Much of Big Oil has stated they will start to wind down some of their major capital spending after this year, but another Gulf of Mexico discovery from BP (BP +0.54%) and ConocoPhillips (COP 0.44%) could signal that those cuts will not come from this part of the world. Aside from this discovery adding reserves to a region already littered with major players like ExxonMobil (XOM +0.72%), Chevron (CVX +0.00%), and Total (NYSE: TOT), the Gulf has several advantages for producers right now that want to produce more oil but don't want to spend as much money.
One handy aspect of the Gulf is that the chances of hitting oil and gas is much more likely than in some of the more exotic locations Big Oil has explored over the last few years, which is very helpful when you are trying to maintain a strong return on invested capital. To find out more about why the Gulf could be a key driver for Big Oil over the next couple years and whether this discovery should change your thesis on BP or ConocoPhillips, tune into the video below.
