Offshore Energy, Science, and Technology Walter Cruickshank U.S. Department of the Interior Minerals Management Service Capitol Hill Oceans Week, 2003

Congressional Mandate "It is hereby declared to be the policy of the United States that... the Outer Continental Shelf is a vital national resource held by the Federal Government for the public, which should be made available for expeditious and orderly development, subject to environmental safeguards, in a manner that is consistent with the maintenance of competition and other national needs." Outer Continental Shelf Lands Act, as Amended 43 U.S.C. 1332(3) Genesis of Offshore Program

MMS - A Resource Manager  Responsibility 1.76 billion OCS acres 1.76 billion OCS acres 30% of U.S. oil; 25% of U.S. natural gas 30% of U.S. oil; 25% of U.S. natural gas  Management Lease issuance to decommission Lease issuance to decommission  Milestones: 1982 – 2002 Oil Produced ~ 8.6 billion barrels Oil Produced ~ 8.6 billion barrels Gas Produced ~ 90 trillion cubic feet Gas Produced ~ 90 trillion cubic feet Total OCS Revenue ~ $82 billion Total OCS Revenue ~ $82 billion

Scope of Offshore Activity  Gulf of Mexico - most active ~ 7,300 leases; ~4,000 production facilities ~ 7,300 leases; ~4,000 production facilities 1.8 million bopd; 13 Bcfgpd 1.8 million bopd; 13 Bcfgpd  Pacific 79 leases (36 undeveloped); 23 platforms, 79 leases (36 undeveloped); 23 platforms, 98,000 bopd; 207 MMcfpd 98,000 bopd; 207 MMcfpd  Alaska 84 leases 84 leases Northstar – 60,000 bopd (16,000 Federal OCS) Northstar – 60,000 bopd (16,000 Federal OCS)

Technology Challenges  Deep Water  Shallow Water-Deep Resources  Economics  Safety

BP’s Horn Mountain Facility 100 mi SE of New Orleans in 5,400 feet of water

Shell Oil’s Mensa Facility

Deep Gas Frontier  “Deep Shelf Gas” represents a new “frontier” exploration target in shallow waters (<200 meters water depth).  Deep gas formations lying 15,000 feet or more below sea level are a largely unexplored province  Significant potential for natural gas for near and mid-term supply  Improved seismic imaging and drilling technology allows mapping of prospects at great depth

Environmental Information  Ongoing Research for Decision Making  New Technologies  Frontier Areas

Environmental Studies Studies Pollutant Transport (air & water) Biological Resource Characterization (habitat & behavior) Marine Environmental Monitoring Fates and Effects Socioeconomic Effects Biotechnology Invasive Species Technology Assessment & Research Reduce Emissions Blowout Prevention Structural Removal Corrosion Prevention Oil Spill Response Leak Detection Marine Risers Composite Materials An integrated response to meet challenges related to leasing, exploration & development of oil & natural gas resources on the OCS LeasingExploration Production ProductionDecommissioning MMS-Funded Research

Operations Safety & Engineering … Encouraging Safety & Development

IOOS—Integrated Ocean Observing System

Future Energy Sources? Methane Hydrates Offshore Windmills

Education Issues  Economic Options  Energy Options  Environmental Options

2025 = 8.17 Tcf gap

Minerals Management Service