British oil giant BP has struggled to stem the crude gushing from a ruptured underwater pipe after the Deepwater Horizon rig it leased exploded before sinking into the sea on April 22, causing a major environmental disaster.

"The benefits of being able to drill and produce in deep and ultra-deep waters are brought into question now it has become clear that basic remediation of problems is extremely difficult in deep water," said analysts at Barclays Capital.

BP chief executive Tony Hayward concurred, saying: "What is taking place is an issue which will impact the global oil and gas industry and will necessarily have a very broad impact not only in the United States but around the world."

The first direct consequence for the industry was the US administration's declaration of a six-month moratorium on new deep-water drilling and delays on planned exploration off the Alaska coast.

According to a study by Wood Mackenzie energy consultants, these restrictions would cut global production by 80,000 barrels a day in 2011 -- just under one percent of the total.

The moratorium also raises questions about equipment already in the Gulf of Mexico. "If rigs leave the region, restoration in drilling activity will take time as equipment needs to be brought back in," Barclays Capital said.

The oil spill fall-out could also have the more far-reaching effect of deterring oil companies from going ahead with similar deep water projects.

"There is now considerable uncertainty over the future of deep water exploration, both in the US and elsewhere," said Helen Henton, an analyst at Standard Chartered Bank.

In the United States, this could have a serious impact. The Gulf of Mexico represents 19 percent of US oil reserves, of which 80 percent are found in deep water, and 29 percent of national production, she said.

Washington believes the region is crucial to future global energy supplies -- between 2008 and 2014, production is expected to increase by half a million barrels a day compared to current levels.

The crisis could also deter those firms hoping to take advantage of Brazil's vast offshore reserves -- as many as 50 billion barrels of crude are thought to lie under a vast salt layer deep in the ocean.

And in the North Sea, where the big oil fields are exhausted, the future of exploration also lies deep under the sea, east of Britain's Shetland Islands.

Despite the risks, oil firms have little choice. Locked out of the 'easy' oil fields in the Middle East -- with the exception of Iraq -- they are forced to turn to increasingly difficult areas.

"In the future, it is inevitable that technology and risk will increase, not diminish, as easy' sources of oil are depleted and as the exploration effort moves into new and ever more challenging frontiers," said Tim Morgan, global head of research at Tullett Prebon.

Delayed projects, tighter legislation and more and more expensive technology all point towards the same conclusion -- the price of oil will go up.

"We think the long end of the market will gradually price in more of the oil spill effect," said Torbjorn Kjus, oil market analyst at DNB Nor.

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