The US Department of the Interior (DOI) has formalised a change to its offshore oil production regulations, expanding the operational parameters for downhole commingling in the Gulf of America.
The updated policy, implemented by the Bureau of Safety and Environmental Enforcement (BSEE), increases the allowable pressure differential from 200 pounds per square inch (psi) to 1500psi in Paleogene (Wilcox) reservoirs.
This measure, based on technical discussions with offshore operators, is expected to enable greater extraction efficiency by allowing simultaneous production from multiple reservoirs with wider pressure disparities.
The revised commingling guidelines follow Executive Order directives from President Donald Trump’s administration under the Unleashing American Energy initiative.
Secretary of the Interior Doug Burgum said: “This is a monumental milestone in achieving American Energy Dominance.
“We’re delivering more American energy, more efficiently, and with fewer regulatory roadblocks. That means lower costs, more jobs, and greater security for American families and businesses as President Trump promised.”
Under the new parameters, oil and gas operators will be permitted to commingle hydrocarbons from different zones provided they comply with new oversight conditions. These include certification of fluid compatibility between zones, installation of monitoring systems to track pressure dynamics, and periodic submission of performance data to BSEE for review.
The DOI estimates that the regulatory shift could result in an increase of over 100,000 barrels per day (bpd) in offshore oil production over a 10-year period. Additional production increases could materialise as more operational data becomes available.
Research conducted by the University of Texas has highlighted the comparative production benefits of commingling versus sequential reservoir development strategies. According to the study, cumulative oil recovery could increase by 61% over a 30-year timeframe and by 21% over a 50-year operational lifespan when commingling is applied.
The regulatory revision marks a departure from previous guidance issued in 2010, which was informed by reservoir performance analysis tools available at that time. The new approach incorporates updated modelling capabilities and is designed to align with current technical standards across the offshore oil sector.
In addition to enhancing output, the DOI has framed the policy as a conservation-focused measure aimed at expediting reservoir development and reducing resource underutilisation. By maximising recovery from existing wells, the policy is positioned to reduce the need for new exploration acreage or infrastructure expansion.
Earlier this month, the DOI released revised estimates for technically recoverable reserves in the Gulf of America Outer Continental Shelf. According to the Bureau of Ocean Energy Management (BOEM), the region now holds 7.04 billion barrels of oil equivalent in remaining recoverable resources. This is an increase of 1.30 billion barrels of oil equivalent since the agency’s last assessment in 2021 and includes 5.77 billion barrels of crude oil and 7.15 trillion cubic feet of natural gas.
Additionally, BOEM updated its projections for undiscovered technically recoverable resources in the region. The Gulf of America is now estimated to contain 29.59 billion barrels of oil and 54.84 trillion cubic feet of gas in yet-to-be-developed fields.
These reserve estimates form the basis for upcoming leasing activity. Secretary of the Interior Doug Burgum has instructed BOEM to proceed with preparations for the next lease sale on the Outer Continental Shelf. The proposed notice of sale is expected to be issued in June 2025.
