CHAPTER 2 

 OCS DEVELOPMENT IN THE GULF OF MEXICO 

 2.1 — POTENTIAL 



A major indication of the potential of an area as 

 an oil and/or gas producing region is the amount of 

 proven reserves- 1 - the region holds. The amount of proven 

 reserves on December 31 of the years 1947 through 1975 

 for oil and 1966 through 1975 for natural gas is tabu- 

 lated for the Gulf (Table 2.1). The amount of oil re- 

 serves increased steadily until it reached a peak of 

 2,924,095 thousand barrels in 1970 and has decreased 

 steadily since that time. Natural gas reached its peak 

 of 38,785,667 million cubic feet in 1972, then declined in 

 1973 and 1974, but rose again in 1975 to 37,332,642 I-D1CF. 



In addition to reserves, the major themes affecting the 

 future of offshore activity in the Gulf of Mexico include the 

 following: disenchantment with the Mississippi-Alabama- 

 Florida (MAFLA) and South Texas areas of the Gulf, renewed 

 interest and activity into the central Gulf area (off Louisiana 

 and the upper Texas coasts), a move into the potentially 

 lucrative deep-water areas, and the emergence of developmental 

 activity in existing fields as more significant than explora- 

 tory activity in previously unexplored areas. 



The estimated quantities of all fluids statistically defined 

 as crude oil or natural gas, which geological and engineering 

 data demonstrate with reasonable certainty to be recoverable 

 in future years from known reservoirs under existing economic 

 and operating conditions (American Gas Association et al . , 

 1976: 14). 



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