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The NewsRoom
Office of the Secretary
Date: October 4, 2005
Interior Secretary Gale Norton Reports on
Gulf of Mexico Energy Status
Washington, DC
–With the United States extremely dependent on the Gulf of Mexico for
energy resources, the one-two punch delivered by
Hurricanes Katrina
and Rita has created unprecedented challenges. Interior Secretary
Gale Norton today provided a preliminary report on damage to oil and
gas facilities and the ongoing efforts of the energy industry and the
Federal Government to restore these resources.
“Despite such intense winds and
powerful waves offshore, we experienced no loss of life or significant
spills from any offshore well on the outer continental shelf,” said
Norton. “Personal and environmental
safety are two of the major goals
of the Department of the Interior and our Minerals Management Service
(MMS).”
Many workers, including some who
lost their homes and possessions, are in the process of re-manning the
facilities and preparing them to resume production.
Of the 4,000
platforms that the
MMS administers, 3,050 platforms were in the
path of Hurricanes
Katrina and Rita. The preliminary damage assessment indicates that
108 of the older “end of life” facilities not built to MMS’ upgraded
design standards were destroyed. They account for only 1.7% of the
Gulf’s oil production and 0.9% of the Gulf’s gas production. Another
53 platforms suffered significant damage. As a result, only a very
small percentage of production is expected to be permanently lost.
Major new facilities withstood the
storms better, with only one major facility destroyed and four
receiving significant damage. Repairs are already underway on the
damaged facilities, but a substantial portion of production is
expected to require several months to resume.
“Those offshore facilities that
withstood the storms best were those constructed to the 1988 MMS
upgraded design standards,” said Norton. “Of all of the
facilities constructed after the 1988 upgraded standards, only one
platform was significantly damaged. We are currently working to
determine whether that damage was a result of the storm itself or
whether another facility collided with it.” (See photos
below.)
Since
Hurricane Ivan last year,
the MMS has been focusing study on the mooring systems of
Mobile
Offshore Drilling Units (MODU’s), 19 of which were torn from their
anchor moorings and went adrift during Hurricanes Katrina and Rita.
Secretary Norton has called a November 17 conference at which industry
and regulators will come together to address the issue.
The Minerals Management Service
has taken a number of actions to
facilitate the process of returning
energy resources to America, consistent with the need for safety.
These measures include expediting review of requests for temporary
barging of oil or flaring of small amounts of natural gas; expediting
approval process for pipeline repairs; waiving of cost recovery fees
until January 2006; and maintaining continuous operations in the Gulf
area despite evacuation and relocation of the MMS New Orleans office
and damage to district offices.
Figures released this afternoon by
MMS indicate that currently 90% of Gulf oil production and 72% of Gulf
natural gas production remains
shut in. Also 342, or 42%, of Gulf
platforms are still unmanned. Seventeen of 134 drilling rigs, or 13%,
remain evacuated. Current information will continue to be posted on
the Minerals Management Service website as it is collected and
verified.
MMS, part of the U.S. Department
of the Interior, oversees 1.76 billion acres of the Outer Continental
Shelf, managing offshore energy and minerals while protecting the
human, marine, and coastal environments. The OCS provides 30 percent
of oil and 21 percent of natural gas produced domestically, as well as
sand used for coastal restoration. MMS collects, accounts for, and
disburses mineral revenues from Federal and American Indian lands, and
contributes to the Land and Water Conservation Fund and other special
use funds,
with Fiscal Year 2004 disbursements of about $8 billion and more than
$143 billion since 1982.
Relevant Web Site:
MMS Main Website
Media Contacts:
Dan DuBray
202-208-6415
Susan
Weaver
202-208-6184
MMS: Securing Ocean Energy & Economic Value for
America
U.S. Department of the Interior
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