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Oil and Gas for Managers (3000-74)Oil and Gas for Managers (3000-74)
Pete Culp
Assistant Director
Minerals, Realty & Resource Protection
May 1999
Overview for this Session:Overview for this Session:
Course Expectations.
Resource and Industry.
BLM Program Mission.
Course ObjectivesCourse Objectives
To enable managers: To make effective Oil & Gas
resource use decisions. To promote environmentally
responsible development of public’s oil and gas resources.
Scope of Oil and Gas IndustryScope of Oil and Gas Industry
Distribution of oil & gas fields.
Resource potential.
Use and dependence.
Role of petroleum.
Oil and Gas Fields of the U.S.POWDER RIVER BASINWYOMING AND MONTANA
SAN JUAN BASINNEW MEXICO , COLORADO
AND UTAH
SOUTHWEST WYOMINGWYOMING, UTAH, AND COLORADO
HOT SPOTS FOR FUTURE GAS DEVELOPMENT
World Energy Consumption by Fuel Type, 1970-2020
0
50
100
150
200
250
300
1970 1980 1990 2000 2010 2020
Year
Qu
adri
llio
n B
tu COAL
OIL
NATURAL GAS
RENEWABLES
NUCLEAR
History Projections
U.S. Dept. of Energy 1998 Forecast
Domestic and Global Oil Production is Expected to Decline
Projected U.S.and Canada
Projected U.S.and Canada
Continued Decline for U.S. Oil Production
Continued Decline for U.S. Oil Production
Source: DOE, 1998
Declining U.S. ProductionDeclining U.S. Production
Increasing ConsumptionIncreasing Consumption
Forecast for the Future
Forecast for the Future
Volatile PricingVolatile Pricing
The Flow of OilThe Flow of Oil
Production
Exploration
Refining and Processing
ManufacturingStorage
Transportation
Fuels & Other Uses
Product: Gallons per barrel
gasoline 19.5
home heating oil/diesel fuel
9.2
jet fuel 4.1
residual fuel oil 2.3
What a Barrel of Crude Oil MakesWhat a Barrel of Crude Oil Makes
SummarySummary
Importance of resource…
Employment
Feed Stocks
Revenue
Economic and Military
Security
BLM Oil and Gas ProgramBLM Oil and Gas Program Oil and Gas Mission
Scope of the Program
Budget
Processes
Oil and Gas Program Mission
Oil and Gas Program Mission
“It is the mission of the Bureau of Land Management to sustain the health, diversity, and productivity of the public lands for the use and enjoyment of present and future generations…….”
---The BLM Mission
• To encourage the environmentally responsible development of public oil and gas resources to ensure a fair return to the public, build communities, and preserve the health of the land.
• To meet our trust responsibilities to Native Americans in managing their oil and gas interests.
• To encourage the environmentally responsible development of public oil and gas resources to ensure a fair return to the public, build communities, and preserve the health of the land.
• To meet our trust responsibilities to Native Americans in managing their oil and gas interests.
BLM Oil & Gas ProgramBLM Oil & Gas Program
A Balanced Approach
Ensuring a Fair Return on Public
Resources
Ensuring Environmentally Sound and Safe
Operations
Building a Better
Government
Fostering Economic
Growth
Bureau Oil and Gas StatisticsBureau Oil and Gas Statistics
OIL
U.S. Onshore Production
GAS
Oil & Gas Estate
Bureau Oil and Gas StatisticsBureau Oil and Gas Statistics
0
100
200
300
400
500
600
BLM Oil & Gas Estate Under Lease
Mil
lio
ns o
f A
cre
s
Non Producing:
28,162 leases
12.9 million acres
Non Producing:
28,162 leases
12.9 million acres
Producing:
20,106 leases
10.5 million acres
Producing:
20,106 leases
10.5 million acres
48,268+Oil & Gas leases23.4 million acres
48,268+Oil & Gas leases23.4 million acres
Subsurface
Only
Surface & Subsurface
304.56
259.44
BLM Oil & Gas Benefit-CostBLM Oil & Gas Benefit-Cost
0
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
800,000,000
Receipts Costs
Do
llars
BLMBLM
States States
Reclamation FundReclamation Fund
U.S. TreasuryU.S. Treasury
FY-98
States (Net Recpt. Share)
States (Net Recpt. Share)
BLM FY-98 Accomplishments
BLM FY-98 Accomplishments
3,167
2,305
2,026
~57,000 producing/producible wells
Oil & Gas Program Strategic Goals Tie-insOil & Gas Program Strategic Goals Tie-ins
Inspection & EnforcementOrphan Wells
Leasing & Development
Native American Trust Responsibilities
All Aspects of the Program
All Aspects of the Program
Pre- & Post Lease
.
ALMRSAFMSS
Outreach
Pre- and Post LeaseNEPA
Rehab sites & roads when no longer needed
Industry Requested Approvals
Performance MeasuresPerformance Measures
Decrease APD approval times.
FY-98 is base year.
Goal: Reduce delay by 10% in FY-99.
National Oil & Gas Budget Emphasis for
FY-1999
National Oil & Gas Budget Emphasis for
FY-1999
Production Verification
Planning
Leasing
Development
Rule Making
AFMSSCustomer Service
Workload MeasuresWorkload Measures
Leasing Operations Reservoir Management Agreements Inspection & Enforcement Indian Technical Assistance
BLM Program Costs FY-99
BLM Program Receipts FY-97
FY-99FY-99
Oil & Gas
59%
Coal
25%
Other Leasable and Salable Minerals
5%
Locatable Minerals
3%
Recent Funding TrendsRecent Funding Trends
0
100
200
300
400
500
600
700
FY1993 FY1994 FY1995 FY1996 FY1997 FY1998 FY1999
Fiscal Year
Mill
ion
s o
f D
olla
rs
MLRMLR
Oil & GasProgram
Oil & GasProgram
What’s Next?What’s Next?
Learning the Industry... BLM at Work... Balancing Resource Use... Collaborative Management... Summary Exercise…