Though the Trump Administration has sought to expand drilling and leasing for fossil fuels in the Gulf of Mexico, production is flat and the number of drilling ships is at a seven-year low.

The U.S. drilling ship sector “is facing a lull in activity not seen since 2018,”Westwood Global Energy Group wrote in March. Several of those ships are expected to finish their current operations this year without follow-up jobs lined up yet. The total supply of ships used for drilling in the region is 23, according to the group.

The U.S. Energy Information Administration also projected crude oil production in the Gulf to average 1.9 million barrels per day in2025, slightly up from 1.8 million barrels per day in 2024, industry publication Workboat reported. The EIA expects gas production to average 1.8 billion cubic feet per day in 2024 and 2025, down from 2 billion cubic feet per day in 2023.

Analysts cited supply chain issues and rising project costs as a reason for the dip in offshore drilling. The number of oil and gas producers operating in the Gulf has also declined from 17 in 2015 to nine in 2024, according to Westwood. Some have combined in mergers and acquisitions, while others are focusing more onshore or simply deciding not to pursue an offshore drilling campaign.

However, the Department of the Interior in April began updating the country’s offshore leasing program that will likely expand more oil and gas leasing than the current 2024-2029 program, which only held three planned lease sales in the Gulf.