U.S. crude oil production in the Federal Gulf of Mexico increased slightly in 2017, reaching 1.65 million b/d, the highest annual level on record. Although briefly hindered by platform outages and pipeline issues in December 2017, oil production in the Gulf is expected to continue increasing in 2018 and 2019, based on forecasts in the EIA’s latest Short-Term Energy Outlook (STEO). EIA expects the Gulf to account for 16% of total U.S. crude oil production in each year.
Based on STEO’s expected production levels at new fields and existing fields, annual crude oil production in the Gulf will increase to an average of 1.7 million b/d in 2018 and 1.8 million b/d in 2019. However, uncertainties in oil markets may still affect long-term planning and operations in the Gulf, and the timelines of future projects may change accordingly.