On April 24, 2025, the U.S. Department of the Interior announced a new policy advancement that is expected to boost offshore oil output in the Gulf of America with the Bureau of Safety and Environmental Enforcement’s (BSEE) approval of Downhole Commingling in the Paleogene (Wilcox) reservoirs by expanding the allowable pressure differential from 200 psi to 1,500 psi.
In the context of oil and gas production, “downhole commingling” refers to the practice of producing fluids (oil, gas, or water) from multiple reservoirs through a single wellbore. This means the fluids from different underground layers or zones are mixed together before reaching the surface.
The new change, based on a 2010 government study, is expected to increase production output by roughly 10%, which would translate into over 100,000 barrels per day production increase over the next 10 years.
Further, results from a 2023 University of Texas study show that commingled production maximizes per-well oil production compared to sequential schemes. Over 30 years, it could provide 61% more oil recovery, and over 50 years, it could yield 21% more.
Under the updated rules, operators can now safely produce from multiple reservoirs with greater pressure differences, provided they meet new conditions, including fluid compatibility certification, pressure monitoring and regular performance reporting to BSEE.
This policy is expected to both increase production and also enhance resource conservation by expediting development from each reservoir—helping prevent waste and get more value from every well by delivering more oil from current operations without requiring additional infrastructure or leases.
