1. Offshore Drilling Giacomo Rimoldi Gutierrez CBE 555 October 2, 2007

2. Done in a 200 mile wide band around the country which is called the Exclusive Economic Zone(EEZ).

3. (1)Continental Shelf Shallow water depths rarely deeper than 200 m Extends seaward from the shoreline to distances ranging from 20 km to 400 km (2) Continental Slope Bottom drops off to depths of up to 5 kilometers (3) Continental Rise Dips very shallowly seaward from the base of the continental slope In part composed of down-washed sediments deposited at the base of the slope

4. History Check H.L. Williams drilled the first offshore well in 1887 from a wooden wharf that extended 300 feet onto the continental shelf off Summerland, California The emergence of free-standing and floating platforms in the 1940s allowed drilling rigs to be moved ever-farther away from shore into deeper water Today, there are around 4,000 platforms producing in Federal waters up to roughly 7,500 feet deep and up to 200 miles from shore

5. Offshore Drilling 1) Accounts for almost 25% of total U.S. natural gas production over the past two decades 4.042 trillion cubic feet (Tcf) in 2004 (21% produced in that year) 2) It provides with 30% of the total U.S. oil production in recent years 565 million barrels produced in 2004 (29% produced that year) 3) There are estimated 406.1 Tcf of remaining undiscovered technically recoverable natural gas and 76 billion barrels of oil in U.S. offshore regions 4) Of these amounts, an estimated 232.5 Tcf of natural gas and 36.9 billion barrels of oil are located in the Gulf of Mexico.

6. Federal OCS Share of US Total Production (Percentage) Year Natural Gas Crude Oil 1990 27 11.3 1991 25.9 12 1992 25.4 13.3 1993 25 14.1 1994 25 15.3 1995 25 17.4 1996 26.1 18.6 1997 26 20.1 1998 25.5 21.8 1999 25.8 25.2 2000 24.8 26.7 2001 24.8 28.3 2002 23.1 29.1 2003 22.4 28.9 2004 20.5 28.9

7. Oil Production 2000-2005 Crude Oil 419459451485467409 (Million Barrels) Depth Less Than 200 Meters185173163149157104 Depth Greater Than 200 Meters234286288336310305 Percentage from Depth Greater Than 200 Meters55.862.263.969.36675 Lease Condensate 10610190787462 (Million Barrels) Depth Less Than 200 Meters615052484736 Depth Greater Than 200 Meters455138302726 Percentage from Depth Greater Than 200 Meters42.250.242.238.53642

8. Natural Gas Production Dry Natural Gas 4,7734,9134,4234,3063,8742,906 (Billion Cubic Feet) Depth Less Than 200 Meters3,6083,5783,0952,7932,6521,837 Depth Greater Than 200 Meters1,1651,3341,3281,5131,2221,069 Percentage from Depth Greater Than 200 Meters24.427.43035.13237 Natural Gas Wet After Lease Separation 4,9015,0274,5444,3973,9672,968 (Billion Cubic Feet) Depth Less Than 200 Meters3,7053,6603,1802,8522,7161,898 Depth Greater Than 200 Meters1,1961,3671,3651,5451,2511,070 Percentage from Depth Greater Than 200 Meters24.427.23035.13236 Natural Gas Liquids 199192184148155123 (Million Barrels) Depth Less Than 200 Meters115961189310479 Depth Greater Than 200 Meters849666555144 Percentage from Depth Greater Than 200 Meters42.2503637.24136

9. Operating Costs

11. Numbers per plataform 11,000 barrels of oil per day 40 million cubic feet of gas per day Barrel $74.97 (9/2007) One plataform can make up to $824,670 a day Table 5. Annual Operating Costs for Gulf of Mexico wells in 2006 (Current US Dollars) Water Depth, feet Platform Size100-ft300-ft600-ft 12 Slot9,337,1009,624,300 18 Slot11,179,30011,523,90012,148,800 GOM Average10,258,20010,574,10012,148,800

12. Revenues from Federal Offshore Lands, Fiscal Year 2000 (Mineral Management Service) Royalties Natural Gas$2,451,875,964 Oil$1,642,700,114 Other$141,221,225 $4,235,797,303 Rents $207,828,582 Bonuses $441,798,474 Other $324,238,283 Total $5,209,662,642

13. Environmental Since 1975, drilling in the EEZ has had a safety record of 99.999 percent meaning that only.0001 percent of the oil produced has been spilled Each oil rig dumps about 90,000 metric tons of drilling fluid and metal cuttings into the ocean over its lifetime and each of its 50 to 100 wells (on average) dumps 25,000 tons of toxic metals such as lead, chromium, and mercury into the ocean Offshore drilling exposes wildlife to the threat of oil spills that would devastate their populations Pollute the air as much as 7,000 cars driving 50 miles a day.

14. In real numbers A platform will dump 1.1 barrels of oil per day The approximate 11,500 platforms will dump 12,650 barrels per day The maximum amount of drilling fluid polluting in their lifetime would be equal to 1.035 x 10^9 metric tons The pollution created by them would be equal to 8.05 x 10^7 cars driving 50 miles per day. This is during the lifetime of the platforms. This is 7.7 x 10^6 kg of CO2 during the lifetime of each platform. Meaning 8.855 x 10^10 kg of CO2 for all the platforms.

15. More environmental An ARCO pipeline ruptured in the 1994 Northridge earthquake, spilling 193,000 gallons of oil into the Santa Clara River. Department of Interior (DOI) Environmental Protection Agency (EPA), Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA), U.S. Fish and Wildlife Service (FWS).

16. Other Controversies In May 1992, Chevron USA pleaded guilty to 65 violations of the Clean Water Act and paid $8 million in fines for illegal discharges from the company's production platform of the California coast In March 1997, Chevron was fined 1.2 million for operating a well off the coast of Ventura with a broken ant-blowout valve, a key environmental protection on an offshore oil well. In 1998, a rupture in Torch Oil's pipeline spilled 21,000 gallons of oil, damaging a rich ocean fishing ground and killing wildlife in the delicate coastal ecosystem at the mouth of the Santa Ynez River State and local authorities repeatedly cited the Venoco Corporation for releases of deadly hydrogen sulfide gas at its Goleta platform in 1998-99.

17. http://www.eia.doe.gov/kids/energyfacts/sources/non- renewable/offshore.html http://www.eia.doe.gov/pub/oil_gas/natural_gas/feature_articles/2005/offshore/offs hore.pdf http://tonto.eia.doe.gov/dnav/pet/pet_crd_gom_s1_a.htm http://tonto.eia.doe.gov/dnav/pet/pet_pri_wco_k_w.htm http://www.eia.doe.gov/pub/oil_gas/natural_gas/data_publications/cost_indices_equ ipment_production/current/coststudy.html http://i.pbase.com/v3/91/43791/1/50026687._S8E0830_oil_rig_Long_Beach.jpg http://www.culturechange.org/caoe.html http://www.eia.doe.gov/kids/energyfacts/sources/non- renewable/offshore.html http://www.eia.doe.gov/pub/oil_gas/natural_gas/feature_articles/2005/offshore/offs hore.pdf http://tonto.eia.doe.gov/dnav/pet/pet_crd_gom_s1_a.htm http://tonto.eia.doe.gov/dnav/pet/pet_pri_wco_k_w.htm http://www.eia.doe.gov/pub/oil_gas/natural_gas/data_publications/cost_indices_equ ipment_production/current/coststudy.html http://i.pbase.com/v3/91/43791/1/50026687._S8E0830_oil_rig_Long_Beach.jpg http://www.culturechange.org/caoe.html http://nlquery.epa.gov/epasearch/epasearch?typeofsearch=epa&querytext=miles+pe r+gallon&originalquerytext=car++milage&areaname=&filterclause=%28tssms%3Aepap ages%29+AND+&sessionid=45B5B8DC0B6645F11EC576ED4C0BAB02&referer=http%3 A%2F%2Fwww.epa.gov%2F&prevtype=epa&result_template=epafiles_default.xsl&are asidebar=epahome_sidebar&areapagehead=epafiles_pagehead&areapagefoot=epafil es_pagefoot&stylesheet=http%3A%2F%2Fwww.epa.gov%2Fepafiles%2Fs%2Fepa.css

18. Thank you