Deepwater Gulf exploration starts to rebound

The US Gulf of Mexico is experiencing an uptick in exploration, but the way companies operate in the region has changed due to the downturn in oil prices

Exploration in the US Gulf of Mexico appears to be on the up after several years in decline. However, the lower oil price environment has forced operators in the region to change their approach to exploration, and this trend is still playing out. A return to the development of new megaprojects appears likely in the coming years—and indeed necessary if producers are to replace lost barrels from mature, declining operations. For now, a strategy focused on subsea tiebacks and the expansion of existing operations is the preferred option for many Gulf drillers. At the same time, though, a few—mostly majors—are pushing to open frontier deepwater regions. These players will be instrumental in kicki