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Released January 13, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Energy market watchers will have to wait until Tuesday for new updates on offshore oil production, but it may be getting a lift with the start of operations at the Whale platform in the Gulf of Mexico.
Shell plc (NYSE:SHEL) (London, England) is the controlling partner and operator with a 60% share in the Whale facility, alongside Chevron Corporation (NYSE:CVX) (San Ramon, California) with a 40% stake. Both companies announced Thursday that production has commenced at the site in the Alaminos Canyon Block about 200 miles south of Houston, Texas.
The partners at Whale estimated peak production would be around 100,000 barrels of oil equivalent per day (Boe/d), though much of that would be in oil as the Gulf of Mexico is only a nominal natural gas producer.
The Whale field was discovered in 2017. The semi-submersible rig parked over the field has 15 wells tied back to the host facility. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for project reports on the Whale development.
For Chevron, the start of operations at Whale represents something of a trend for the U.S. supermajor, after achieving first production at its Anchor project offshore and boosting production at the Jack/St. Malo and Tahiti facilities in the Gulf of Mexico last year.
The Whale platform, however, is modeled after Shell's Vito facility in the Gulf of Mexico. Shell Offshore Incorporated is the operator at Vito, alongside energy major Equinor (NYSE:EQNR) (Stavanger, Norway) with its 36.89% stake in the project. First oil was achieved in February 2023 at an asset that Shell believes holds 29 million Boe reserves.
The startup at Whale comes days after outgoing President Joe Biden declared some 625 million maritime acres off limits to drillers. Largely sidelining the East Coast, the measure only left the eastern waters of the Gulf of Mexico off limits, however, and the Biden administration said the environmental risk outweighed the marginal resources available in these waters.
Production from U.S. territorial waters is nevertheless considered low-carbon, relative to other basins, due in part to the small developmental footprint. Industry-backed analysis from the National Ocean Industries Association, alongside consultant firm ICF, estimated the carbon intensity of Gulf production was 46% lower than the global average outside of North America.
"As a leading leaseholder in the Gulf, where we produce some of the lowest carbon intensity oil and natural gas in the world, Chevron is well positioned to continue growing affordable, reliable production in the U.S. while delivering higher returns and cash flow," said Bruce Niemeyer, the president of upstream operations in the Americas for Chevron.
Data from the Energy Information Administration (EIA), the numbers cruncher for the U.S. Department of Energy, show the Gulf of Mexico accounts for about 15% of total U.S. crude oil production. Gulf oil production last year averaged 1.77 million barrels per day (BBL/d), about 5% lower than the prior year.
In its Short-Term Energy Outlook report from December, the EIA estimated the 2025 average would be closer to 1.81 million BBL/d for 2025. The report from January, expected Tuesday, would show any revisions to that estimate.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Shell plc (NYSE:SHEL) (London, England) is the controlling partner and operator with a 60% share in the Whale facility, alongside Chevron Corporation (NYSE:CVX) (San Ramon, California) with a 40% stake. Both companies announced Thursday that production has commenced at the site in the Alaminos Canyon Block about 200 miles south of Houston, Texas.
The partners at Whale estimated peak production would be around 100,000 barrels of oil equivalent per day (Boe/d), though much of that would be in oil as the Gulf of Mexico is only a nominal natural gas producer.
The Whale field was discovered in 2017. The semi-submersible rig parked over the field has 15 wells tied back to the host facility. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for project reports on the Whale development.
For Chevron, the start of operations at Whale represents something of a trend for the U.S. supermajor, after achieving first production at its Anchor project offshore and boosting production at the Jack/St. Malo and Tahiti facilities in the Gulf of Mexico last year.
The Whale platform, however, is modeled after Shell's Vito facility in the Gulf of Mexico. Shell Offshore Incorporated is the operator at Vito, alongside energy major Equinor (NYSE:EQNR) (Stavanger, Norway) with its 36.89% stake in the project. First oil was achieved in February 2023 at an asset that Shell believes holds 29 million Boe reserves.
The startup at Whale comes days after outgoing President Joe Biden declared some 625 million maritime acres off limits to drillers. Largely sidelining the East Coast, the measure only left the eastern waters of the Gulf of Mexico off limits, however, and the Biden administration said the environmental risk outweighed the marginal resources available in these waters.
Production from U.S. territorial waters is nevertheless considered low-carbon, relative to other basins, due in part to the small developmental footprint. Industry-backed analysis from the National Ocean Industries Association, alongside consultant firm ICF, estimated the carbon intensity of Gulf production was 46% lower than the global average outside of North America.
"As a leading leaseholder in the Gulf, where we produce some of the lowest carbon intensity oil and natural gas in the world, Chevron is well positioned to continue growing affordable, reliable production in the U.S. while delivering higher returns and cash flow," said Bruce Niemeyer, the president of upstream operations in the Americas for Chevron.
Data from the Energy Information Administration (EIA), the numbers cruncher for the U.S. Department of Energy, show the Gulf of Mexico accounts for about 15% of total U.S. crude oil production. Gulf oil production last year averaged 1.77 million barrels per day (BBL/d), about 5% lower than the prior year.
In its Short-Term Energy Outlook report from December, the EIA estimated the 2025 average would be closer to 1.81 million BBL/d for 2025. The report from January, expected Tuesday, would show any revisions to that estimate.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
