Energy Transition

Preparing for the Gulf of Mexico energy transformation

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Elliot McDonald
Director of Operations, Houston 

The direction of the Gulf of Mexico (GoM) energy market will become clearer in the next few months.

The Bureau of Ocean Energy Management (BOEM) announced in January that it issued its Final Supplemental Environmental Impact Statement (EIS) for two upcoming Gulf of Mexico (GOM) Outer Continental Shelf oil and gas lease sales to comply with the Inflation Reduction Act (IRA) of 2022.

There is already a huge amount of interest. In October 2022, BOEM issued a Draft Supplemental EIS and received feedback from the public during a 45-day comment period. The organization revealed that it received nearly 76,000 public comments on the Draft Supplemental EIS.

Lease Sale 259 and Lease Sale 261 will be held no later than March 31 and September 30 this year. The Final Supplemental EIS includes an expanded greenhouse gas (GHG) analysis and provides an analysis of monetized impacts from these estimated GHG emissions, BOEM noted in the update.

The IRA, passed in August 2022, aims to catalyze investments in domestic manufacturing capacity, encourage procurement of critical supplies domestically or from free-trade partners, and jump-start R&D and commercialization of leading-edge technologies such as carbon capture and storage and clean hydrogen.

This should mean there are many opportunities for the Houston market. As an energy consultancy we want to engage the market, share our lessons learnt across the energy spectrum and build a new bright future for the GoM.

This is why we’re playing a key role in the facilitation of Hart Energy LIVE’s GoM Energy Transformation Conference 2023.

The GoM continues to be a mainstay of the nation’s source of oil and gas - generating about 15% of all US OCS oil and 5% of gas production according to the US Energy Information Administration. And, in 2023, BOEM forecasts 2 MMbbl/d and 2,446 MCF/day of production from the GoM.  However, it's estimated that $450 billion of clean energy related investments will hit the GoM within the next few years.

We firmly believe that oil, and in particular natural gas, will play a role in moving the world to net zero reliably and affordably. To ensure the industry is relevant in the future, a transition needs to happen.

The energy sector faces pressure – and will face increasing pressure - to decarbonize and produce net zero products. It must demonstrate a move to producing cleaner products and do this in a more transparent manner.  A baseline of current emissions needs to be accessible and benchmarks for improvements need to be laid out, which includes reducing flaring, venting and leaks to name a few.

The GoM Energy Transformation Conference will explore the energy expansion activities taking place in the region. It will tackle new and evolving technologies, developing exploration efforts, and subsea expansion opportunities.

In addition to traditional offshore oil and gas, this conference will provide rich information from industry leaders on topics such as offshore energy security, carbon capture and storage, offshore wind, and more. Gain insights from major and independent E&P companies who are incorporating these new products and technologies into their portfolios.

There’s so much to play for in the region. We hope to see you there.

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