Stuttering outlook for Gulf of Mexico
Despite ever-rising oil and gas production, drilling activity is looking weaker
After a challenging 2018 that saw project momentum in the US Gulf of Mexico (GOM) falter amid weaker oil prices, the outlook for drilling activity in 2019 appears diminished. The November price declines could have a chilling effect on investment, amid rising project costs. It marks a contrast with the situation in early 2018, when oil prices were high and deep layoffs, sustained cost-cutting, new technology, and optimisation had stripped the industry down to lean and mean. Sustained relief on commodity prices, which rose above $60/bbl and even above $70/bbl, was felt and welcomed. Also welcomed were changes in the US tax landscape. The December 2017 tax restructuring reduced corporate income
Also in this section
6 February 2026
The long close relationship between key supplier Qatar and pivotal buyer Japan becomes even deeper following new landmark deal
6 February 2026
Partnerships across the LNG value chain have evolved over time, growing in both complexity and importance, according to panellists at LNG2026
6 February 2026
Nigeria's mega-refinery is still trying to solve many challenges, all while its owner talks up expansion
5 February 2026
While broadly supportive of EU efforts to tackle methane emissions, representatives of the gas industry warn it could deter supply contracting if timelines and compliance requirements are not made more pragmatic
