Deepwater Statistical Report

Paul Rowllings, Wood Mackenzie

As this chart illustrates, oil and gas production from the top 10 deepwater countries has more than doubled in the last six years. As global demand continues to escalate, this trend is expected to increase sharply over the next few years. Production from the top 10 deepwater producing countries is set to double again, to over 9 million boepd.

Looking at the history of the key producing areas, US Gulf of Mexico has been the largest single producing region, since the beginning of the decade. Out to 2010, GOM is projected to continue its number one status, closely followed by Brazil, which will have tripled its production since 2000 and is expected to produce around 2.3 million boepd in 2009 and 2010.

It is anticipated that West Africa will continue its rapid deepwater production growth, with Angola and Nigeria collectively expected to produce as much as the US GOM by the end of the decade.

Looking at the declining deepwater areas, the UK has slipped from third largest producer in 2000 to eighth by the end of 2006. By 2010, we expect the UK to drop out of the top 10 altogether. The only other declining country is Equatorial Guinea, where deepwater production peaked last year and is expected to slowly decline over the next few years.

These declines are more than offset by new developments in countries that have not traditionally been deepwater players. Norway’s Ormen Lange field is expected to produce 924,000 boepd by 2010. By that time, India’s Dhirubhai area, due to come onstream next year, will be producing 520,000 boepd. These will capture a significant proportion of overall deepwater production by the end of the decade.

Overall, a strong future for deepwater oil and gas development looks assured, as new technology and sustained higher oil prices make these areas more accessible and attractive.