Offshore staff

HOUSTON --The MMS released its latest Gulf of Mexico deepwater report at the Offshore Technology Conference. According to the MMS, the report contains research on industry activity, supporting continued growth in deepwater.

"There's solid evidence in both leasing and exploration activities to confirm the oil and gas industry's continued interest and motivation to explore and develop the deepwater frontier in the Gulf of Mexico, said Lars Herbst, acting GoM regional director, MMS.

The MMS' report highlights deepwater activity in 2006 and 2007. In 2006, there were 12 new announced deepwater discoveries with the deepest in 7,600 ft of water, according to the report. Last year, production from deepwater leases accounted for 70% of oil and 40% of gas produced in the GoM.

In 2006, according to the report, the MMS granted a record number of technology approvals for deepwater - 30.

The report also indicates an increase in deepwater leasing activity. From 2005 to 2006, the number of tracts in 1,500 to 4,999 ft of water receiving bids increased by 32% while the number of tracts in 5,000 to 7,499 ft of water receiving bids during the same period increased by 29%.

5/1/2007