During the recent Offshore Technology Conference, an international get-together of oil and gas industry, the discussions ranged around tough times in recent months due to plunge of oil prices and abundant supplies that kept prices below previous peaks. In recent years investments have been focused around new discoveries of crude in onshore US shale region and Permian basin but slowly tide will shift back to offshore crude oil development. But with increasing use of technology in this sector corporates are able to extract crude much more efficiently and also make more abundant discoveries of oil off the Mediterranean Sea and in the Atlantic Sea off the South American coast.
These two discoveries followed by another three by Exxon Mobil have been able to lift spirits of guests at the OTC this year which stretched across four days. The conference brings together stalwarts from manufacturers and operators of offshore platforms and deep water rig drillers along with suppliers that provide essential equipment for the industry to keep it functional and also people that offer services like helicopters and boats. The attendance at this annual gala showcases health of oil industry which last year fell down to just 61000 attendees from a high of 108000 in 2014 when crude was at an all-time high.
Oil prices this year are hovering at $65 a barrel which is lower than previous year’s rate of $70but recent offshore discoveries of oil deposits has offset the industry. Seeing that the Gulf of Mexico is spewing out 2 million barrels every day, several large oil companies have authorized new offshore development sites running into several billions leading to discoveries of new offshore deposits. Exxon Mobil has announced its 13th well off the Guyana Coast in South America where it is exploring the shore with Hess Corp which has helped to push up production of Guyana from 4 billion barrels to nearly 5.5 billion barrels.