The U.S. authorities is contemplating modifications to insurance policies for oil firms working within the offshore Gulf of Mexico that may enable present platforms to elongate extensions to distant wells, Reuters claimed.

According to an article by Reuters on Monday, oil firms function 68 offshore deepwater platforms within the Gulf of Mexico.

To scale back their prices, firms typically
drill new wells inside about 40 to 50 kilometres of those present platforms
and join these new wells with tiebacks.

Scott Angelle; Source: BSEE

U.S. Bureau of Safety and Environmental Enforcement (BSEE) director Scott Angelle informed Reuters on Monday that BSEE was reviewing insurance policies that restrict the size of these tiebacks. Angelle added that extra particulars in regards to the attainable modifications to insurance policies could be out there later this yr.

The BSEE is contemplating whether or not there may be “a coverage change that may make subsea tiebacks and funding into the Gulf of Mexico larger, broader, and bolder for the subsequent decade“, Angelle mentioned.

It is price noting that oil manufacturing
from the U.S. Gulf of Mexico hit an all-time excessive of greater than 2 million
barrels per day final yr. Production has now retreated to about 1.6 million
bpd after oil costs crashed earlier this yr as demand contracted because of the
coronavirus pandemic.

The BSEE is analyzing utilization of
the Gulf’s oil-producing platforms, and whether or not they’re getting used as absolutely as
attainable, he mentioned.

The very last thing we wish to do is have an asset of the American folks that’s stranded and left behind“, he said.

The submit Trump administration mulls permitting longer tiebacks to distant offshore wells appeared first on Offshore Energy.

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