SPECIAL REPORT: Deep water, deep drilling stimulate Gulf of Mexico

The US Gulf of Mexico is one of three regions-including the North Sea and South China Sea-that together are expected to receive half of total offshore spending through 2011.Total offshore expenditures will make up “the lion’s share of spending on the upstream sector” that analysts at Douglas-Westwood Ltd. forecast will top $275 billion by 2011, up from $216 billion in 2006. Industry observers agree that expensive deepwater projects are “disproportionately increasing spending shares” in the Gulf of Mexico as well as other hot spots.Exploration and production capital expenditures are “on the rise across the board” despite prospective volatility in n...

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