Original recoverable reserves represent the amount of oil and gas before 

 exploration, development, and production. They equal the total production 

 that could be expected from a field. The original recoverable reserves in the 

 Gulf of Mexico are estimated by USGS to have been 7.52 billion barrels of oil 

 and 76.2 trillion ft^ of gas. More than three decades of production yielded 

 4.76 billion barrels of oil and 39 trillion ft^ of gas (U.S. Department of the 

 Interior 1980b). 



The most recent undiscovered recoverable reserve estimates for the Gulf 

 of Mexico are 6.5 billion barrels of oil and 71.9 trillion ft^ of gas. 



OCS OIL AND GAS EXTRACTION FACILITIES 



INTRODUCTION 



The exploration, development, and production of oil and gas resources on 

 the Outer Continental Shelf (OCS) involves a variety of unique onshore facil- 

 ities. Generally, in frontier areas like the eastern gulf, OCS-related 

 activities are performed by an imported specialized industrial group. Firms 

 specializing and experienced in OCS oil and gas activities usually establish 

 operations in a coastal area adjacent to offshore exploration and production 

 areas if the scale of offshore activities provides the necessary economic 

 incentive. The economic requirements for certain types of OCS onshore facil- 

 ities (refineries, processing plants, and fabrication yards) are such that in 

 many cases, a high level of onshore facilities and services are necessary to 

 support oil and gas recovery. If the production of offshore OCS oil and gas 

 is so small that new onshore facilities are not justifiable, then the offshore 

 operations probably will be serviced by existing onshore facilities in Texas 

 or Louisiana. 



Even if OCS oil and gas exploration and production are low, some small 

 onshore facilities such as service bases, heliports, and inspection and test- 

 ing companies probably will locate along the Florida coast. Most of these 

 specialized firms are involved in OCS operations worldwide, but there may be 

 limited economic opportunities for local industries, such as machine shops, 

 labor contractors, and trucking companies. Industries serving port areas also 

 are likely to benefit. 



PHASES OF OCS OIL AND GAS ACTIVITIES 



The six phases of OCS activities are: (1) tract selection, (2) leasing, 

 (3) exploration, (4) development, (5) production, and (6) shut down. Although 

 completion of these phases may take 15 to 40 years, there is considerable 

 overlay among the phases. With the exception of geophysical and geological 

 exploration there is little need for onshore facilities or services during the 

 leasing phase. 



The exploration phase usually lasts from 1 to 7 years (New England River 

 Basin Commission 1976a). Temporary service bases are established, generally 

 in existing ports, to service and support exploratory drilling. Only small 



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