Dynamics of the Oil and Gas Industry in the Gulf of Mexico:  1980-2000;
Final Report

OCS Study MMS 2003-004

The Minerals Management Service (MMS), Gulf of Mexico OCS Region, announces the availability of a new study report, Dynamics of the Oil and Gas Industry in the Gulf of Mexico:  1980-2000; Final Report.

This report examines the sweeping changes that have transformed the oil and gas industry from 1980 to 2000 and synthesizes the implications of those changes on industry, socioeconomic, and onshore and offshore impacts in the Gulf of Mexico (GOM).  The study focuses on two issue areas (oil and gas price changes and corporate organization and strategy) and four crosscutting topics (economics and finance, technology, labor, and the regulatory environment).  The study was conducted through a review of industry, government, and academic publications and personal communication with industry representatives.

Major forces that created change in the oil and gas industry between 1980 and 2000 were increasing volatility of prices, rising costs of oil and gas projects, producer consolidation and restructuring, globalization of the industry, increased concern for shareholder value, ascendance of technology, and management of risk.  These factors and others (i.e., areawide leasing and the Deep Water Royalty Relief Act) led to the resurgences of oil and gas activity in the GOM.  Changes in the industry also resulted in socioeconomic impacts both onshore and offshore in the GOM.  In the 20-year study period, the industry has shifted from science-based to economic-based production.  This has allowed the industry to produce more oil with less infrastructure and fewer personnel.  In addition, the time required to do work has been reduced and the amount of information to do work has increased.  These factors have left the industry with a shortage of personnel in all areas, reduced worker loyalty, dispelled the idea of job security, and made job recruitment more difficult.

You can obtain copies of the report from the Minerals Management Service, Gulf of Mexico OCS Region, at a charge of $15.00 by referencing OCS Study MMS 2003-004.  You will be able to obtain this report also from the National Technical Information Service in the near future.  Here are the addresses.  You may also inspect copies at selected Federal Depository Libraries.