By OGJ editors
HOUSTON, May 7 -- The Gulf of Mexico's deep water (up to 400 m) and ultradeep water (deeper than 1,600 m) continue to be a vital part of the gulf's total production, providing about 72% of the oil and 38% of the gas in the region. This is according to a report, "Deepwater Gulf of Mexico 2008: America's Offshore Energy Frontier," released May 6 by the US Minerals Management Service at the Offshore Technology Conference in Houston.
At the end of 2007, there were 130 producing projects in the deepwater gulf, up from 122 at the end of 2006, said Lars Herbst, MMS regional director, Gulf of Mexico Outer Continental Shelf region. Fifteen deepwater fields, including Atlantis, Shenzi, and several associated with Independence Hub, began production last year, Herbst noted.
When Independence Hub reaches full capacity, he said, it will represent more than 10% of the total gulf gas production. Proved deepwater fields now number 125, representing a 44% increase from the end of 2006. For the first time in history, all 20 of the highest producing blocks in the gulf were in deep water.
Ultradeepwater activity
According to MMS director Randall Luthi, more than a dozen new ultradeepwater rigs, capable of drilling in 12,000 ft of water, are expected to enter the gulf in the next few years.
"Continued advancement into this deepwater frontier is important to our nation's energy security," Luthi said. "The Gulf of Mexico is a key energy producer and the safe and environmentally responsible development of our resources is vital to the economy and our way of life."
In 2007, 54% of all gulf leases were in 1,000 ft of water or deeper, the report said. In the two lease sales held in 2007, Western Gulf Lease Sale 204 and Central Gulf Lease Sale 205, nearly 70% of the tracts receiving bids were in deep water.
This year saw a record-setting lease offering in Central Gulf Sale 206, which attracted $3.7 billion in high bids—the most since Federal offshore leasing began in 1954 (OGJ Online, Mar. 19, 2008). About 67% of the blocks receiving bids were in deep water with about 34% of the blocks bid upon in ultradeep water.
"As we look at the data, it's clear that deepwater advancement is occurring in all areas—leasing, drilling, and production," Luthi said. By yearend 2007, Luthi said, there were 130 producing projects in deepwater, which was double the amount from 5 years ago.
