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
12 December 2025
The latest edition of our annual Outlook publication, titled 'The shape of energy to come: Creating unique pathways and managing shifting alliances', is available now
12 December 2025
The federal government is working with Alberta to improve the country’s access to Asian markets and reduce dependence on the US, but there are challenges to their plans
11 December 2025
The removal of the ban on oil and gas exploration and an overhaul of the system sends all the right messages for energy security, affordability and sustainability
10 December 2025
The economic and environmental cost of the seven-year exploration ban will be felt long after its removal
