The US Department of the Interior (DOI) has announced a policy update that could significantly increase offshore oil production in the Gulf of Mexico.
The update includes revised parameters from the Bureau of Safety and Environmental Enforcement (BSEE) for Downhole Commingling in the Paleogene (Wilcox) reservoirs, expanding the allowable pressure differential from 200psi to 1,500psi.
This move aligns with President Donald Trump’s Executive Order to unleash US energy and follows extensive industry consultation.
This change could potentially boost production output by approximately 10%, which translates to an increase of more than 100,000 barrels per day (bpd) over the next ten years. Further gains could be realised as operators provide additional data.
BSEE principal deputy director Kenneth C. Stevens said: “This is a major win for domestic energy. Thanks to the tireless work of our technical experts and our industry partners, this advancement enables increased recovery from existing wells, reducing the cost per barrel and strengthening our nation’s energy independence.”
A study from the University of Texas on commingling has shown that this method of production significantly increases oil recovery.
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By GlobalDataCompared with sequential production schemes, commingled production yields 61% more oil over 30 years and 21% more over 50 years.
The policy shift is based on modern reservoir performance analysis and supersedes outdated guidance from a 2010 government study.
Under the new rules, operators are now permitted to safely produce from multiple reservoirs with greater pressure differences, subject to new conditions including fluid compatibility certification, pressure monitoring and regular performance reporting to the BSEE.
This policy change aims to increase production and promote resource conservation by accelerating development from each reservoir. It helps prevent waste and maximises the value extracted from every well.
The revised strategy aims for long-term price stability and energy affordability for US households by increasing oil production from existing operations, without the need for additional infrastructure or leases.
Last month, the Interior Department announced that the US will no longer mandate environmental impact statements for roughly 3,244 oil and gas leases in the western states.
This action seeks to lower regulatory obstacles and accelerate domestic energy development.
