An experimental investigation of hydrate formation on surfaces of buoyant liquid CO2 drops was conducted in a counterflow water tunnel simulating conditions in the deep ocean. The major component of the experimental system was a tapered polycarbonate test section that could stand pressures up to 300 bar, In the experiments, through proper control of the pressure, temperature, and flow rate of the downwardly flowing water, CO2 drops released were suspended stably in the test section. Because the test section was transparent, the behavior of the CO2 drops in suspension could be examined visually and the process of hydrate formation on surfaces of the drops could be recorded by a video camera. It was found that the hydrodynamic stability of the buoyant CO2 drops influenced hydrate formation considerably. Small drops had a spherical shape, and in general, they were hydrodynamically stable; hydrate formed rapidly on such drops. Large drops were often nonspherical in shape, and because they were hydrodynamically unstable, their shapes varied with time; for such drops, it took a longer period of time for hydrate to cover their surfaces. For drops whose linear dimensions were on the order of a few centimeters, a continuous process of hydrate formation on and hydrate shedding from the surfaces of the drops was observed. The CO2 concentration in water was found to affect hydrate formation significantly. For both small and large drops, an increase in the CO2 concentration accelerated the process of hydrate formation. The phenomena observed in the present investigation were not reported previously.