US Introduces Policy to Boost Gulf Oil Production by 100,000 Barrels Daily

The U.S. Department of the Interior has enacted a policy change that significantly increases the allowable pressure differential for downhole commingling in the Gulf of Mexico's Paleogene (Wilcox) reservoirs, raising the limit from 200 psi to 1,500 psi. This move is expected to boost offshore oil output by approximately 10%, potentially adding more than 100,000 barrels per day over the next decade. The new rules allow operators to produce from multiple reservoirs through a single wellbore, increasing efficiency and oil recovery compared to previous sequential production methods. Safety and environmental oversight remain in place, with requirements for fluid compatibility certification, pressure monitoring, and regular reporting to the Bureau of Safety and Environmental Enforcement. The policy modernizes previous 2010-era guidance and is seen as a strategic effort to strengthen U.S. energy independence while reducing the cost per barrel. The Wilcox formation, central to these changes, is a major deepwater exploration area, and industry experts view the policy as a significant step toward maximizing resource recovery from existing wells.