U.S. Department of the Interior Minerals Management Service Office of Public Affairs

NEWS RELEASE

Gulf Deepwater Sees Major Advance in 2004; Records Set

Emphasizing the major expansion of the oil and gas industry in deepwater Gulf of Mexico, the Minerals Management Service announces that there were 14 new deepwater startups and 12 new deepwater discoveries in 2004.  According to Chris Oynes, Gulf of Mexico MMS Regional Director, “These 14 new deepwater startups and 12 deepwater discoveries show once again that the Gulf of Mexico is alive and well, helping America meet her energy needs.  This tenth year of sustained expansion of deepwater production adds further to the success of previous years.”

Six of these 14 starts are floating production facilities (two tension-leg platforms [TLP] and four spars) that can act as hubs for future subsea development projects. (See Table 1.)  Two of these startups broke offshore records in 2004: ConocoPhillips’ Magnolia set the world record for TLP water depth at 4,674 feet, and BP’s Holstein is the world’s largest producing spar.

 “Some of these new deepwater discoveries are opening up new areas for natural such gas development in the eastern Gulf,” said Oynes.  “The discoveries of Atlas and San Jacinto in the Eastern Gulf have helped bring economic viability to the Independence Hub facility now being planned.”  Oynes also noted that “ChevronTexaco’s discoveries at Tiger, Silvertip, and Jack located in Alaminos Canyon and Walker Ridge respectively, and Unocal’s discovery at Tobago in Alaminos Canyon added new excitement to the Paleogene in this area.”(See table 2.)

MMS, part of the U.S. Department of the Interior, oversees 1.76 billion acres of the Outer Continental Shelf, managing offshore energy and minerals while protecting the human, marine, and coastal environments through advanced science and technology research.  The OCS provides 30 percent of oil and 23 percent of natural gas produced domestically, and sand used for coastal restoration. MMS collects, accounts for, and disburses mineral revenues from Federal and American Indian lands, with fiscal year 2004 disbursements of around $8 billion and more than $143 billion since 1982.  The Land and Water Conservation Fund, which pays for acquisition of state and federal park and recreation land, gets nearly $1 billion a year.

MMS Main Website:  www.mms.gov
Gulf of Mexico Website:  www.gomr.mms.gov

***MMS:  Securing Ocean Energy and Economic Value for America***

Table 1:  2004 Deepwater Startups

Table 2:  2004 Deepwater Discoveries

 MMS Main Website:  www.mms.gov
Gulf of Mexico Website:  www.gomr.mms.gov

* * * MMS:  Securing Ocean Energy and Economic Value for America * * *