for Gulf of Mexico
A series of recent deepwater discoveries has demonstrated that the offshore oil sector is beginning to rebound after years of subdued activity, despite increasing interest in onshore shale drilling.
Speeding up the process is good news for the industry in that there are plenty of untapped offshore reserves. However, many companies may choose to withhold capital investment given the current low-price environment and typical long-cycle investment in offshore production.
The results from the BOEM's auction this week were disappointing. The weak interest in the Gulf of Mexico from the industry stems mostly from the current low oil price environment.
In a major reversal, the Obama Administration switched tactics today on offshore drilling on the Atlantic outer continental shelf (OCS), changing its previously announced plan to allow for bidding on mid-Atlantic OCS blocks during the 2017-2022 planning period.