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

Shell Oil’s Mensa FacilityShell Oil’s Mensa Facility

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

Minerals Management ServiceMinerals Management Service