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Offshore Energy, Science, and Offshore Energy, Science, and TechnologyTechnology
Walter CruickshankWalter CruickshankU.S. Department of the InteriorU.S. Department of the InteriorMinerals Management ServiceMinerals Management Service
Capitol Hill Oceans Week, 2003 Capitol Hill Oceans Week, 2003
Congressional MandateCongressional Mandate
""It is hereby declared to be the policy of the It is hereby declared to be the policy of the United States that ... the Outer Continental Shelf United States that ... the Outer Continental Shelf is a vital national resource held by the Federal is a vital national resource held by the Federal Government for the public, which should be made Government for the public, which should be made available for expeditious and orderly development, available for expeditious and orderly development, subject to environmental safeguards, in a manner subject to environmental safeguards, in a manner that is consistent with the maintenance of that is consistent with the maintenance of competition and other national needs."competition and other national needs."
Outer Continental Shelf Lands Act, as AmendedOuter Continental Shelf Lands Act, as Amended43 U.S.C. 1332(3)43 U.S.C. 1332(3)
Genesis of Offshore ProgramGenesis of Offshore Program
MMS - A Resource ManagerMMS - A Resource Manager ResponsibilityResponsibility
1.76 billion OCS acres1.76 billion OCS acres30% of U.S. oil; 25% of U.S. natural gas30% of U.S. oil; 25% of U.S. natural gas
ManagementManagementLease issuance to decommissionLease issuance to decommission
Milestones: 1982 – 2002Milestones: 1982 – 2002Oil Produced ~ 8.6 billion barrelsOil Produced ~ 8.6 billion barrelsGas Produced ~ 90 trillion cubic feetGas Produced ~ 90 trillion cubic feetTotal OCS Revenue ~ $82 billionTotal OCS Revenue ~ $82 billion
Scope of Offshore ActivityScope of Offshore Activity
Gulf of Mexico - Gulf of Mexico - most activemost active~ 7,300 leases; ~4,000 production facilities~ 7,300 leases; ~4,000 production facilities1.8 million bopd; 13 Bcfgpd1.8 million bopd; 13 Bcfgpd
PacificPacific79 leases (36 undeveloped); 23 platforms, 79 leases (36 undeveloped); 23 platforms, 98,000 bopd; 207 MMcfpd98,000 bopd; 207 MMcfpd
AlaskaAlaska84 leases84 leasesNorthstar – 60,000 bopd (16,000 Federal Northstar – 60,000 bopd (16,000 Federal
OCS)OCS)
Technology ChallengesTechnology Challenges
Deep WaterDeep Water Shallow Water-Deep ResourcesShallow Water-Deep Resources EconomicsEconomics SafetySafety
BP’s Horn Mountain BP’s Horn Mountain FacilityFacility
100 mi SE of New 100 mi SE of New Orleans in 5,400 feet of Orleans in 5,400 feet of
waterwater
Deep Gas FrontierDeep Gas Frontier ““Deep Shelf Gas” represents Deep Shelf Gas” represents
a new “frontier” exploration a new “frontier” exploration target in shallow waters target in shallow waters (<200 meters water depth).(<200 meters water depth).
Deep gas formations lying Deep gas formations lying 15,000 feet or more below 15,000 feet or more below sea level are a largely sea level are a largely unexplored provinceunexplored province
Significant potential for Significant potential for natural gas for near and mid-natural gas for near and mid-term supplyterm supply
Improved seismic imaging Improved seismic imaging and drilling technology and drilling technology allows mapping of prospects allows mapping of prospects at great depthat great depth
Environmental InformationEnvironmental Information
Ongoing Research for Ongoing Research for
Decision MakingDecision Making
New TechnologiesNew Technologies
Frontier AreasFrontier Areas
EnvironmentalEnvironmental
StudiesStudies
Pollutant Transport Pollutant Transport (air & water)(air & water)
Biological Resource Biological Resource Characterization Characterization
(habitat & behavior)(habitat & behavior)
Marine Marine Environmental Environmental
Monitoring Monitoring
Fates and EffectsFates and Effects
Socioeconomic Socioeconomic EffectsEffects
BiotechnologyBiotechnology
Invasive SpeciesInvasive Species
Technology Assessment Technology Assessment
& Research& ResearchReduce EmissionsReduce Emissions
Blowout Blowout PreventionPrevention
Structural Structural RemovalRemoval
Corrosion Corrosion Prevention Prevention
Oil Spill ResponseOil Spill Response
Leak DetectionLeak Detection
Marine RisersMarine Risers
Composite Composite MaterialsMaterials
An integrated response to meet challenges related to leasing, An integrated response to meet challenges related to leasing, exploration & development of oil & natural gas resources on exploration & development of oil & natural gas resources on
the OCSthe OCS
LeasingLeasing
ExplorationExploration
ProductionProduction
DecommissioningDecommissioning
MMS-Funded ResearchMMS-Funded Research
Operations Safety & Engineering …Operations Safety & Engineering …
Encouraging Safety & DevelopmentEncouraging Safety & Development
IOOS—Integrated OceanIOOS—Integrated OceanObserving SystemObserving System
Regional Systems•Land-based inputs•State & regional priorities•Greater resolution•More variables
National System•Satellite remote sensing•Reference, sentinel stations•Link to global module•Data standards & exchange protocols
National Federation of Regional Systems
Future Energy Sources?Future Energy Sources?
Methane HydratesMethane Hydrates
Offshore WindmillsOffshore Windmills
Education IssuesEducation Issues
Economic OptionsEconomic Options
Energy OptionsEnergy Options
Environmental OptionsEnvironmental Options
20002001200220032004200520062007 20082009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
0
5
10
15
20
25
30
35
Natural Gas Supply and Demand (2002 to 2025)
Source: Energy Information Adminstration
2003 = 4.47 Tcf gap
2015 = 5.68 Tcf gap
Total Domestic Production
Federal Offshore Production
U.S. Demand
2025 = 8.17 Tcf gap