It’s often said that the offshore Gulf of Mexico is a different animal than its onshore counterparts, especially shale and tight-oil plays like the Permian and the Bakken. Decisions to invest in new production in the GOM aren’t based on crude oil demand and price forecast for the next two or three years; they’re based on expectations for the next two or three decades. Well, 30 years from now will be 2051, a year after Shell and a number of other energy companies have pledged to achieve “net-zero” carbon emissions. What does decarbonization mean for future development in the offshore Gulf, where the upfront capital costs are enormous and wells can be prolific producers for many, many years. In today’s blog, we discuss the final investment decision (FID) on Shell’s Whale project in the western Gulf of Mexico and the prospects for further development in the GOM.
Last Great American Whale? – Shell’s Latest Crude Oil Project in the Deepwater Gulf
