US Gulf of Mexico pumping oil like never before
US Gulf of Mexico pumping oil like never before
Tracking to reach record high in 2017
UPDATED 6:09 PM CST Mar 12, 2016
By Matt Egan
NEW YORK (CNNMoney) —It looks like the Gulf of Mexico didn't get the oil crash memo.
U.S. oil production in the deep waters of the Gulf of Mexico is on the rise and on track to reach a record high in 2017, according to the Energy Information Administration.
That's despite the enormous costs associated with drilling for oil at depths of nearly two miles and the dramatic decline in oil prices that has caused overall U.S. oil output to decline in recent months.
But deepwater projects require enormous lead times, making them far less flexible than shale oil fields -- some of which have been shut down due to cheap oil. By comparison, many of the Gulf of Mexico's newly-completed projects and those in the works were discovered and planned years before the oil crash.
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This new supply from the Gulf of Mexico is offsetting U.S. production declines elsewhere, deepening the huge supply glut pressuring the oil markets.
More:
http://www.wisn.com/money/us-gulf-of-mexico-pumping-oil-like-never-before/38463920
