2006 Deepwater Gulf Discoveries

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PACIFIC OCS REGION OCS Policy Committee Meeting Annapolis, Maryland February 21-22, 2007 Securing Ocean Energy and Economic Value for America Program Objectives •Safety of people, operations, and environment through vigilant inspection program •Conservation of resources through sustained long-term production •Cooperation with States and local entities to work toward alternative energy in the Region •Maintaining personnel levels and knowledge base sufficient to do the complex and varied work Securing Ocean Energy and Economic Value for America Inspection Program •Robust inspection program – Operational safety and environmental compliance – Inspection presence 365 days/yr – Inspectors, engineers, environmental scientists involved – Annual unannounced spill response drills – Focused Facility Reviews (3/yr) – Annual Performance Reviews w/ operators •Cooperation with Santa Barbara County Participation in SBC quarterly reporting and availability to Board of Supervisors Securing Ocean Energy and Economic Value for America Inspection Program Results 2006 •Maintaining excellent safety – Only minor spills, largest of which was 6 gallons •Vigilant inspections and follow-up –1180 inspections conducted, many with environmental component –152 INC’s (Incidence of Non-Compliance) issued, all production related – Civil Penalty Program Securing Ocean Energy and Economic Value for America Sustaining Production 250000 Oil, bpd 200000 150000 100000 50000 0 Gas, Mcfpd 1970 1980 1990 2000 •Estimated 2006 production: 23.5 MMbbl oil and 46.5 Bcf gas •All POCS fields still producing; some on production 30+ years •Smaller operators working to bring new life to old fields – Spending money on reassessment of geophysical data, fault block analysis, infill drilling, enhanced recovery technologies – Drilling average 20 wells/yr; expected to continue & may increase •No impending decommissioning Securing Ocean Energy and Economic Value for America New OCS Field Development Extended Reach from Pescado Field to Western Sacate Field Approximately 6 miles 5 Extended-reach drilling technology is key •Santa Ynez Unit (SYU) production expanded – SYU most productive unit in the POCS – Latest well (SA-15) is North American record – Continued extended-reach drilling into Sacate Field will add another 100 million barrels of oil and 145 billion cubic feet of gas •Rocky Point field development from Pt. Arguello platforms, 3+ miles distant Securing Ocean Energy and Economic Value for America Other Projects Interagency Cooperation is Key •State/Federal Oil and Gas Proposals Tranquillon Ridge, Carpinteria Offshore •Alternative Energy Projects Coos County (OR) Wave, Humboldt County (CA) Wave, Newport (OR) OPT Wave Park, Borderland (CA) Wind Demo •LNG Deepwater Ports Cabrillo Port, Clearwater Port, Ocean Secure Energy Port (technical expertise and ROW responsibility) •CIAP Revenue Sharing 17 eligible counties & numerous State agencies (7-10) likely to apply Securing Ocean Energy and Economic Value for America Partnerships in Education and Outreach •MARINe – Largest long-term monitoring program on the Pacific coast – Several decades of rocky intertidal data – Comprehensive common database – Taxonomic workshops •Educational Outreach – Lesson plans created in concert with educators – Third party use of MMS products in education •Teachers, So Cal Edison, NOAA Sanctuary, USC, UC Santa Barbara, NEED Securing Ocean Energy and Economic Value for America Pacific Today and Tomorrow • Cooperation with Federal, State, local agencies is key to success of projects – State and local groups with alternative energy interests – Coastal Impact Assistance Program ramp-up – IDWG – Interagency Decommissioning Working Group meetings, including California State Lands Commission, Santa Barbara County Energy Division, California Resources Agency Securing Ocean Energy and Economic Value for America

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