DOI Announces New Policy to Enhance Gulf of America Oil Production

The Interior Department today announced the Bureau of Safety and Environmental Enforcement’s expansion of the allowable pressure differential for Downhole Commingling in the Paleogene (Wilcox) reservoirs, calling it a “critical policy advancement” that could increase production output by ~10% while also resulting in resource conservation benefits.  DOI noted that additional production gains could be possible as operators provide more data.

Interior Sec. Doug Burgum said that BSEE’s action is “a monumental milestone in achieving American Energy Dominance,” with BSEE Principal Deputy Director Kenneth Stevens calling it “a major win for domestic energy” that “enables increased recovery from existing wells, reducing the cost per barrel and strengthening our nation’s energy independence.”