Oil and gas production in deep water areas is planned increase by 60% by 2030to provide 8% of total production, according to a new Wood Mackenzie report cited by Rig Zone.
Ultra deep sea production is expected to continue to grow at a breakneck pace and by 2030 will account for half of all deep sea production. defined as over 5000 feet.
Deep sea mining remains the fastest growing segment of oil and gas exploration and production, with production expected to reach 10.4 million barrels of oil equivalent per day (boe/d) in 2022, up from 300,000 barrels of oil equivalent per day (boe/d) in 1990. Wood Mackenzie predicts that by the end of the decade this figure will exceed 17 mmboe/d.
The largest oil and gas company in the USA Exxon Mobil (NYSE: XOM) is the latest major oil company to discover deepwater oil and gas fields. Last month, Exxon announced that it had two more discoveries on the Sailfin-1 and Yarrow-1 wells in the Stabroek block offshore Guyana, bringing the block to over 30 discoveries since 2015.
Exxon reported that the Sailfin-1 well was drilled at a depth of 4,616 feet and found 312 feet of hydrocarbon containing sandstone, while the Yarrow-1 well was drilled at a depth of 3,560 feet and found 75 feet of hydrocarbon containing sandstone.
Exxon did not disclose how much crude oil or gas it estimates the new discoveries will contain, but raised its previous third-quarter production forecast from earlier discoveries in the region.
Supermajor has increased development and production offshore Guyana at such a pace that “well above the industry average.”. Two of Exxon’s sanctioned offshore projects in Guyana, Liza Phase 1 and Liza Phase 2, are currently generating above-design capacity and have already produced nearly 360,000 barrels of oil per day on average. Supermajor expects Guyana’s total production to exceed one million barrels per day by the end of this decade.
Exxon said a third project, Payara, is expected to be launched by the end of 2023, while a fourth project, Yellowtail, could start operations in 2025.
Exxon is the operator of the Stabroek block, in which it owns a 45% stake, while partners Hess Corp. (NYSE: HES) and Cnooc (OTCPK: CEOHF) hold 30% and 25% shares, respectively. Exxon oil and gas production is well below record levels, averaging 3.7 mmboe/d mid-year, in line with last year but nearly 9% below the 4.1 mmboe/d set in 2016 year.
Alex Kimani for Oilprice.com
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