dcsimg Bentek Top StoriesSoutheast/Gulf/Texas Observer - Rising offshore production trend could continue into June

BENTEK Top Stories

Southeast/Gulf/Texas Observer

Rising offshore production trend could continue into June

Southeast Offshore production is rising in May, with gradual increases potentially indicating sustained higher levels into June. Offshore Southeast production attained monthly highs on May 18 of 3.5 Bcf/d after averaging just 3.0 Bcf/d on May 2, the lowest since averaging 2.8 Bcf/d in mid-February. Total offshore production on May 18 was just 0.2 Bcf/d under the 2017 high of 3.7 Bcf/d recorded to end January. The Alabama Offshore sample accounted for the largest increase, up 136 MMcf/d from 582 MMcf/d on May 2. This was driven mostly by the Mobile Bay processing plant, which put an additional 97 and 70 MMcf/d of production onto Gulfstream and Gulf South respectively since May 2. Volumes out of the plant have steadily trended upward since bottoming out in mid-February, up to 324 MMcf/d on May 18 after averaging 216 MMcf/d month to date. Recent jumps like yesterday’s and the overall sustained offshore production trend since February may be an indication of potentially growing output over the coming month.