Is GoM activity picking up?

Subsea 7 got a new contract in GoM:

Is that a sign that activity is picking up again?

Here MAY be an idea that could suite to develop marginal gas fields in deepwater GoM to help getting the activity up in the long term:,Offshore%20to%20develop%20FLNG%20projects.&text=The%20FLNG%20solution%20provides%20a,per%20year%20floating%20LNG%20facility.
Could it “fly” in the GoM??

  • In a CNN debate, Biden said no more oil drilling.
  • For natural gas, he promised to allow no new fracking.
  • His stated campaign position is to ban “new oil and gas permitting on public lands and waters.”
    If he follows through on this what do you think the price of oil we be the day after if he is elected ? Domestic Drilling rigs will be heading overseas.

Well, I for one prefer a ham on Christmas, Turkey for Thanksgiving.

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I notice that Subsea 7 has two boats in Mobil (Deer River) at the moment, but don’t know if is has anything to do with the contract mentioned in Post#1:
Anybody know what they are doing there?

Megseis Fairfield has secured a new contract in the GoM:

Who is Megseis Fairfield and their Ocean Bottom Node technology?:

Another company, Seabird Exploration has bagged a OBN contract in the GoM:

Is that a good sign that exploration drilling will follow in due course??

No. Just a survey. Drilling resumes when it is economically feasible.
Oil will have to be over 80/bbl for a year and evidence of an expanding economy before any oil company will commit to drilling in deepwater beyond the drilling needed to hold the lease.

Well seismic survey is usually first step before starting exploration drilling. Usually oilcos don’t spend money on this unless they have some intention of drilling. (At least to meet the requirements in the concession agreement)

OBN MAY also be to determine the prospects of further production from existing fields/wells.

PS> If you need $80/Bbl. to break even the hope of competing with the onshore “frackers”, or other offshore producers are VERY small.

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I don’t remember which oil company or what region of the world I was in but I once heard something about oil companies had a certain amount of time after winning a bid on a block to punch a hole on the seafloor or the contract was void. Is that a thing in the GoM?

In many places, where concessions are not “sold” but granted, with obligations to drill X number of wells within a set period.
GoM, or other US Federal waters MAY not have any such obligations.(??)

I can see the logic of any government putting a deadline on any block they sell. With open ended contracts, the richest oil companies could buy up a lot of blocks when the markets were low just to prevent their competitors from buying them when conditions improved. That would be detrimental to markets & the economies of oil producing nations because of the lack of possible jobs & tax revenue.

I agree with you about it’s going to be a long time before the price gets to $80 a barrel & stays there over a year. That sounds too extreme to me.

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Thanks Capt Phoenix, I remember being a part of a rig move that had a sense of urgency because they needed to start drilling or they’d lose the lease but can’t remember where it was at. It will be interesting to see how the deepwater GoM leases go if the majors don’t want to drill on them because of the weak market. The oil companies are usually pretty public with their findings with their shareholders if they own the lease but might regret their openness if they give them back to Uncle Sam?

That was part of why Shell had to drill in the Arctic so desperately that year. If they didn’t drill on their lease they’d lose it.

I worked quite a bit in the Gulf from '70 to '85. There was always an uptick in drilling in the last quarter for lease maintenance. Starting early '80s, you could always tell when a lay-up was coming when they showed up on the vessel for a piss test. It cut back on unemployment claims.

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Here is a “foreign invasion” that MAYbe welcomed in the US GoM:

Shell is still active in the GoM, although maybe not in the “right” part of it:

Maybe this contract?:–%20Subsea%207%20has,mi)%20of%2016%2Din.

according to the American Petroleum Institute, I’m sure it was completely impartial.

An FPSO under preparation for the Mexican part of the GoM involve some US activity:

McDermott’s Houston office is involved in the planning and engineering of topside modules to go on the MODEC managed FPSO that will operate in the Campeche Bay for 15 years or more.

Whether there will be any work for US Mariners is probably doubtful.