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Assessment of undiscovered oil and gas resources in Central and South America

The U.S. Geological Survey recently completed an assessment of undiscovered conventional oil and gas resources in 130 selected petroleum provinces of the world (USGS, 2000). Of these 130 provinces, 23 are in South America, Central America, and the Caribbean area (fig. 1). The assessed provinces range from established petroleum provinces with long histories of production such as the Maracaibo Basin to frontier provinces with little or no petroleum production such as the Guyana-Suriname Basin. Not all provinces with historic production or potential production were assessed for the USGS 2000 Assessment. At present we are assessing many of the remaining oil and gas provinces in Central and South America. In each province we (1) geologically defined total petroleum systems, (2) defined assessment units within total petroleum systems, and (3) assessed the volume of undiscovered conventional oil and gas in each assessment unit. We defined 26 total petroleum systems and 55 assessment units in the 23 provinces.

Fact Sheet

Uranium, its impact on the national and global energy mix; and its history, distribution, production, nuclear fuel-cycle, future, and relation to the environment

The many aspects of uranium, a heavy radioactive metal used to generate electricity throughout the world, are briefly described in relatively simple terms intended for the lay reader. An adequate glossary of unfamiliar terms is given. Uranium is a new source of electrical energy developed since 1950, and how we harness energy from it is explained. It competes with the organic coal, oil, and gas fuels as shown graphically. Uranium resources and production for the world are tabulated and discussed by country and for various energy regions in the United States. Locations of major uranium deposits and power reactors in the United States are mapped. The nuclear fuel-cycle of uranium for a typical light-water reactor is illustrated at the front end-beginning with its natural geologic occurrence in rocks through discovery, mining, and milling; separation of the scarce isotope U-235, its enrichment, and manufacture into fuel rods for power reactors to generate electricity-and at the back end-the reprocessing and handling of the spent fuel. Environmental concerns with the entire fuel cycle are addressed. The future of the use of uranium in new, simplified, 'passively safe' reactors for the utility industry is examined. The present resource assessment of uranium in the United States is out of date, and a new assessment could aid the domestic uranium industry.

Circular

U.S. Geological Survey world petroleum assessment 2000: Description and results

The set of 4 CD-ROM discs, documents the U.S. Geological Survey World Petroleum Assessment 2000 and includes estimates of the quantities of conventional oil, gas, and natural gas liquids outside the United States that have the potential to be added to reserves in the next 30 years (1995 to 2025). Two components, undiscovered resources and reserve growth, are estimated. One hundred and forty nine total petroleum systems and two hundred and forty six assessment units (subdivisions of total petroleum systems) were assessed. The supporting maps, data, text and tables produced by the World Energy Assessment Team during this five-year project (1995-2000) are included in the set.

Data Series

Environmental issues of petroleum exploration and production: Introduction

Energy is the lifeblood of our planet Earth, an essential commod- ity that powers the expanding global economy. Starting in the 1950s, oil and natural gas became the main sources of primary energy for the increasing world population, and this dominance is expected to continue for several more decades (Edwards, 1997; Energy Information Administration (EIA), 2004). In the United States, petroleum production started in 1859 when Drake's well was drilled near Titusville, Pennsylvania, and oil and natural gas currently supply approximately 63% of the energy consumption; forecasts indicate that by 2025, their use will increase by about 40% to 28.3 million bbl/day and to 31.4 tcf/yr (EIA, 2004). The clear benefits of petroleum consumption, however, can carry major environmental impacts that may be regional or global in scale, in- cluding air pollution, global climate change, and oil spills. This vol- ume of Environmental Geosciences, covering environmental impacts of petroleum exploration and production, does not address these major impacts directly because air pollution and global warming are issues related primarily to petroleum and coal uses, and major oil spills are generally attributed to marine petroleum transportation, such as the Exxon Valdez's 1989 spill of 260,000 bbl of oil into Prince William Sound, Alaska. Exploration for and production of petroleum, however, have caused local detrimental impacts to soils, surface and groundwa- ters, and ecosystems in the 36 producing states in the United States (Richter and Kreitler, 1993; Kharaka and Hanor, 2003). These im- pacts arose primarily from the improper disposal of some of the large volumes (presently estimated at 20 billion bbl/yr total pro- duced) of saline water produced with oil and gas, from accidental hydrocarbon and produced-water releases, and from abandoned oil wells that were orphaned or not correctly plugged (Kharaka et al., 1995; Veil et al., 2004). Impacts and ground-surface disturbances, in the order of several acres per well, can also arise from related activities such as site clearance, construction of roads, tank bat- teries, brine pits and pipelines, and other land modifications nec- essary for the drilling of exploration and production wells and construction of production facilities. The cumulative impacts from these operations are high, because a total of about 3.5 million oil.

Environmental Geosciences

Reserve growth in oil fields of the North Sea

The assessment of petroleum resources of the North Sea, as well as other areas of the world, requires a viable means to forecast the amount of growth of reserve estimates (reserve growth) for discovered fields and to predict the potential fully developed sizes of undiscovered fields. This study investigates the utility of North Sea oil field data to construct reserve-growth models. Oil fields of the North Sea provide an excellent dataset in which to examine the mechanisms, characteristics, rates and quantities of reserve growth because of the high level of capital investments, implementation of sophisticated technologies and careful data collection. Additionally, these field data are well reported and available publicly. Increases in successive annual estimat es of recoverable crude oil volumes indicate that oil fields in the North Sea, collectively and in each country, experience reserve growth. Specific patterns of reserve growth are observed among countries and primary producing reservoir-rock types. Since 1985, Norwegian oil fields had the greatest volume increase; Danish oil fields increased by the greatest percentage relative to 1985 estimates; and British oil fields experienced an increase in recoverable oil estimates for the first ten years since 1985, followed by a slight reduction. Fields producing primarily from clastic reservoirs account for the majority of the estimated recoverable oil and, therefore, these fields had the largest volumetric increase. Fields producing primarily from chalk (limestone) reservoirs increased by a greater percentage relative to 1985 estimates than did fields producing primarily from clastic reservoirs. Additionally, the largest oil fields had the greatest volumetric increases. Although different reserve-growth patterns are observed among oil fields located in different countries, the small number of fields in Denmark precludes construction of reserve-growth models for that country. However, differences in reserve-growth patterns among oil fields that produce from primarily clastic and primarily chalk reservoirs, in addition to a greater number of fields in each of the two categories, allow separate reserve-growth models to be constructed based on reservoir-rock type. Reserve-growth models referenced to the date of discovery and to the date of first production may be constructed from North Sea field data. Years since discovery or years since first production are used as surrogates for, or measures of, field-development effort that is applied to promote reserve growth. Better estimates of recoverable oil are made as fields are developed. Because much of the field development occurs some time later than the field discovery date, reserve-growth models referenced to the date of first production may provide a more appropriate measure of development than does date of discovery. ?? 2005 EAGE/Geological Society of London.

Petroleum Geoscience

Reference samples for the earth sciences

A revised list of reference samples of interest to geoscientists has been extended to include samples for the agronomist, the archaeologist and the environmentalist. In addition to the source from which standard samples may be obtained, references or pertinent notes for some samples are included. The number of rock reference samples is now almost adequate, and the variety of ore samples will soon be sufficient. There are very few samples for microprobe work. Oil shales will become more important because of the outlook for world petroleum resources. The dryland equivalent of a submarine basalt might be useful in studies of sea-floor spreading and of the geochemistry of basalts. The Na- and K-feldspars of BCS (British Chemical Standards—Bureau of Analysed Samples), NBS (National Bureau of Standards), and ANRT (Association Kationale de la Recherche Technique) could serve as trace-element standards if such data were available. Similarly, the present NBS flint and plastic clays, as well as their predecessors, might be useful for archaeological pottery studies. The International Decade for Ocean Exploration may stimulate the preparation of ocean-water standards for trace elements or pollutants and a standard for manganese nodules.

Geochimica et Cosmochimica Acta

Improved USGS methodology for assessing continuous petroleum resources

This report presents an improved methodology for estimating volumes of continuous (unconventional) oil and gas resources within the United States and around the world. The methodology is based on previously developed U.S. Geological Survey methodologies that rely on well-scale production data. Improvements were made primarily to how the uncertainty about estimated ultimate recoveries is incorporated in the estimates. This is particularly important when assessing areas with sparse or no production data, because the new methodology allows better use of analog data from areas with significant discovery histories.

Data Series

New methodology for assessing underground natural gas storage resources – Example from Michigan Basin, United States

Energy consumption in the United States (U.S.) and across the world is shifting away from traditional fossil fuels like coal and oil, and towards natural gas and renewable sources, including hydrogen. Because gas demand is typically greatest during cold seasons and renewable sources sometimes produce variable supplies, it is important to store energy for use when demand exceeds supply. Whereas batteries and tanks typically store energy above ground, geologic (underground) storage may be able to retain much greater quantities of energy over much longer durations (e.g., Matos et al. 2019; Buursink et al. 2023). Consequently, the U.S. Geological Survey (USGS) is developing a methodology to locate new geologic energy storage sites with an initial focus on depleted hydrocarbon reservoirs followed by estimates of associated pore space or gas storage capacity. Depleted hydrocarbon fields in Michigan Basin in the U.S. already host large quantities of injected natural gas (about 681 billion cubic feet of seasonal gas capacity in 42 gas storage facilities; U.S. Energy Information Administration 2024). Therefore, we used this basin as an example to assess potential new storage resources alongside existing storage capacity and carbon dioxide sequestration resources (e.g., Katz and Coats 1968; Haagsma et al. 2020). In Michigan Basin gas storage is taking place in reservoirs within several key hydrocarbon producing formations with different lithologies, including the informal Stray sandstone of the Michigan Formation and the pinnacle reefs of the Niagara Group (Gautier et al. 1995; Swezey et al. 2015). The assessment methodology introduced here consists of two steps relying on both well information and reservoir data.

Michigan

Updated United Nations Framework Classification for reserves and resources of extractive industries

The United Nations have studied how the oil and gas resource classification developed jointly by the SPE, the World Petroleum Congress (WPC) and the American Association of Petroleum Geologists (AAPG) could be harmonized with the United Nations Framework Classification (UNFC) for Solid Fuel and Mineral Resources (1). The United Nations has continued to build on this and other works, with support from many relevant international organizations, with the objective of updating the UNFC to apply to the extractive industries. The result is the United Nations Framework Classification for Energy and Mineral Resources (2) that this paper will present. Reserves and resources are categorized with respect to three sets of criteria: ??? Economic and commercial viability ??? Field project status and feasibility ??? The level of geologic knowledge The field project status criteria are readily recognized as the ones highlighted in the SPE/WPC/AAPG classification system of 2000. The geologic criteria absorb the rich traditions that form the primary basis for the Russian classification system, and the ones used to delimit, in part, proved reserves. Economic and commercial criteria facilitate the use of the classification in general, and reflect the commercial considerations used to delimit proved reserves in particular. The classification system will help to develop a common understanding of reserves and resources for all the extractive industries and will assist: ??? International and national resources management to secure supplies; ??? Industries' management of business processes to achieve efficiency in exploration and production; and ??? An appropriate basis for documenting the value of reserves and resources in financial statements.

Conference Paper

Kimmeridgian Shales Total Petroleum System of the North Sea Graben Province

The North Sea Graben of northwestern Europe, World Energy Project Province 4025, is entirely offshore within the territorial waters of Denmark, Germany, the Netherlands, Norway, and the United Kingdom. Extensional tectonics and failed rifting are fundamental to the distribution of oil and gas in the province. Accordingly, the geologic history and reser-voir rocks of the province are considered in the context of their temporal relationship to the principal extension and rifting events. The oil and gas accumulations of the province are considered part of a single petroleum system: the Kimmeridg-ian Shales Total Petroleum System (TPS). Source rocks of the Kimmeridgian Shales TPS were deposited in Late Jurassic to earliest Cretaceous time during the period of intensive exten-sion and rifting. The Kimmeridgian Shales contain typical 'type II' mixed kerogen. Oil and gas generation began locally in the North Sea Graben Province by Cretaceous time and has continued in various places ever since. Reservoirs are found in strata with ages ranging from Devonian to Eocene. Pre-rift reservoirs are found in fault-block structures activated during rifting and can be of any age prior to the Late Jurassic. Syn-rift reservoirs are restricted to strata actually deposited during maximum extension and include rocks of Late Jurassic to earliest Cretaceous age. Post-rift reservoirs formed after rifting and range in age from Early Cretaceous to Eocene. Seals are diverse, depending upon the structural setting and reservoir age. Pre-rift reservoirs com-monly have seals formed by fine-grained, post-rift sedimentary sequences that drape the Late Jurassic to earliest Cretaceous structures. Contemporaneous shales such as the Kimmeridge Clay seal many syn-rift reservoirs. Fields with post-rift res-ervoirs generally require seals in fine-grained Tertiary rocks. In most of the North Sea Graben, source rocks have been continuously buried since deposition. Structural trap forma-tion has also taken place continuously since Mesozoic time. As a result, oil and gas are present in a wide variety of settings within Province 4025. Assessment units for the World Energy Project were defined geographically in order to capture regional differ-ences in exploration history, geography, and geological evolution. Three geographic areas were assessed. The Viking Graben, in the northern part of the province, includes both United Kingdom and Norwegian territorial areas. The Moray Firth/Witch Ground in the west-central part of the province is entirely in United Kingdom. waters. The Central Graben in the southern part of the province includes territorial areas of Denmark, Germany, the Netherlands, Norway, and the United Kingdom. The North Sea Graben is estimated to contain between 4.3 and 25.6 billion barrels (BBO) of undiscovered, conventionally recoverable oil. Of that total, the Viking Graben is believed to contain 2.2 to 14.8 BBO of undiscov-ered oil, the Moray Firth/Witch Ground may contain between 0.3 and 1.9 BBO, and the Central Graben was estimated to contain undiscovered oil resources of 1.7 to 8.8 BBO. Prov-ince 4025 was also estimated to hold between 11.8 and 75 trillion cubic feet (TCF) of undiscovered natural gas. Of this total, 6.8 to 44.5 TCF is thought to exist in the Viking Graben, 0.6 to 3.4 TCF is estimated to be in the Moray Firth/Witch Ground, and 4.5 to 27.1 TCF of undiscovered gas is estimated to be in the Central Graben.

Bulletin

The measurement of mangrove characteristics in southwest Florida using spot multispectral data

An intensive in situ sampling program near Marco Island, Florida during 19–23 October 1988 collected information on mangrove type, maximum canopy height, and percent canopy closure. These data were correlated with selected vegetation index information derived from analysis of SPOT multispectral (XS) data obtained on 21 October 1988. The Normalized Difference (ND) vegetation index information was the most highly correlated index with percent canopy closure (r=0.91). Percent canopy closure information can be used as a surrogate for mangrove density which is of great value when predicting which parts of the mangrove ecosystem are at greatest risk after an oil spill occurs. Such information is very valuable when constructing oil spill Environmental Sensitivity Index (ESI) Maps for tropical regions of the world.

Florida

Analytical resource assessment method for continuous (unconventional) oil and gas accumulations - The "ACCESS" Method

The U.S. Geological Survey (USGS) periodically assesses petroleum resources of areas within the United States and the world. The purpose of this report is to explain the development of an analytic probabilistic method and spreadsheet software system called Analytic Cell-Based Continuous Energy Spreadsheet System (ACCESS). The ACCESS method is based upon mathematical equations derived from probability theory. The ACCESS spreadsheet can be used to calculate estimates of the undeveloped oil, gas, and NGL (natural gas liquids) resources in a continuous-type assessment unit. An assessment unit is a mappable volume of rock in a total petroleum system. In this report, the geologic assessment model is defined first, the analytic probabilistic method is described second, and the spreadsheet ACCESS is described third. In this revised version of Open-File Report 00-044 , the text has been updated to reflect modifications that were made to the ACCESS program. Two versions of the program are added as appendixes.

Open-File Report

Geothermal energy: clean power from the Earth's heat

Societies in the 21st century require enormous amounts of energy to drive the machines of commerce and to sustain the lifestyles that many people have come to expect. Today, most of this energy is derived from oil, natural gas, and coal, supplemented by nuclear power. Local exceptions exist, but oil is by far the most common source of energy worldwide. Oil resources, however, are nonrenewable and concentrated in only a few places around the globe, creating uncertainty in long-term supply for many nations. At the time of the Middle East oil embargo of the 1970s, about a third of the United States oil supply was imported, mostly from that region. An interruption in the flow of this import disrupted nearly every citizen’s daily life, as well as the Nation’s economy. In response, the Federal Government launched substantial programs to accelerate development of means to increasingly harness “alternative energies”—primarily biomass, geothermal, solar, and wind. The new emphasis on simultaneously pursuing development of several sources of energy recognized the timeless wisdom found in the proverb of “not putting all eggs in one basket.” This book helps explain the role that geothermal resources can play in helping promote such diversity and in satisfying our Nation’s vast energy needs as we enter a new millennium. For centuries, people have enjoyed the benefits of geothermal energy available at hot springs, but it is only through technological advances made during the 20th century that we can tap this energy source in the subsurface and use it in a variety of ways, including the generation of electricity. Geothermal resources are simply exploitable concentrations of the Earth’s natural heat (thermal energy). The Earth is a bountiful source of thermal energy, continuously producing heat at depth, primarily by the decay of naturally occurring radioactive isotopes—principally of uranium, thorium, and potassium—that occur in small amounts in all rocks. This heat then rises to and through the Earth’s surface, where it escapes into the atmosphere. The amount of heat that flows annually from the Earth into the atmosphere is enormous—equivalent to ten times the annual energy consumption of the United States and more than that needed to power all nations of the world, if it could be fully harnessed. Even if only 1 percent of the thermal energy contained within the uppermost 10 kilometers of our planet could be tapped, this amount would be 500 times that contained in all oil and gas resources of the world. How might we benefit from this vast amount of thermal energy beneath our feet? Where, by what means, and how much of the Earth’s natural heat can be usefully harnessed? These are especially important questions to contemplate, because global population is expected to soon exceed seven billion and many scientists believe that the world’s fossilfuel resources may be substantially depleted within this century. Faced with such prospects, both the public and private sectors are working toward more fully utilizing the Earth’s abundant thermal energy and other alternative energy resources. A skeptic might question the wisdom of devoting much national effort to geothermal energy development, especially because many experts think that geothermal heat can contribute at most about 10 percent to the Nation’s energy supply using current technologies. However, ongoing advances in exploration and heat-extraction technologies are improving our ability to use the resource and may substantially increase the geothermal contribution to the Nation’s energy supply. In an attempt to help national planners and average citizens alike understand the nature and energy potential of geothermal resources, this book (1) describes the distribution and nature of geothermal energy, (2) reviews the common types of geothermal systems that provide useful energy with current technology, (3) considers potential geothermal resources that might someday be tapped with developing technologies, and (4) summarizes the role of earth-science information in assessing and harnessing geothermal resources wherever they occur worldwide. The predecessor to this book (Tapping the Earth’s Natural Heat, U.S. Geological Survey Circular 1125, published in 1994) summarized the situation in the early 1990s. In an effort to support national energy planners, this new circular incorporates more recent advances in geothermal science and technology.

Circular

Database for Assessment Unit-Scale Analogs (Exclusive of the United States)

This publication presents a database of geologic analogs useful for the assessment of undiscovered oil and gas resources. Particularly in frontier areas, where few oil and gas fields have been discovered, assessment methods such as discovery process models may not be usable. In such cases, comparison of the assessment area to geologically similar but more maturely explored areas may be more appropriate. This analog database consists of 246 assessment units, based on the U.S. Geological Survey 2000 World Petroleum Assessment. Besides geologic data to facilitate comparisons, the database includes data pertaining to numbers and sizes of oil and gas fields and the properties of their produced fluids.

Open-File Report

The Sirte Basin province of Libya; Sirte-Zelten total petroleum system

The Sirte (Sirt) Basin province ranks 13th among the world?s petroleum provinces, having known reserves of 43.1 bil-lion barrels of oil equivalent (36.7 billion barrels of oil, 37.7 tril-lion cubic feet of gas, 0.1 billion barrels of natural gas liquids). It includes an area about the size of the Williston Basin of the north-ern United States and southern Canada (?490,000 square kilome-ters). The province contains one dominant total petroleum system, the Sirte-Zelten, based on geochemical data. The Upper Cretaceous Sirte Shale is the primary hydrocarbon source bed. Reservoirs range in rock type and age from fractured Precam-brian basement, clastic reservoirs in the Cambrian-Ordovician Gargaf sandstones, and Lower Cretaceous Nubian (Sarir) Sand-stone to Paleocene Zelten Formation and Eocene carbonates commonly in the form of bioherms. More than 23 large oil fields (>100 million barrels of oil equivalent) and 16 giant oil fields (>500 million barrels of oil equivalent) occur in the province. Abstract 1 Production from both clastic and carbonate onshore reservoirs is associated with well-defined horst blocks related to a triple junc-tion with three arms?an eastern Sarir arm, a northern Sirte arm, and a southwestern Tibesti arm. Stratigraphic traps in combina-tion with these horsts in the Sarir arm are shown as giant fields (for example, Messla and Sarir fields in the southeastern portion of the province). Significant potential is identified in areas marginal to the horsts, in the deeper grabens and in the offshore area. Four assessment units are defined in the Sirte Basin prov-ince, two reflecting established clastic and carbonate reservoir areas and two defined as hypothetical units. Of the latter, one is offshore in water depths greater than 200 meters, and the other is onshore where clastic units, mainly of Mesozoic age, may be res-ervoirs for laterally migrating hydrocarbons that were generated in the deep-graben areas. The Sirte Basin reflects significant rifting in the Early Cre-taceous and syn-rift sedimentary filling during Cretaceous through Eocene time, and post-rift deposition in the Oligocene and Miocene. Multiple reservoirs are charged largely by verti-cally migrating hydrocarbons along horst block faults from Upper Cretaceous source rocks that occupy structurally low posi-tions in the grabens. Evaporites in the middle Eocene, mostly post-rift, provide an excellent seal for the Sirte-Zelten hydrocarbon system. The offshore part of the Sirte Basin is complex, with subduction occurring to the northeast of the province boundary, which is drawn at the 2,000-meter isobath. Possible petroleum systems may be present in the deep offshore grabens on the Sirte Rise such as those involving Silurian and Eocene rocks; however, potential of these systems remains speculative and was not assessed.

Bulletin

Undiscovered petroleum of the Brazilian interior sag basins

This paper, the second in a series dealing with undiscovered petroleum in South American basins (exclusive of Venezuela and Colombia), focuses on the four large intracratonic (or interior) sag basins of Brazil: the Solimoes, Amazonas, Parnaiba, and Parana. The smaller Chaco basin also is discussed, although in less detail. Preliminary estimates of undiscovered hydrocarbons in the five basins are 0.228 billion barrels of oil (BBO) and 11.870 trillion cubic feet of gas (TCFG). Because the mean values originally estimated by the World Energy Resources Program at the U.S. Geological Survey appear to be low when viewed in light of the recent (1983-1993) history of petroleum reserves in South America, the mean values were revised upward based on the original identified reserves. The recalculated mean values are 10.18 BBO and 20.52 TCFG. In general, exploration in these basins is in an immature stage. The Solimoes basin has the greatest initial estimated undiscovered reserves of oil (0.04 BBO), and the Parana basin has the greatest initial estimated undiscovered reserves of gas (5.08 TCFG). The most important plays in the Solimoes and structurally similar Amazonas basins are the fold and fault closures associated with the wrench systems found in the basins. The plays in the Parana basin are limited to possible structural traps linked to faultassociated closures, and possibly to some wrench-related features.

International Geology Review

Reserve Growth of Alberta Oil Pools

This Open-File Report is based on a presentation delivered at the Fourth U.S. Geological Survey Workshop on Reserve Growth on March 10-11, 2008. It summarizes the results of a study of reserve growth of oil pools in Alberta Province, Canada. The study is part of a larger effort involving similar studies of fields in other important petroleum provinces around the world, with the overall objective of gaining a better understanding of reserve growth in fields with different geologic/reservoir parameters and different operating environments. The goals of the study were to: 1. Evaluate historical oil reserve data and assess reserve growth. 2. Develop reserve growth models/functions to help forecast hydrocarbon volumes. 3. Study reserve growth sensitivity to various parameters ? for example, pool size, porosity, oil gravity, and lithology. 4. Compare reserve growth in oil pools/fields of Alberta provinces with those from other large petroleum provinces.

Open-File Report

Mineral resource management of the Outer Continental Shelf : leasing procedures, evaluation of resources, and supervision of production operations on leased lands of the Outer Continental Shelf

An important function of the Geological Survey is the evaluation and management of the mineral resources of the Outer Continental Shelf, particularly with respect to oil and gas, salt, and sulfur. Production of oil and gas from the Outer Continental Shelf of the United States has increased substantially over the past 20 years and represents an increasing percentage of total United States production. As discovery of major onshore production of oil and gas has become more difficult, the search has moved into the surrounding waters where submerged sedimentary formations are conducive to the accumulation of oil and gas. Increased energy demands of recent years have accelerated the pace of offshore operations with a corresponding improvement in technology as exploration and development have proceeded farther from shore and into deeper water. While improved technology and enforcement of more stringent regulations have made offshore operations safer, it is unrealistic to believe that completely accident-free operations can ever be achieved. Only slightly more than six percent of the world's continental terrace is adjacent to the United States, but less than one percent has been explored for oil and gas. Since the lead time for the development of offshore oil and gas resources can be as much as a decade, they do not provide an immediate energy supply but should be viewed in the light of a near-term source with a potential of becoming a medium-range source of supply pending the development of alternative energy sources. Revenues from the Outer Continental Shelf are deposited to the general fund of the United States Treasury. A major portion of these funds is allocated to the Land and Water Conservation Fund, the largest Federal grant-in-aid program of assistance to States, counties, and cities for the acquisition and development of public parks, open space, and recreation lands and water.

Circular