It’s no secret that E&P activities in the US Gulf of Mexico have been in the doldrums in recent years. Exploration and development work in the US deepwater Gulf has lagged since crude oil prices dropped in late 2014.
However, as costs finally settle at a bottom and operators set a new standard for operational efficiency, 2018 might be a turning point for the sector, according to a new study by Wood Mackenzie entitled “Deepwater GoM: 5 Things to Look for in 2018.”
William Turner, Wood Mackenzie’s Senior Research Analyst and lead author of the insight, said: “Although deepwater Gulf of Mexico has taken quite a beating over the last three years, the industry has clawed its way back to being competitive by significantly cutting costs, improving efficiencies and tightening up the supply chain. [This year] will be a forward-looking year for the sector as it lays the foundation for longer term resurgence in 2019 and beyond.”