Deepwater Gulf of Mexico 2004: America's Expanding ... - OCS BBS

production and about 50 percent of deepwater gas production. Figure 63a shows that very little
deepwater oil production came from subsea completions until mid-1995, but by the fall of 1996 that
production had risen to about 20 percent. Since 2000, subsea oil production has increased slightly,
whereas total deepwater oil production has increased dramatically. Deepwater gas production from
subsea completions began in early 1993, and by mid-1994 they accounted for over 40 percent of
deepwater GOM gas production (Figure 63b). Gas production from subsea completions increased
from 1996 through 1999, remained constant in 2000, and increased rapidly after 2000.
COMPANIES AND PRODUCTION
Deepwater oil and gas production was confined almost entirely to major oil and gas companies
through 1996 (figures 64a-b). (Production volumes in figures 64a-b, 65a-b, and 66a-b are attributed
to companies on the basis of their percentage of lease ownership. For example, if Shell owned
75 percent of a particular lease in July 1997, then 75 percent of that lease’s production was attributed
to Shell that month.) In 1998 and 1999, nonmajor companies significantly increased their deepwater
oil production (figure 64a). However, since 2000, nonmajor oil production has leveled off while
major oil companies continued their steep increases in oil production. Gas production from
nonmajor and major companies has increased at approximately the same rate (figure 64b). Nonmajor
companies currently own about 25 percent of deepwater GOM oil production and 30 percent of gas
production.
In shallow water, nonmajor companies now produce more oil than the majors (figure 65a). In
addition, nonmajor gas production represents an increasingly greater share of the total shallow-water
gas production (figure 65b). This confirms the speculation that majors have been concentrating more
in deepwater for their production needs.
Figures 66a and 66b display production contributions from each major oil and gas company. Shell
and BP were the driving forces behind increasing deepwater production, with Shell as the clear
leader in both oil and gas production. Shell’s dominance in deepwater oil production began before
1992 and its recent increases have outpaced those of the other major companies. Shell also led in
deepwater gas production, including a dramatic increase in 1997. BP oil production increased
significantly since 1998 (in part because Shell and BP have joint ownership in several large
deepwater fields). BP is second in terms of gas production because of steep increases in deepwater
gas production since the last report. Note that BP has several significant projects on the horizon
(e.g., Mad Dog, Thunder Horse, and Atlantis) that will contribute significantly to its oil and gas
production totals.
PRODUCTION RATES
High well production rates have been a driving force behind the success of deepwater operations.
Figure 67a illustrates the highest deepwater oil production rates (monthly production divided by
actual production days). For example, a well within Shell’s Bullwinkle field produced about
5,000 BOPD in 1992. In 1994, a well within Shell’s Auger field set a record, producing about
10,000 BOPD. From 1994 through mid-1999, maximum deepwater oil production rates continued to
climb, especially in water depths between 1,500 and 4,999 ft (457 and 1,524 m). Horn Mountain
came on line in early 2002 in 5,400 ft (1,646 m) water depth with a single well maximum rate of
more than 30,000 BOPD. The deepest production is currently held by Camden Hills in 7,216 ft
(2,199 m) water depth.
Figure 67b shows maximum production rates for gas. These rates hovered around 25 MMCFPD
until a well in Shell’s Popeye field raised the deepwater production record to over 100 MMCFPD in
1996. Since then, the deepwater has yielded even higher maximum production rates. In 1997,
Shell’s Mensa field (5,379 ft [1,640 m] water depth) showed the excellent potential for deepwater
production rates beyond the 5,000 ft (1,524 m) water depth. The record daily oil and gas production
rates (for a single well) are 41,532 BOPD (Troika) and 145 MMCFPD (Mica).
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