Offshore exploration and industry change: The case of the Gulf of Mexico
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Abstract
This paper considers industry structure and the exploration performance (by size class of operator) of firms searching for oil and gas in the U.S. Gulf of Mexico. It also tracks the changes in industry structure that have occurred in response to a decline in the quality of remaining prospects in the area. Data presented indicate that because vertically integrated majors dominated in exploration in the early years of the Gulf of Mexico exploration history, they were able to discover 86% of the total hydrocarbons discovered through 1975. However, the data also show a dynamic relationship between the structure of the industry operating in an area and the quality of remaining prospects. The relative share of both credited discoveries and wildcat wells of nonmajor operators has increased as exploration in the gulf proceeded. For example, in state-owned waters from 1951 to 1955, major inns accounted for 85% of all wildcat wells drilled, whereas from 1971 to 1975 these firms accounted for only 30% of the wildcat wells. During these same two periods in the federal Gulf of Mexico, the majors' share of wildcats fell from 98% to 70%.
| Publication type | Article |
|---|---|
| Publication Subtype | Journal Article |
| Title | Offshore exploration and industry change: The case of the Gulf of Mexico |
| Series title | Journal of Petroleum Technology |
| DOI | 10.2118/11152-PA |
| Volume | 36 |
| Issue | 3 |
| Year Published | 1984 |
| Contributing office(s) | Eastern Energy Resources Science Center |
| Description | 6 p. |
| First page | 437 |
| Last page | 442 |
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