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Deepwater GoM resilient in low oil price environment

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Report summary

Deepwater Gulf of Mexico (GoM) is proving to be resilient in the face of a sharp decline in oil prices. The robust level of activity is expected to remain buoyant over the short-term due to lower breakeven costs for sanctioned projects. However, if the low oil price persists and operators can't develop unique ways to decrease the capital required for new projects and/or improve recovery rates, it will be difficult for the region to sustain high level of activity and maintain production growth.

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    GoM and Low Oil Prices.xls

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    Deepwater GoM resilient in low oil price environment

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