Promoting Offshore

Energy Development

www.noia.org

NOIA represents the full spectrum of U.S. businesses that produce energy

from the offshore

A T

rad

itio

n o

f S

ervi

ce

Demand for Energy is on the Rise

1990 1995 2000 2005 2010 2015

YEAR

1999 NPC Reference Case 1992 NPC High Case 1992 NPC Low Case Actual

A C T U A L F O C U S P E R I O D E X T E N D E D V I E W

1999 NPC Range of Outcomes

TRIL

LIO

N C

UB

IC F

EET

15

20

25

30

35 ACTUAL FOCUS PERIOD EXTENDED VIEW

Natural Gas Demand will Increase in All Regions (1999 NPC Reference Case)

2015 Percent Increase 1999 Gas Demand

Natural Gas

Ammonia

Methanol

Ethylene

Carbon Black

Natural Gas Liquids

Fertilizer Corn

Nylon fibers

Acrylic fibers

Blankets, ClothingOutdoor gear, parachutes, rope

Rubber Additive

Automotive tires

Urea resins Plywood

Methyl Methacrylate

Acetic acid Paints and adhesivesAcrylic glazing

for road signs

Polyethylene Grocery bags, toys, housewrap

Polyester Fleece blankets

Polyethylene terephthalate

Plastic bottles

Styrene Insulated cups, food packaging

Polyvinyl chloride

Vinyl siding, plastics pipe

Renewable sources alone cannot meet rising demand

OFF LIMITS!

OFF LIMITS!

OFF LIMITS!

Less than 19% of OCS is Open to Development

A Technological Transformation•Improved Exploration

•Deepwater Frontier

•Deep Gas Advances

•Smaller Environmental Footprint

Improved Exploration

Improved Exploration

Improved Exploration

Improved Exploration

A Technological Transformation•Improved Exploration

•Deepwater Frontier

•Deep Gas Advances

•Smaller Environmental Footprint

Deepwater Frontier1947: First well drilled in Federal waters from fixed offshore platform

• Total Water Depth: 16 feet

Deepwater Frontier2004: Transocean Discoverer Deep Seas drills a well 200 miles from Galveston, Texas.

•Total water depth: 10,011 feet

0/0

1000/305

2000/610

3000/915

4000/1220

5000/1525

6000/1830

7000/2135

8000/2440

FoinavenSchiehallion

FPSOUrsaTLP

GirassolFPSO

HooverSPAR Na KikaHolstein

Feet/Meters

Ram/PowellTLP Crazy

Horse

Mad DogAtlantis

Angola

DiscoveriesDevelopments

PompanoSubsea TB

MarsTLP

MarlinTLP

Producing

King’s Peak

SS TB

0/0

1000/305

2000/610

3000/915

4000/1220

5000/1525

6000/1830

7000/2135

8000/2440

FoinavenSchiehallion

FPSOUrsaTLP

GirassolFPSO

HooverSPAR Na KikaHolstein

Feet/Meters

Ram/PowellTLP Crazy

Horse

Mad DogAtlantis

Angola

DiscoveriesDevelopments

PompanoSubsea TB

MarsTLP

MarlinTLP

Producing

King’s Peak

SS TB

Deepwater Frontier

Deepwater Frontier

• Over 100 Gulf of Mexico deepwater production projects brought online since 1995

• 11 discoveries in water depths greater than 7,000 feet

• Deepwater production now accounts for about 1 million barrels of oil and 3.5 billion cubic feet of natural gas per day

Production Volume by Lease

A Technological Transformation•Improved Exploration

•Deepwater Frontier

•Deep Gas Advances

•Smaller Environmental Footprint

LAMS AL

Total Offshore Wells = 50,577Total Offshore Wells = 50,577

6,735 wells > 13,0006,735 wells > 13,000'' TVD TVD

TX

Deep Gas Advances

720 wells > 17,000720 wells > 17,000'' TVD TVD

LAMS AL

TX

Deep Gas Advances

Deep Gas Advances

Laser Drilling:

Science-fiction or promising new tool?

A Technological Transformation•Improved Exploration

•Deepwater Frontier

•Deep Gas Advances

•Smaller Environmental Footprint

Smaller Environmental Footprint

Modern offshore platforms are:

•invisible to the general public

•floating instead of fixed-leg

• removed easily after well production finishes

Directional Drilling Systems enables access to hydrcarbons without upsetting the surface directly above

Pad Steering

Smaller Environmental Footprint

Designer profile wells:- improve drilling efficiency- improve directional accuracy - can be directed around sensitive areas

Golden Gate Bridge = 2737m (8981ft)

1250

1500

1750

225020001750150012501000750500250

250500

0

750500

1000

2500

1250

1000

15001750

1750150012501000750500250

0

2000

2250

750

500

250

0

True

Ver

tical

D

epth

(m)

True

Ver

tical

Dep

th (m

)

TD 4,732 m MD

Proposed WellpathActual Wellpath

North (m)East (m

)

Smaller Environmental Footprint

A Technological Transformation•Improved Exploration

•Deepwater Frontier

•Deep Gas Advances

•Smaller Environmental Footprint

Unparalleled Environmental Performance

• US Coast Guard: 99.999 percent record for clean operations

• MMS Conducts More than 12,000 Inspections Annually

OFF LIMITS!

OFF LIMITS!

OFF LIMITS!

Less than 19% of OCS is Open to Development

The Evolving Offshore

Technological Frontier

www.noia.org