4. Technology—The Broad Picture 
a. Capability Exploratory wells have been drilled 
from floating rigs in waters deeper than 600 feet, 
and exploitation wells have been drilled from huge 
fixed bottom-mounted production platforms in 
waters deeper than 300 feet. Recently, one com- 
pany invested almost $200 million in lease bonuses 
for 47 tracts in the Santa Barbara Channel, of 
which 16 are in water deeper than 600 feet, six 
deeper than 1,200 feet, and one in 1,800 feet of 
water. Exploratory wells are presently being 
drilled in depths up to 1,300 feet, and production 
may be established in waters as deep as 400 feet 
during 1969. It is expected that by 1980 industry 
will have the capability to explore for and produce 
hydrocarbon reserves in almost any area of the 
world; however, alternate sources of petroleum 
probably will enter the energy market before 
petroleum deposits are exploited in deep ocean 
areas. 
b. Equipment There are about 180 mobile drill- 
ing rigs throughout the world, valued at about $1 
billion, 35 per cent floaters.’* It is estimated that 
by 1980 there will be about 400 mobile units, 
about 60 per cent floaters. To reduce the cost of 
development drilling, it may be necessary to use 
multiple drilling rigs on a single floating platform. 
In the Santa Barbara Channel it may be more 
economical on some leases to complete wells on 
submerged platforms connected to and controlled 
from operating platforms in shallower water. 
Extensive tests with actual underwater wells, 
coupled with experiments to determine diver and 
diverless capability have provided confidence that 
the technology to install and operate underwater 
facilities in the Santa Barbara area can be de- 
veloped. The method used for each lease will be 
governed by economics, safety, and environmental 
considerations. 
Using Federal funds, a group of oceanographic 
institutions has contracted with industry to drill a 
series of core holes to 2,500 feet below the sea 
floors in waters to 20,000 feet deep in the 
Atlantic, the Pacific, the Gulf of Mexico, and the 
Caribbean Sea. This program, called JOIDES, 
12 Rigs that do not touch bottom but maintain position 
by anchoring or dynamic positioning. The other two 
types of mobile drilling rigs are submersible and jack-up. 
began in the summer of 1968 and shallow holes 
have been successfully drilled in 17,500 feet of 
water. 
B. Background of Offshore Activity 
1. History 
Offshore oil was first produced about 1894 in 
California from wells drilled from wooden wharves 
or from wells directed seaward from the beach. 
Petroleum operations in the Gulf of Mexico began 
in 1936. The first offshore well completed beyond 
the sight of land was off Louisiana in 1948; a 
typical early platform is shown in Figure 30. The 
first offshore pipeline was completed the following 
year. Today production has been established more 
than 70 miles from shore and in water depths to 
340 feet. Production pipelines have been laid 
successfully in 340 feet of water. The first subsea 
well with all components under water was com- 
pleted in Lake Erie in 1959; there are now SO to 
100 throughout the world. 
A We 
Wi ue aes 
Figure 30. Early offshore platform beyond 
sight of land, in 50 feet of water. Designed to 
house a crew of 50, it was completed in 1948 
and is still in operation. 
Drilling capability in the last 10 years has 
progressed from water depths of less than 100 feet 
to more than 600 feet. In addition, leases have 
been granted by the Department of Interior for 
petroleum exploration and production more than 
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