Shell's first deepwater field, Tahoe, began production in 1994, and its Ursa field began producing at almost 4000 ft. in 1999. Spurred on by better drilling capabilities, including horizontal and extended reach wells, the major oil companies are harnessing the improving subsea technologies efficiently to search for and produce from deepwater plays in the Gulf of Mexico and elsewhere, at depths out of reach a decade ago. In 1999 the number of deepwater rigs in operation worldwide rose to 178 from 157 the year before, and the total is expected to hit 220 by 2001. But the Gulf of Mexico is not the only place where deepwater exploration and production occurs. Offshore Brazil, which boasts a 9,111-ft.
New targets being explored for deepwater potential include Indonesia, Egypt, and Australia.