Twice as many deepwater projects expected this year as the last two years combined While U.S. shale has been by far the most important topic when discussing U.S. oil and gas production, Gulf of Mexico production is still a major factor. Oil production from the Gulf increased significantly in 2016, while nearly every state saw decreases in production. According to Wood Mackenzie, the offshore industry made major changes to drilling strategies and technology in the aftermath of the Deepwater Horizon disaster. These allowed operators to cut the average cost of projects by about 20 percent, making many projects profitable at $50 per barrel or even lower. Technological advancements are not the only factor increasing profitability, though. Producers are reducing costs with smaller projects, targeting only the best locations. Drilling “the core of the core” has become increasingly prevalent in onshore operations as well as operators look to make the […]