The Rule Change That Puts Gulf Drilling on Fast Forward

Higher thresholds allow operators to tap deeper reservoirs, with Wilcox formation set to benefit most

25 Apr 2025

In April, America’s offshore regulator quietly raised the pressure. The Bureau of Safety and Environmental Enforcement (BSEE) lifted the allowable pressure difference for commingled production wells in the Gulf of Mexico from 200 pounds per square inch to 1,500. The change, more than sevenfold, could reshape deepwater drilling.

The rule targets a technical constraint with large consequences. Commingled wells draw oil from several layers of rock through a single wellbore. Until now strict pressure limits meant that many high-pressure reservoirs were left untapped, or required separate wells that were costly and complex. With higher limits, firms can reach deeper, hotter zones once judged too risky.

The biggest beneficiary is the Wilcox formation, a vast and oil-rich play buried beneath thick layers of salt. Chevron and TotalEnergies, among the most active operators there, can now produce from multiple zones at once. That should lift output while cutting the number of wells needed, trimming costs in one of the world’s most expensive oil provinces.

“This is a significant opportunity,” said a Gulf operations executive. “It lets us access more of the reservoir while avoiding the added expense of drilling multiple wells.”

BSEE’s permission is not unconditional. Operators must meet tougher standards for real-time pressure monitoring, performance tracking and reporting. Wells must be designed to tolerate higher pressures over decades, not just at start-up. The regulator is betting that better data and closer oversight can offset greater technical risk.

That wager is already reshaping the supply chain. Oilfield-service firms such as SLB and Computer Modelling Group are expanding digital tools that model pressure behaviour and flag early signs of trouble. Sensors, simulations and predictive maintenance, once optional extras, are becoming basic requirements.

Supporters say the industry is ready. Deepwater drilling has grown safer over time, they argue, thanks to better engineering and stricter supervision. Critics counter that higher pressures mean faster wear on equipment and less margin for error if systems fail.

The new rule will not spark an overnight boom. But it does tilt the balance toward more production from existing fields, rather than riskier frontier exploration. In a mature basin where easy gains are gone, squeezing more oil from fewer wells is attractive.

By loosening one constraint while tightening others, America’s regulator has set up a careful experiment. The pressure in the Gulf is rising again. Whether the rewards outweigh the risks will soon be tested.