U.S. Set for $4 Billion of Crude Oil Kickoffs in Third Quarter

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

The U.S. is set for up to $4 billion worth of construction starts for crude-oil projects in the third quarter. However, none are likely to alleviate concerns about gasoline prices, which could go higher if crude inventories continue their steep decline.

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Setting Sail in the Gulf

U.S. crude oil producers have seen an eventful year to date. The U.S. Energy Information Administration (EIA) initially said it expected overall domestic crude production to lag 2025, but a cacophony of geopolitical events forced the EIA to raise its forecast to an average of 13.72 million barrels per day (bpd), or a 1% year-over-year growth. Industrial Info Resources is tracking $4 billion worth of crude oil-production projects, both onshore and offshore, across the U.S. that are set to begin construction through the end of September.

According to Industrial Info Resources data, the bulk of this total is attributed to BP plc's much-anticipated floating production unit (FPU) in the Gulf of Mexico's Kaskida Field. Located in the Keathley Canyon area, the FPU would be able to produce up to 80,000 bpd of crude from six wells in its first phase, which currently is expected to begin operations in 2029. BP says it has discovered recoverable resources in the Kaskida Field that would amount to roughly 275 million barrels of oil equivalent (BOE) in the project's initial phase. The company also says additional wells could be drilled in future phases.

Industrial Info Resources offers more information on the Kaskida development in its Global Market Intelligence (GMI) Oil & Gas Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a list of project reports.

Other major developments set to kick off in the Gulf next quarter include LLOG Exploration Offshore LLC's expansion of its Buckskin project in the Keathley Canyon area. LLOG, which is a subsidiary of Harbour Energy plc, expects to double output to more than 30,000 bpd through the addition of two wells. The Buckskin Field is estimated to hold nearly 5 billion BOE.

LLOG also is preparing to construct and install subsea infrastructure for Buckskin including umbilicals, wellheads, a rigid flowline and associated equipment. Readers can learn more from detailed reports on the drilling program and subsea infrastructure.

By the Numbers

• $4 billion: Total value of U.S. crude oil-production projects that are set to begin construction through the end of September
• 1%: The EIA's current expectation for year-over-year growth in domestic crude oil production
• 10 consecutive weeks: How long U.S. crude oil inventories have been falling, as of Wednesday

Dark Clouds Loom for Drivers

Onshore crude-exploration developments do not involve as much investment as their offshore counterparts, but at least one landlocked project could move forward: Continental Resources Incorporated's Powder River Basin Drilling Project in Wyoming, which involves drilling about 20 wells.

While the company has not provided a specific estimate for output, it says the development has a "multi-billion-barrel" resource potential. Readers can learn more from a detailed project report.

However, none of these projects are likely to affect a nagging concern for Americans this summer: gasoline prices. Amid the violence in the Middle East and the drama surrounding the Strait of Hormuz, U.S. drivers have avoided catastrophically high prices at the pump. But the International Energy Agency (IEA) recently noted global crude inventories have been declining at the fastest pace on record, which could push gasoline prices higher in coming weeks.

For more information on these trends, see June 29, 2026, article - Supply-Side Buffers are Scarce as War Ramps Up.

U.S. crude oil inventories fell for a 10th consecutive week to 408.4 million barrels, as exports remained high and refineries raised their capacity use, according to EIA data released Wednesday. While not a historic low, this number is significantly below the five-year average and the lowest level since September 2018.

The inventory total does not include the U.S. Strategic Petroleum Reserve (SPR). However, oil stored in the SPR is down to 325.7 million barrels--the lowest level since 1983--following emergency releases to stave off surging prices at the pump, according to the EIA.

Industrial Info Resources offers a full list of reports for crude oil-production projects across the U.S. that are set to begin construction through the end of September.

Key Takeaways

• A major project from BP leads third-quarter project kickoffs in the U.S. crude oil-exploration sector.
• U.S. crude inventories are at their lowest level since September 2018.
• Oil executives warn gasoline prices could go much higher if this trend is not reversed.

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About Industrial Info Resources
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 verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).