The USGS has not released figures concerning undiscovered recover- 

 able petroleum resources on Beaufort's OCS. However, Alaska has estimated 

 that state-held offshore resources in the Beaufort Sea area will yield 

 2.7 billion barrels of oil and 13.5 billion cubic feet of gas. 80 If 

 these figures are accurate, recoverable oil and gas resources from 

 Beaufort's OCS are probably even larger. 



Status of OCS Operations 



BLM has scheduled two Beaufort Sea lease sales, a joint Federal- 

 state sale in February 1978 and a second federal sale in February 1979. 

 To date the Bureau has not indicated what areas it will call for tract 

 nominations from industry. 



Early in 197 5, Alaska had planned to hold a state lease sale in the 

 Beaufort Sea. State officials had proposed the sale to raise money to 

 cover projected budget deficits during the fiscal years of 1976 and 

 1977. But the sale was suddenly and indefinitely delayed by Governor 

 Hammond in July 1975 when the state's fiscal position brightened with 

 passage in the legislature of a reserve's tax on oil and gas. 



Alaska's interest in leasing state lands in the Beaufort Sea resulted 

 in an increase in geophysical activity and exploratory drilling in the 

 region. A half dozen surveys were run during the summer of 1975 making 

 the nearshore regions of the Beaufort Sea one of the more thoroughly 

 explored frontier regions off Alaska. Development wells north of Prudhoe 

 Bay and an exploratory well on Flaxman Island have further improved 

 geological information. 82 



53 



