1. Oil and Gas for Managers (3000-74) Pete Culp Assistant Director Minerals, Realty & Resource Protection May 1999

2. Overview for this Session: n Course Expectations. n Resource and Industry. n BLM Program Mission.

3. Course Objectives To enable managers: n To make effective Oil & Gas resource use decisions. n To promote environmentally responsible development of publics oil and gas resources.

4. Oil and Gas For Managers

5. Scope of Oil and Gas Industry n Distribution of oil & gas fields. n Resource potential. n Use and dependence. n Role of petroleum.

6. U.S. Oil & Gas Fields

7. U.S. Exploration History

17. Oil and Gas Fields of the U.S. POWDER RIVER BASIN WYOMING AND MONTANA SAN JUAN BASIN NEW MEXICO, COLORADO AND UTAH SOUTHWEST WYOMING WYOMING, UTAH, AND COLORADO HOT SPOTS FOR FUTURE GAS DEVELOPMENT

19. History Projections U.S. Dept. of Energy 1998 Forecast

20. Domestic and Global Oil Production is Expected to Decline Projected U.S. and Canada Projected U.S. and Canada

21. Continued Decline for U.S. Oil Production Source: DOE, 1998

24. Declining U.S. Production Increasing Consumption Forecast for the Future Volatile Pricing

25. The Flow of Oil Production Exploration Refining and Processing Manufacturing Storage Transportation Fuels & Other Uses

26. 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 Makes

27. Summary n Importance of resource… Employment Feed Stocks Revenue Economic and Military Security

28. BLM Oil and Gas Program

29. n Oil and Gas Mission n Scope of the Program n Budget n Processes

30. 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.

31. BLM 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

32. Scope of Program

33. Bureau Oil and Gas Statistics OIL U.S. Onshore Production GAS Oil & Gas Estate

34. Bureau Oil and Gas Statistics 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 leases 23.4 million acres 48,268+ Oil & Gas leases 23.4 million acres Subsurface Only Surface & Subsurface 304.56 259.44

35. BLM Oil & Gas Benefit-Cost BLM States Reclamation Fund U.S. Treasury FY-98 States (Net Recpt. Share) States (Net Recpt. Share)

36. BLM FY-98 Accomplishments 3,167 2,305 2,026 ~57,000 producing/producible wells

37. Budget n Strategic Plan n Annual Work Plan

38. Oil & Gas Program Strategic Goals Tie-ins Inspection & Enforcement Orphan Wells Leasing & Development Native American Trust Responsibilities All Aspects of the Program Pre- & Post Lease. ALMRS AFMSS Outreach Pre- and Post Lease NEPA Rehab sites & roads when no longer needed Industry Requested Approvals

39. Performance Measures n Decrease APD approval times. n FY-98 is base year. n Goal: Reduce delay by 10% in FY-99.

40. National Oil & Gas Budget Emphasis for FY-1999 Production Verification Planning Leasing Development Rule Making AFMSS Customer Service

41. Workload Measures n Leasing n Operations n Reservoir Management n Agreements n Inspection & Enforcement n Indian Technical Assistance

42. BLM Program Costs FY-99 BLM Program Receipts FY-97 FY-99 Oil & Gas 59% Coal 25% Other Leasable and Salable Minerals 5% Locatable Minerals 3%

43. Recent Funding Trends MLR Oil & Gas Program Oil & Gas Program

44. Processes APPEALS

45. BLM Oil & Gas Time Frames Plan Revisions

46. Summary

47. Whats Next? n Learning the Industry... n BLM at Work... n Balancing Resource Use... n Collaborative Management... n Summary Exercise…