facebook
twitter
rss
account
search
search
 

Deepwater oil drilling gaining momentum

June 27, 2013 at 8:48 AM   |   Comments

HOUSTON, June 27 (UPI) -- Deepwater drilling for oil and natural gas reserves has returned to the level before the BP oil spill in the U.S. Gulf of Mexico, analysis shows.

The U.S. government imposed a temporary moratorium on deepwater drilling in the wake of the Gulf of Mexico oil spill in 2010. The failure of the deepwater Macondo well triggered an explosion on the Deepwater Horizon oil platform, killing 11 rig workers and resulting in one of the worst accidental offshore oil spills in the history of the industry.

Energy consulting company Wood Mackenzie, which has offices in Houston, said deepwater drilling returned to its pre-spill level last year and should experience "bullish growth" in the coming years. Wood Mackenzie expects global drilling activity to grow by 9 percent annually in the next few years.

"This will require the longest period of deepwater rig construction to date, representing a change for the deepwater sector from cyclical to sustained growth," Malcolm Forbes-Cable, the report's author, said in a statement Thursday.

Wood Mackenzie says deepwater activity eclipsed onshore and shallow-water drilling in the last decade. Drilling in arctic reserves is expected to increase steadily but at a much slower pace when compared to deepwater activity.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
trending
Notable deaths of 2014 [PHOTOS]

Notable deaths of 2014 [PHOTOS]

Most Popular
1
U.S. Air Force orders more RQ-4 Global Hawks U.S. Air Force orders more RQ-4 Global Hawks
2
Talon rocket in full-rate production for UAE Talon rocket in full-rate production for UAE
3
EU, Kiev, Moscow gas talks suspended EU, Kiev, Moscow gas talks suspended
4
Students hurt in high school lab fire Students hurt in high school lab fire
5
Chevron gas line closed after accident Chevron gas line closed after accident
Trending News
Video
x
Feedback