The US Gulf of Mexico looks set for a wave of new project sanctions this year as oil and gas producers make up for time lost to the pandemic.

The oil market continues to seek equilibrium from the devastating impacts of Covid-19 on supply and demand, the effects of which quickly became visible in the offshore sector.

The collapse of oil prices in 2020 found many US Gulf producers placing projects on hold early on in the crisis, cutting capital and operational expenditures to survive in the limited cash flow and low oil price environment.