Gulf of Mexico producers think small
Megaprojects have fallen out of fashion and cheaper tieback developments are in. It’s enough to keep the region’s output growing, for now
The downturn has exposed a dividing line between producers in the Gulf of Mexico’s (GoM) deep waters: those who own the infrastructure to get oil out of the ground and those who don’t. Few companies are in the mood to spend. Chevron has shelved its Buckskin and Moccasins deep-water production hub development while BP has hit the pause button on its second Mad Dog floating-production hub. The development model of choice is the cheaper option of tying back discoveries to existing hubs, which typically produce well below their nameplate capacity. Connecting a field to existing infrastructure can knock about $10 a barrel off a project’s breakeven price compared to new infrastructure, reckons IHS
Also in this section
5 March 2026
Gas is a central pillar of Colombia’s energy system, but declining production poses a significant challenge, and LNG will be increasingly needed as a stopgap. A recent major offshore gas discovery offers hope, but policy improvements are also required, Camilo Morales, secretary general of Naturgas, the Colombian gas association, tells Petroleum Economist
4 March 2026
The continent’s inventories were already depleted before conflict erupted in the Middle East, causing prices to spike ahead of the crucial summer refilling season
4 March 2026
The US president has repeatedly promised to lower gasoline prices, but this ambition conflicts with his parallel aim to increase drilling and could be upended by his war against Iran
4 March 2026
With the Strait of Hormuz effectively closed following US-Israel strikes and Iran’s retaliatory escalation, Fujairah has become the region’s critical pressure release valve—and is now under serious threat
