Policy change expected to increase Gulf output, lower Costs for American families
In a significant step forward for American energy production, the Department of the Interior has announced a critical policy advancement that will boost offshore oil output in the Gulf of America. Following President Donald J. Trump’s Executive Order, Unleashing American Energy, the Bureau of Safety and Environmental Enforcement implemented new parameters for Downhole Commingling in the Paleogene (Wilcox) reservoirs, expanding the allowable pressure differential from 200 psi to 1500 psi.
This change, the result of extensive technical consultation with offshore industry leaders, could increase production output by roughly 10%, which would translate into over 100,000 barrels per day production increase over the next ten years. Additional gains are possible as operators provide further data. Results from a University of Texas study on commingling show that commingled production maximizes per-well oil production compared to sequential schemes. Over 30 years, it provides 61% more oil recovery, and over 50 years, it yields 21% more.
'This is a monumental milestone in achieving American Energy Dominance,' said Secretary of the Interior Doug Burgum. 'We’re delivering more American energy, more efficiently, and with fewer regulatory roadblocks. That means lower costs, more jobs, and greater security for American families and businesses as President Trump promised. Through smart collaboration and decisive leadership, we’re showing what’s possible.'
The policy shift is grounded in modern reservoir performance analysis and updates outdated guidance based on a 2010 government study. Under the updated rules, operators can now safely produce from multiple reservoirs with greater pressure differences, provided they meet new conditions including fluid compatibility certification, pressure monitoring and regular performance reporting to BSEE.
'This is a major win for domestic energy,' said Kenneth C. Stevens, Principal Deputy Director of BSEE. 'Thanks to the tireless work of our technical experts and our industry partners, this advancement enables increased recovery from existing wells, reducing the cost per barrel and strengthening our nation’s energy independence.'
This policy will not only increase production but also enhance resource conservation by expediting development from each reservoir - helping prevent waste and get more value from every well.
By delivering more oil from current operations without requiring additional infrastructure or leases, the updated strategy supports long-term price stability and energy affordability for American households.
For more information, visit www.bsee.gov.
Source: US Department of the Interior
