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Oil and Gas for Managers (3000-74)

Oil and Gas for Managers (3000-74). Pete Culp Assistant Director Minerals, Realty & Resource Protection May 1999. Overview for this Session:. Course Expectations. Resource and Industry. BLM Program Mission. Course Objectives. To enable managers:

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Oil and Gas for Managers (3000-74)

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  1. Oil and Gas for Managers (3000-74) Pete Culp Assistant Director Minerals, Realty & Resource Protection May 1999

  2. Overview for this Session: • Course Expectations. • Resource and Industry. • BLM Program Mission.

  3. Course Objectives To enable managers: • To make effective Oil & Gas resource use decisions. • To promote environmentally responsible development of public’s oil and gas resources.

  4. Oil and Gas For Managers

  5. Scope of Oil and Gas Industry • Distribution of oil & gas fields. • Resource potential. • Use and dependence. • Role of petroleum.

  6. U.S. Oil & Gas Fields

  7. U.S. Exploration History

  8. HOT SPOTS FOR FUTURE GAS DEVELOPMENT Oil and Gas Fields of the U.S. POWDER RIVER BASIN WYOMING AND MONTANA SOUTHWEST WYOMING WYOMING, UTAH, AND COLORADO SAN JUAN BASIN NEW MEXICO , COLORADO AND UTAH

  9. U.S. Dept. of Energy 1998 Forecast History Projections

  10. Domestic and Global Oil Production is Expected to Decline Projected U.S. and Canada

  11. Continued Decline for U.S. Oil Production Source: DOE, 1998

  12. Declining U.S. Production Forecast for the Future Increasing Consumption Volatile Pricing

  13. The Flow of Oil Exploration Fuels & Other Uses Production Refining and Processing Storage Manufacturing Transportation

  14. What a Barrel of Crude Oil Makes Product: Gallons per barrel gasoline 19.5 home heating oil/diesel fuel 9.2 jet fuel 4.1 residual fuel oil 2.3

  15. Summary • Importance of resource… Economic and Military Security Feed Stocks Revenue Employment

  16. BLM Oil and Gas Program

  17. BLM Oil and Gas Program • Oil and Gas Mission • Scope of the Program • Budget • Processes

  18. Oil and Gas Program Mission • To encourage the environmentally responsible development of public oil and gas resources to ensure a fair return to the public, build communities, and preserve the health of the land. • To meet our trust responsibilities to Native Americans in managing their oil and gas interests. “It is the mission of the Bureau of Land Management to sustain the health, diversity, and productivity of the public lands for the use and enjoyment of present and future generations…….” ---The BLM Mission

  19. BLM Oil & Gas Program Building a Better Government Ensuring Environmentally Sound and Safe Operations Ensuring a Fair Return on Public Resources A Balanced Approach Fostering Economic Growth

  20. Scope of Program

  21. Bureau Oil and Gas Statistics U.S. Onshore Production OIL GAS Oil & Gas Estate

  22. Bureau Oil and Gas Statistics Producing: 20,106 leases 10.5 million acres 304.56 Subsurface Only 48,268+ Oil & Gas leases 23.4 million acres Non Producing: 28,162 leases 12.9 million acres 259.44 Surface & Subsurface

  23. BLM Oil & Gas Benefit-Cost States Reclamation Fund U.S. Treasury States (Net Recpt. Share) BLM FY-98

  24. BLM FY-98 Accomplishments 3,167 ~57,000 producing/producible wells 2,305 2,026

  25. Budget • Strategic Plan • Annual Work Plan

  26. Oil & Gas Program Strategic Goals Tie-ins All Aspects of the Program Pre- and Post Lease NEPA All Aspects of the Program Leasing & Development Pre- & Post Lease . Inspection & Enforcement Orphan Wells Industry Requested Approvals ALMRS AFMSS Rehab sites & roads when no longer needed Native American Trust Responsibilities Outreach

  27. Performance Measures • Decrease APD approval times. • FY-98 is base year. • Goal: Reduce delay by 10% in FY-99.

  28. National Oil & Gas Budget Emphasis for FY-1999 Rule Making AFMSS Customer Service Planning Leasing Development Production Verification

  29. Workload Measures • Leasing • Operations • Reservoir Management • Agreements • Inspection & Enforcement • Indian Technical Assistance

  30. BLM Program Costs FY-99 FY-99 Locatable Minerals 3% Other Leasable and Salable Minerals 5% Coal 25% Oil & Gas 59% BLM Program Receipts FY-97

  31. Recent Funding Trends Oil & Gas Program MLR

  32. Processes APPEALS

  33. BLM Oil & Gas Time Frames Plan Revisions

  34. Summary

  35. What’s Next? • Learning the Industry... • BLM at Work... • Balancing Resource Use... • Collaborative Management... • Summary Exercise…

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