Scientific Research and Offshore Energy Development

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Scientific Research and Offshore Energy
Development

• Walter Cruickshank, Deputy Director
• Minerals Management Service
• Energy Policy and Science Research
• 2005 American Geological Institute Leadership
  Forum

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Who is MMS?

• The Minerals Management Service manages the
  mineral resources on the Outer Continental Shelf
  and Federal and Indian mineral revenues to
  enhance public and trust benefit, promote
  responsible use, and realize fair value.

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Economic Benefits 146 billion
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OCS Quick Facts

• Responsible for 1.76 billion OCS acres
• lt10 percent offered for lease
• 43 million acres leased
• 8,300 leases 1,800 producing leases
• 30 of domestic oil 21 natural gas
• 4,025 production platforms
• 33,000 miles of pipeline
• 42,000 OCS personnel
• 125 operating companies
• 6 billion annual revenue

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Gulf of Mexico Natural Gas Production
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Gulf of Mexico Crude Oil Production
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Deep and Ultra-Deep (2004)

• Deepwater (gt1,000 ft WD)
• 14 new deepwater startups
• 15 deepwater discoveries
• Ultra-Deep (gt5,000 ft WD)
• 7,000 feet WD (1.3 miles)
• 150 miles from shore
• New plays with large geographic extent
• New field wildcat success rate, 58 (7 of 12)
• Resource estimate gt1 billion BOE

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Resource Assessment

• Provide a basic foundation for leasing decisions
• Identify oil and gas plays
• Estimation of resources
• Identify prospective areas
• Determine bid adequacy
• MMS GG database includes more than
• 1.7 million mi of 2D seismic data
• 33 thousand OCS blocksof 3D seismic data
• 100,000 well logs

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MMS-Funded Research
An integrated response to meet challenges related
to leasing, exploration development of oil
natural gas resources on the OCS
Technology Assessment Research
Environmental Studies
Leasing Exploration Production Decommissioning
Reduce Emissions Blowout Prevention Structural
Removal Corrosion Prevention Oil Spill
Response Leak Detection Marine Risers Composite
Materials
Pollutant Transport (air water) Biological
Resource Characterization (habitat
behavior) Marine Environmental Monitoring Fates
and Effects Socioeconomic Effects Biotechnology In
vasive Species
Since 1982, about 540 million spent on research
more than 1400 research projects
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Extreme Environmental Conditions

• Responding to Hurricane Ivan
• Review MODU loss of station keeping and mooring
  standards
• Review platform rig skidding
• Develop database of wind, sea state and currents
• Assess pipeline damage to determine adequacy of
  pipeline standards
• Assess platform damage to validate design
  standards
• Assess deep water riser spacing and the potential
  for riser collisions

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Methane Hydrates

• MMS Resource Assessment
• Planned Projects determine feasibility
• Chevron/DOE/DOI Joint Project
• Adapt coring technology
• Boreholes March 2005
• Ground truth seismic data models
• Initial focus Safety of existing facilities
• Westport Technology International
• Flow Simulation
• Future Production? GOMAdvantages
• Infrastructure existing pipeline network
• Regionally favorable conditionsfor accumulations
• High methane flux rate

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Deepwater Circulation

• Loop current and eddies
• Can force drilling interrupt
• Pose a safety concern
• MMS NTL and Industry agreement to monitor and
  share data via internet
• Meets Ocean Commission recommendations to
  establish IOOS

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Integrated Ocean Observing System (IOOS)

• National System
• Satellite remote sensing
• Reference, sentinel stations
• Link to global module
• Data standards exchange protocols

• Regional Systems
• Land based inputs
• State regional priorities
• Greater resolution
• More variables

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National Federation of Regional Systems
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Decision Making Based on Science
Outer Continental Shelf Lands Act as Amended
"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 which is consistent with the
maintenance of competition and other national
needs . . . . "