126 



(5) From seawater: Salt, bromine, and magnesium metal and compounds. Total 

 value about $150 million in 1967. 



Relation to other U.S. production and long-term trends : 



(1) Expressed as a percentage of total domestic petroleum production, the 

 O.C.S. provided 8.1 percent in 1968, compared to 6.8 percent in 1967; by 1980 

 the figure is expected to reach 30 percent and some estimates place it as high as 

 60 percent. 



(2) In dollar values, annual production of oil, gas, and sulfur from O.C.S. has 

 increased from $423 million in 1960 to $1.2 billion in 1968 ; by 1975 the annual 

 figure is expected to reach nearly $3.5 billion. 



Income to the U.S. Treasury from offshore minerals : 



(1) Over the past 16 years, total income to the U.S. Treasury from leasing 

 of offshore mineral rights, and royalties from all mineral production has ex- 

 ceeded $4.4 billion, of which $3.3 billion was from bonus sales. 



(2) During the single year preceding June 1968, such leasing brought more 

 than $1.7 billion into the Treasury ; the revenue from lease sales in 1968 was 

 $1.3 billion. 



(3) By comparison, lease sales and royalties from mineral resources on land 

 have yielded only $1.6 billion for the 46-year period prior to 1967. 



(4) Royalties for offshore oil, gas, and sulfur reached an annual rate of 

 $201 million in 1968, or a monthly average of about $18 million ; currently the 

 revenue is avenaging $21 million per month. 



Areal coverage of production and leasing on Outer Continental Shelf : 



(1) The total-area of the O.C.S. presently under lease is 4.4 million acres, of 

 which 2.1 million acres are in producing leases. 



(2) Producing leases constitute about Yio of 1 percent of the total Continental 

 Margin. 



(3) Per capita consumption of all types of energy by 1980 is estimated to 

 become double that of 1950. Of this, petroleum products (including gas) will 

 supply about 75% of the future needs. 



(4) In general there has been a slow rate of development of hard mineral 

 resources on the shelves (a growth of less than 20% in value in 7 years), while 

 the development of oil, gas and sulfur resources heneath the shelves has been 

 very rapid, more than tripling in the same period. 



Capital investment in offshore petroleum : 



(1) The i)etroleum industry invested about $2.5 billion in offshore operations 

 in 1968, compared to about $1.5 billion in 1967. 



(2) Cumulative investment over the years has been approximately $9.5 billion. 



Appendix 5 



The Assistant Seceetabt op the Navy, 



(Research and Development) 

 Washington, B.C., October 30, 1967. 

 Dr. Stanley A. Cain, 



Assistant Secretary of InJterior for Fish nnd Wildlife <ind ParTcs, Department of 

 Interior, Washington, B.C. 

 Deae De. Cain : The enclosed Memorandum of Agreement is to formalize joint 

 efforts that have been conducted on an exploratory basis by the Bureau of Com- 

 mercial Fisheries and the Naval Oceanographie Oflice. I am happy to be able to 

 participate in this effort to improve the economic potential of the fishing industry. 

 Please return the signed original to the Oceanographer of the Navy for photo- 

 graphic reproduction and distribution. 

 Sincerely, 



Robert A. Feosch. 



Memoeandtjm of Agreement Between the Department op the Navy and the 

 Depaetment op the Inteeioe 



The Department of the Navy and the Department of the Interior have many 

 common interests in directing research efforts toward understanding and de- 

 scribing the oceans. The Navy and Interior have similar needs to develop tech- 

 niques for forecasting ocean environmental features for fleet operations and for 

 fish forecasting and detection. 



The Navy, in discharging its responsibilities for our national defense efforts 

 involving the ocean environment, will continue to require a better understanding 



