The U.S. Gulf of Mexico may return as the primary source of additions to crude oil production as onshore production fades, a federal report finds. A short-term market report from the U.S. Energy Information Administration finds production will decline in most of the Lower 48 states and Alaska because of the pressure from lower crude oil prices, which the report said should stay below $40 per barrel through the first half of 2017. Onshore declines, the report said, should be offset by gains in the Gulf of Mexico in part because the offshore areas are less sensitive to short-term volatility in crude oil prices. “Several projects in the […]