Production of oil and gas from the deepwater areas of the Gulf of Mexico reached an all-time high in 1998, says the US Minerals Management Service.
In the last 5 years, Gulf of Mexico oil production from water depths greater than 1,000 ft has increased by 279%, while gas production has grown by 252%. Oil output increased from 42 million bbl in 1994 to 159 million bbl in 1998. Gas production followed with a sizeable increase from 159 bcf in 1994 to 560 bcf in 1998.
In 1998, oil production in the deepwater gulf rose 47% vs. 1997 production. This is because a number of development projects came on stream in 1998. In 1999, 11 more deepwater development projects in the gulf have already begun producing or are on the verge of doing so (see table).
MMS Director Walt Rosenbusch said, "The 1998 increase is significant and of national importance. The rising amount of production coming from the deepwater (Gulf of Mexico) has great momentum and will continue to play a key role in our national energy strategy.
"While total domestic production of oil declined some 410,000 b/d from 1994 to 1998, the decline would have been nearly twice as large if the deepwater production had not increased by 321,000 b/d," he added.
