Gulf of Mexico is US oil’s engine room in 2025

Several projects are expected to boost production this year as strategically important region looks to environmental rules, fiscal policies, oil prices and demand trends longer term

Oil production in the Gulf of Mexico (GOM) is strategically important not only for the US but also for the rest of the world. Over the past five years, it accounted for around 14% of US production. With the help of advances in technology, adaptability and innovation, oil companies have been able to boost production in this part of the world. Output in the GOM is expected to increase by 4% year-on-year in 2025 compared with a paltry 1% growth rate in the rest of the lower 48 states. Several major projects are set to boost production in the GOM in 2025. Shell's Whale Field, located in the Perdido area, ultra-deepwater GOM, came onstream in January 2025. The field, where Shell has 60% and Chevr