Deepwater GoM Faces Stiff Competition From The Shales

摘要

The deepwater Gulf of Mexico (GoM) remains a world-class re- source potential, but competition from onshore unconventional resources has diminished the energy industry's enthusiasm for the region, an analyst says. Bill Marko, managing director, Jefferies & Co. Inc., said the number of bidders for leases in the deepwater Gulf of Mexico has fallen 30% from March 2010 to June 2012 for at least two reasons. Marko, speaking at Hart Energy's recent A&D Strategies and Opportunities conference in Dallas, said GoM deepwater leasing and drilling activity has traditionally risen and fallen with changes in commodity prices. As commodity prices fell dramatically in mid and late 2008, the value of the deals com- pleted in the region also plunged. Deal values gradually recov- ered as commodity prices regained their footing.