Currently producing a record of almost 2 millions barrel of crude oil a day, analysts say the importance of offshore production in the Gulf of Mexico should not be underestimated.

The average cost of extracting oil barrels from deepwater wells has also plunged by more than 50% in five years, according to Wood Mackenzie, as companies have standardized project designs and equipment.

Companies are also focusing drilling projects near existing platforms so they can be connected to the new wells via underwater pipelines and umbilicals, which is far less costly than building and installing new platforms.

The Gulf, which combined with the basin produces half of all U.S. oil, is expected to increase its output each year over the next five years as new projects begin operation and new discoveries in deeper waters are made. 

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