Universal Energy Corp (UVSE)

[Stevan33]

(link in Spanish).
https://www.energia16.com/petroleo-en-el-golfo-de-mexico/

............translation..........

By Erika Hidalgo López
04/12/2018

Oil production in the Gulf of Mexico (GOM) will continue to increase this year and even in 2019. This, despite the fact that extraction was hampered by cuts in platforms and problems with the pipelines in December 2017. The EIA said in its forecasts, reflected in the last Short-Term Energy-Outlook (STEO). Realized by that statistical arm of energy of the United States.

The EIA projects that the GOM represents 16% of the total oil production of the United States in each year.

US crude oil production in the GOM increased slightly in 2017, reaching 1.65 million b / d, the highest annual level recorded.

Gulf of Mexico oil will add 1.8 million b / d

The annual extraction of crude in the GOM will increase. Mainly due to the production levels expected in new fields and existing fields. It is estimated that the increase will average 1.7 million b / d in 2018 and 1.8 million barrels per day in 2019.

However, the office's analysis maintains that uncertainties in the oil markets can still affect long-term planning and operations in the GOM. As well as the terms of future projects can change accordingly.

The EIA recalls that in 2016, the producers put into practice seven new projects and expansions online. This factor had an impact on production in 2017. This volume represented a global average of 126,000 b / d of production last year.

Also two other projects went online in 2017. These contributed 10,000 b / d of new production. Consequently, it is expected that these nine projects will increase the pumping in the next two years. Likewise, producers expect four new projects to start operating in 2018 and six more in 2019.

Oil in the Gulf of Mexico is less sensitive to price

The time required to discover and develop large projects on the high seas is long. It is also understood that oil production in the GOM is less sensitive to short-term price swings than land production in the lower 48 states.

In 2015 and early 2016. The decline in profit margins and the reduction in expectations of a rapid recovery in value led many operators to delay future expenses in deepwater exploration. And restructure or delay drilling contracts.