September 2022, Vol. 249, No. 9
EIA Update
Expect 9 GOM Natural Gas, Oil Fields to Start Up Soon
(P&GJ) — The Energy Information Association (EIA) forecasts that new fields coming online in 2022 will account for 5% of natural gas production and 14% of crude oil production in the U.S. Federal Offshore Gulf of Mexico (GOM) by the end of 2023.
GOM natural gas production is expected to average 2.1 Bcf/d (59 MMcm/d) in 2023, down 100,000 Mcf/d (2,832 MMcm/d) from 2022. Production in the region should average 1.8 million (MMbpd) in 2023, about the same as in 2022. Currently, no GOM fields are scheduled to start up in 2023.
During 2021, 15% of all U.S. crude oil production was produced in the GOM, and 2% of U.S. natural gas production was produced there, according to EIA. In its Short-Term Energy Outlook (STEO), EIA forecast that eight new fields in the GOM will produce both oil and natural gas by year-end. A ninth field, which will produce only crude oil, is scheduled to start in 2022.
Despite the additional capacity, the production will not sustain crude oil at levels similar to the end of 2021. The additional capacity from these new fields will not increase natural gas or crude oil production in the GOM. GOM natural gas production is expected to continue its three-year decline.
Large development fields of Argos, King’s Quay and Vito will begin production in 2022. Each has a peak production capacity of at least 100,000 boe/d.
Offshore producers have made significant progress simplifying and standardizing floating production systems and collaborating with various partners, including overseas construction services companies, to reduce total costs and remain competitive with onshore producers.
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