April 24 (UPI) — In another move to increase offshore U.S. oil production, the Interior Department Thursday said it will use a new commingling policy for the Gulf of Mexico.
According to the Bureau of Safety and Environmental Enforcement, commingling refers to “the simultaneous production of hydrocarbon from multiple reservoirs through a single production conduit.”
The new policy allows much higher allowable pressure differentials, increasing it from 200 psi to 1,500 psi.
The Interior Department said in a statement the change is the result of “extensive technical consultation with offshore industry leaders.” Additionally, the change was encouraged by those to stand to profit from it financially.
“This is a monumental milestone in achieving American energy dominance,” said Secretary of the Interior Doug Burgum in a statement. “We’re delivering more American energy, more efficiently, and with fewer regulatory roadblocks.”
The decision to increase offshore oil production is happening alongside a simultaneous weakening of environmental energy regulations, which has led to environmental groups fighting federal actions in the courts.
White House Executive Order 14270 issued April 9 directed federal agencies “to incorporate a sunset provision into their regulations governing energy production to the extent permitted by law.”
The order is designed to rid the fossil fuel industry of regulations the administration considers impediments to increased fossil fuel production. It directs agencies to sunset all existing energy regulations.
The order targets the Environmental Protection Agency, Department of Energy, the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission.
It also applies to Office of Surface Mining Reclamation and Enforcement, the Bureau of Land Management, the Bureau of Ocean Energy Management, the Bureau of Safety and Environmental Enforcement, and the United States Fish and Wildlife Service, all within the Department of the Interior; and the United States Army Corps of Engineers, within the United States Army.
Burgham’s Thursday statement said the commingling in the Gulf of Mexico policy will lead to lower costs and more jobs.
The Interior Department said that commingling will “also enhance conservation by expediting development from each reservoir.”