The Gulf of Mexico has seen a relatively quiet year for new oil and gas discoveries, with only two publicly announced finds and a potential third in the last twelve months. This marks a notable contrast to the eight discoveries reported in 2023, and aligns with the three discoveries made the previous year. However, when looking at historical trends over the past two decades, the current figures illustrate the ebb and flow of exploration successes within the region.
The drop in discoveries could be attributed to various factors, most prominently fluctuating oil prices and shifts in industry focus, such as recent efforts toward renewable energy sources. These factors have led to decreased investment and a decline in drilling activities, particularly following the oil price downturns in 2014 and 2020.
Among the few discoveries made this year is the Ewing Bank 953 well, operated by Walter Oil & Gas in partnership with Talos Energy. Early analyses indicate this well has encountered between 15 million and 25 million barrels of oil equivalent (MMboe), which is slated for connection to the South Timbalier 311 Megalodon platform.
Additionally, Talos Energy is advancing its Sunspear discovery, which was initially pinpointed in July 2023. It is expected to be tied to the Prince platform and operational by the second quarter of 2025. Meanwhile, Occidental Petroleum has also reported a promising deepwater discovery, which is moving toward a final investment decision.
Notably, offshore Mexico, Eni has highlighted a significant oil and gas discovery in the Sureste basin, estimating in-place resources between 300 and 400 MMboe from its Yopaat-1 exploration well. This discovery, along with past finds from Eni’s other projects in the region, may pave the way for a future hub development.
In other developments, Karoon Energy has reported encouraging results from its Who Dat East well, which intersected rich gas condensate indicative of potential future production. LLOG has also announced successful drilling operations that have exceeded expectations at the Salamanca Floating Production Unit, with substantial amounts of high-quality oil-bearing sands reported.
Looking ahead, Talos Energy remains proactive in its exploration initiatives, including utilizing the West Vela drillship for a series of significant drilling projects, which could enhance resource availability in the region.
Overall, while the past year’s findings in the Gulf of Mexico reveal a challenging landscape for new discoveries, the impending projects and ongoing exploration highlight a persistent commitment to unlocking the area’s hydrocarbon potential. This situation underscores the cyclical nature of the oil and gas industry, suggesting that renewed successes may be just around the corner.