Bud's Offshore Energy (BOE)

With regard to shelf drilling activity (<1000′ water depth), a total of 55 wells were started in 2021 and 2022 (first quarter). Only 2 of these wells, both by Walter Oil and Gas, were classified as exploratory. The most active drillers (by far) were Arena Offshore (30 well starts) and Cantium LLC (16 well starts). Ankor, EnVen, and Talos were the only other operators with drilling activity.

Reasons for concern:

• Absence of new discoveries
• Reduction in spare OPEC capacity
• Leasing inaction
• Financing issues
• Over-reliance on shale
• US Atlantic, Pacific, and Eastern Gulf of Mexico are closed to exploration despite high potential