1 / 30

“NATURAL GAS DEVELOPMENT IN MISSISSIPPI” PRESENTATION BY US OIL & GAS ASSOCIATION July, 2005

“NATURAL GAS DEVELOPMENT IN MISSISSIPPI” PRESENTATION BY US OIL & GAS ASSOCIATION July, 2005. An Energy Profile Of Mississippi. Up to ten (10) major natural gas pipelines in state Mississippi produces annually about 115 Billion Cubic Feet (BCF) of natural gas

nat
Download Presentation

“NATURAL GAS DEVELOPMENT IN MISSISSIPPI” PRESENTATION BY US OIL & GAS ASSOCIATION July, 2005

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. “NATURAL GAS DEVELOPMENT IN MISSISSIPPI” PRESENTATION BY US OIL & GAS ASSOCIATION July, 2005

  2. An Energy Profile Of Mississippi • Up to ten (10) major natural gas pipelines in state • Mississippi produces annually about 115 Billion Cubic Feet (BCF) of natural gas • Alabama, about 335 BCF Annually • Natural gas first produced: 1923 • Forty-three counties have natural gas/oil production • Mississippi ranks 16th among producing states • Texas ranks first at about 5 Trillion Cubic Feet (TCF) annually

  3. An Energy Profile Of Mississippi • Natural Gas Production, peak year: 1981 (181 BCF) • Mississippi produces annually about 16 Million Barrels And Ranks 14th among producing states • Crude Oil Production, peak year: 1970 (65 Million Barrels) • Cumulative Oil and Gas Severance Taxes: $1.5 Billion • Current Projected Severance Taxes: $60 Million • Current “Wellhead Value”: $1 Billion+ • Industry Employment: 9906Oil and Gas Extraction: 3885 Refining: 1621 Transportation: 1700 Wholesale: 2700

  4. Potential Natural Gas Developments In Mississippi • Continued exploration for deep and shallow gas onshore including non-traditional areas of State • Coal bed methane potential in North and South Mississippi • Offshore natural gas development • Continued expansions/development of existing pipeline network and storage • Imported natural gas/LNG facilities proposed on Coast

  5. U. S. Natural Gas Facts • Safe, efficient, environmentally friendly energy source • Burns cleaner than any other fossil fuel • Provides about 25% of U.S. energy needs • 60 Million Households • 40% of primary energy for industry • Current domestic production at 19 Trillion Cubic Feet • U. S. consumption at 23 Trillion Cubic Feet • Approximately 1,100 rigs drilling for natural gas in U.S.

  6. Where We Get Our Natural Gas • 85% from domestic production • 13% from imported natural gas from Canada • 2% imported natural gas (LNG)

  7. What Are the Expectations Facing Industry? • Economic Growth • Increased energy use with more efficiency • Natural gas an integral part of energy equation • Increasing Use of Gas in Power Generation • Capital & operating cost efficiencies • Superior environmental performance • “Gas-Intensive” North American Industry • Reliability • “Reasonable” Consumer Costs

  8. Generation by Fuel Type, TWH Capacity, GW 6,000 1,600 1,400 5,000 1,200 4,000 1,000 800 3,000 Dual-Fuel Dual Fuel 600 2,000 400 1,000 200 0 0 1995 2000 2005 2010 2015 2020 2025 1995 2000 2005 2010 2015 2020 2025 Gas-Fired Generation Has Reshaped Demandand Coal-Fired Generation Is Likely to Grow Renewables Natural Gas Oil/Distillate Coal Hydroelectric Nuclear U.S. Figures Only

  9. Future Supplies Will Comefrom Traditional and New Sources 35 LNG 30 ALASKA 25 MACKENZIE DELTA NON-ARCTIC CANADA 20 TCF ROCKIES 15 GOM DEEPWATER GOM SHELF 10 5 OTHER LOWER-48 0 1990 1995 2000 2005 2010 2015 2020 2025

  10. Gulf Coast Onshore:Declining Over Time

  11. The Mississippi Mineral Resources Institute Goals of the MMRI are: • Promote mineral resource and related environmental research and education • Provide academic background and practical expertise to interested industry, academia and government agencies • Promote the transfer of technology between academia, industry and government • To ensure that future scientists and engineers receive appropriate training by providing education, work experience, and financial support in academic fields complementary to the goals of the Institute

  12. Eastern Gulf CoastMiocene Producing Field Clusters Miocene production is clustered, extending from onshore to offshore Subject of 2003 MMRI Study

  13. Mississippi State Offshore Lease Block Map No Leasing Tennessee Gas Pipeline Two – 36” and 30” ChandeleurGas Pipeline Two – 12” and 16” Previous Wells Drilled 1952 Gulf Melben #1 State of Miss Block 3 TD Lower Cretaceous 1956 Willis Hughes #1 State of Miss Block 2 TD Lower Cretaceous 1972 Floto #1 State of Miss Block 3 TD Lower Cretaceous 1985 Sapphire #1 State of Miss Block 4TD Lower Cretaceous 1989 Chevron #1 State of Miss Block 3 20,000TD Jurassic

  14. Mississippi and Alabama Miocene Trend • High success rate • Good natural gas markets/infrastructure • Shallow drilling depth • Shallow water depths • Relatively high development costs, but predictable

  15. Coastal Community Perceptions and Concerns Related to Offshore Exploration • “No difference between oil and natural gas” • “Rigs and platforms are visual pollution” • “Concerns about tourism” • “Dumping and discharging pollute the water” • “Risks of accidents and disasters” • “Lights and noise are disturbing” • “Negative effects on National Seashore Islands”

  16. Natural Gas Development/Production: Inherently environmentally sensitive • No contaminants in natural gas produced at shallow depths • Water is separated and contained at facility • Shallow gas is 99% pure methane and goes directly into pipeline • Leasing conditions would require “zero discharge” permit

  17. Natural Gas Production at Shallow Depths: Inherently Safe • Low pressure • Stringent regulations • Detailed monitoring • Control equipment

  18. Stringent Regulatory Oversight • U. S. Corps of Engineers • U. S. Coast Guard • U. S. Environmental Protection Agency • Department of Marine Resources • Mississippi Development Authority • Attorney General • Secretary of State • National Oceanic and Atmospheric Administration • Mississippi State Oil and Gas Board • Mississippi Department of Environmental Quality

  19. Mobile Bay Miocene (Shallow Gas) Production Platform Distance of Two (2) Miles, 10/20/97

  20. Mobile Bay Miocene (Shallow Gas) Production Platform Distance of Five (5) Miles, 10/20/97

  21. Mobile Bay Miocene (Shallow Gas) Production Platform Distance of Ten (10) Miles, 10/20/97

  22. Mobile Bay Miocene Production Platform 500’ (Feet) South of Platform in Water

  23. Mobile Bay Miocene (Shallow Gas) Well Facility 200’ (Feet) South of Facility in Water

  24. Mobile Bay Miocene Production Platform One (1) Mile West of Platform in Water

  25. Mobile Bay Miocene Production Platform Three (3) Miles West of Platform in Water

  26. 3’ Satellite Platform Shallow Waters 20’ or less ~ 20’ above water surface ~ 24’x24’ (~. 013 acre) Production Footprint ~ 20’ above water surface ~ 12’x12’ (~. 004 acre) Photos courtesy of Alabama O&G Board

  27. Navigation Buoy Footprint – slightly larger than a navigation buoy Photo courtesy of Alabama O&G Board

  28. Natural Gas Development: Important to Mississippi Based on University of Mississippi, MMRI Study, 350 Billion Cubic Feet (BCF) • Approximately $200/300 Million in royalty and severance tax income at today’s market prices • 6% severance tax rate, minimum 3/16ths royalty • Revenue goes to Education Trust Fund, Coastal Counties, Gulf Wildlife Protection Fund • Lease bonus monies, sales taxes on goods and services, ad valorem, income tax impacts • Jobs, supply industries

  29. Natural Gas Development: Important to Mississippi • Natural gas is a key natural resource and important Mississippi asset. • Important to determine through science and exploration the scope of Mississippi’s resource base to maximize development in a responsible manner for the benefit of the State.

More Related