MONROE, La. (KNOE) — The U.S. Energy Information Administration expects a total of nine natural gas and oil fields to come on stream in the Gulf of Mexico by the end of this year.
The agency recently released its latest energy outlook report and expects oil prices to decline over the course of 2022 to 2023. However, they warn that there are still question marks adding volatility to the global market , such as the availability of Russian oil, decisions made by Middle Eastern countries regarding their oil production and even the possibility of natural disasters, so lower prices are not 100% certain.
The United States is a powerful oil producer and consumes at an equally high level, but the nature of the resource demands that it be traded on the world market. The specific gravity and sulfur content of crude oil varies by region and should be matched to a refinery capable of processing crude based on these factors. For this reason, crude oil is bought and sold around the world and prices are a global affair.
After being stalled by the pandemic in 2020, US oil production continues to recover to record levels seen before the global shutdowns. It’s not quite there yet, but the EIA has identified several specific projects that will help maintain production levels in the Gulf of Mexico.
EIA said, “We expect major areas of development from Argos, King’s Quayand Vito to begin production in 2022. Each has a maximum production capacity of 100,000 barrels of oil equivalent per day (MBOE/d) or more, and each is the result of a focused effort to reduce field development costs . Offshore producers have made significant progress in simplifying and standardizing floating production systems and collaborating with various partners, including overseas construction service companies, to reduce total costs and remain competitive with onshore producers. .
BP describes Argos on its website: “As a semi-submersible floating production platform, Argos will provide bp with an estimated 25% increase in production capacity in the region when it comes online in 2022. Nearly 200 miles south of the New Orleans, the Argos platform operates in 4,500 feet of water depth and can produce up to 140,000 barrels of oil equivalent per day (boe/d) through a subsea production system at from 14 production wells.
Another major project is in the hands of Murphy Oil. It is called the King’s Quay Floating Production System and consists of the floating platform and the wells of three oil fields: Khaleesi, Mormont and Samurai.
The chart above shows the locations of the nine oil fields that are expected to come online by the end of the year.
Finally, notes the EIA, “Fields scheduled to start in 2022 could transition to our 2023 guidance if their start dates are pushed back. Additionally, fields scheduled to start in 2024 could start sooner, which would result in changes to our initial production forecast. »
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