Recent FID announcements for the GoM have sought to emphasise cost-cutting measures
Ballymore FID no herald of GoM renaissance
Forecasts are for moderate growth rather than a development bonanza fuelled by high oil prices
Chevron’s mid-May FID on the Ballymore project in the deepwater US Gulf of Mexico (GoM) shows there is still appetite to advance new offshore projects. But it also demonstrates that operators continue to prioritise cost reduction even as crude prices remain at multi-year highs of above $110/bl. “Recent crude oil price increases do not have a significant effect on operations in the Gulf of Mexico, which have a longer runup and are less sensitive to short-term price movements than the Lower 48 [US states],” says Kirby Lawrence, a mathematical statistician at the EIA. The EIA estimates that GoM production was 1.69mn bl/d on average in the first quarter of 2022. The agency anticipates this will
Also in this section
1 April 2026
Golden Pass’s startup offers QatarEnergy a timely boost but may also force a difficult choice between honouring disrupted contracts and capitalising on soaring spot LNG prices
1 April 2026
It is not a case of if or when, but the length and magnitude of economic damage from elevated oil prices
1 April 2026
The US-Iran conflict demonstrates the need for diversification in several senses of the word. It also exposes the limits of Washington applying pressure on major oil and gas producers it considers geopolitical adversaries
31 March 2026
Disappointing results in its bidding round are a reality check for Libya, and global exploration generally
