April 2018, Vol.245, No.4


Diving Deep in the Gulf of Mexico

By Rishi Iyengar, Senior Analyst, PointLogic Energy After first facing competition from onshore conventional production and then being overshadowed by shale, Gulf of Mexico natural gas production levels has seen its contribution to Lower 48 U.S. total dry production levels fall from 26% in 2001 to just 4% in 2017. In more recent years, the decline in oil prices since 2015 has had a significant impact on where and how development in the Gulf occurs, with activity in the Gulf increasingly focused on deepwater exploration for crude oil. Over the last four years, Gulf of Mexico oil production has been inching upward, while overall gas output has decreased, especially since mid-2015. Gulf gas

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