Oil majors’ exit from pricey Gulf of Mexico projects, amid dozens of deferrals in deepwater exploration and production, is leaving the sector high and dry. Drilling activity in the deepest parts of the world’s waters can yield tremendous oil volumes, but exploring thousands of feet below sea level is also the most expensive of energy’s high tech endeavors. And in an environment of $30 oil, investment in deepwater production is pouring out. Beyond a rebound in oil prices, recovery of the deepwater sector could take an additional two years, Sajjad Alam, senior vice president at Moody’s Investors Service told Rigzone. And some companies are opting to not even try to make deepwater work. In an Oct. 29 earnings call with analysts, ConocoPhillips Executive Vice President for Exploration and Production Matt Fox said one of the company’s largest assets includes 2.2 million acres in the Gulf of Mexico, which includes […]