Gulf of Mexico projected to be fastest-growing offshore market in the world

Eddie Seal/ Bloomberg

Shell's massive offshore platform set sail for the Gulf of Mexico on July 13.

Oil and gas drilling activity is only expected to increase in the Gulf of Mexico in the coming years, which has led some experts to say it is the fastest-growing offshore market in the world, Bloomberg reports.

Researchers told Bloomberg that deepwater rigs in the Gulf Coast are expected to increase from 36 to 60 by the end of 2015. These additional rigs are estimated to cost a total of $16 billion.

The most recent drilling successes have come from exploration in the lower tertiary of the Gulf of Mexico, where there are crude deposits, Bloomberg reports. However, new technology advances are needed to increase production from this deepwater area.

In the future, more drilling companies will look to explore deeper waters in the Gulf of Mexico, experts said. The Gulf is also cited as a good location for drilling because it has existing infrastructure, Bloomberg reports.

Companies such as Royal Dutch Shell Plc are expected to profit from this boom of activity in the Gulf. In May, Shell said it is building what is expected to be the world?s deepest production facility and the world?s largest offshore floating facility, which is designed for use in the Gulf.

Molly Ryan covers manufacturing, technology, the Port and logistics for the Houston Business Journal. For her breaking stories and industry insights, follow her on Twitter.

Source: http://feedproxy.google.com/~r/bizj_houston/~3/anBoDAVrX00/gulf-of-mexico-projected-to-be.html

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