According to a recently published report from Wood Mackenzie - entitled &l ...

According to a recently published report from Wood Mackenzie - entitled ‘US GoM Deep Shelf - Exploding the Myths’ - the US Gulf of Mexico Deep Shelf is one of North America’s most important exploration success stories in recent years, with several of the largest discoveries having been made since 2000 and exploration success rates still rising. ‘Several factors have been crucial in the Deep Shelf resurgence,’ explains Ian Ashcroft, Principal Research Consultant for the Americas, ‘increased exploration success, sizeable discoveries, reduced well costs, buoyant US gas prices, fiscal incentives and advances in drilling technology. These factors and others have led to very attractive full cycle returns in the Deep Shelf, particularly over the last five years, and make this play an excellent niche opportunity.’ The study also concludes that the principal value in the province is concentrated amongst a few successful players. According to Ashcroft two-thirds of the identified remaining reserves lie in the hands of four key players - ChevronTexaco, El Paso, Anadarko and Shell.