{"id":855606,"date":"2025-06-14T19:12:45","date_gmt":"2025-06-15T00:12:45","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/06\/14\/u-s-offshore-oil-production-set-to-jump\/"},"modified":"2025-06-14T19:12:45","modified_gmt":"2025-06-15T00:12:45","slug":"u-s-offshore-oil-production-set-to-jump","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/06\/14\/u-s-offshore-oil-production-set-to-jump\/","title":{"rendered":"U.S. Offshore Oil Production Set To Jump"},"content":{"rendered":"<div id=\"pagecontent\">\n<div>\n<div id=\"singleArticle__sidebar\">\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/d1o9e4un86hhpc.cloudfront.net\/images\/avatars\/medium\/default.jpg\" alt=\"Alex Kimani\" title=\"Alex Kimani\" previous-src=\"data:image\/png;base64,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\"><\/p>\n<p>Alex Kimani<\/p>\n<p>Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com.\u00a0<\/p>\n<p><a href=\"https:\/\/oilprice.com\/contributors\/Alex-Kimani\">More Info<\/a><\/p>\n<\/p><\/div>\n<div>\n<p><h3>Premium Content<\/h3>\n<\/p>\n<ul>\n\t\t\t\t\t\t\t\t\t    <\/ul>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"singleArticle__content\" data-spons=\"0\" data-id=\"41041\">\n<p><span>By <a href=\"https:\/\/oilprice.com\/contributors\/Alex-Kimani\">Alex Kimani<\/a> &#8211; May 26, 2025, 7:00 PM CDT<\/span><\/p>\n<div id=\"key_points\">\n<ul>\n<li>EIA and BOEM: <span>Gulf of Mexico\u2019s output is projected to rise from 1.8 million barrels per day (bpd) to 2.4 million bpd by 2027.<\/span><\/li>\n<li><span>Recent BOEM assessments estimate the Gulf holds 29.59 billion barrels of oil and 54.84 trillion cubic feet of gas in technically recoverable.<\/span><\/li>\n<li><span>Analysts note that despite trade disputes and policy shifts, U.S. offshore oil remains globally competitive.<\/span><\/li>\n<\/ul><\/div>\n<div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<picture><source media=\"(max-width: 480px)\" ><source media=\"(min-width: 480px)\" ><img decoding=\"async\" src=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2025-05-26_rcwvbg4ets.jpg\" alt=\"Gulf of Mexico\" title=\"Gulf of Mexico\" previous-src=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2025-05-26_rcwvbg4ets.jpg\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/picture>\n\t\t\t\t\t\t<\/div>\n<div id=\"article-content\">\n\t\t\t\t\t\t    <body><\/p>\n<p><span>U.S. energy executives are forecasting a significant increase in offshore oil production under a potential second Trump administration, attributing this to streamlined permitting processes, sustained investments, and technological advancements. The Gulf of Mexico\u2019s output is projected to rise from 1.8 million barrels per day (bpd) to 2.4 million bpd by 2027, according to estimates from the <\/span><a href=\"https:\/\/www.eia.gov\/\"><span>U.S. Energy Information Administration (EIA)<\/span><\/a><span> and the <\/span><a href=\"https:\/\/www.boem.gov\/\"><span>Bureau of Ocean Energy Management (BOEM)<\/span><\/a><span>.<\/span><\/p>\n<p><span>While shale oil offers flexibility, its growth is expected to plateau, prompting companies to focus more on offshore drilling. The Trump administration&#8217;s commitment to expediting oil and gas project approvals on federal lands is anticipated to further bolster offshore activities.<\/span><\/p>\n<p><span>BOEM currently manages 2,227 active leases on the U.S. Outer Continental Shelf (OCS), with 469 leases producing as of 2024. In 2023, OCS leases generated over $7 billion in federal revenue and accounted for approximately 14% of total U.S. crude production.<\/span><\/p>\n<p><span>Recent BOEM assessments estimate the Gulf holds 29.59 billion barrels of oil and 54.84 trillion cubic feet of gas in technically recoverable, undiscovered fields. A 2023 update added 1.3 billion barrels of oil equivalent (boe), marking a 22.6% increase after analyzing more than 37,000 reservoirs across 1,336 fields.<\/span><\/p>\n<p><span>In addition to promising geology, deepwater drilling is benefiting from technological advances. Chevron&#8217;s Anchor project, for example, recently began production at record-breaking pressures of 20,000 psi\u2014a first for the industry and a milestone in deepwater engineering.<\/span><\/p>\n<p><span>At the same time, energy companies are deploying AI-driven tools to reduce risk, increase productivity, and optimize maintenance. Companies like BP and Devon Energy are using artificial intelligence for predictive modeling, real-time drilling performance, reservoir analysis, and cost forecasting\u2014giving them a competitive edge in volatile price environments.<\/span><\/p>\n<p><strong><span><a href=\"http:\/\/oilprice.com\/Energy\/Natural-Gas\/Brussels-Moves-Ahead-with-2027-Russian-Gas-Exit-Strategy.html\" target=\"_blank\" rel=\"noopener\">Related: Brussels Moves Ahead with 2027 Russian Gas Exit Strategy<\/a><\/span><\/strong><\/p>\n<p><span>Despite the appeal of offshore growth, the shift also reflects emerging challenges onshore. The U.S. oil and gas rig count has fallen to its lowest level since November 2021. In the Permian Basin, rig activity is down 11% year-over-year, and fracking activity is showing similar declines. This retreat has forced a strategic recalibration for many operators.<\/span><\/p>\n<p><a href=\"https:\/\/www.benzinga.com\/insights\/analyst-ratings\/25\/05\/45595249\/a-glimpse-into-the-expert-outlook-on-diamondback-energy-through-23-analysts\"><span>Diamondback Energy<\/span><\/a><span> recently lowered its 2025 capital budget by $400 million, now forecasting $3.4\u2013$3.8 billion in spending. The company also announced it would drop three rigs and one full-time completion crew, revising its full-year production guidance to 857,000\u2013900,000 boe\/day, down from an earlier 883,000\u2013909,000 boe\/day.<\/span><\/p>\n<p><span>Other players, including ConocoPhillips, are also trimming capital expenditure and scaling back completion activity, citing low oil prices and margin pressures.<\/span><\/p>\n<p><span>Meanwhile, global market dynamics may complicate the U.S. supply picture. <\/span><a href=\"http:\/\/oilprice.com\/Energy\/Crude-Oil\/OPEC-Takes-Aim-at-US-Shale-Again.html\"><span>OPEC+<\/span><\/a><span> is considering a 411,000 bpd production increase in July, with Saudi Arabia reportedly backing the move to counterbalance repeated quota violations by members such as Kazakhstan. A production hike could suppress oil prices further if global demand fails to keep pace.<\/span><\/p>\n<p><span>Still, offshore U.S. production could fill key gaps left by a slowing shale sector. In 2024, federal offshore areas produced 668 million barrels of oil and 700 billion cubic feet of natural gas\u2014figures that are expected to climb as new projects come online and lease activity increases.<\/span><\/p>\n<p><span>Analysts note that despite trade disputes and policy shifts, U.S. offshore oil remains globally competitive. Its high-volume, low-decline profile offers a degree of reliability that investors and buyers increasingly value. Even in the face of Chinese <\/span><a href=\"http:\/\/oilprice.com\/Energy\/Natural-Gas\/Tariffs-Cant-Stop-the-US-LNG-Boom.html\"><span>tariffs on U.S. LNG<\/span><\/a><span>, American energy exports continue to expand.<\/span><\/p>\n<p><span>Ultimately, the outlook for U.S. oil production\u2014onshore and offshore\u2014will depend on a combination of market prices, regulatory conditions, and geopolitical risk. But for now, the message from the Gulf is clear: offshore is no longer a sideshow. It\u2019s where the next wave of U.S. oil growth may be anchored.<\/span><\/p>\n<p><span>Diamondback Energy recently lowered its 2025 capital budget by $400 million, now forecasting $3.4\u2013$3.8 billion in spending. The company also announced it would drop three rigs and one full-time completion crew, revising its full-year production guidance to 857,000\u2013900,000 boe\/day, down from an earlier 883,000\u2013909,000 boe\/day.<\/span><\/p>\n<p><span>Other players, including ConocoPhillips, are also trimming capital expenditure and scaling back completion activity, citing low oil prices and margin pressures.<\/span><\/p>\n<p><span>Meanwhile, global market dynamics may complicate the U.S. supply picture. OPEC+ is considering a 411,000 bpd production increase in July, with Saudi Arabia reportedly backing the move to counterbalance repeated quota violations by members such as Kazakhstan. A production hike could suppress oil prices further if global demand fails to keep pace.<\/span><\/p>\n<p><span>Still, offshore U.S. production could fill key gaps left by a slowing shale sector. In 2024, federal offshore areas produced 668 million barrels of oil and 700 billion cubic feet of natural gas, and those figures are expected to climb as new projects come online and lease activity increases.<\/span><\/p>\n<p><span>Analysts note that despite trade disputes and policy shifts, U.S. offshore oil remains globally competitive. Its high-volume, low-decline profile offers a degree of reliability that investors and buyers increasingly value. Even in the face of Chinese <\/span><a href=\"http:\/\/oilprice.com\/Energy\/Natural-Gas\/Tariffs-Cant-Stop-the-US-LNG-Boom.html\"><span>tariffs on U.S. LNG<\/span><\/a><span>, American energy exports continue to expand.<\/span><\/p>\n<p><span>Ultimately, the outlook for U.S. oil production (both onshore and offshore) will depend on a combination of market prices, regulatory conditions, and geopolitical risk. But for now, the message from the Gulf is clear: offshore oil has long ceased to be a sideshow. It\u2019s where the next wave of U.S. oil growth is likely to come from.\u00a0<\/span><\/p>\n<p><strong>By Alex Kimani for Oilprice.com<\/strong><\/p>\n<p><strong>More Top Reads From Oilprice.com<\/strong><\/p>\n<ul>\n<li><span><strong><a href=\"http:\/\/oilprice.com\/Latest-Energy-News\/World-News\/US-Demands-Unilateral-Tariff-Cuts-From-EU.html\" data-embargo=\"1747993308\">U.S. Demands Unilateral Tariff Cuts From EU<\/a><\/strong><\/span><\/li>\n<li><span><strong><a href=\"http:\/\/oilprice.com\/Latest-Energy-News\/World-News\/Phillips-66-to-Lay-Off-Most-Workers-at-Los-Angeles-Refinery.html\">Phillips 66 to Lay Off Most Workers at Los Angeles Refinery<\/a><\/strong><\/span><\/li>\n<li><span><strong><a href=\"http:\/\/oilprice.com\/Energy\/Oil-Prices\/Oil-Prices-Rise-as-Trump-Extends-EU-Tariff-Deadline.html\">Oil Prices Rise as Trump Extends EU Tariff Deadline<\/a><\/strong><\/span><\/li>\n<\/ul>\n<p><\/body>\t\t\t\t\t\t    <\/p><\/div>\n<div>\n<h5>Download The Free Oilprice App Today<\/h5>\n<p><a href=\"https:\/\/itunes.apple.com\/in\/app\/oilprice\/id1389772617?mt=8\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" alt=\"Download Oilprice.com on Apple\" width=\"169\" height=\"50\" src=\"https:\/\/d1o9e4un86hhpc.cloudfront.net\/a\/img\/cl\/app\/appstoredownload.svg\"><\/a><br \/>\n\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/play.google.com\/store\/apps\/details?id=oilprice.android.app\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" alt=\"Download Oilprice.com on Android\" width=\"169\" height=\"50\" src=\"https:\/\/d1o9e4un86hhpc.cloudfront.net\/a\/img\/cl\/app\/androidbutton.png\" previous-src=\"https:\/\/d1o9e4un86hhpc.cloudfront.net\/a\/img\/cl\/app\/androidbutton.png\"><\/a>\n\t\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p><a href=\"https:\/\/oilprice.com\/\">Back to homepage<\/a><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/d1o9e4un86hhpc.cloudfront.net\/images\/avatars\/medium\/default.jpg\" alt=\"Alex Kimani\" title=\"Alex Kimani\"><\/p>\n<div>\n<h3>Alex Kimani<\/h3>\n<p>\n\t            Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com.\u00a0\t          <\/p>\n<p><a href=\"https:\/\/oilprice.com\/contributors\/Alex-Kimani\">More Info<\/a><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div>\n<h3>Related posts<\/h3>\n<\/p><\/div>\n<p><a href=\"http:\/\/oilprice.com\/#\" id=\"join-discussion\">Leave a comment<\/a><\/p>\n<\/p><\/div>\n<p> Zonia Redner<br \/><a href=\"https:\/\/oilprice.com\/Energy\/Crude-Oil\/US-Offshore-Oil-Production-Set-To-Jump.html\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Alex Kimani Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com.\u00a0 More Info Premium Content By Alex Kimani &#8211; May 26, 2025, 7:00 PM CDT EIA and BOEM: Gulf of Mexico\u2019s output is projected to rise from 1.8 million barrels per day (bpd) to 2.4 million bpd by 2027. Recent BOEM<\/p>\n","protected":false},"author":1,"featured_media":855607,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26891,22874],"tags":[21059,5623],"class_list":{"0":"post-855606","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-offshore","8":"category-production","9":"tag-offshore","10":"tag-production"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/855606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=855606"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/855606\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/855607"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=855606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=855606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=855606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}