Federal Reserve Bank Of Atlanta, EconSouth: Plumbing The Gulf’s Depths For Oil and Gas

“Historically high oil prices and gradually dwindling supplies of easily accessible oil and gas deposits worldwide have inspired energy firms to renew and expand exploration and drilling in the Gulf of Mexico. Advances in technology and engineering have not only increased the chances of finding oil deposits but also made it physically possible—and more economically feasible—to plumb depths never before reached in the search for liquid gold….Without question, plenty is happening in the Gulf’s murky depths, some of it driven by rising fuel prices.”  However, the Atlanta Fed reports that high crude oil prices have not triggered a “mad rush” of drilling. “I don’t think because oil hits $130 a barrel that you’re going to see, all of a sudden, a surge in activity,” said Jeffrey Goetz of Poten & Partners in New York, a consultancy that works with shipping and energy services firms.”