intensively explored regions of the world. The opportunities for finding 

 new large reserves onshore are now limited and most of these will prob- 

 ably be deeper and more costly to find and produce. 



Geologists regard the Outer Continental Shelf and slope of the United 

 States and oflfshore Alaska to be generally favorable prospective areas for 

 oil and gas. Recoverable hydrocarbon resources on our Outer Continental 

 Shelf have been estimated by the U.S. Geological Survey to be upwards of 

 160 billion barrels of crude oil (four times proven reserves at year-end 

 1972) and upwards of 800 trillion cubic feet of natural gas (three times 

 proven reserves at year-end 1972). Comparable amounts are also possible 

 on the continental slope. How much will eventually be found or produced 

 from either of these areas will depend on technical, economic, and political 

 factors. Offshore production is already established in Louisiana, Alaska, 

 and California. 



Offshore oil and gas drilling and producing operations encounter sub- 

 stantially different environmental conditions from those onshore. In addi- 

 tion the offshore, being in the public domain, supports a complex and 

 varied mix of activities — fishing, shipping, recreation, and defense as well 

 as exploitation of the mineral and petroleum resources beneath the sea. 



Harmonizing all these operations is no easy matter and efforts to develop 

 this domain are being opposed by major environmental groups who, con- 

 cerned by possible adverse consequences, have brought drilling operations 

 to a near halt in offshore California, slowed lease sales in the Gulf of 

 Mexico, proposed legislation to ban leasing and drilling operations off 

 the East Coast, and have entered suit blocking the Trans-Alaska pipeline 

 from the North Slope. The construction of new refineries has also been 

 affected. In past years four or five major new refineries or major expan- 

 sions, with capacities of 100 to 200 thousand barrels each per day, were 

 under construction at any given time. Today there are none. One important 

 reason is because the oil companies have found it difficult to obtain siting 

 which satisfies economic and environmental criteria. 



Safeguarding the Environment 



Industry, as part of an increased environmental awareness is spending 

 large sums on research to develop new technology to reduce risks of well 

 blowouts and spills and on techniques to confine and clean up the oil 

 should accidents occur. The Coast Guard is taking the Government lead 

 in the cleanup area. Numerous studies sponsored by Government and in- 

 dustry have focused on the impact of various offshore operations (drilling, 

 producing, and transportation) on the biological, chemical, and physical 

 environments both at sea and along the strand. 



Industry is also pressing the development of new technology to place 

 well heads and production systems on the sea bottom, thus allowing a 



18 



