US oil industry leaders expect Gulf of Mexico output to rise

US President Donald Trump’s administration intends to hold a lease sale in the Gulf of Mexico in June this year. The sale was previously planned by Joe Biden’s administration. Experts estimate that offshore production in the area currently accounts for about 15% of total US oil output.

Head of the National Ocean Industries Association, Erik Milito, forecasts crude production in the Gulf of Mexico to rise to 2.4 million barrels per day, up from the current 1.8 million barrels per day. The output will grow due to introducing advanced technologies, including artificial intelligence, as well as overcoming technical challenges that were considered insurmountable 20 years ago. 

CEO of Occidental Petroleum, Vicki Hollub, noted the need to increase production in the area while speaking at the conference in Houston. She believes shale production will peak sooner or later and begin to decline, which makes the expansion of offshore production strategically important. However, geopolitical tensions and trade restrictions pose additional challenges. They impact costs of field development and require oil companies to adapt to volatile conditions.