1998 Year of the Ocean Ocean Energy and Minerals 



resources for use in projects undertaken by federal, state, or local governments for shore 

 protection and beach or coastal wetlands restoration, or for use in other types of construction 

 projects that are wholly or partly funded, or authorized, by the federal government. 



Access to OCS hard minerals for purposes other than those specified in the amendments 

 continues to be addressed through the competitive bidding process by granting a lease to the 

 highest bidder for the extraction and use of any mineral. 



Federal Agency Responsibilities 



The Secretary of the Interior designated the Minerals Management Service (MMS) as the 

 regulatory agency for managing mineral resources on the OCS. One of MMS' s goals is to ensure 

 safe, environmentally sound operations during the production of oil, gas, and minerals from the 

 OCS. This agency accomplishes that goal through a strong regulatory program while supporting 

 research in offshore safety, oil-spill containment and cleanup, structural integrity, and blowout 

 prevention. The continuation of these responsibilities plays a key role in protecting the ocean and 

 ensuring safe, environmentally sound oil and gas development from the OCS. 



ENERGY RESOURCES 



History of Ocean Oil and Gas Development 



This year marks the 51st armiversary of offshore oil and gas production. In November 

 1947, a discovery was made off the Louisiana coast, 12 miles from shore in water 16 feet deep. 

 This represented the first successful commercial development to be made out of sight of land. It 

 was also the first offshore well drilled from a mobile platform, thus initiating the technology that 

 has subsequently been used to drill more than 20,000 offshore oil and gas wells in the submerged 

 lands off the coasts of the United States. Previously, nearshore development was an extension of 

 onshore fields and technology. The earliest nearshore production in the United States was off 

 Summerland, California, in 1896, and was part of an onshore field. These early nearshore wells 

 were drilled from wooden piers extending out from the shoreline. The next milestone occurred in 

 the Gulf of Mexico in 1938 when a discovery in the Creole field, 1.5 miles from shore in 26 feet 

 of water, marked the petroleum industry's first successful venture into open, unprotected waters. 



The need for production capability in deeper water depths further offshore has pushed the 

 industry to develop new and better equipment and techniques. Conventional steel-jacketed 

 production platforms stand in as much as 1,198 feet of water off the coast of southern California 

 and in 1,350 feet off the Louisiana coast. In 1984, the drillship Discover Seven Seas drilled an 

 exploratory well in 6,952 feet of water off the coast of New Jersey. In the often ice-bound waters 

 of the Arctic, drilling units have evolved from single use artificial gravel islands to specially 

 designed multi-use caisson-retained islands and ice-resistant mobile units of more conventional 

 design. Historically, the 1,000 feet water depth barrier for installation of production platforms 



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