HOUSTON – Approximately 72 percent of the Gulf of Mexico’s oil production in 2007 came from deepwater drilling, according to a report the Minerals Management Service released May 5.  The report shows the advancement into deepwater Gulf of Mexico is continuing as offshore operators meet the challenges presented in exploring and developing this energy frontier. MMS Director Randall Luthi released the report, "Deepwater Gulf of Mexico 2008: America’s Offshore Energy Frontier," at the Offshore Technology Conference in Houston.  It details the continued expansion and chronicles the activities of the oil and gas industry in the deepwater (1,000 feet of water or more) Gulf over the past 16 years.

“Continued advancement into this deepwater frontier is important to our nation’s energy security,” Luthi said. “The Gulf of Mexico is a key energy producer and the safe and environmentally responsible development of our resources is vital to the economy and our way of life.”

In 2007, 54 percent of all GOM leases were in water depths greater than 1,000 feet. In the two 2007 lease sales, Western Gulf Lease Sale 204 and Central Gulf Lease Sale 205, almost 70 percent of the tracts receiving bids were in water depths of 1,312 feet or greater.

 “As we look at the data, it’s clear that deepwater advancement is occurring in all areas – leasing, drilling and production,” Luthi said.  “At the end of 2007, there were 130 producing projects in deepwater; that’s double the amount from five years ago.”

Additionally, offshore operators drilled 94 exploratory wells and 48 development wells in 2007. Of the 48 development wells they drilled, 60 percent were in ultra-deepwater, water depths greater than 5,000 feet. In 2007 oil and gas operators announced eight new deepwater discoveries, with the deepest in 7,400 feet of water.

Copies of this new report are available from MMS, free of charge, either in paper or on a single compact disc, by visiting the MMS Public Information Office, 1201 Elmwood Park Blvd., New Orleans, La.

You can telephone 1-800-200-GULF or 504-736-2519 local. Ask for OCS Report MMS 2008-013, Deepwater Gulf of Mexico 2008: America’s Offshore Energy Future. The report is also available online in Adobe's PDF format.