.
Domestic oil exploration and development spending by U.S. major oil companies also appears to be making a come back from the deep cuts made during the oil price collapse of 1997 and 1998. Whether or not this continues deeply depends largely on whether or not oil prices remain at levels which makes it economical for oil producers to operate. Improved technology and new or increased offshore production in the Gulf of Mexico including at deepwater areas beyond the continental shelf also could help matters. In 2000, deepwater production in the Gulf of Mexico for the first time surpassed shallow water production Overall, production from deepwater areas of the Gulf of Mexico has been increasing rapidly, with deepwater wells expected to account for 65% of total US Gulf output in 2001. There are plans to accelerate the deepwater Gulf of Mexico production plans, possibly including construction of a $1-billion deep-sea pipeline, and to increase its production from 200,000 bbl/d current!.
ly to 750,000 bbl/d in 2007. Despite higher oil prices, crude oil production in the lower 48 states is expected to decline slightly in the next two years, while Alaskan crude production is expected to increase somewhat. Still, Alaskan oil production is down about 50% from the 2.0 MMBD reached during the peak year of 1988. Alaska accounted for around 17% of U.S. crude oil production in 2000. Most of this comes from the giant Prudhoe Bay Field, and is transported by the Alyeska pipeline. A new oilfield, known as Alpine, began production in November 2000. Alpine represents the largest North American onshore oil discovery in a decade, and was producing 80,000 barrels by the end of 2001. .
The United States consumed an average of 19.5 million barrels per day of oil in 2000. Of this, 8.4 million barrels per day of oil or 43% of the total was motor gasoline, 4.9 million barrels per day or again 25% other oils, 3.7 million barrels per day of oil or 19% distillate fuel oil, 1.
