Nearly two and a half years after the Deepwater Horizon oil spill – a disaster that spilled 4.9 million barrels of crude oil into the Gulf of Mexico over a span of three months – production is growing again in the area.
According to projections made by the consulting firm Bentek Energy, oil flows from the Gulf are expected to increase by as much as 28 percent by the year 2022. This would put production at around 1.8 million barrels, increasing the need for oilfield equipment.
Following the Deepwater event – recorded as the worst offshore oil spill in U.S. history – production from the Gulf fell by a considerable amount. Today, the area accounts for just 20 percent of the country's oil. But, a reevaluation of practices and a series of adjustments that promote the mitigation of environmental dangers have given oilfield producers the opportunity to implement a cleaner and more efficient strategy.
New regulations have restricted exploration, one of the key factors that led to the 2010 blast at BP's Macondo well. Today, companies are encouraged to enact well testing policies as well. Bill Herbert, a managing director with investment bank Simmons & Co., told the news source that he is encouraged by the progress oil companies are making in the Gulf.
"Bottom-line, the Gulf of Mexico is in considerably better shape than even the most ardent optimists envisioned following Macondo," Herbert said.
As production increases, so will expectations, which will increase demand levels. To comply, oilfield producers will want to invest in solutions such as hydraulic lift, which will help oil companies remove oil from the ground efficiently and safely. Those interested in these solutions should contact an oilfield technology provider.