SOURCE: PFC Energy

PFC Energy

February 11, 2011 09:00 ET

PFC Energy White Paper: Importance of the Deepwater Gulf of Mexico

WASHINGTON, DC--(Marketwire - February 11, 2011) - In a speech at a conference co-sponsored by Rice University's Baker Institute and PFC Energy today, PFC Chairman and CEO Robin West stressed the critical importance of resuming exploration and drilling activities in the U.S. Gulf of Mexico. Mr. West emphasized that the Gulf of Mexico is one of the world's great hydrocarbon basins and a major contributor to U.S. energy security, delivering a quarter of the country's total oil output, adding that "to keep U.S. oil production levels steady over the coming decade, growth in the deepwater Gulf will be needed to offset declines in other domestic basins. Any delays/reductions caused by regulatory changes would reduce the forward production profile."

The oil and gas industry in the Gulf is also an important driver of the regional and national economy, sustaining hundreds of thousands of U.S. jobs. The industry in the Gulf of Mexico comprises not only oil and gas companies, but also a network of suppliers and contractors. A large number of independent entities contract with oil and gas producers to provide services that range from collecting seismic data to laying pipelines, from sophisticated wireline logging to engine maintenance, from analysis of computerized data to transportation for offshore crews. Oil and gas companies and their service providers purchase goods as diverse as forgings, valves, computers, chemicals and helicopters from suppliers in all 50 states.

As the Gulf matures as a producing region, an increasing proportion of activity and production will take place in ultra-deep waters of 5,000 feet and more. Optimal development requires constant activity, new capital investment and the participation of a set of large and small companies with different capabilities and strategies.

PFC Energy's study, "The Importance of the Deepwater Gulf of Mexico" is available at www.pfcenergy.com.

Note to the Editor

PFC Energy, headquartered in Washington, DC, is a leading strategic advisory firm in global energy with main offices in Houston, Kuala Lumpur, Paris, Beijing, Bahrain and Lausanne. PFC Energy's clients include major international oil and gas companies, national oil companies, oilfield service companies, financial institutions and government agencies and ministries involved in energy policy and energy-driven economic development. PFC Energy's coverage includes competitor analysis, energy sector strategies (exploration and production, natural gas, refining and marketing), commercial opportunities, short and long-term oil and gas market projections and geopolitical forces affecting energy policy and energy economics.

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