Offshore oil and gas in the Gulf of Mexico (United States) Offshore oil and gas in the Gulf of Mexico (United States) Offshore oil and gas in the Gulf of Mexico is a major source of oil and natural gas in the United States. The western and central Gulf of Mexico, which includes offshore Texas, Louisiana, Mississippi, and Alabama, is one of the major petroleum-producing areas of the United States. Oil production from US federal waters in the Gulf of Mexico reached an all-time annual high of 1.65 million barrels per day in 2017. Oil production is expected to continue the upward trend in 2018 and 2019, based on ten new
Gulf of Mexico basin boundaries weakened by the loading of sediments in the Gulf. As mentioned above, the pre-rift stratigraphy of the central Gulf of Mexico basin, which now lies beneath nearly 20 kilometers of sediment deposited during the Jurassic through the Holocene, is made up primarily of extensional graben formations filled with "red beds," basalt flows, and diabase dikes and sills deposited and intruded during the break-up of Pangaea and the explosion of the Central Atlantic Magmatic Plume. Red beds, also referred to as non-marine clastic sequences, which are often red in color, have been found in wells drilled in the Gulf of