Overview

In the last 20 years, producers consolidated, restructured, implemented cost-saving technologies, and cost cutting programs. Companies sought economies through elimination of layers of management. They also re-examined properties, shedding some and acquiring others. Some companies reorganized to encourage effective adaptation to rapidly changing conditions and related opportunities. Sale of properties and company acquisitions created some large new independents. Large producers invested in foreign and offshore U.S. exploration and production. Foreign, nationally owned oil companies bought access to the U.S. market and took an interest in the GOM. After the introduction of area wide leasing, companies were able to acquire enough contiguous tracts to make billion dollar commitments in deepwater in the gulf.