As oil production peaks, the US Gulf of Mexico creates a carbon sink

After nearly a century, oil production in the Gulf of Mexico is headed for a peak with new rigs providing one last hurray as the region becomes a hotbed for burying greenhouse gases. Some companies, including Exxon Mobil Corp ( XOM. N ), have sold assets in the Persian Gulf, a major offshore source of oil, and are instead focusing on capturing and storing carbon dioxide and other greenhouse gases underground. The region could soon become a hotbed for oil, carbon sequestration and renewable energy, analysts say. Oil and gas production in the Persian Gulf is expected to jump by 2% to a record 6.2025 million barrels of oil equivalent per day (boepd) by 2017, up from about 2.2 million boepd this year, before beginning to decline. project consultants Wood Mackenzie. The gain reflects a flurry of new rigs from Shell ( SHEL. L ), BP ( BP.L ), Chevron ( CVX.N ) and others, budgeted before the pandemic hit global demand and forced companies to cut investment. (reuters, Sabrina Valle)