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Underwater Defense: Port & Harbor Security

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44 MTR July 2006 dynamic positioning and dual activity technology, allowing for parallel drilling operations. The drillship is designed to drill in water depths of up to 4,000 m (12,000 ft.).

Offshore Discovery May be Largest in China

China's largest offshore oil produc- er, CNOOC confirmed the discovery of a large deepwater gas field made in partnership with Canada's Husky

Energy. Calgary-based Husky said the field may contain 4 to 6 trillion cubic feet of natural gas. CNOOC has the right to a 51% stake in the project.

CNOOC and Husky have been col- laborating on offshore oil and gas exploration in the region since 2002.

China's total gas reserves are estimat- ed at 83 trillion cubic feet, according to data published by BP. (Source: www.marketwatch.com)

The Promise of Wilcox

What started out as a test well into formations of the Miocene epoch

O&G Attention Turns to the Atlantic OCS

Relatively limited oil and gas exploration and production has occurred on the Atlantic Outer Continental Shelf (OCS) when com- pared with the Gulf of Mexico (GOM). Ten oil and gas lease sales were held in the area between the mid-1970's and the mid- 1980's. Forty-seven exploratory wells were drilled. Those wells produced only five hydrocarbon discoveries - all of which have been abandoned as noncommercial. There are currently no oil and gas leases off the Atlantic coast. Leasing and resource man- agement activities for the Atlantic OCS area have been divided into four areas for planning purposes: 1. The North Atlantic Planning Area extends from Maine to New Jersey and includes over 92 million acres. Eight wells have been drilled and five discoveries have been made. However, there are currently no active leases in the area. 2. The Mid-Atlantic Planning Area extends from Delaware to North Carolina and includes over 113 million acres. This area had the most lease sales (5) and the most exploratory wells drilled (32). However, no discoveries have been made and no leases are currently active. A proposed lease sale in the 5-Year Program is located in this area. 3. The South Atlantic Planning Area extends from South Carolina to Florida and includes over 54 million acres. Only one lease sale has been held here and no leases are currently active. 4. The Straits of Florida encompasses over 9.5 million acres. Only one lease sale has been held here and no leases are cur- rently active. As part of the proposed leasing 5-Year Program in the Mid-Atlantic Planning Area, the Minerals Management Service (MMS) has proposed a single lease sale development off the coast of Virginia.

The proposal was issued and open for a comment period that ended in April. Another comment period will be opened in the sum- mer of 2006. Current presidential withdrawals or congressional moratoria have placed more than 85 percent of the OCS around the lower 48 states off limits to energy development, including all areas off Virginia. "The idea of leasing Federal waters off the coast of

Virginia comes in response to discussion in the

State's legislature about the potential of energy development off its coast," MMS Director Johnnie

Burton said. "However, no offshore development will occur off of Virginia unless the State's congression- al delegation works to lift the moratorium," said

Burton. The MMS is working to ensure a leasing plan is in place if Virginia seeks to end the moratori- um and encourage offshore oil and gas The MMS estimates there are approximately 85.9 billion bar- rels of oil and 419.9 trillion cubic feet of natural gas that may be technically recoverable from all Federal offshore areas. The estimate for both oil and gas increased about 15 percent compared with the 2001 report. A significant amount of environmental study would be required and State moratoria would have to be lifted before any exploration of the Mid-

Atlantic Planning Area could be considered.

However, as our Nation's oil and gas needs grow, the Atlantic OCS may become a more attractive and viable area for exploration. (Source: MMS Ocean

Science, March/April 2006)

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