48 percent of the nation’s refining capacity, according to a U.S. Energy Information Administration (EIA) fact sheet from September 4, 2024. In 2023, petroleum production in federal Gulf waters averaged 1.77 million barrels per day, as reported by the EIA.
