Home

Maintain safe and environmentally sound domestic energy supplies and alternative fuel sources.

The outer continental shelf contains significant oil and gas resources that are vital to our domestic energy supplies and national security needs, contributing 22% of domestic oil and 27% of natural gas production. Natural gas reserves in the outer continental shelf are particularly important because natural gas has major environmental benefits over other fossil fuels. Cleaner burning, it is increasingly being used in the conversion of electrical power-generating stations from oil- or coal- fired facilities.

The federal share of offshore oil and gas revenues averages about $4 billion a year. Much of the existing leasing and development occurs in the central and western Gulf of Mexico. In recent years, the rapid development of deep-water technology has led to a strong move by industry to both lease and operate in ever-deeper waters. Over 4,000 platforms are operating in waters up to 3,900 feet deep, and over 30 rigs are drilling in water deeper than 1,000 feet, including one deeper than 7,700 feet. By the end of 2000, production from Gulf deep-water fields is expected to account for one-half of the total Gulf of Mexico outer continental shelf oil production and one-third of the total outer continental shelf gas production.

Advances in technology have made offshore oil and gas production cleaner and safer than ever. Since 1980, 6.9 billion barrels of outer continental shelf oil have been produced with a spillage rate of less than 0. 001% . Despite these advances, however, environmental concerns have led to congressional and executive moratoria since 1981, and many of our coastal areas are now closed to new leasing through the year 2012. In addition, new leases are permanently banned in National Marine Sanctuaries. Many coastal states and communities object to oil and gas development off their coastlines. One way that coastal states and the public can participate in decisions on federally regulated offshore activity is through the coastal zone consistency process, which allows them to review and comment on proposed projects or permits that may affect state coastal management programs. Federal actions likely to affect any land/water use or other natural resources in the coastal zone must be consistent with the states enforceable policies.

Ongoing Concerns

• Multiple-use conflicts can arise between outer continental shelf oil and gas activities and other ocean-based activities, such as commercial and sport fishing, tourism and recreation, vessel traffic, military operations, and marine protected areas.
• While outer continental shelf oil and gas development brings employment and revenue to coastal states and communities, it also may result in accelerated coastal development with its attendant problems, including additional demands on infrastructure and the environment.
• Uncertain outer continental shelf boundaries may lead to disputes with other coastal nations regarding ownership of certain oil and gas reserves unless the U.S. joins the United Nations Convention on the Law of the Sea.

Recommendations

• Increase research on methods and technology to minimize risks to human safety and to coastal and ocean environments.
• Through meetings, workshops, and negotiation, work with all stakeholders to ensure environmentally sound and safe outer continental shelf energy extraction.
• Continue efforts to provide states and other stakeholders with early information on proposed outer continental shelf oil and gas exploration and other activities.
• Encourage production of natural gas, as a cleaner source of energy, from areas where production is still permitted under the outer continental shelf moratoria.
• Join the United Nations Law of the Sea Convention.
• Accelerate scientific research on marine gas hydrates (methane and other gases existing in a frozen state below the ocean floor) as a potential long-term energy resource.

For more information

http://www.mms.gov
http://marine.er.usgs.gov
http://www.gomr.mms.gov/homepg/regulate/environ/rigs-to-reefs/information.html