Output expected to rise from the Gulf of Mexico

Output from the Gulf of Mexico is about to soar. Costs and the US crude oil export ban remain dark clouds on the horizon

Nearly four years after the devastating Macondo oil spill, the deep-water Gulf of Mexico (GoM) is experiencing a renaissance. Output is expected to rise by 200,000 barrels a day (b/d) this year, spurred by the start-up of several long-awaited projects. A massive 0.7 million b/d of new production is due by 2016 that will offset anticipated decline rates at ageing fields and turn the GoM from a drag on US oil production to a contributor to the already stunning growth being posted by onshore developments. Furthermore, a string of new discoveries has ensured that the region remains on the exploration map, even as the boom in onshore oil output continues. The start-ups will snap a trend of declin