Field development entails the establishment of a number of major 

 onshore and inshore projects. Possible new projects include fabrication 

 yards, pipelines, natural gas processing plants, pipe-coating yards, 

 transfer systems and onshore storage facilities. Additional onshore 

 support facility development will also be stimulated. The particular 

 pattern of component projects will relate to the resource characteristics 

 and location. 



A large find located far from established existing facilities--for 

 example, Prudhoe Bay in Alaska--will stimulate the greatest development 

 "boom". Conversely, a small oil field developed off Georgia would 

 likely utilize products and services transported in from the Gulf of 

 Mexico coast. Refineries in the Caribbean also could be utilized in 

 lieu of refineries in the United States. The ratio of gas to oil in the 

 deposit, and the location of the resource, in relation to existing 

 transportation and processing facilities will also affect the decision 

 as to whether to engage in nearby facilities development. 



5. Production : The production phase involves a continuing though 

 lower level of activity but little new strategy. The industrial infra- 

 structure becomes more complex and "mature" during this phase. Production 

 will overlap with exploration for after the initial platform comes on 

 line, exploratory drilling continues in other portions of the basin. 

 Field production patterns are closely intertwined with lease patterns; a 

 large number of companies leasing a field may lead to more production 

 platforms, while if a single company leased an entire field, in theory, 

 only one platform might be required. 



The production phase will likely encompass 20 to 30 years. The 

 length of time relates to the size of the field and rate of recovery. In 

 addition, industry is constantly searching for techniques to capture a 

 higher percentage of reservoir hydrocarbons from producing fields. If 

 these efforts are successful, then the life of the field may be 

 expanded--often through "working over" an existing field by applying new 

 or different approaches. 



6. Shutdown : As the oil and gas of the specific offshore field 

 approaches exhaustion, it is necessary to start decommissioning specific 

 facilities and installations, i.e., the removing of production platforms. 

 (Only those offshore structures which have been damaged or destroyed by 

 storms have been removed from the Gulf of Mexico.) Refineries would 

 undoubtedly remain but would now have to rely on new sources of supply 

 piped or shipped to the area. 



The U.S. Geological Survey normally requires that when a platform 

 is dismantled, all casing or piling is to be cut 15 feet below the sea 

 floor and removed. The well site is then to be dragged to assure removal 

 of any possible obstructions. 



Pipelines are generally left in place since the cost of removal is 



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