The Gulf of Mexico's misty horizons
While production will rise in 2018, the longer-term prospects are less positive
Not much has changed over the past 12 months to lessen the misery in the US Gulf of Mexico (GoM), where low commodity prices pushed E&P activity to historic lows. As we predicted a year ago, the string of deep-water oil projects coming to completion raised the Gulf's share of US oil production from 17% in 2016 to 19% in 2017. Conversely, the Gulf's contribution to US natural gas output has shrunk from 5% to roughly 4.5%. Drilling activity hasn't improved, with the Baker Hughes Rotary Rig Count listing an average 20 units working in the Gulf during the first 10 months of 2017, compared with an average 22 rigs during 2016. A mixed picture can be found in the number of drilling permits appr
Also in this section
23 January 2026
A strategic pivot away from Russian crude in recent weeks tees up the possibility of improved US-India trade relations
23 January 2026
The signing of a deal with a TotalEnergies-led consortium to explore for gas in a block adjoining Israel’s maritime area may breathe new life into the country’s gas ambitions
22 January 2026
As Saudi Arabia pushes mining as a new pillar of its economy, Saudi Aramco is positioning itself at the intersection of hydrocarbons, minerals and industrial policy
22 January 2026
New long-term deal is latest addition to country’s rapidly evolving supply portfolio as it eyes role as regional gas hub
