U.S. Offshore Oil Production Matters
Contrary to conventional wisdom about U.S. crude oil production, EIA’s November Short-Term Energy Outlook (STEO) predicts U.S. crude oil production will increase 8 percent from 2008 to 2009. For example, the Petroleum Intelligence Weekly (PIW Nov.10, 2008, pg. 5), commenting on the likely future track of global production, said, “Accelerating decline rates in these two areas [the North Sea and North America] are widely expected to swamp growth from newer non-OPEC regions…”
Offshore production from the federal Gulf of Mexico (GOM) is a major part of the STEO’s production story, projecting that it will make up two thirds of the overall U.S. increase in crude oil production in 2009. Some of the projected increase in offshore production reflects recovery from this year’s hurricanes, but over half arises from new production, not recovery. Overall, crude oil production from the GOM is projected to be 11 percent higher than in 2007, when there was little weather-related decline (U.S. Crude Oil Production).
Offshore production from the federal Gulf of Mexico (GOM) is a major part of the STEO’s production story, projecting that it will make up two thirds of the overall U.S. increase in crude oil production in 2009. Some of the projected increase in offshore production reflects recovery from this year’s hurricanes, but over half arises from new production, not recovery. Overall, crude oil production from the GOM is projected to be 11 percent higher than in 2007, when there was little weather-related decline (U.S. Crude Oil Production).
