The Gulf of Mexico (GOM) is a critical region for energy resources and infrastructure in the U.S., and Louisianans recognize this perhaps better than anyone.
GOM federal offshore oil production accounts for 17 percent of total U.S. crude oil production, and natural gas production in federal Gulf waters accounts for 5 percent of the U.S. total, according to the U.S. Energy Information Administration. In fact, Louisiana is a hub of this Gulf offshore energy activity, with critical infrastructure like Port Fourchon supporting 18 percent of America’s total energy supply and billions of dollars in federal offshore revenues each year.
In the midst of these impressive production stats, however, we shouldn’t overlook the companies and workers whose planning and persistence make all of these achievements in the Gulf possible. Development of offshore energy is a very complex labor- and time-intensive process, relying on precise scientific and safety-driven approaches to harness the power of our natural resources in a challenging environment.
LMOGA is proud of all its member companies that continue to take the economic risks to explore and produce in America’s Gulf in spite of crude oil price declines, and are helping to secure America’s energy future. Here’s a sample of some of the exciting Gulf offshore projects underway by a just a few of our LMOGA member companies:
- Chevron — At the end of 2014, Chevron was the largest leaseholder and the largest crude oil and natural gas producer in the GOM. The company began production in the Jack and St. Malo fields in December 2014. The two fields, in a water depth of 7,000 feet, are being jointly developed with a host floating production unit between the two fields. The $7.5 billion project has a design capacity of 170,000 barrels of crude oil and 42 million cubic feet of natural gas per day.
- Shell — Shell currently operates seven major deepwater and ultra-deepwater floating platforms, five fixed structure facilities and platforms, numerous subsea production systems and one of the largest contracted drilling rig fleets in the Gulf. Shell deepwater activities include the Mars B development, which continues to ramp up production; the ultra-deepwater Stones project, which is under construction; engineering and design for the Appomattox projects; and recent exploration success that has contributed more than 1.3 billion barrels of resource in the past five years.
- BP — BP currently has a multibillion investment program underway in the deep-water GOM and is the largest investor in the Gulf over the past 10 years. The company operates four large production platforms in the region: Atlantis, Thunder Horse, Mad Dog and Na Kika, with only 20 percent of its resource base produced to date. Atlantis and Thunder Horse, located approximately 150 miles south and southeast of New Orleans, are the two largest projects. Atlantis has a production capacity of approximately 200,000 barrels of oil and 180 million cubic feet of gas per day, and Thunder Horse is designed to process up to 250,000 barrels of oil and 200 million cubic feet of gas per day.
- Anadarko — Anadarko is among the largest independent leaseholders and producers in the deepwater GOM, with more than 2 million net acres and seven operated floating facilities. Anadarko’s newest and largest deepwater facility, Lucius, began production in January 2015. This world-class project in the Keathley Canyon area is estimated to hold more than the equivalent of 300 million barrels of oil. The company made the Lucius discovery in 2009, and it is one of more than 30 fields discovered by Anadarko in the Gulf.
These and many more LMOGA members are working in the Gulf, fueling the U.S. with oil and gas, jobs and federal revenue. We recognize these companies have a choice in where they drill for oil and gas throughout the entire world. We salute you all for the investments you are making in the Gulf, in Louisiana and in America’s energy!
For more information, visit www.lmoga.com or call (225) 387-3205.
