The implications of the April 2010 oil spill on deepwater exploration and production

This White Paper by GrantThornton, an internationa consulting firm, dated Summer 2010, finds that as a result of the Gulf oil spill, the future costs of drilling and
operating in the Gulf will rise considerably. Certain cost increases can be attributed to natural market forces, such as insurance and capital providers repricing the risk of drilling and operating in the deepwater. Other cost increases will be a result of significant changes in regulatory policy, which are currently being discussed by members of Congress. The repricing of risk in conjunction with proposed regulatory changes will have drastic long-term implications for exploration and production companies.