Drillers go deep in the Gulf as prices spike
Posted on April 20, 2012 at 11:09 pm by Dana Thompson in Deepwater drilling, Drilling, Gulf Oil Disaster, Oil
By Emily Pickrell, Chronicle
Drilling in the deep Gulf of Mexico is becoming robust two years after the oil spill that prompted a six-month moratorium on deep-water exploration, but more of the work now is left to large companies.
Triple-digit oil prices are driving the activity, making it worthwhile to go forward even given the cost, risk and heightened government scrutiny of working in waters often a mile deep or more.
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?It has always been dominated by the large internationals ? the BPs and Chevrons ? and in the future that is likely to be even more so,? said Pavel Molchanov, an analyst with Raymond James. ?They are really the only companies that can take on the liability risk of having a multibillion-dollar oil spill.?
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While deep-water drillers have grumbled about the increase in regulations, some in the industry acknowledge that political stability still makes the Gulf appealing.
?We can talk about many parts of the world where you may have an attractive opportunity but it is clouded by political difficulties,? Ahilan said, noting the risk of nationalization or regime change. ?The rules of the game are clear in the Gulf of Mexico, even if regulatory changes are taking place.?...
