Industry Executives Expect American Offshore Oil P
Post# of 180
(Total Views: 48)
Posted On: 05/30/2025 4:52:14 PM
Industry Executives Expect American Offshore Oil Production to Increase
Recent figures released by the Bureau of Ocean Energy Management and the U.S. Energy Information Administration estimate considerable increases in offshore oil production over the next few years. These forecasts reflect growing optimism within the industry and point to a strong future for American offshore energy development.
The agencies attribute this projected growth to a combination of factors, including technological advancements, sustained capital investments, and streamlined permitting processes. These developments could be further accelerated during a potential second term of Donald Trump, whose administration has previously demonstrated a commitment to expediting approvals for oil and gas projects on federal lands.
Offshore oil output from the Gulf of Mexico is forecasted to increase to 2.4 million barrels per day by 2027, a considerable jump that would further solidify the region’s strategic importance.
Currently, the Bureau of Ocean Energy Management oversees 2,227 leases on the country’s Outer Continental Shelf, which accounted for roughly 14% of total crude oil produced in the U.S. in 2023, contributing over $7 billion in federal revenue. As of 2024, 469 of these leases are actively producing, demonstrating the sector’s robust operational base.
Recent evaluations by the bureau estimate that the Gulf holds 54.8 trillion ft3 of gas and 29.6 billion barrels of oil in undiscovered fields, signaling long-term potential.
Deepwater drilling is also evolving, with the Anchor project by Chevron now producing oil at pressures of 20,000 psi. Moreover, companies are increasingly integrating AI-driven tools to optimize equipment maintenance, enhance productivity, and reduce operational risks.
Firms such as Devon Energy and BP are also applying AI in cost forecasting, reservoir analysis, and predictive modelling, enabling more strategic decision-making in today’s volatile price environment.
In contrast, the oil and gas rig count in the U.S. has dropped to its lowest level since 2021, with rig activity in the Permian Basin down 11% annually. Fracking operations are following similar downward trends.
As a result, firms like ConocoPhillips have reduced completion activity and capital spending, subtly alluding to margin pressures and persistently low oil prices. Diamondback Energy has also lowered this year’s capital budget and revised its production guidance.
Despite regulatory shifts and ongoing trade tensions, analysts maintain that American offshore oil remains globally competitive. Energy exports have continued to grow, even amid challenges like Chinese tariffs. In the long-term, both onshore and offshore production will be shaped by geopolitical risk, regulatory policy, and market dynamics.
Meanwhile, companies like GEMXX Corp. (OTC: GEMZ) are ramping up their operations geared at discovering and developing oil and gas-rich properties in Latin America. These activities illustrate how this industry still has a major part to play in the energy mix of different countries despite efforts geared at increasing renewable energy generation and switching to electric vehicles.
NOTE TO INVESTORS: The latest news and updates relating to GEMXX Corp. (OTC: GEMZ) are available in the company’s newsroom at https://ibn.fm/GEMZ
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
Recent figures released by the Bureau of Ocean Energy Management and the U.S. Energy Information Administration estimate considerable increases in offshore oil production over the next few years. These forecasts reflect growing optimism within the industry and point to a strong future for American offshore energy development.
The agencies attribute this projected growth to a combination of factors, including technological advancements, sustained capital investments, and streamlined permitting processes. These developments could be further accelerated during a potential second term of Donald Trump, whose administration has previously demonstrated a commitment to expediting approvals for oil and gas projects on federal lands.
Offshore oil output from the Gulf of Mexico is forecasted to increase to 2.4 million barrels per day by 2027, a considerable jump that would further solidify the region’s strategic importance.
Currently, the Bureau of Ocean Energy Management oversees 2,227 leases on the country’s Outer Continental Shelf, which accounted for roughly 14% of total crude oil produced in the U.S. in 2023, contributing over $7 billion in federal revenue. As of 2024, 469 of these leases are actively producing, demonstrating the sector’s robust operational base.
Recent evaluations by the bureau estimate that the Gulf holds 54.8 trillion ft3 of gas and 29.6 billion barrels of oil in undiscovered fields, signaling long-term potential.
Deepwater drilling is also evolving, with the Anchor project by Chevron now producing oil at pressures of 20,000 psi. Moreover, companies are increasingly integrating AI-driven tools to optimize equipment maintenance, enhance productivity, and reduce operational risks.
Firms such as Devon Energy and BP are also applying AI in cost forecasting, reservoir analysis, and predictive modelling, enabling more strategic decision-making in today’s volatile price environment.
In contrast, the oil and gas rig count in the U.S. has dropped to its lowest level since 2021, with rig activity in the Permian Basin down 11% annually. Fracking operations are following similar downward trends.
As a result, firms like ConocoPhillips have reduced completion activity and capital spending, subtly alluding to margin pressures and persistently low oil prices. Diamondback Energy has also lowered this year’s capital budget and revised its production guidance.
Despite regulatory shifts and ongoing trade tensions, analysts maintain that American offshore oil remains globally competitive. Energy exports have continued to grow, even amid challenges like Chinese tariffs. In the long-term, both onshore and offshore production will be shaped by geopolitical risk, regulatory policy, and market dynamics.
Meanwhile, companies like GEMXX Corp. (OTC: GEMZ) are ramping up their operations geared at discovering and developing oil and gas-rich properties in Latin America. These activities illustrate how this industry still has a major part to play in the energy mix of different countries despite efforts geared at increasing renewable energy generation and switching to electric vehicles.
NOTE TO INVESTORS: The latest news and updates relating to GEMXX Corp. (OTC: GEMZ) are available in the company’s newsroom at https://ibn.fm/GEMZ
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
(0)
(0)