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CES Research Note

Introduction
Petroleum industry analysts once thought that the Gulf of Mexico (GOM) region could no longer attract the big exploration and production (E&P) investors. However, the GOM has re-emerged as the key focal point of oil and gas activity in the world, especially with respect to deepwater operations The reason for this turnaround has been attributed to several technical advancements in deep offshore drilling and production technology. Because of innovations in technology, areas in the Gulf of Mexico once thought beyond reach in terms of water depth are now explored and developed successfully. Several other factors underlying the turnaround in the attractiveness of the GOM region to E&P investors include the changing structure of the OCS oil and gas industry, government regulatory programs and fiscal incentives, technical progress, and the global market fundamentals resulting in high oil and natural gas prices.

Econometric modeling of deepwater petroleum exploration and development operations in the U.S. Gulf of Mexico