Deepwater Exploration Patterns In The Gulf Of Mexico: An Overview And Historical Perspective Of Past Successes And Failures

Abstract

For 50 years a principal Gulf of Mexico frontier has been exploration in water deeper than the deepest existing platform. Progress was steady but not always smooth. Selected historical highlights provide some of the story behind the progress. A pattern of leasing in deeper water than drilling and drilling in deeper water than production is illustrated by plotting the extent of leasing, drilling, and production on maps for each decade from the first oil discovery in 1938. By 1988, leasing has reached 9,300ft of water, drilling has reached 7,520ft of water, and production has reached 1,025ft of water soon to be extended to 1,760ft of water. Industry action appears to be fuelled more by quest for reserves than by current or near term economics or politics. Successes have resulted from optimism, technical advances, and a favourable political climate. Failures have resulted mostly from industry's exploring of the high risk very high reserve prospects. Over 11 billion barrels of oil and 130 trillion cubic feet of gas have been discovered in the United States waters of the Gulf of Mexico, and half again more may remain to be discovered. Through 1985, value of oil and gas sold was $166.46 bn. The United States has received $67.85 bn in bonus, royalty and delay rentals. The challenge is to fully explore the Gulf of Mexico. Many of the circumstances facing the industry in the 1980's are not dissimilar to those that faced the industry in the 1940's.