Gulf of Mexico: A long history of energy
Our Sales Director, Andy Venn, talks about the Gulf of Mexico’s long energy history and FoundOcean’s place within it.
The Gulf of Mexico has been at the forefront of energy capture since the earliest examples of the industry in the 1930s. FoundOcean has been involved in the region since the boom of commercialisation in the 1980s. Over the last 40 years some of FoundOcean’s most breathtaking feats of engineering have been achieved in the Gulf of Mexico. We are proud to have worked on well over 50 projects in the area.
The Gulf of Mexico is a region that continues to be essential to the energy sector globally, whether through still-untapped oil and gas resources, as one of the lowest-emitting oil sources on a per-barrel basis, or in its renewable energy potential.
Early Decades
Offshore oil collection in the Gulf of Mexico began commercially in 1938. By the early 1950s the region was already busy with rigs, and exploration continued in earnest through the 50s and 60s.
1980s
By the late 20th century, the Gulf of Mexico was hugely important to the global oil and gas industry. In the early 1980s, the Minerals Management Service (MMS) was established in the US, combining oil and gas management which previously sat between the Bureau of Land Management and the US Geological Survey. This combining of authorities allowed the MMS to launch area-wide leasing, something that hadn’t previously been possible. With a much wider area available to developers, and more straightforward processes to bid on zones, the mid to late 80s saw a boom in activity.
FoundOcean began to work in the gulf during this busy period. We worked on 16 projects in the Gulf of Mexico during the 1980s, including the famous Bullwinkle platform. In 1988 we grouted 30 piles into position around the base of what was, at the time, the third tallest freestanding structure ever built. The jacket itself was over 1,400 feet tall and the second tallest object ever to be moved to another position relative to the surface of the earth.
1990s
After the boom of the 1980s, the Gulf experienced a downturn in the early 1990s. However, advances in technology throughout the 90s – such as 3D seismic and wide-azimuth technology – helped locate previously untapped resources in both the shallow and deep waters of the gulf. The first commercial subsalt oil and gas production in the Gulf of Mexico was one of these fascinating projects driven by technological development. The project, called Mahogany, started as an exploration partnership between what is now ConocoPhillips, BP and Oxy. FoundOcean worked on the Mahogony 349A platform in 1997.
21st Century
Although much of the work we have completed in the Gulf of Mexico is installation of oil and gas foundations, we’ve also worked on maintenance, repair and asset life extension projects in the basin. Structures in the Gulf and even systems under the surface, such as pipelines, are often at risk of damage from storms and hurricanes.
In 2011 an 18-inch gas pipeline was damaged when an anchor was dragged along the seabed by a cable-laying vessel during bad weather. The pipeline sat at 750m deep (twice the height of the Eiffel Tower) and had to operate at a reduced pressure for safety reasons until remedial work was complete.
FoundOcean was able to devise a two-stage fix using a grouted repair clamp around the damaged section of the pipe and a fabric formwork to support the additional load.
The seabed under the damaged area was dredged to fit the 138-inch clamp around the pipe. The grout was then pumped in via a hose laid in position underwater by a remotely operated vehicle. The grout was mixed by our high shear colloidal batch mixer which creates high density and consistency grout. Then the fabric formwork (commonly known as a ‘grout bag’) was deployed and filled to offer additional support under the now heavier pipe and clamp. Overall, 24 tonnes of cement were used on this repair.
As well as innovative solutions for damage repairs, we also like to break records in the Gulf of Mexico. In 2015 we grouted at a depth of 5,300ft for the Heidlberg PLEM (Pipeline End Manifold) structure. We had previously only grouted at a maximum of 4,500 ft in the same region. The depth on this project was about 3.5times the height of the Empire State Building. At this kind of depth, it was essential to scrutinise our procedures to ensure we could keep the crew and the asset safe as we completed the work. Check out our video to see the relative depth of work here.
2025 and Beyond
In 2025, the Gulf of Mexico remains a cornerstone of U.S. energy, providing about 15% of federal crude production and supporting nearly half of the nation’s refining and gas processing capacity. Production has held steady despite fewer new drilling projects. Much of the industry’s attention is shifting toward asset life extension, along with inspections and pipeline maintenance to manage risk and prevent incidents.
At the same time, the Trump administration is under pressure from industry groups to expand offshore leasing and relax restrictions in areas previously closed to drilling. These policies could open new opportunities for exploration, though they remain contested by environmental advocates and some coastal states.
As we have seen, the oil and gas industry in the Gulf of Mexico has been thriving for years. This means we are starting to see a lot of structures reaching the end of their life cycle. According to a 2024 report from the US Government Accountability Office, there are almost 3000 wells and 500 platforms already overdue for decommissioning. Some structures where decommissioning has been completed have been turned into man-made reefs for diving.
A Renewable Future?
The Gulf of Mexico is essential to the energy transition in several ways. Firstly, the region will continue to be a huge resource for oil and gas as countries work to create affordable sustainable energy systems globally. As part of this transition, it’s important to acknowledge that the Gulf is one of the lowest-emitting oil sources on a per-barrel basis. According to this McKinsey article from 2022, compared to some other major basins, the region releases fewer than half the emissions per barrel.
There is therefore a lower-carbon advantage to oil and gas from the Gulf of Mexico, but how?
The oil and gas produced in the basin is largely sold to local markets, making the carbon used for distribution significantly less than in many oil-producing regions. Most of the facilities are efficient and modern, meaning less wastage. The wells and production facilities have a high throughput and therefore fewer energy intensive processes. Finally, ‘the relatively low greenhouse gas emissions of offshore projects compared to other fossil fuel developments have increased their potential attractiveness to operators trying to continue to reduce their carbon emissions.’ (The Gulf of Mexico Oil & Gas Project Lifecycle, 2021 report published by NOIA, the National Ocean Industries Association).
Wind energy has a good potential in the Gulf of Mexico, with the technical resource potential estimated at 508GW. Several of the most feasible areas for development do have low wind speeds and there are extreme weather risks, which is why floating offshore wind is being considered as a good option for the region. However, some coastlines have great potential for fixed wind farms, such as Texas, Louisiana, Alabama, Florida and Mississippi.
Conclusion
From its early days of exploration in the 1930s to its role today as an oil and gas powerhouse and a future location for renewable potential, the Gulf of Mexico has consistently shaped the global energy landscape. FoundOcean has been part of this journey for decades, delivering innovative engineering solutions that extend the life of critical assets and support the region’s evolving energy needs.
If you need FoundOcean’s support on your Gulf of Mexico project, get in touch with our Global Business Development Manager, Paul Burns, paul.burns@venterra-group.com