U.S. Set for $4 Billion of Crude Oil Kickoffs in Third Quarter

The U.S. is set for up to $4 billion worth of construction starts for crude-oil projects in the third quarter. However, none are likely to alleviate concerns about gasoline prices, which could go higher if crude inventories continue their steep decline.

Setting Sail in the Gulf
U.S. crude oil producers have seen an eventful year to date. The U.S. Energy Information Administration (EIA) initially said it expected overall domestic crude production to lag 2025, but a cacophony of geopolitical events forced the EIA to raise its forecast to an average of 13.72 million barrels per day (bpd), or a 1% year-over-year growth. Industrial Info Resources is tracking $4 billion worth of crude oil-production projects, both onshore and offshore, across the U.S. that are set to begin construction through the end of September.

According to Industrial Info Resources data, the bulk of this total is attributed to BP plc’s much-anticipated floating production unit (FPU) in the Gulf of Mexico’s Kaskida Field. Located in the Keathley Canyon area, the FPU would be able to produce up to 80,000 bpd of crude from six wells in its first phase, which currently is expected to begin operations in 2029. BP says it has discovered recoverable resources in the Kaskida Field that would amount to roughly 275 million barrels of oil equivalent (BOE) in the project’s initial phase. The company also says additional wells could be drilled in future phases.

Industrial Info Resources offers more information on the Kaskida development in its Global Market Intelligence (GMI) Oil & Gas Plant and Project databases, where readers can find details–including construction schedules, investment values and necessary equipment–in a list of project reports.

Other major developments set to kick off in the Gulf next quarter include LLOG Exploration Offshore LLC’s expansion of its Buckskin project in the Keathley Canyon area. LLOG, which is a subsidiary of Harbour Energy plc, expects to double output to more than 30,000 bpd through the addition of two wells. The Buckskin Field is estimated to hold nearly 5 billion BOE.

LLOG also is preparing to construct and install subsea infrastructure for Buckskin including umbilicals, wellheads, a rigid flowline and associated equipment. Readers can learn more from detailed reports on the drilling program and subsea infrastructure.

By the Numbers
$4 billion: Total value of U.S. crude oil-production projects that are set to begin construction through the end of September
1%: The EIA’s current expectation for year-over-year growth in domestic crude oil production
10 consecutive weeks: How long U.S. crude oil inventories have been falling, as of Wednesday