Bud's Offshore Energy (BOE)

• Chart 1: Gulf of Mexico rig count remains low
• Chart 2: Exploratory drilling continues to decline and may be insufficient to replace reserves
• Chart 3: Well starts and number of operators drilling remain at historic low levels
• Chart 4: (1) One company (Shell) accounted for 39% of the 2021 YTD deepwater well starts in the GoM. (2) Five companies (Shell, Oxy/Anadarko, Chevron, Murphy, and BP) accounted for 80% of the deepwater well starts.

More certainty regarding lease sales would help. Prospective participants need assurances that they will have opportunities to apply findings and test exploration and development strategies. Will Lease Sale 257 be held on schedule next week?