Spill's Toll on Oil Output Grows Clearer

Wall Street Journal ^ | 4/20/2011 | ÁNGEL GONZáLEZ

[thackney]

One year after the BP PLC oil spill, Gulf of Mexico energy output is beginning to show the impact of the Obama administration's 10-month freeze on deep-water drilling.

Offshore oil production, most of which comes from the Gulf, is expected to average 1.55 million barrels a day this year, down 13% from 2010, according to the U.S. Energy Information Administration.

Following the April 20, 2010, blast on the Deepwater Horizon drilling rig operated by BP and the subsequent oil spill, the Obama administration stopped awarding permits for deep-water drilling until late February.

The drilling suspension, along with a new, slower permitting process, will result in the loss this year of about 375,000 barrels of oil a day, according to energy consultancy Wood Mackenzie. That is roughly equivalent to one-third of the production in Libya that remains shut down because of political turmoil there.

The setback for the Gulf's oil and natural-gas fortunes underscores the importance of what are known as development wells in maintaining production. Such wells are drilled in already discovered deep-water reservoirs to extract more oil and natural gas or stem output declines.

"None of those wells have been brought on-line; that's why we're seeing the big drop-off," said Matt Snyder, an analyst with Wood Mackenzie.

The Gulf slump contrasted with booming activity on dry land. Spurred by pricey oil, crude-oil production last year in the U.S. reached its highest level since 2004, driven mainly by producers tapping oilfields in Texas, California and North Dakota. This year, overall U.S. crude-oil and natural-gas production is expected to fall, in part because of the Gulf slump.

[thackney]

Interactive 3D Graphic of Deepwater Horizon, list those that died.

http://online.wsj.com/article/SB10001424052748703789104576273300797769750.html?mod=asia_home#project%3DOILRIG1005%26articleTabs%3Dinteractive

[thackney]

Production offshore has been falling for several months.

Federal Offshore--Gulf of Mexico Field Production of Crude Oil
http://eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFP3FM2&f=M

[Psycho_Bunny]

This must be a lie: Obama says there’s plenty of oil and the upwards price trend is due to speculators.

[Matchett-PI]

bttt