Overview of GOM Deepwater Projects

Recovery from the deepwater drilling moratorium in the Gulf of Mexico growth continued from 2012 to late 2014, when the impact of low oil prices caused a 30% decline in spudding new wells in 2015. In 2012-1014 an average of 80 new wells per year were drilled, representing a 50% increase over the previous two years. The news wells were drilled by 30 high-specification rigs designed for stringent safety standards and high drilling efficiency. Many planned projects have been deferred and the 2016 drilling season is expected to be 20-30 % below the 2012-2014 average. However, operators are still optimistic about prospects in the Gulf, and permit approvals for deepwater wells are nearly at “pre-Macondo levels.”