Deepwater drilling

Deepwater drilling, or Deep well drilling, is the process of oil and gas exploration. There are approximately 3400 deepwater wells in the Gulf of Mexico with depths greater than 150 meters. The sheer size and depth of these rigs are cause for concern if one were to break. This presents significant difficulties for well repair.

It has not been technologically and economically feasible for many years, but with rising oil prices, more companies are investing in this area. Major companies working in this sector include Halliburton, Diamond Offshore, TransOcean, Geoservices, and Schlumberger. The deepwater gas and oil market is back on the rise after the disaster of 2010, and total expenditure of around $35 billion per year and a total global Capex of $167 billion in the past four years.

Recent industry analysis by Visiongain has estimated that the total expenditure in the global deepwater infrastructure market would reach $145bn in 2011.

In the Deepwater Horizon oil spill of 2010, a large explosion occurred killing workers and spilling oil into the Gulf of Mexico while a BP oil rig was drilling in deep waters.