chris oynes regional director gulf of mexico ocs region minerals management service hurricane...
TRANSCRIPT
Chris Oynes
Regional DirectorGulf of Mexico OCS Region
Minerals Management Service
Hurricane Recovery Status and Future of the Gulf
MMS
December 13, 2005
Presentation atSPE/NOGS/API/PLANO/Desk and Derrick
DENNISDENNISCINDYCINDY
EMILYEMILY
BRETBRET
2005 HURRICANE SEASON2005 HURRICANE SEASON(To Date)
KATRINAKATRINA
RITARITA
WILMAWILMA
ARLENEARLENE
Percentage of GOM Production Shut-in
0
10
20
30
40
50
60
70
80
90
100
8/26/2005 9/9/2005 9/23/2005 10/7/2005 10/21/2005 11/4/2005 11/18/2005
OIL GAS
KATRINAKATRINA RITARITA
WILMAWILMA
Major Issues in HurricaneMajor Issues in Hurricane
MODU’s adrift are not acceptable19 MODU’s were set adrift from hurricanes
Katrina and RitaSecretary of DOI met with companies Nov. 17
to discuss changes
MMS COOP Operation With the approach of Hurricane Katrina, MMS mobilized its continuity of operations plan (COOP). A small temporary office was created in Houston to monitor the storm damage and direct operations. Most MMS District operations offices were not affected. With the massive damage in New Orleans MMS mobilized first 50 employees and then 150 to conduct continuity of operations in Houston On October 28 MMS reoccupied part of its New Orleans Office and all employees reported back to work The Regional Office with 150 employees remains in Houston while the New Orleans office is rebuilt.
MMS
Energy Bill Provisions thatWill Affect Lease Sales
Added a third tier of royalty relief for deep gas drilling in 0 - 200m of water
Added three tiers of royalty relief for deep gas drilling in 200 - 400m of water
Added a royalty relief level in deep water -- 16 mmboe in depths greater than 2000m
GOM Production has been significantly GOM Production has been significantly lowered due to hurricanes in 2004 and 2005lowered due to hurricanes in 2004 and 2005
55
159
225
271
315348 348 337
0
50
100
150
200
250
300
350
400
1995 1998 1999 2000 2001 2002 2003 2004
Millions of Barrels Per Year
Gulf of Mexico Deep Water Oil ProductionGulf of Mexico Deep Water Oil Production
~~~
e.
As of 5/6/05As of 5/6/05MMS
181
560
840
1000
11801320
1420 1420
0
200
400
600
800
1000
1200
1400
1600
1995 1998 1999 2000 2001 2002 2003 2004
Billions of Cubic Feet (BCF) Per Year
Gulf of Mexico Deep Water Gas Gulf of Mexico Deep Water Gas ProductionProduction
~~~
e
As of 5/6/05As of 5/6/05 MMS
New developments suggest a bright future New developments suggest a bright future for the Gulffor the Gulf
Major New ActivityMajor New Activity
Neptune FieldAtwater Valley 573Neptune FieldAtwater Valley 573
Unocal Knotty HeadGreen Canyon 512
Unocal Knotty HeadGreen Canyon 512
Chevron’s TahitiGreen Canyon 640
Chevron’s TahitiGreen Canyon 640
Jack Test WellWalker Ridge 759
Jack Test WellWalker Ridge 759
MMS