COMPANIES AND PRODUCTION

Deepwater oil and gas production was confined almost entirely to major oil and gas companies through 1996 (figures 64a-b). (Production volumes in figures 64a-b, 65a-b, and 66a-b are attributed to companies on the basis of their percentage of lease ownership. For example, if Shell owned 75 percent of a particular lease in July 1997, then 75 percent of that lease�s production was attributed to Shell that month.)

In 1998 and 1999, nonmajor companies significantly increased their deepwater oil production (figure 64a).

Figure 64a. Comparison of major and nonmajor companies in terms of deepwater oil production. (Click the image to enlarge)

However, since 2000, nonmajor oil production has leveled off while major oil companies continued their steep increases in oil production.

Gas production from nonmajor and major companies has increased at approximately the same rate (figure 64b).

Figure 64b. Comparison of major and nonmajor companies in terms of deepwater gas production. (Click the image to enlarge)

Nonmajor companies currently own about 25 percent of deepwater GOM oil production and 30 percent of gas production.

In shallow water, nonmajor companies now produce more oil than the majors (figure 65a).

Figure 65a. Comparison of major and nonmajor companies in terms of shallow-water oil production. (Click the image to enlarge)

In addition, nonmajor gas production represents an increasingly greater share of the total shallow-water gas production (figure 65b).

Figure 65b. Comparison of major and nonmajor companies in terms of shallow-water gas production. (Click the image to enlarge)

This confirms the speculation that majors have been concentrating more in deepwater for their production needs.

Figures 66a and 66b display production contributions from each major oil and gas company.

Figure 66a. Contributions from each major oil company toward total deepwater oil production. (Click the image to enlarge)

Figure 66b. Contributions from each major oil company toward total deepwater gas production. (Click the image to enlarge)

Shell and BP were the driving forces behind increasing deepwater production, with Shell as the clear leader in both oil and gas production.

Shell�s dominance in deepwater oil production began before 1992 and its recent increases have outpaced those of the other major companies.

Shell also led in deepwater gas production, including a dramatic increase in 1997.

BP oil production increased significantly since 1998 (in part because Shell and BP have joint ownership in several large deepwater fields).

BP is second in terms of gas production because of steep increases in deepwater gas production since the last report.

Note that BP has several significant projects on the horizon (e.g., Mad Dog, Thunder Horse, and Atlantis) that will contribute significantly to its oil and gas production totals.