New US policy to boost Gulf of Mexico oil production

The US Department of the Interior has introduced a new policy which will see increased pressure differential during downhole commingling boost offshore oil output in the Gulf of Mexico.

The Bureau of Safety and Environmental Enforcement implemented new parameters for downhole commingling in the Paleogene (Wilcox) reservoirs, expanding the allowable pressure differential from 200 psi to 1,500 psi.

This change could increase production output by roughly 10%, translating into a production increase of over 100,000 barrels per day over the next ten years. The Interior claimed that additional gains could be possible as operators provide further data.

A University of Texas study shows that commingled production maximises per-well oil production compared to sequential schemes. Over 30 years, it provides 61% more oil recovery, and over 50 years, it yields 21% more.

The policy shift is grounded in modern reservoir performance analysis and updates outdated guidance from a 2010 government study. Under the updated rules, operators can now safely produce from multiple reservoirs with greater pressure differences, provided they meet new conditions such as fluid compatibility certification, pressure monitoring, and regular performance reporting to BSEE.

According to the Interior, this policy will increase production but also enhance resource conservation by expediting development from each reservoir, helping prevent waste and getting more value from every well.