Monday, April 28, 2025

Trump Eases Offshore Rules to Boost Gulf Oil Output

by Oilspot Suriname
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In a significant move to bolster domestic energy production, the Trump administration has announced the relaxation of pressure regulations for offshore oil operators working in the Paleogene play of the US Gulf of Mexico. The US Department of the Interior (DoI), through its Bureau of Safety and Environmental Enforcement (BSEE), has officially expanded the allowable pressure differential between multiple reservoirs in a single wellbore. The adjustment increases the limit from 200 pounds per square inch (psi) to 1500 psi — more than a sevenfold rise.

This regulatory shift specifically affects the rules around downhole commingling, a technique where hydrocarbons from different reservoirs are produced through a shared wellbore. The DoI believes the change, crafted after thorough consultations with leaders from the offshore industry, could boost US offshore production by approximately 10%, translating to an additional 100,000 barrels of oil per day over the next decade.

The policy adjustment is aimed at maximizing the value extracted from each well, enhancing both operational efficiency and economic return. Secretary of the Interior Doug Burgum hailed the move as a “monumental milestone” in the pursuit of American energy dominance. He emphasized that by removing outdated regulatory hurdles, the US could deliver more energy at lower costs while generating new jobs and reinforcing national security. According to Burgum, this initiative reflects the Trump administration’s commitment to smart collaboration and decisive leadership in reshaping the nation’s energy future.

The easing of these rules marks another chapter in a broader list of energy reforms undertaken during Trump’s presidency, all designed to streamline operations and encourage greater investment in US oil and gas projects.

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