Offshore oil and natural gas production
Most of the U.S. offshore energy production is oil and natural gas. The first offshore oil well was drilled in 1897 at the end of a wharf, 300 feet off the coast of Summerland, California. Early offshore drilling occurred in water less than 300 feet deep. Oil and natural gas drilling rigs now operate in water as deep as two miles. Offshore oil and natural gas production is much more expensive than onshore (land-based) production.
Offshore oil and natural gas wells are drilled from platforms that hold the drilling equipment, storage areas, and housing for work crews. Some drilling platforms stand on stilt-like legs that are embedded in the ocean floor. Floating platforms are used for drilling in deeper waters, including water depths of 10,000 feet or greater. These self-propelled vessels are attached to the ocean floor by large cables and anchors. After wells have been drilled from these platforms, production equipment is lowered to the ocean floor.
Offshore oil and natural gas producers are required to take precautions to prevent pollution, spills, and significant changes to the ocean environment. Offshore rigs are designed to withstand hurricanes. When offshore oil and natural gas wells are no longer productive enough to be economical, they are sealed and abandoned according to applicable regulations.
Nearly all offshore oil and natural gas leasing and development activity occurs in the central and western Gulf of Mexico, where thousands of platforms operate in waters up to 6,000 feet deep. A few platforms operate in depths of 10,000 feet or more. In 2022, oil and natural gas production in the Federal Offshore Gulf of Mexico accounted for about 15% of total U.S. crude oil production and about 2% of total U.S. dry natural gas production.
Other energy sources are under development offshore
Other types of energy technologies are operating or under development offshore in the United States, including wind energy, wave energy, tidal energy, ocean thermal energy conversion, and methane gas hydrates.
Last updated: April 16, 2024.