---
title: Gulf of Mexico Shallow Water Production Could Boom In Early 2020
description: BSEE and the Bureau of Ocean Energy Management could be shining new light on more opportunity for Louisiana's oil and gas industry to bounce back. Stonewall Engineering Broussard LA
image: https://eng-pes.com/hubfs/Imported_Blog_Media/Figure_1-_OCS_Facility_in_the_Gulf_of_Mexico_(6304012128).jpg
---

 2 min read

# Gulf of Mexico Shallow Water Production Could Boom In Early 2020

[ Admin ](https://eng-pes.com/blog/author/admin)  July 10, 2026

[Oil and Gas](https://eng-pes.com/blog/tag/oil-and-gas) [Drilling](https://eng-pes.com/blog/tag/drilling)

![Figure 1: OCS Facility in the Gulf of Mexico - https://www.flickr.com/photos/usgao/6304012128/](https://eng-pes.com/hs-fs/hubfs/Imported_Blog_Media/Figure_1-_OCS_Facility_in_the_Gulf_of_Mexico_(6304012128)-1.jpg?width=1200&name=Figure_1-_OCS_Facility_in_the_Gulf_of_Mexico_(6304012128)-1.jpg)

A separation deep and shallow water provinces in the Gulf of Mexico could lead to more drilling, [jobs](https://www.stonewallco.com/careers), and profitability for the gulf coast.

With the recent elections now over, more and more [oil and gas companies](https://www.stonewallco.com/facilities-engineering) and families are continuing to worry about the [future of oil and gas](https://www.vested.marketing/blog/opec-unprecedented-oil-pact-finalized-by-allies) in the south Louisiana region.

## BSEE and the Bureau of Ocean Energy Management could be shining new light

But the BSEE and the Bureau of Ocean Energy Management could be shining new light on more opportunity for[ Louisiana's ](https://eng-pes.com/blog/what-determines-oil-prices)[oil and gas](https://eng-pes.com/blog/introducing-the-fortress-your-downhole-tool-vending-machine) industry to bounce back.

Now, the gulf will be recognized as two separate provinces in regard to drilling and production.

While the deep water segment put up some of its highest production numbers last year, shallow water may be given a chance to reap some of the wells that it has drilled over the past decade.

## Learn more about BSEE's Incentive

The BSEE and the Bureau of Ocean Energy Management recently released a report describing the Gulf will now be treated as two separate provinces.

BSEE Director Scott Angelle said.

> *“There’s a shallow water province and a deep water province,” *
> 
> *“The deep water provinces doing very good. *
> 
> *Last year, we’ve had the highest production we’ve ever had as far as oil production.”
> 
> *

### updated discounted rate for the shallow water province

The updated discounted rate for the shallow water province will apply to special case royalty relief applications. This means that the rate will only apply for new wells and production in the region.

BSEE is planning on bringing the same results to the shallow water province - By doing so $20 billion in oil and natural gas resources could be stranded if the trends remain.

Angelle explains:

> *“We would see a significant decrease in natural gas production, a significant decrease in oil production and a significant decrease in the number of wells drilled,” *
> 
> *"It’s a more specific tailored approach to managing it. *
> 
> *We hope it unlocks investment, allows capitol to be employed, jobs to be created and production to be made available to America.”*

### Give Companies Higher Return On Investment

Angelle explains this incentive gives companies the chance to have a higher return on their investment - necessary for a rabbit-size reservoir.

> *“We have an opportunity to manage the shallow water a little different, unlock us some capital, put people to work and create a better, older America”*

### Timeline of this production

Per Angelle, this production will begin in January, 2020.

## Read more

Read the full story [here,](https://www.klfy.com/news/local/bsee-aims-make-drilling-in-the-gulf-of-mexico-more-profitable/) and see what Scott Angelle (BSEE's Director) has to say about the subject.

---

### [ABOUT ](https://www.stonewallco.com/who-are-we/)[STONEWALL ](https://www.stonewallco.com)[ENGINEERING](https://eng-pes.com/blog/why-you-need-a-professional-engineer)

[![Stonewall Engineering Broussard LA](https://eng-pes.com/hs-fs/hubfs/Imported_Blog_Media/android-chrome-192x192-Jun-26-2026-03-23-05-0020-AM.png?width=132&name=android-chrome-192x192-Jun-26-2026-03-23-05-0020-AM.png)From concept,](https://info.stonewallco.com/blog/why-do-engineers-still-create-2d-manufacturing-prints) [design, and engineering, to project management ](https://info.stonewallco.com/mechanical-engineering-design-thinking)[and integrity services. ](https://info.stonewallco.com/blog/well-stimulation-technology-dissolvable-vs-composite-frac-plugs)[We are your gateway to your journey's](https://info.stonewallco.com/blog/how-to-start-an-engineering-consulting-firm) [engineering endeavors. ](https://info.stonewallco.com/blog/stonewall-bigger-and-better)

Providing a variety of [services ](https://www.stonewallco.com/services)while focusing in [Facilities Engineering](https://www.stonewallco.com/facilities-engineering), [Turn-Key Solutions](https://www.stonewallco.com/turn-key-engineering-solutions), [Engineering Services, Product Design](https://www.rotatingsolutionsinc.com/news/everything-you-need-to-know-about-tank-sweeps) and [Drafting & Design - ](https://www.stonewallco.com/design-and-drafting)including [Hemp & CBD industry](https://www.stonewallco.com/hemp-facilities-engineering)[.](https://www.stonewallco.com/design-and-drafting)

- [Tweet](https://twitter.com/share)

[![Bellard & Associates and PES Announce New Engineering Merger](https://eng-pes.com/hubfs/Imported_Blog_Media/Facebook%20-%20Featured%20Image%20-%20PES%20(5).png) ](https://eng-pes.com/blog/bellard-and-associates-and-pes-announce-new-engineering-merger)

 1 min read

#### [Bellard & Associates and PES Announce New Engineering Merger](https://eng-pes.com/blog/bellard-and-associates-and-pes-announce-new-engineering-merger)

[Admin](https://eng-pes.com/blog/author/admin) : Jul 10, 2026 7:33:48 AM

Bellard & Associates has merged with PES and has moved their offices to 124 Heymann Blvd and the new company will operate under the PES’...

[Services](https://eng-pes.com/blog/tag/services) [Stonewall News](https://eng-pes.com/blog/tag/stonewall-news) [civil engineering](https://eng-pes.com/blog/tag/civil-engineering) 

[Read More](https://eng-pes.com/blog/bellard-and-associates-and-pes-announce-new-engineering-merger)

[![10 Great Engineering Brain Teasers for Cajun Engineers](https://eng-pes.com/hubfs/Imported_Blog_Media/Close%20up%20of%20businessman%20holding%20digital%20image%20of%20brain%20in%20palm.jpg) ](https://eng-pes.com/blog/10-great-brainteasers-for-cajun-engineers)

 1 min read

#### [10 Great Engineering Brain Teasers for Cajun Engineers](https://eng-pes.com/blog/10-great-brainteasers-for-cajun-engineers)

[Admin](https://eng-pes.com/blog/author/admin) : Jul 10, 2026 7:41:36 AM

Here in South Louisiana we seem to have a envie (ahnvee) for telling jokes, or in some cases asking tricky questions. I read a recent article...

[Engineering Resources](https://eng-pes.com/blog/tag/engineering-resources) 

[Read More](https://eng-pes.com/blog/10-great-brainteasers-for-cajun-engineers)

[![Stonewall and PES Announce New Engineering Merger](https://eng-pes.com/hubfs/Imported_Blog_Media/Stonewall%20PES%20-%20Featured%20Image-1.png) ](https://eng-pes.com/blog/stonewall-and-pes-announce-new-engineering-merger)

 1 min read

#### [Stonewall and PES Announce New Engineering Merger](https://eng-pes.com/blog/stonewall-and-pes-announce-new-engineering-merger)

[Admin](https://eng-pes.com/blog/author/admin) : Jul 10, 2026 7:40:45 AM

Over the past five years, StoneWall and PES have been on their own paths each building an organization that would try and redefine the engineering...

[Services](https://eng-pes.com/blog/tag/services) [Stonewall News](https://eng-pes.com/blog/tag/stonewall-news) 

[Read More](https://eng-pes.com/blog/stonewall-and-pes-announce-new-engineering-merger)

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Admin",
    "url" : "https://eng-pes.com/blog/author/admin"
  },
  "dateModified" : "2026-07-10T12:40:54.159Z",
  "datePublished" : "2026-07-10T12:40:54.000Z",
  "headline" : "Gulf of Mexico Shallow Water Production Could Boom In Early 2020",
  "image" : [ "https://eng-pes.com/hubfs/Imported_Blog_Media/Figure_1-_OCS_Facility_in_the_Gulf_of_Mexico_(6304012128).jpg" ],
  "mainEntityOfPage" : {
    "@id" : "https://eng-pes.com/blog/gulf-of-mexico-shallow-water-production-could-boom-in-early-2020",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://eng-pes.com/hubfs/New%20PES%20Logo.png"
    },
    "name" : "Practical Engineering Solutions"
  }
}
```