Trump is ramping up US oil expansion through the Persian Gulf - Bloomberg
Kyiv • UNN
In 2025, the Persian Gulf will provide all of the increase in oil production in the US, 250,000 barrels per day. Offshore projects are becoming more profitable due to falling prices and reduced investment in shale oil.
Increased oil production in the US Gulf Coast may be a key factor in achieving the energy dominance sought by Donald Trump. In 2025, this region will provide the lion's share of the country's oil production growth. This is reported by UNN with reference to Bloomberg.
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US President Donald Trump has made expanding oil and gas production a central element of his policy. His administration has created a National Council on Energy Dominance and is reviewing the regulatory framework to stimulate drilling, including in the Gulf of Mexico.
According to the analytical company Wood Mackenzie, in 2025 the region will add 250,000 barrels of new daily production - this will be the entire increase within the United States. For comparison, in 2024, the volume of growth was 300,000 barrels, or almost half of the national growth.
Most people are focused on onshore projects, while the real growth this year will come from offshore. Projects in the Gulf are developing well, and this should surprise many
After a period of decline associated with the Deepwater Horizon accident, the pandemic and competition from shale oil, the Gulf Coast is once again at the forefront. Analysts attribute this to a decrease in investment in shale development due to falling oil prices. In such conditions, offshore long-term projects turned out to be more profitable.
Shale oil producers are quicker to react to falling prices
According to Bruce Niemeyer, President of Chevron Americas Exploration and Production, new projects in the Gulf Coast provide break-even at prices below $20 per barrel.
In April, Chevron launched production at the Ballymore field, connected to the 2008 platform via underwater pipelines.
If you can lower the break-even level, you make your investments more sustainable, you make the company more sustainable. This is the best scoring system
Shell's Executive Vice President for the Gulf of America region, Colette Hirstius, noted that a change in strategy has made offshore production less capital intensive.
The deepwater industry is no longer expensive by default. It proves its high efficiency, capital needs and sustainability
In response to high geological complexities, Chevron began production in 2023 at the Anchor field, located at a depth of six miles, with pressures up to 20,000 pounds per square inch.
Chevron will increase production in the Gulf of Mexico by 50% compared to last year, to 300,000 barrels per day by 2026
British Petroleum also plans to extract resources from the Kaskida field from 2029.
Additionally
Amid the expansion of offshore drilling, shale oil has likely peaked. Combined with Trump's trade war and rising supply from OPEC+, the market has faced lower prices, which has also benefited the Gulf Coast.
Oil prices collapsed amid OPEC+'s acceleration in production increase05.05.25, 08:19 • 64620 views