ERRATA

Deepwater Gulf of Mexico 2005: Interim Report of 2004 Highlights OCS Report MMS 2005-023 

P. ix, line 5: “111” should read “107.” Of the 111 deepwater projects that have come on line, 

four are no longer producing. 

P. 1, line 15: Conoco-Phillips’ Magnolia, installed in December 2004 in Garden Banks Block 

783, is now the deepest TLP in the world in 4,674 ft (1,425 m) water depth. 

P. 2, table 1: “MC 247”should read “MC 427” for La Femme. “Dominion” should read 

“Murphy” for Thunder Hawk. “Murphy” should read “Anadarko” for South Dachshund. 

“Unocal” should read “Shell” for Tobago. The name of the partner which announced the 

discovery was inadvertently substituted for the operator. 

P. 3, line 8: “111” should read “107,” and “94” should read “90.” Of the 111 deepwater projects 

that have come on line, 107 are still producing, up from 90 that were producing at the end 

of 2003. 

P. 16, line 37: Magnolia in Garden Banks Block 783 now holds the record for the deepest TLP in 

the world in 4,674 ft (1,425 m) water depth. Production from the facility is expected to 

be 35 MBOPD by the end of 2005. 

P. 31, line 5: “Marco Polo” should read “Magnolia.” 
OCS Report 

MMS 2005-023 

Deepwater Gulf of Mexico 2005: 

Interim Report of 2004 Highlights

Authors 

Leanne S. French 

Eric G. Kazanis 

Lance C. Labiche 

Tara M. Montgomery 

G. Ed Richardson 

U.S. Department of the Interior 

Minerals Management Service New Orleans 

Gulf of Mexico OCS Region May 2005 
ON COVER — The Thunder Horse facility (2004 photo courtesy of BP/Marc Morrison).
TABLE OF CONTENTS 

Page 

FIGURES......................................................................................................................................................v

TABLES .....................................................................................................................................................vii

PREFACE....................................................................................................................................................ix

INTRODUCTION ........................................................................................................................................1

BACKGROUND ..........................................................................................................................................3

Definitions..............................................................................................................................................3

Expanding Frontier.................................................................................................................................3

Exploration Activity ...............................................................................................................................3

Challenges and Rewards ........................................................................................................................4

LEASING AND ENVIRONMENT..............................................................................................................7

Leasing Activity .....................................................................................................................................7

Leasing Trends.......................................................................................................................................7

Future Lease Activity ...........................................................................................................................10

Ocean Current Monitoring ...................................................................................................................10

DRILLING AND DEVELOPMENT..........................................................................................................13

Drilling Activity ...................................................................................................................................13

Appraisal Activity ................................................................................................................................13

Development Systems..........................................................................................................................16

Independence Hub................................................................................................................................22

RESERVES AND PRODUCTION ............................................................................................................23

Discoveries...........................................................................................................................................23

Reserve Potential..................................................................................................................................23

Production Trends ................................................................................................................................24

Production Rates...................................................................................................................................25

Hurricane Ivan......................................................................................................................................26

SUMMARY AND CONCLUSIONS .........................................................................................................31

Development Cycle ..............................................................................................................................31

Expanding Frontier...............................................................................................................................32

CONTRIBUTING PERSONNEL...............................................................................................................35

REFERENCES ...........................................................................................................................................37

iii 
APPENDICES ............................................................................................................................................39

Appendix A. Announced Deepwater Discoveries (Sorted by Project Name1). ................................39

Appendix B. Deepwater Studies Program........................................................................................45

Appendix C. Average Annual GOM Oil and Gas Production. ........................................................47

iv 
FIGURES 

Page 

Figure 1. Frontier plays in the deepwater Gulf of Mexico.................................................................... 4

Figure 2. Deepwater discoveries in the Gulf of Mexico. ...................................................................... 6

Figure 3. Active leases in the Gulf of Mexico. ..................................................................................... 8

Figure 4. Number of leases issued each year, subdivided by DWRRA water-depth categories........... 9

Figure 5. Number of leases bid on for each deepwater interval............................................................ 9

Figure 6. Anticipated lease expirations in 2006-2007, 2008-2009, and 2010-2011 in the GOM....... 11

Figure 7. All deepwater wells drilled in the GOM, subdivided by water depth. ................................ 14

Figure 8. Deepwater exploratory wells drilled in the GOM, subdivided by water depth. .................. 14

Figure 9 . Deepwater development wells drilled in the GOM, subdivided by water depth. ................ 15

Figure 10. Deepwater EP’s, DOCD’s, and DWOP’s received in the Gulf of Mexico since 1992. ...... 15

Figure 11. Progression of spar deepwater development systems (courtesy of Technip-Coflexip)....... 21

Figure 12. Cylinders of Red Hawk cell spar (photo courtesy of Kerr-McGee). ................................... 22

Figure 13. Number of deepwater field discoveries and new hydrocarbons found (MMS reserves, 

MMS resources, and industry-announced discoveries). ...................................................... 23

Figure 14. Estimated U.S. oil and gas production in 2003. .................................................................. 25

Figure 15a. Average production rates for shallow-water and deepwater oil well completions.............. 25

Figure 15b. Average production rates for shallow-water and deepwater gas well completions............. 26

Figure 16. Platforms within the path of Hurricane Ivan in the Gulf of Mexico.................................... 28

Figure 17a. Comparison of total GOM oil shut in and GOM deepwater oil shut in............................... 29

Figure 17b. Comparison of total GOM gas shut in and GOM deepwater gas shut in. ........................... 29

Figure 18. Deepwater projects that began production in 2004 and those expected to begin

production by yearend 2007. ............................................................................................... 33

Figure 19. Deepwater lease activity and oil/natural gas prices (prices from U.S. Energy

Information Administration: oil through January 15, 2005, and natural gas through 

December 4, 2004). ............................................................................................................. 34

v 
TABLES 

Page 

Table 1 List of 2004 Deepwater Discoveries..................................................................................... 2

Table 2 List of Deepwater Discoveries in Water Depths Greater than 7,000 ft (2,134 m)................ 5

Table 3 LNG Projects Proposed in the Gulf of Mexico .................................................................... 6

Table 4 Number of Active Leases by Water-Depth Interval ............................................................. 7

Table 5 Development Systems of Productive Deepwater GOM Projects ....................................... 17

Table 6 Top 20 Producing Blocks in GOM..................................................................................... 24

vii 
PREFACE 

This publication is the sixth that the Minerals Management Service (MMS) has released chronicling the 

resounding levels of deepwater exploration and development activity in the Gulf of Mexico (GOM). The 

GOM is in its eleventh year of sustained expansion in deepwater. 

Since the first major deepwater leasing boom in 1995-1996, we have entered into a sustained, robust

expansion of activity. As of March 2005, there were 111 deepwater hydrocarbon production projects on 

line. Production from deepwater grew to an estimated 922 thousand barrels of oil per day and 3.9 billion 

cubic feet of natural gas per day by the end of 2004. This was a meteoric rise of 510 percent and 680

percent for oil and gas, respectively, since 1995. The increase would have been even greater if not for 

shut-in production caused by Hurricane Ivan. 

More than 900 exploration wells have been drilled in the deepwater Gulf since 1995. At least 115 

deepwater discoveries have been announced since then. Significantly, in the last six years, there have

been 20 industry-announced discoveries in water depths greater than 7,000 feet (2,134 meters), seven in

2004 alone. 

The state-of-the-art technology that has been developed to drill and produce the Gulf of Mexico 

deepwater resources is at the leading edge of the world’s engineering feats. This year will mark the 

expected installation of BP’s Thunder Horse facility, the largest semisubmersible in the world at 59,500 

tons. Historically, there is a strong reliance on subsea production tiebacks in deepwater with as many as

79 projects on production. The importance of this technology for deepwater development is exemplified

by the Na Kika floating production system (FPS), installed in 2003, which now supports six separate 

subsea tieback projects – East Anstey, Fourier, Herschel, Ariel, Coulomb, and Kepler. Subsea production 

has expanded from a water depth of 1,462 ft (446 m) with Placid Oil Company’s Green Canyon Block 29

project in 1988 to 5,318 ft (1,621 m) with Shell's Mensa in 1997, and to 7,591 ft (2,314 m) with Shell’s 

Coulomb/Na Kika project in 2004. 

Production from spars has now accelerated so that thirteen spars were in production as of early 2005. 

Most of the spars are either classic spars or truss spars; however, the world’s first cell spar was installed 

by Kerr-McGee in 2004. 

The MMS plays a critical role in this energy expansion by ensuring the receipt of fair market value for the 

sale of leases, evaluating and approving new technology, and facing new challenges regulating the 

drilling and production of prospects in ever deepening water depths. The MMS’s development of new 

environmental review procedures to ensure timely but thorough review of projects while continuing to

protect the environment has been innovative and critical to keep deepwater project timelines minimized. 

Chris C. Oynes

Regional Director

Minerals Management Service

ix 
INTRODUCTION 

This Deepwater Gulf of Mexico 2005 report is a condensed and updated edition of the biennial deepwater 

report published by Minerals Management Service (MMS). This new report provides an up-to-date 

review of the deepwater frontier and presents highlights of 2004. However, this report contains fewer

trend analyses, since only one year has elapsed since the last report. 

It was an exciting year for exploration in the deepwater Gulf of Mexico (GOM). Deepwater exploratory

drilling rebounded in 2004 with 94 wells drilled compared with 74 wells drilled in 2003. The number of

ultra-deepwater exploratory wells drilled in 2004 matched the record set in 2001, during which 36 ultradeepwater wells were drilled. Furthermore, 2004 set a record for the number of exploratory wells drilled

in water depths greater than 7,500 feet (ft). Exploration also saw the drilling of 15 deepwater discoveries 

(table 1). Seven of these discoveries were drilled in water depths greater than 7,000 ft (2,133 meters (m)),

a record number of discoveries. 

Significant milestones also occurred in deepwater development in 2004. These include the installation of

the world’s largest spar at Holstein in Green Canyon Block 644 and the world’s first cell spar at Red 

Hawk in Garden Banks Block 877. Another exciting development was the installation of the deepest 

tension-leg platform (TLP) in the world at Marco Polo (Green Canyon Block 608) in 4,320 ft (1,317 m)

of water. In another industry first, several independent exploration and production companies formed a 

consortium known as the Atwater Valley Producers Group to facilitate the development of multiple ultradeepwater discoveries in the previously untapped Eastern Gulf of Mexico through the development of the 

“Independence Hub.” In addition, encouraging results from important appraisal wells in Green Canyon 

and Walker Ridge have fortified the possible future development of projects in those areas. 

This report is divided into five sections. 

The Background section discusses 

• highlights of current deepwater GOM activity and 

• new discoveries and geologic plays. 

The Leasing and Environment section discusses 

• historical water-depth and bidding trends in deepwater leasing, 

• future deepwater lease activity, and 

• ocean current monitoring. 

The Drilling and Development section discusses 

• deepwater rig activity, 

• appraisal activity,

• deepwater development systems, and 

• the Independence Hub facility.

The Reserves and Production section discusses 

• discoveries in new, lightly tested plays with large potential, 

• Hurricane Ivan’s impact on production, and 

1 
• high deepwater production rates. 

The Summary and Conclusions section discusses 

• increasing deepwater oil and gas production and anticipated new fields and 

• difficulties evaluating deepwater leases before their terms expire. 

Table 1

List of 2004 Deepwater Discoveries 

Project Name Area/Block Water Depth (ft) Operator 

Atlas NW LL 5 8,810 Anadarko 

Cheyenne LL 399 8,987 Anadarko

Crested Butte GC 242 2,846 Nexen 

Dawson Deep GB 625 2,900 Kerr-McGee 

Goldfinger MC 771 5,423 Dominion

Jack WR 759 6,965 ChevronTexaco

La Femme MC 247 5,800 Newfield 

Puma GC 823 4,130 BP

Thunder Hawk MC 734 5,724 Dominion 

Ticonderoga GC 768 5,250 Kerr-McGee

Tiger AC 818 9,004 ChevronTexaco

Tobago AC 859 9,627 Unocal

San Jacinto DC 618 7,850 Dominion 

Silvertip AC 815 9,226 ChevronTexaco

South Dachshund LL 2 8,340 Murphy 

AC = Alaminos Canyon 

DC = DeSoto Canyon 

GB = Garden Banks 

GC = Green Canyon

LL = Lloyd Ridge 

MC = Mississippi Canyon 

WR = Walker Ridge 

2 
BACKGROUND 

DEFINITIONS

For purposes of this report, deepwater is defined as water depths greater than or equal to 1,000 ft (305 m)

and ultra-deepwater is defined as water depths greater than or equal to 5,000 ft (1,524 m). More detailed 

definitions may be found in the annual Estimated Oil and Gas Reserves, Gulf of Mexico, December 31, 

2001 report (Crawford et al., 2004). 

This report refers to deepwater developments both by field names and operator-designated project names. 

Appendix A provides locations and additional information regarding these fields and projects. All 

production volumes and rates reflect data through June 2004 unless otherwise noted. 

EXPANDING FRONTIER

At the end of 2004, there were 111 producing projects in the deepwater GOM, up from 94 at the end of

2003. Historically, deepwater production rates rose by well over 100 thousand barrels of oil per day 

(MBOPD) and 400 million cubic ft of gas per day (MMCFPD), respectively, each year from 1997 

through 2002. The year 2003 marked the first time that production rates experienced a minimal increase. 

Over the last 13 years, there has been an expansion in many phases of deepwater activity. There are 

approximately 8,150 active leases in the Gulf of Mexico OCS, 53 percent of which are in deepwater. 

(Note that lease statuses may change daily, so the current number of active leases is an approximation.)

Contrast this to approximately 5,600 active Gulf of Mexico leases in 1992, only 27 percent of which were 

in deepwater. On average, there were 29 rigs drilling in deepwater in 2004 (same as in 2003), compared 

with only 3 rigs in 1992. 

EXPLORATION ACTIVITY

Exploration drilling in the deepwater GOM has found over 2.5 billion barrels of oil equivalent (BOE)

since 2002. Recent discoveries in new deepwater plays continue to expand the exploration potential of 

the deepwater GOM. Several recently announced deepwater discoveries encountered large potential

reservoirs in sands of Paleogene age (Oligocene, Eocene, and Paleocene). This older portion of the

geologic section has been lightly tested in the GOM, and the discovery of reservoirs of this geologic age 

has opened wide areas of the GOM to further drilling. Figure 1 illustrates two frontier deepwater plays in

the GOM, the Mississippi Fan Foldbelt and the Perdido Foldbelt, which include reservoirs of Paleogene 

age. Announced discoveries in 2003 and 2004 in the Alaminos Canyon area (Trident, Great White, 

Tobago, Tiger, and Silvertip) and in the Walker Ridge area (St. Malo, Cascade, Chinook, and Jack)

provide evidence of productive Paleogene reservoirs in a wide area of the deepwater GOM. 

Figure 1 also shows a composite outline of numerous plays in the Eastern GOM; these range in age from 

Pleistocene through Jurassic. Successful exploration has occurred in the Eastern GOM with announced 

discoveries in DeSoto Canyon (Spiderman/Amazon and San Jacinto) and in Lloyd Ridge (Atlas, Atlas 

NW, Cheyenne, and South Dachshund). 

Although not a geologic play, the ultra-deepwater areas of the GOM can also be considered “frontier 

territory.” During the last six years there have been 20 industry-announced discoveries in water depths 

greater than 7,000 ft (2,134 m) (see table 2). Announced volumes for these discoveries are more than 

1.8 billion BOE. 

3 
Figure 1. Frontier plays in the deepwater Gulf of Mexico. 

In summary, the presence of pre-Miocene reservoirs, successes in the Eastern GOM sale area, and

significant discoveries in the ultra-deepwater demonstrate the continuing exploration potential in the 

deepwater GOM. These new plays are large in areal extent, have multiple opportunities, and contain 

potentially huge traps with the possibility of billions of barrels of hydrocarbons. 

CHALLENGES AND REWARDS

Significant challenges in addition to environmental considerations exist in deepwater. Deepwater

operations are very expensive and often require significant amounts of time between the initial 

exploration and first production. Despite these challenges, deepwater operators often reap great rewards.

Figure 2 shows the history of discoveries in the deepwater GOM. There has been a shift toward deeper 

water over time, and the number of deepwater discoveries continues at a steady pace. 

In addition to the significant number of deepwater discoveries, the flow rates of deepwater wells and the

field sizes of deepwater discoveries are often quite large. These factors are critical to the economic

success of deepwater development. In addition to their large sizes, deepwater fields have a wide 

geographic distribution and range in geologic age from Pleistocene through Paleocene. The number of 

discoveries older than Miocene continues to increase.

Offshore liquefied natural gas (LNG) terminals may bring significant additional gas into the GOM and 

may vie for pipeline capacity with future deepwater developments. In February 2005, the buoy system 

for the Gulf Gateway Energy Bridge LNG project was successfully installed in the GOM. The world's 

first offshore offload of an LNG carrier was expected to take place mid-March 2005. Table 3 shows

proposed LNG terminals in the GOM. 

4 
Table 2

List of Deepwater Discoveries in Water Depths Greater than 7,000 ft (2,134 m) 

Project Name Area/Block Water Depth (ft) Discovery Year 

Aconcagua MC 305 7,379 1999

Camden Hills MC 348 7,530 1999 

Blind Faith MC 696 7,116 2001 

Merganser AT 37 8,064 2001

St. Malo WR 678 7,326 2001 

Trident AC 903 9,816 2001

Cascade WR 206 8,143 2002

Great White AC 857 7,425 2002 

Vortex AT 261 8,422 2002

Atlas LL 50 9,180 2003

Chinook WR 469 9,104 2003

Jubilee AT 349 8,891 2003

Spiderman/Amazon DC 621 8,100 2003

Atlas NW LL 5 8,810 2004 

Cheyenne LL 399 8,987 2004

San Jacinto DC 618 7,850 2004 

Silvertip AC 815 9,226 2004

South Dachshund LL 2 8,340 2004 

Tiger AC 818 9,004 2004

Tobago AC 859 9,627 2004

AC = Alaminos Canyon 

AT = Atwater Valley 

DC = DeSoto Canyon 

LL = Lloyd Ridge 

MC = Mississippi Canyon 

WR = Walker Ridge 

5 
Figure 2. Deepwater discoveries in the Gulf of Mexico. 

Table 3

LNG Projects Proposed in the Gulf of Mexico 

Project Name Company Area and Block Facility Type

Port Pelican Port Pelican, LLC 

(affiliate of ChevronTexaco) Vermilion 140 Gravity-Based 

Structures

Gulf Gateway 

Energy Bridge Excelerate Energy West Cameron 603 Submerged Turret 

Buoy 

Gulf Landing Gulf Landing, LLC (subsidiary of Shell 

US Gas & Power) West Cameron 213 Gravity-Based 

Structures

Main Pass 

Energy Hub 

Freeport-McMoRan Energy, LLC Main Pass 299 New and Existing 

Structures

Pearl Crossing Pearl Crossing LNG Terminal, LLC 

(affiliate of ExxonMobil) West Cameron 220 Gravity-Based 

Structures

Compass Port Compass Port, LLC (subsidiary of 

ConocoPhillips) Mobile 910 Gravity-Based 

Structures

Beacon Port Beacon Port, LLC (subsidiary of 

ConocoPhillips) West Cameron 167 Gravity-Based 

Structures

6 
LEASING AND ENVIRONMENT 

LEASING ACTIVITY

Figure 3 shows all active leases at the end of 2004 and the great extent of deepwater leasing in the GOM.

The inset highlights the relative percent of active leases in each water-depth category. The limited 

number of active leases in the Eastern GOM is related to leasing restrictions. In 2001 and 2003, sales 

were held offshore of Alabama, approximately 100 miles from the coastline, which added 109 active 

leases to the total. The approximate number of active leases for certain water-depth ranges is shown in

table 4. 

After enactment of the Deep Water Royalty Relief Act (DWRRA), deepwater leasing activity exploded. 

Other factors contributing to the increased activity included several key deepwater discoveries, the

recognition of high deepwater production rates, the evolution of deepwater development technologies,

and the general rise in oil and gas prices. Leasing activity in the deepwater GOM has remained fairly

level since 2001. 

Table 4

Number of Active Leases by Water-Depth Interval 

Number of Water Depth

Active Leases ft m

3,783 <1,000 <305

165 1,000-1,499 305-457

1,890 1,500-4,999 457-1,524

1,584 5,000-7,499 1,524-2,286

718 >7,500 >2,286

LEASING TRENDS

The water-depth categories depicted in figure 4 reflect the divisions used in the DWRRA. In 2004, two

lease sales were held—Sale 190 (Central GOM) and Sale 192 (Western GOM). Figure 4 shows that 889 

leases were issued from these sales. 

Two water-depth ranges in figure 4 are worthy of discussion. The first is the less than 200-m (656-ft)

interval. From 2000 through 2001, industry interest was rekindled in the traditional shelf blocks. Since 

2002, leasing activity at this water depth has leveled off. The second trend of note involves the greater

than 800-m (2,625-ft) interval. From 2000 to 2003, a steady increase in the number of leases issued has 

occurred in this water-depth interval. The peak in 2001 was the result of the addition of Eastern GOM

leases to those from the annual Central GOM and Western GOM sales. For 2004, there appears to be a 

leveling off of interest for the greater than 800-m (2,625-ft) water-depth interval. 

Figure 5 was derived from the data in figure 4 but displays the deepwater categories used elsewhere in 

this report (shallow-water data are excluded from figure 5). These deepwater data show the rapid

increase in leasing activity that began in 1995. Although GOM leasing activity plummeted in 1999, there 

7 
8

Figure 3. Active leases in the Gulf of Mexico. 
176

261

466

509

620

525

265

165

325

453

418

474

465

4

15

25

52

66

44

35

16

14

3333

15

51

17

36

30

103

110

99

58

17

28

74

6868

58

7

24

39

171

712

771

135

186

382

281

332

315

1,110

0

200

400

600

800

1,000

1,200

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Lease Sale Year

Number of Leases Issued

<200 m

200-400 m

400-800 m

>800 m

DWRRA post-DWRRA

Figure 4. Number of leases issued each year, subdivided by DWRRA water-depth categories. 

4

24 3

7

68

14

56

15

1

28

213

64 9

53

387

305

120

30

484

504

242

26

260

282

328

7

82

53

33

12

122

74

25

24

256

94

110

26

172

160 18

14

216

154

23

38

253

146

76

0

100

200

300

400

500

600

Number of Leases Bid On 

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Lease Sale Year

1,000-1,499 ft

1,500-4,999 ft

5,000-7,499 ft

>7,500 ft

DWRRA post-DWRRA

Figure 5. Number of leases bid on for each deepwater interval. 

9 
has since been a steady increase in leases awarded in the 1,500-4,999-ft (457-1,524-m) interval, 

subtracting the Eastern GOM leasing in 2001. Since 1998, leasing in the >7,500-ft (>2,286-m) interval 

has remained relatively flat until a notable increase in activity in 2004. 

FUTURE LEASE ACTIVITY

Since the deepwater arena is already heavily leased, the number of leases that will be relinquished or

expire will influence activity in future lease sales. Given the fact that most companies can drill only a

small percentage of their active leases, it is likely that many high-quality leases will expire without being 

tested. The impending turnover of these leases often results in “farm-outs” to nonmajors, opportunities 

for different companies to gain a lease position and, potentially, a more rapid exploration and 

development of the acreage. Ultimately, an untested and undeveloped lease will expire and possibly be 

leased again.

Figure 6 shows leases that will expire in 2006-2007, 2008-2009, and 2010-2011, assuming each lease 

expires at the end of its primary lease term (without a lease-term extension). Note that lease terms vary

according to water depth. Primary lease terms are five years for blocks in less than 400 m (1,312 ft), 

eight years for blocks in 400-799 m (1,312-2,621 ft), and ten years for blocks in 800 m (2,625 ft) or 

greater. The availability of previously leased blocks is expected to increase dramatically in 2006-2007 as 

a result of the leasing boom that began in 1996 and continued through 1998. The lease expiration 

projections will pressure leaseholders to drill and evaluate their holdings and will provide opportunities

for other companies to enter an active play by acquiring leases as they expire or by obtaining “farm-outs”

from companies with untested acreage. 

OCEAN CURRENT MONITORING

The most energetic currents in the Gulf of Mexico affect the ocean from its surface down to 

approximately the 3,000-ft (914-m) water-depth level with varying speeds. Currents as high as 4 knots 

(kn) have been observed from the surface to 1,000-ft (305-m) water depths. These upper currents 

(known as loop currents) taper off between 1,000- and 3,000-ft (305- and 914-m) depths. 

Beneath the 3,000-ft (914-m) water-depth level, other currents migrate around the deep waters of the 

GOM. These deep currents were once thought to be minimal and were not a major consideration in most 

structure designs. In 1999, industry reported significant currents below 3,000 ft (914 m). This 

information led to a Safety Alert (Notice No. 180) and a subsequent study of deep currents by MMS

(Hamilton et al., 2003). This study revealed significant deep currents of up to 2 kn at some locations. 

Incidents have occurred that demonstrate the need for more accurate data in hindcasting and forecasting 

events and in daily operations. The MMS initially issued an NTL (2004-G21) in November 2004, which 

was superseded by NTL 2005-G02 (issued in January 2005 and effective in March 2005) titled 

“Deepwater Ocean Current Monitoring on Floating Facilities.” The NTL implemented a program where 

operators of deepwater offshore production facilities and mobile offshore drilling units (MODU’s) collect

data on ocean currents and submit them for publication on an industry-sponsored Internet website. Data 

collected on currents may improve fatigue forecast models and help establish responsible design criteria, 

resulting in increased reliability of deepwater structures, thereby reducing risk to human lives, offshore 

facilities, and the ocean environment. 

10 
Figure 6. Anticipated lease expirations in 2006-2007, 2008-2009, and 2010-2011 in the

GOM. 

11 
DRILLING AND DEVELOPMENT 

The average number of deepwater rigs operating in the GOM remained steady at 29 from 2003 to 2004

but rose in the early part of 2005. Numerous deepwater prospects will go undrilled as the primary lease 

terms expire due, in part, to industry decisions to drill higher grade prospects as well as the limited

number of rigs available for deepwater drilling in the GOM. While many deepwater-capable drilling rigs

are under long-term contractual agreements, efforts began in early 2005 to move rigs from other parts of 

the world to the GOM and to recommission cold-stacked rigs. 

DRILLING ACTIVITY

The number of deepwater wells drilled generally increased from 1992 through 2001, decreased in 2002 

and 2003, and increased in 2004. Only original boreholes and sidetracks are included in the well counts 

used in this report. Wells defined as “by-passes” are specifically excluded. A “by-pass” is a section of 

well that does not seek a new objective; it is intended to drill around a section of the wellbore made

unusable by stuck pipe or equipment left in the wellbore. Figure 7 shows that drilling increased 

significantly in water depths greater than 5,000 ft (1,524 m) in 2004. 

Figures 8 and 9 further break down the deepwater well counts into exploratory and development wells, 

respectively. This report uses the designation of exploratory and development wells provided by the

operators. The data reflect the variations among operators in classifying wells as either development or 

exploratory. After a decrease in 2002 and 2003, there was a significant increase in the number of

exploratory wells drilled in 2004. Exploratory drilling in all water depths increased and, in 2004, 36 

wells were drilled in the ultra-deepwater, matching the record set in 2001. There were 16 exploratory 

wells drilled in the >7,500-ft (>2,286-m) water depth, setting a record for that water depth. There has 

been an overall decrease in the number of development wells drilled in the last year; however,

development drilling increased dramatically in the 5,000- to 7,499-ft (1,524- to 2,286-m) water depths. 

APPRAISAL ACTIVITY

Several significant appraisal wells were drilled in 2004, supporting the development of a project in Green 

Canyon and the potential development of discoveries in Walker Ridge. Unocal drilled a successful 

appraisal well at St. Malo in Walker Ridge Block 678, encountering more than 400 net ft (122 net m) of 

oil pay at depths greater than were encountered in the discovery well. The operator indicates that the field 

may be larger than previously suggested by the discovery well. 

BHP Billiton drilled their second appraisal well at Shenzi in Green Canyon Block 653 and encountered 

hydrocarbons in lower Miocene-aged reservoirs with approximately 330 ft (100 m) of net oil pay, which 

supports previous drilling. Further appraisal drilling to delineate the reservoir is ongoing. 

Additional appraisal activity in 2004 included a production test of ChevronTexaco’s Tahiti discovery well 

in Green Canyon Block 640. The well produced at a restricted rate of 15 MBOPD. Rate and pressure 

analyses indicate that the well may be capable of sustained flow of as much as 30 MBOPD. 

One indicator that MMS has found useful in projecting activity levels is the number of plans received. 

Figure 10 shows the number of deepwater Exploration Plans (EP), deepwater Development Operations

Coordination Documents (DOCD), and Conceptual Deep Water Operations Plans (DWOP) received each 

year since 1992 (DWOP’s were not required until 1995). The count of EP’s and DOCD’s includes initial, 

supplemental, and revised plans; only the initial submittals (Conceptual Part) of the DWOP’s are shown. 

Some shallow-water activities are included in the DWOP data because DWOP’s must be filed and 

approved for developments in greater than 1,000-ft (305-m) water depths and for all subsea developments 

regardless of water depth. 

13 
21

10

1

27

15

1

19

45

1

25

56

3

24

75

6

1

32

132

12

33

124

10

1

14

119

37

30

143

25

9

25

126

53

6

20

126

35

10

20

92

22

13

15

71

49

18

0

50

100

150

200

250

N

umber of Wells S

pudded

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

> 7,500 ft

5,000 - 7,499 ft

1,500 - 4,999 ft

1,000 - 1,499 ft

32

43

65

84

106

176

168 170

207 210

191

147

153

Figure 7. All deepwater wells drilled in the GOM, subdivided by water depth. 

1

3

1

3

15

7

38

1

8

38

2

7

50

6

1

17

81

9

20

88

9

1

10

61

31

8

67

16

9

5

73

30

6

10

44

19

10

7

43

13

11

10

48

20

16

0

20

40

60

80

100

120

N

umber of Wells Spudded

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

> 7,500 ft

5,000 - 7,499 ft

1,500 - 4,999 ft

1,000 - 1,499 ft

5

18

46

48

64

107

118

102 100

114

83

94

74

Figure 8. Deepwater exploratory wells drilled in the GOM, subdivided by water depth. 

14 
20

7

24

1

12

7

17

18

1

17

25

15

51

3

13

36

1

4

58

6

22

76

9

20

53

23

10

82

16

13

49

9

2

5

23

29

2

0

20

40

60

80

100

120

N

umber of Wells S

pudded

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

> 7,500 ft

5,000 - 7,499 ft

1,500 - 4,999 ft

1,000 - 1,499 ft

27 25

19

36

42

69

50

68

107

96

108

73

59

Figure 9 . Deepwater development wells drilled in the GOM, subdivided by water

depth. 

25

3

25

4

35

4

38

7

5

64

10

19

105

11

32

125

16

24

152

14

26

158

26

34

144

35

40

142

35

31

135

25

32

115

30

30

0

20

40

60

80

100

120

140

160

180

Number of Plans Received

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

Deepwater EP

Deepwater DOCD

DWOP

Figure 10. Deepwater EP’s, DOCD’s, and DWOP’s received in the Gulf of Mexico since 

1992. 

15 
There was a marked increase in EP’s, DOCD’s, and DWOP’s beginning in 1996. In recent years, 

however, there has been a moderate decrease in the number of these plans. 

DEVELOPMENT SYSTEMS

Development strategies vary for deepwater depending on reserve size, proximity to infrastructure, 

operating considerations (such as well interventions), economic considerations, and an operator’s interest 

in establishing a production hub for the area. Table 5 lists the systems that have begun production. Fixed 

platforms (e.g., Bullwinkle) have economic water-depth limits of about 1,400 ft (427 m). Compliant 

towers (e.g., Petronius) may be considered for water depths of approximately 1,000-3,000 ft (305-914 m). 

Tension-leg platforms (TLP’s) (e.g., Brutus and Marco Polo) are frequently used in 1,000- to 5,000-ft 

(305- to 1,524-m) water depths. Spars (e.g., Genesis), semisubmersible production units (e.g., Na Kika), 

and floating production, storage, and offloading (FPSO) systems (none in GOM) may be used in water 

depths ranging up to and beyond 10,000 ft (3,048 m). 

One of the development workhorses of the GOM is the spar and, in many ways, 2004 was the year of the

spar. Four deepwater projects began production using spar development systems in the GOM: Front 

Runner (GC 338/339), Devil’s Tower (MC 773), Red Hawk (GB 877), and Holstein (GC 645). In early

2005, Mad Dog (GC 782) went on production using a truss spar development system. Currently, there 

are three competing versions of spars used in the GOM: classic spar, truss spar, and cell spar (figure 11). 

In 2004, the world’s deepest dry-tree spar was installed over Devil’s Tower in 5,610 ft (1,710 m) of 

water. It is designed to produce as much as 60 MBOPD and 110 MMCFPD. Another notable installation

occurred in 2004 when BP began production from the world’s largest spar at Holstein in December 2004. 

Holstein has a hull diameter of 149 ft (45.5 m) and slot dimensions of 75 ft by 75 ft (22.9 m x 22.9 m). 

The hull diameter is twice that of Neptune, the first spar installed in the GOM. Holstein is expected to 

produce more than 100 MBOPD and 90 MMCFPD. 

In July 2004, Kerr-McGee began production from the world’s first cell spar at Red Hawk (GB 877) in 

5,334 ft (1,626 m) of water. The cell spar’s hull is made up of several identically sized cylinders 

surrounding a center cylinder (figure 12). The main advantages of the cell spar design are reduced

fabrication and transportation costs. Red Hawk is capable of producing 120 MMCFPD, with the 

flexibility to expand to 300 MMCFPD. 

The world’s largest semisubmersible production unit, the 59,500-ton Thunder Horse production, drilling, 

and quarters (PDQ) unit, recently arrived in the GOM following an eight-week journey from Korea. The 

topside modules, fabricated in Morgan City, Louisiana, were to be installed in Ingleside, Texas. 

Installation at Thunder Horse (MC 778) was slated for the end of the first quarter of 2005. The Thunder

Horse project has garnered worldwide interest because of its sheer massiveness. The distance from the

base of the hull to top of the drill rig is just over 450 ft (137 m). The immense deck area is approximately

three acres in area. The Thunder Horse unit was nearly four years in the making and will develop the

largest discovery ever made in the GOM. When fully operational, the unit will be capable of producing

an astounding 250 MBOPD and 200 MMCFPD. 

Another exciting development was Anadarko’s successful installation of the deepest TLP in the world at

Marco Polo (GC 608) in January 2004 in 4,320 ft (1,317 m) of water. Production capacity is 120 

MBOPD and 300 MMCFPD. 

16 
Table 5

Development Systems of Productive Deepwater GOM Projects

Year of First 

Production Project Name2 Operator Block Water

Depth (ft) System Type DWRR3

1979 Cognac Shell MC 194 1,023 Fixed Platform

1984 Lena ExxonMobil MC 280 1,000 Compliant Tower 

19881 GC 29 Placid GC 29 1,554 Semisubmersible/

Subsea

19881 GC 31 Placid GC 31 2,243 Subsea

1989 Bullwinkle Shell GC 65 1,353 Fixed Platform

1989 Jolliet ConocoPhillips GC 184 1,760 TLP

1991 Amberjack BP MC 109 1,100 Fixed Platform

1992 Alabaster ExxonMobil MC 485 1,438 Subsea

19931 Diamond Kerr-McGee MC 445 2,095 Subsea

1993 Zinc ExxonMobil MC 354 1,478 Subsea

1994 Auger Shell GB 426 2,860 TLP

1994 Pompano/

Pompano II BP VK 989 1,290 Fixed Platform/Subsea

1994 Tahoe/SE Tahoe Shell VK 783 1,500 Subsea

19951 Cooper Newfield GB 388 2,600 Semisubmersible

1995 Shasta ChevronTexaco GC 136 1,048 Subsea

1995 VK 862 Walter VK 862 1,043 Subsea

1996 Mars Shell MC 807 2,933 TLP/Subsea

1996 Popeye Shell GC 116 2,000 Subsea

1996 Rocky Shell GC 110 1,785 Subsea

1997 Mensa Shell MC 731 5,318 Subsea

1997 Neptune Kerr-McGee VK 826 1,930 Spar/Subsea

1997 Ram-Powell Shell VK 956 3,216 TLP

1997 Troika BP GC 200 2,721 Subsea

1998 Arnold Marathon EW 963 1,800 Subsea

1998 Baldpate Amerada Hess GB 260 1,648 Compliant Tower 

1998 Morpeth Eni EW 921 1,696 TLP/Subsea

1998 Oyster Marathon EW 917 1,195 Subsea

1999 Allegheny Eni GC 254 3,294 TLP

1999 Angus Shell GC 113 2,045 Subsea

1999 Dulcimer Mariner GB 367 1,120 Subsea Yes

17 
Table 5

Development Systems of Productive Deepwater GOM Projects

Year of First 

Production Project Name2 Operator Block Water

Depth (ft) System Type DWRR3

1999 EW 1006 Walter EW 1006 1,884 Subsea

1999 Gemini ChevronTexaco MC 292 3,393 Subsea

1999 Genesis ChevronTexaco GC 205 2,590 Spar

1999 Macaroni Shell GB 602 3,600 Subsea

1999 Penn State Amerada Hess GB 216 1,450 Subsea

1999 Pluto Mariner MC 674 2,828 Subsea Yes

1999 Ursa Shell MC 809 3,800 TLP

1999 Virgo TotalFinaElf VK 823 1,130 Fixed Platform Yes 

2000 Black Widow Mariner EW 966 1,850 Subsea Yes 

2000 Conger Amerada Hess GB 215 1,500 Subsea

2000 Diana ExxonMobil EB 945 4,500 Subsea

2000 Europa Shell MC 935 3,870 Subsea

2000 Hoover ExxonMobil AC 25 4,825 Spar

2000 King Shell MC 764 3,250 Subsea

2000 Marlin BP VK 915 3,236 TLP

2000 Northwestern Amerada Hess GB 200 1,736 Subsea Yes 

2000 Petronius ChevronTexaco VK 786 1,753 Compliant Tower 

2001 Brutus Shell GC 158 3,300 TLP

2001 Crosby Shell MC 899 4,400 Subsea

2001 Einset Shell VK 872 3,500 Subsea Yes

2001 EW 878 Walter EW 878 1,585 Subsea Yes 

2001 Ladybug ATP GB 409 1,355 Subsea

2001 Marshall ExxonMobil EB 949 4,376 Subsea

2001 MC 68 Walter MC 68 1,360 Subsea

2001 Mica ExxonMobil MC 211 4,580 Subsea

2001 Nile BP VK 914 3,535 Subsea

2001 Oregano Shell GB 559 3,400 Subsea

2001 Pilsner Unocal EB 205 1,108 Subsea Yes

2001 Prince El Paso EW 1003 1,500 TLP Yes 

2001 Serrano Shell GB 516 3,153 Subsea

2001 Typhoon ChevronTexaco GC 237 2,679 TLP Yes

18 
Table 5

Development Systems of Productive Deepwater GOM Projects

Year of First 

Production Project Name2 Operator Block Water

Depth (ft) System Type DWRR3

2002 Aconcagua TotalFinaElf MC 305 7,100 Subsea Yes

2002 Aspen BP GC 243 3,065 Subsea Yes

2002 Boomvang North Kerr-McGee EB 643 3,650 Truss Spar Yes 

2002 Camden Hills Marathon MC 348 7,216 Subsea Yes 

2002 Horn Mountain BP MC 127 5,400 Truss Spar Yes 

2002 King BP MC 84 5,000 Subsea

2002 King Kong Mariner GC 472 3,980 Subsea Yes 

2002 King's Peak BP DC 133 6,845 Subsea Yes 

2002 Lost Ark Samedan EB 421 2,960 Subsea Yes 

2002 Madison ExxonMobil AC 24 4,856 Subsea

2002 Manatee Shell GC 155 1,939 Subsea Yes

2002 Nansen Kerr-McGee EB 602 3,675 Truss Spar Yes 

2002 Navajo Kerr-McGee EB 690 4,210 Subsea Yes

2002 Princess Shell MC 765 3,600 Subsea

2002 Sangria Spinnaker GC 177 1,487 Subsea Yes

2002 Tulane Amerada Hess GB 158 1,054 Subsea Yes 

2002 Yosemite Mariner GC 516 4,150 Subsea Yes

2003 Boomvang East Kerr-McGee EB 668 3,795 Subsea

2003 Boomvang West Kerr-McGee EB 642 3,678 Subsea

2003 Boris BHP GC 282 2,378 Subsea Yes

2003 Dawson Kerr-McGee GB 669 3,152 Subsea

2003 Durango Kerr-McGee GB 667 3,105 Subsea

2003 East Anstey/

Na Kika Shell MC 607 6,590 FPS/Subsea4

2003 Falcon Pioneer EB 579 3,638 Subsea Yes

2003 Fourier/Na Kika Shell MC 522 6,950 FPS/Subsea4

2003 Gunnison Kerr-McGee GB 668 3,100 Truss Spar Yes 

2003 Habanero Shell GB 341 2,015 Subsea

2003 Herschel/Na Kika Shell MC 520 6,739 FPS/Subsea4

2003 Matterhorn TotalFinaElf MC 243 2,850 TLP Yes

2003 Medusa Murphy MC 582 2,223 Spar Yes

19 
Table 5

Development Systems of Productive Deepwater GOM Projects

Year of First 

Production Project Name2 Operator Block Water

Depth (ft) System Type DWRR3

2003 Pardner Anadarko MC 401 1,139 Subsea

2003 Tomahawk Pioneer GB 623 3,412 Subsea

2003 Zia Devon MC 496 1,804 Subsea

2004 Ariel/Na Kika BP MC 429 6,274 Subsea4

2004 Coulomb/Na Kika Shell MC 657 7,591 Subsea4

2004 Devil’s Tower Dominion MC 773 5,610 Truss Spar Yes 

2004 Diana South ExxonMobil AC 65 4,852 Subsea

2004 EB 598/599 Kerr-McGee EB 598 3,650 Subsea

2004 Front Runner Murphy GC 338 3,330 Truss Spar 

2004 Glider Shell GC 248 3,440 Subsea

2004 Harrier Pioneer EB 759 4,114 Subsea

2004 Holstein BP GC 645 4,344 Truss Spar 

2004 Kepler/Na Kika BP MC 383 5,759 Subsea4

2004 Llano Shell GB 386 2,663 Subsea

2004 Magnolia Conoco-Phillips GB 783 4,674 TLP

2004 Marco Polo Anadarko GC 608 4,320 TLP Yes 

2004 Medusa North Murphy MC 538 2,223 Subsea

2004 Raptor Pioneer EB 668 3,710 Subsea

2004 Red Hawk Kerr-McGee GB 877 5,334 Cell Spar Yes 

2005 Mad Dog BP GC 782 4,428 Truss Spar 

1

 Indicates projects that are no longer on production. 2

 Editions of this report prior to 2004 listed deepwater fields rather than projects. 3

 Indicates projects with one or more leases approved to receive DWRR. 4

 Na Kika FPS is located in Mississippi Canyon Block 474 in 6,340 ft (1,932 m) of water. 

AC = Alaminos Canyon

DC = DeSoto Canyon

EB = East Breaks 

EW = Ewing Bank 

GB = Garden Banks 

GC = Green Canyon

MC = Mississippi Canyon 

VK = Viosca Knoll 

20 
21 

classic truss cel

HOOVER 

L = length DIA = outside diameter W.D. = water depth 

Figure 11. Progression of spar deepwater development systems (courtesy of Technip-Coflexip). 
Figure 12. Cylinders of Red Hawk cell spar (photo courtesy of Kerr-McGee). 

INDEPENDENCE HUB

Independence Hub, LLC, an affiliate of Enterprise Products Partners L.P., has entered into agreements 

with the Atwater Valley Producers Group to gather natural gas from seven fields in the deepwater GOM.

Atwater Valley Producers Group includes Anadarko Petroleum Corporation, Dominion Exploration &

Production, Inc., Kerr-McGee Oil & Gas Corporation, Spinnaker Exploration Company, and Devon

Energy Corporation. Enterprise Products Partners will design, construct, install, and own the 

Independence Hub, and Anadarko will operate it. 

Independence Hub will be located on unleased Mississippi Canyon Block 920 in a water depth of

approximately 8,000 ft (2,438 m). The selection of the location for the permanently moored host facility 

was based on seafloor conditions and proximity to the anchor fields: Atlas (LL 050), Atlas NW (LL 005), 

Jubilee (AT 349), Merganser (AT 037), San Jacinto (DC 618), Spiderman (DC 621) and Vortex (AT

261). Murphy Oil’s South Dachshund (LL 002) discovery is also expected to be tied back to the 

Independence Hub. The 105-ft (32-m) deep-draft, semi-submersible platform will have excess payload 

capacity that will allow the tie-back of additional fields from other deepwater projects. The facility will

have capacity to produce 850 MMCFPD. Installation is slated for late 2006 and first production is

expected in mid-2007. 

22 
RESERVES AND PRODUCTION 

DISCOVERIES

Figure 13 shows the number of deepwater fields discovered each year since 1995, according to MMS 

criteria. (See appendix A for listings of deepwater projects and discoveries.) In an attempt to capture the

impact of the deepwater exploratory successes, figure 13 includes industry-announced discoveries as well 

as MMS-known proved reserves, unproved reserves, and resource estimates. The industry-announced 

discovery volumes contain considerable uncertainty, are based on limited drilling, include numerous 

assumptions, and have not been confirmed by independent MMS analyses. They do, however, illustrate

recent activity better than using only MMS-proved reserve numbers. The apparent decline of proved 

reserve additions in recent years is caused by the lag between discovery and development. 

0

500

1,000

1,500

2,000

2,500

3,000

1995199619971998199920002001200220032004

Field Discovery Year

Million Barrels of Oil Equivalent

0

2

4

6

8

10

12

14

16

18

20

Number of Discoveries

Proved reserves

Unproved reserves, resources, and

industry-announced discoveries Number of discoveries

DWRRA post-DWRRA

Figure 13. Number of deepwater field discoveries and new hydrocarbons found (MMS reserves,

MMS resources, and industry-announced discoveries). 

RESERVE POTENTIAL

A geologic-based estimate of future discoveries in the GOM is the 2000 Assessment (Lore et al., 2001). 

According to this document, the deepwater is expected to have ultimate reserves of approximately

71 billion barrels of oil equivalent (BOE), of which 56.2 billion BOE remain to be discovered.1

 These 

estimates compare favorably with the shallow-water ultimate reserves of approximately 65 billion BOE, 

of which 15.2 billion BOE remain to be discovered. Note that the 2000 Assessment uses the DWRRA 

 

1

 The forecasts were based on the MMS report Atlas of Gulf of Mexico Gas and Oil Sands (Bascle et al., 2001). 

23 
criteria, i.e., less than 200 m water depth is shallow water and greater than or equal to 200 m is deepwater. 

The 2005 Assessment is currently being compiled. 

PRODUCTION TRENDS

Table 6 shows that the most prolific blocks (on a BOE basis) are currently located in deepwater. 

Table 6 

Top 20 Producing Blocks in GOM

Block Project Name Owner Water Depth (ft)1 Production (BOE)* 

MC 807 Mars Shell 2,933 93,999,260 

MC 809 Ursa Shell 3,800 55,773,378 

MC 763 Mars Shell 2,933 34,864,752 

VK 786 Petronius ChevronTexaco 1,753 34,738,265 

GC 202 Brutus Shell 3,300 34,180,995 

GB 215 Conger Amerada Hess 1,500 32,197,439 

MC 127 Horn Mountain BP 5,400 32,165,643 

VK 915 Marlin BP 3,236 26,234,588 

EB 602 Nansen Kerr-McGee 3,675 23,926,942 

MC 899 Crosby Shell 4,259 23,481,239 

EB 643 Boomvang Kerr-McGee 3,650 22,375,260 

EB 945 Diana ExxonMobil 4,500 22,161,444 

MC 687 Mensa Shell 5,280 21,502,138 

GC 200 Troika BP 2,679 20,185,900 

MC 305 Aconcagua Total 7,100 19,513,422 

MC 85 King BP 5,000 19,484,242 

VK 956 Ram-Powell Shell 3,216 19,423,177 

MC 765 Princess Shell 3,600 18,930,562 

GB 426 Auger Shell 2,860 17,401,758 

ST 204 Unnamed El Paso 157 17,124,043 

1 represents the water depth of the facility 

*cumulative production from July 2002 through June 2004

Figure 14 illustrates the importance of the GOM to the Nation’s energy supply. The GOM supplies 

approximately 27 percent of the Nation’s domestic oil and 22 percent of the Nation’s domestic gas 

production. A significant portion of these volumes comes from deepwater. 

24 
Gas

Other U.S.

73%

Deepwater

GOM

17%

Shallow-water

GOM

10%

Oil

Other U.S.

78%

Shallow-water

GOM

15%

Deepwater

GOM

7%

Gas

Figure 14. Estimated U.S. oil and gas production in 2003. 

PRODUCTION RATES

High well production rates have been a driving force behind the success of deepwater operations. Figure 

15a shows that the average deepwater oil completion currently produces at 20 times the rate of the

average shallow-water (less than 1,000-ft [305-m]) oil completion. The average deepwater gas 

completion currently produces at 8 times the rate of the average shallow-water gas completion (figure 

15b). Deepwater oil production rates increased rapidly from 1996 through 2000 and have remained

steady since that time. Deepwater gas production rates rose from 1996 to mid-1997 and then stabilized at 

the current high rates. 

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04

Month

Barrels of Oil per Day

Shallow water

Deepwater

Figure 15a. Average production rates for shallow-water and deepwater oil well completions. 

25 
0

5,000

10,000

15,000

20,000

25,000

30,000

Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04

Month

Thousand Cubic Feet of Gas per Day

Shallow water

Deepwater

Figure 15b. Average production rates for shallow-water and deepwater gas well completions.

HURRICANE IVAN 

On Monday, September 13, 2004, Hurricane Ivan entered the GOM after crossing the western tip of 

Cuba. It was projected to make landfall on the southern Gulf coast early Thursday, September 16, 2004,

with sustained winds up to 130 miles per hour (mph). In anticipation of its arrival, 69 rigs (~60% of the 

rigs currently drilling in the GOM) and 575 manned platforms (~75% of the Gulf’s manned platforms) 

were evacuated. All evacuations were completed without injury to personnel. By Thursday afternoon,

over 70 percent of the GOM’s daily oil production and about 60 percent of its daily gas production were 

shut in. Figure 16 shows Ivan’s path in the GOM and the platforms within the storm track. 

Hurricane Ivan produced a significant wave height of 52 ft (equivalent to a theoretical maximum wave

height of 90 ft), the highest reported in the Gulf of Mexico according to records of the National Oceanic 

and Atmospheric Administration’s National Data Buoy Center. Undoubtedly, Hurricane Ivan produced

waves higher than 52 ft that went unmeasured. Buoys measure the average of the highest third of the

waves sampled during a 20-minute period (the single highest wave is typically 50 to 80 percent higher).

Furthermore, the eye of the hurricane passed east of the buoy, keeping the highest waves and winds even

farther to the east. Damage to some platforms suggests that wave crests reached at least 60 to 65 ft

(equivalent to a wave height of at least 90 ft) above sea level. 

Approximately 150 platforms and 10,000 mi of pipeline were in the projected path of Hurricane Ivan. As

of January 31, 2005, Hurricane Ivan was responsible for shutting in more than 42 MMBO and 164 BCFG, 

the largest amount of cumulative shut-in production in the history of the GOM. Ivan also accounted for

the destruction of 7 platforms (all in shallow water) by mudslides and significant damage to another 24 

major platforms (shallow and deepwater). In addition, 102 pipelines have been reported for repairs. 

26 
As Hurricane Ivan approached the Alabama Gulf Coast, its eye passed almost directly over the Petronius

facility (VK 786). Significant damage occurred to the rig crew quarters, production equipment, and deck 

structures. The facility was back online by mid-March and was expected to be producing at pre-Ivan rates 

by the end of March. 

The moorings of the deepwater production facilities withstood the hurricane with only minor damage. 

These facilities have an extended life expectancy and, therefore, use state-of-the-art mooring techniques. 

Of the total shut-in GOM production, deepwater represented the greater percent (figures 17a-b). On 

September 16, 2004, approximately 685 MBOPD and 1,500 MMCFPD of gas were shut-in within

deepwater area alone. By the end of January 2005, approximately 72 MBOPD and 133 MMCFPD of gas 

remained shut in either because of facility damage or exporting pipeline problems. The remaining 

deepwater facilities were expected to be back online by April 2005. 

27 
28

Figure 16. Platforms within the path of Hurricane Ivan in the Gulf of Mexico. 
0

200

400

600

800

1,000

1,200

1,400

1,600

16-Sep-04

4-Oct-04

8-Nov-04

13-Dec-04

24-Jan-05

Date

Thousand

Barrels of Oil Per Da

y

0

10

20

30

40

50

60

70

80

Deepwater Percent of Total Oil Sh

ut In

GOM oil shut in

Deepwater oil shut in

Deepwater percent of total GOM oil shut in

Figure 17a. Comparison of total GOM oil shut in and GOM deepwater oil shut in. 

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

16-Sep-04

4-Oct-04

8-Nov-04

13-

Dec-04

24-Jan-05

Date

Million Cubic Feet of Gas Per Day

0

5

10

15

20

25

30

35

40

Deepwater Percent of

Total Gas Shut In

GOM gas shut in

Deepwater gas shut in

Deepwater percent of total GOM gas shut in

Figure 17b. Comparison of total GOM gas shut in and GOM deepwater gas shut in. 

29 
SUMMARY AND CONCLUSIONS 

This report has discussed 

• highlights of 2004 including

record number of exploratory wells drilled in water depths greater than 7,500 ft, 

record number of discoveries in water depths greater than 7,000 ft, 

deepest TLP installed (Marco Polo), 

largest spar installed (Holstein), 

first cell spar installed (Red Hawk), 

Independence Hub consortium, 

Hurricane Ivan’s effect on production in the GOM; 

• significant new discoveries that open large new geologic plays; 

• future deepwater lease availability and anticipated lease expirations; 

• discoveries in the ultra-deep frontier; and 

• production rates of deepwater wells exceeding those of shallow-water wells by 800 

to 2,000 percent. 

The remainder of this report summarizes the development cycle and the challenges and rewards of the 

expanding deepwater frontier. 

Figure 18 illustrates deepwater projects that began production in 2004 and those expected to commence 

production in the next three years. Sixteen deepwater projects began production in 2004, another 9 are 

expected to begin in 2005, and many more are expected in the following years. The concentration of 

projects expected to come online in 2007 at the border between the Central and Eastern GOM is 

associated with the Independence Hub mentioned earlier. In addition to the projects shown in figure 18, 

many more are likely to come online in the next few years, but are not shown because operators have not 

yet announced their plans. 

DEVELOPMENT CYCLE

Historic deepwater leasing shows no clear relation to average oil or gas prices (figure 19). There was

considerable lease activity in the late 1980’s. The lag between leasing and first production is not unusual

with complex deepwater developments. However, cycle times are shortening as a result of an accessible 

infrastructure and the use of proven development technologies. 

Deepwater leasing activity accelerated in the late 1990’s after Congress enacted the DWRRA. The 

3,000 leases that were issued during the record sales from 1996 to 1998 are nearing the end of their 

primary terms and, therefore, operators are facing key decisions about which leases to relinquish untested. 

Drilling activities are just beginning to prove the potential of these leases. 

The available deepwater rig fleet will challenge industry’s ability to evaluate their lease inventory, both 

current and future additions. Other factors play a significant role in the industry’s ability to evaluate their 

GOM lease inventory, including alternative deepwater exploration and development targets throughout

the world, capital limitations, and limited qualified personnel. 

31 
EXPANDING FRONTIER

The future of deepwater GOM exploration and production remains very promising. Traditional

deepwater minibasin plays are far from mature, as several recent discoveries attest, and new deepwater 

plays near and even beyond the Sigsbee Escarpment, beneath thick salt canopies, and in lightly explored 

Paleogene reservoirs show that the deepwater GOM is an expanding frontier. The 2000 Assessment

indicates that more than 50 billion recoverable BOE remains to be discovered (Lore et al., 2001). 

The deepwater arena has made great strides in the last few years, establishing itself as an expanding 

frontier. Since the start of 2000, new deepwater drilling added over 4.5 billion BOE, a 58-percent

increase over the total deepwater BOE discovered from 1974 to 1999. 

The deepwater GOM continues to increase in its importance to the Nation’s energy supply. The large

number of active deepwater leases, the drilling of important new discoveries, the growing deepwater

infrastructure, and the increasing deepwater production are all indicators of the expanding frontier. This

ensures that the deepwater GOM will remain as one of the world’s premier oil and gas basins. 

32 
33

Figure 18. Deepwater projects that began production in 2004 and those expected to begin production by yearend 20
30

223

539

405

2075

513

696

32

1002

773

395

332

102

4 11

863

0

500

1,000

1,500

2,000

2,500

1974-75 1976-77 1978-79 1980-81 1982-83 1984-85 1986-87 1988-89 1990-91 1992-93 1994-95 1996-97 1998-99 2000-01 2002-03 2004

Year Lease Sale

Nu

mber of Leases

0

5

10

15

20

25

30

35

40

Dollars per Bbl and Dollars per Mcf (

U.S. wellhead)

Number of leases

Average U.S. oil price

Average U.S. natural gas price (wellhead)

Auger leased (1985)

1st Auger well (1987)

Thunder Horse leased (1988)

1st Auger production (1994)

1st Thunder Horse well (1999)

1st Typhoon well (1998)

Typhoon leased (1995)

1st Typhoon prod. (2001)

Red Hawk leased (1999)

1st Red Hawk well (2001)

1st Red Hawk production (2004)

Figure 19. Deepwater lease activity and oil/natural gas prices (prices from U.S. Energy

Information Administration: oil through January 15, 2005, and natural gas through 

December 4, 2004). 

34 
CONTRIBUTING PERSONNEL 

This report includes contributions from the following individuals: 

Pat Adkins 

Richie Baud 

Mary Boatman 

Angela Boice 

Sharon Buffington 

Michael Dorner 

Michael Gravois 

Michael LaFleur 

Jason Mathews 

Deborah Miller 

Robert Peterson 

Michael Prendergast 

Terry Rankin 

Pasquale Roscigno 

35 
REFERENCES 

Bascle, B. J., L. D. Nixon and K. M. Ross, 2001, Atlas of Gulf of Mexico Gas and Oil Reservoirs as of 

January 1, 1999. Minerals Management Service, Gulf of Mexico OCS Region. OCS Report MMS

2001-086, CD-ROM. 

Baud, R. D., R. H. Peterson, C. Doyle, and G. E. Richardson, 2000, Deepwater Gulf of Mexico:

America’s Emerging Frontier. Minerals Management Service, Gulf of Mexico OCS Region. OCS 

Report MMS 2000-022. New Orleans. 89 p. 

Baud, R. D., R. H. Peterson, G. E. Richardson, L. S. French, J. Regg, T. Montgomery, T. Scott Williams,

C. Doyle, and M. Dorner, 2002, Deepwater Gulf of Mexico 2002: America’s Expanding Frontier. 

Minerals Management Service, Gulf of Mexico OCS Region. OCS Report MMS 2002-021. New 

Orleans. 133 p. 

Cranswick, D., and J. Regg, 1997, Deepwater in the Gulf of Mexico: America’s New Frontier. Minerals 

Management Service, Gulf of Mexico OCS Region. OCS Report MMS 97-0004. New Orleans. 

41 p. 

Crawford, T. G., G. L. Burgess, C. J. Kinler, M. T. Prendergast, K. M. Ross, and N. K Shepard, 2004, 

Estimated Oil and Gas Reserves, Gulf of Mexico, December 31, 2001. Minerals Management 

Service, Gulf of Mexico OCS Region. OCS Report MMS 2004-073. New Orleans. 27 p. 

Hamilton, P., J. J. Singer, E. Waddell, and K. Donohue, 2003, Deepwater Observations in the Northern

Gulf of Mexico from In-Situ Current Meters and PIES, Volume II: Technical Report. Minerals 

Management Service, Gulf of Mexico OCS Region. OCS Report MMS 2003-049. New Orleans. 

95 p. 

Lore, G. L., D. A. Marin, E. C. Batchelder, W. C. Courtwright, R. P. Desselles, Jr. and R. J. Klazynski, 

2001, 2000 Assessment of Conventionally Recoverable Hydrocarbon Resources of the Gulf of Mexico

and Atlantic Outer Continental Shelf as of January 1, 1999. Minerals Management Service, Gulf of

Mexico OCS Region. OCS Report MMS 2001-087. New Orleans. 652 p. (CD—ROM only). 

Melancon, J. M., R. D. Baud, A. G. Boice, R. Bongiovanni, T. M. DeCort, R. Desselles, and E. G.

Kazanis, 2005, Gulf of Mexico Oil and Gas Production Forecast: 2005 Through 2014. Minerals 

Management Service, Gulf of Mexico OCS Region. OCS Report MMS (in press). New Orleans. 

Melancon, J. M., R. Bongiovanni, and R. D. Baud, 2003, Gulf of Mexico Outer Continental Shelf Daily

Oil and Gas Production Rate Projections From 2003 Through 2007. Minerals Management Service, 

Gulf of Mexico OCS Region. OCS Report MMS 2003-028. New Orleans. 17 p. 

Monthly Energy Review, March 2005. Energy Information Administration, U.S. Department of Energy.

Oil prices: www.eia.doe.gov/oil_gas/petroleum/info_glance/prices.html. Natural gas prices:

http://tonto.eia.doe.gov/dnav/ng/ng_pri_sum_dcu_nus_m.htm. 

National Weather Service, October, 2004. U.S. Dept. of Commerce, National Oceanic and Atmospheric

Administration. www.nws.noaa.gov/pa/fstories/2004/1004/fs13oct2004a.php. 

Richardson, G. E., L. S. French, R. D. Baud, R. H. Peterson, C. D Roark, T. M. Montgomery, E. G. 

Kazanis, G. M. Conner, and M. P. Gravois, 2004, Deepwater Gulf of Mexico 2004: America’s 

Expanding Frontier. Minerals Management Service, Gulf of Mexico OCS Region. OCS Report 

MMS 2004-021. New Orleans. 150 p. 

Speer, J. W., and E. K. Albaugh, 2004, “2004 Worldwide Survey of Spars, DDCVs” chart. Offshore, 

November 2004. 

U.S. Dept. of the Interior, Minerals Management Service, 2000, Deepwater Gulf of Mexico OCS

Currents. U.S. Dept. of the Interior, Minerals Management Service, Gulf of Mexico OCS Region,

New Orleans. MMS Safety Alert Notice No. 180. 

37 
38 

U.S. Dept. of the Interior, Minerals Management Service, 2000, Gulf of Mexico Deepwater Operations 

and Activities: Environmental Assessment. U.S. Dept. of the Interior, Minerals Management Service, 

Gulf of Mexico OCS Region, New Orleans. OCS EIS/EA MMS 2000-001. 

U.S. Dept. of the Interior, Minerals Management Service, 2004, Deepwater Ocean Current Monitoring on 

Floating Facilities. U.S. Dept. of the Interior, Minerals Management Service, Gulf of Mexico OCS 

Region, New Orleans. NTL No. 2004-G21. 

U.S. Dept. of the Interior, Minerals Management Service, 2005, Deepwater Ocean Current Monitoring on 

Floating Facilities. U.S. Dept. of the Interior, Minerals Management Service, Gulf of Mexico OCS 

Region, New Orleans. NTL No. 2005-G02. 
39 

APPENDICES 

Appendix A. Announced Deepwater Discoveries (Sorted by Project Name1). 

Project Name Area/Block 

Water 

Depth 

(ft)2 Field 

Field 

Discovery 

Date3

Year of 

First 

Production 

Year of 

Last 

Production 

Aconcagua MC 305 7,100 MC 305 2/21/1999 2002 

Alabaster MC 485 1,438 MC 397 8/27/1982 1992 

Allegheny GC 254 3,294 GC 254 1/01/1985 1999 

Amberjack MC 109 1,100 MC 109 11/13/1983 1991 

Anduin MC 755 2,904 

Angus GC 112 2,045 GC 112 6/08/1997 1999 

Ariel/Na Kika MC 429 6,240 MC 429 11/20/1995 2004 

Arnold EW 963 1,800 EW 963 6/12/1996 1998 

Aspen GC 243 3,065 GC 243 1/27/2001 2002 

Atlantis GC 699 6,133 5/12/1998 

Atlas LL 50 8,934 

Atlas NW LL 5 8,810 

Auger GB 426 2,860 GB 426 5/01/1987 1994 

Baha AC 600 7,620 AC 600 5/23/1996 

Balboa EB 597 3,352 EB 597 7/2/2001 

Baldpate GB 260 1,648 GB 260 11/01/1991 1998 

Bison GC 166 2,381 GC 166 3/01/1986 

Black Widow EW 966 1,850 EW 921 5/01/1986 2000 

Blind Faith MC 696 6,989 

Boomvang East EB 668 3,650 EB 668 9/12/2003 2003 

Boomvang North EB 643 3,650 EB 643 12/13/1997 2002 

Boomvang West EB 643 3,650 EB 643 12/13/1997 2003 

Boris GC 282 2,378 GC 282 9/29/2001 2003 

Brutus GC 158 3,300 GC 158 3/01/1989 2001 

Bullwinkle GC 65 1,353 GC 065 10/01/1983 1989 

Camden Hills MC 348 7,216 MC 348 8/4/1999 2002 

Cascade WR 206 8,143 

Champlain AT 63 4,457 AT 063 2/11/2000 

Cheyenne LL 399 8,987 

Chinook WR 469 8,831 

Cognac MC 195 1,023 MC 194 7/01/1975 1979 

Conger GB 215 1,500 GB 260 11/01/1991 2000 

Constitution GC 680 5,071 

Cooper GB 388 2,600 GB 388 3/16/1989 1995 1999 
40 

Project Name Area/Block 

Water 

Depth 

(ft)2 Field 

Field 

Discovery 

Date3

Year of 

First 

Production 

Year of 

Last 

Production 

Coulomb/Na Kika MC 657 7,591 MC 657 11/01/1987 2004 

Crested Butte GC 242 2,846 

Crosby MC 899 4,400 MC 899 1/04/1998 2001 

Cyclops AT 8 3,135 AT 008 4/26/1997 

Dawson GB 669 3,152 GB 668 5/22/2000 2003 

Dawson Deep GB 625 2,900 

Devil's Tower MC 773 5,610 MC 773 12/13/1999 2004 

Diamond MC 445 2,095 MC 445 12/05/1992 1993 1999 

Diana EB 945 4,500 EB 945 8/01/1990 2000 

Diana South AC 65 4,852 AC 065 3/24/1997 2004 

Dionysus VK 864 1,508 VK 864 10/01/1981 

Dulcimer GB 367 1,120 GB 367 2/09/1998 1999 

Durango GB 667 3,105 GB 668 5/22/2000 2003 

East Anstey/ 

Na Kika MC 607 6,590 MC 607 11/12/1997 2003 

EB 377 EB 377 2,450 EB 377 10/01/1985 

EB598/599 EB 598 3,650 EB 643 12/13/1997 2004 

Einset VK 872 3,500 VK 873 3/01/1988 2001 

El Toro GC 69 1,465 GC 069 9/13/1984 

Entrada GB 782 4,690 GB 783 5/03/1999 

Europa MC 935 3,870 MC 935 4/22/1994 2000 

EW 1006 EW 1006 1,884 EW 1006 1/26/1988 1999 

EW 878 EW 878 1,585 EW 878 7/03/2000 2001 

Falcon EB 579 3,638 EB 579 9/29/2002 2003 

Fourier/Na Kika MC 522 6,950 MC 522 7/01/1989 2003 

Front Runner GC 338 3,330 GC 339 6/08/2001 2004 

Fuji GC 506 4,262 GC 506 1/30/1995 

GB 208 GB 208 1,275 GB 208 9/01/1991 

GB 244 GB 244 2,130 GB 244 8/15/2001 

GB 302 GB 302 2,411 GB 302 2/01/1991 

GB 379 GB 379 2,076 GB 379 7/01/1985 

GC 147 GC 147 1,275 GC 147 5/01/1988 

GC 162 GC 162 2,616 GC 162 7/01/1989 

GC 21 GC 21 1,296 GC 021 10/01/1984 

GC 228 GC 228 1,950 GC 228 7/01/1985 

GC 27 GC 27 1,593 GC 027 7/01/1989 

GC 29 GC 29 1,554 GC 029 1/01/1984 1988 1990 
41 

Project Name Area/Block 

Water 

Depth 

(ft)2 Field 

Field 

Discovery 

Date3

Year of 

First 

Production 

Year of 

Last 

Production 

GC 31 GC 31 2,243 GC 075 5/01/1985 1988 1989 

GC 39 GC 39 2,068 GC 039 4/01/1984 

GC 463 GC 463 4,032 GC 463 12/01/1998 

GC 70 GC 70 1,618 GC 070 6/01/1984 

Gemini MC 292 3,393 MC 292 9/07/1995 1999 

Genesis GC 205 2,590 GC 205 9/01/1988 1999 

Glider GC 248 3,440 12/19/1996 2004 

Goldfinger MC 771 5,423 

Gomez MC 711 3,098 MC 755 3/19/1986 

Goose MC 751 1,624 MC 751 12/15/2002 

Grand Canyon GC 141 1,720 

Great White AC 857 8,717 

Gretchen GC 114 2,685 GC 114 12/18/1999 

Gunnison GB 668 3,100 GB 668 5/22/2000 2003 

Habanero GB 341 2,015 GB 387 10/03/1994 2003 

Harrier EB 759 4,114 EB 759 1/28/2003 

Hawkes MC 509 4,174 MC 509 11/20/2001 

Herschel/Na Kika MC 520 6,739 MC 522 7/01/1989 2003 

Holstein GC 645 4,344 GC 644 2/11/1999 2004 

Hoover AC 25 4,825 AC 025 1/30/1997 2000 

Horn Mountain MC 127 5,400 MC 084 1/01/1993 2002 

Hornet GC 379 2,076 GC 379 12/14/2001 

Ida/Fastball VK 1003 4,942 

Jack WR 759 6,965 

Jolliet GC 184 1,760 GC 184 7/01/1981 1989 

Jubilee AT 349 8,825 

K2 GC 562 4,006 GC 562 8/14/1999 

Kepler/Na Kika MC 383 5,759 MC 383 8/31/1997 2004 

King (MC-BP) MC 84 5,000 MC 084 1/01/1993 2002 

King (MC-Shell) MC 764 3,250 MC 807 4/01/1989 2000 

King Kong GC 472 3,980 GC 472 2/01/1989 2002 

King's Peak DC 133 6,845 DC 133 3/01/1993 2002 

Ladybug GB 409 1,355 GB 409 5/13/1997 2001 

La Femme MC 427 5,800 

Lena MC 280 1,000 MC 281 5/01/1976 1984 

Leo MC 546 2,505 MC 546 2/01/1986 

Llano GB 386 2,663 GB 387 10/03/1994 2004 
42 

Project Name Area/Block 

Water 

Depth 

(ft)2 Field 

Field 

Discovery 

Date3

Year of 

First 

Production 

Year of 

Last 

Production 

Lorien GC 199 2,315 

Lost Ark EB 421 2,960 EB 421 1/31/2001 2002 

Macaroni GB 602 3,600 GB 602 1/21/1996 1999 

Mad Dog GC 782 4,428 GC 826 11/24/1998 2005 

Madison AC 24 4,856 AC 024 6/25/1998 2002 

Magnolia GB 783 4,674 GB 783 5/03/1999 2004 

Manatee GC 155 1,939 GC 110 8/07/1987 2002 

Marathon GC 153 1,618 GC 153 4/01/1984 

Marco Polo GC 608 4,320 GC 608 4/21/2000 2004 

Marlin VK 915 3,236 VK 915 6/01/1993 2000 

Mars MC 807 2,933 MC 807 4/01/1989 1996 

Marshall EB 949 4,376 EB 949 7/30/1998 2001 

Matterhorn MC 243 2,850 MC 243 9/01/1990 2003 

MC 113 MC 113 1,986 MC 113 1/01/1976 

MC 285 MC 285 3,161 MC 285 9/01/1987 

MC 455 MC 455 1,400 MC 455 2/01/1986 

MC 68 MC 68 1,360 MC 068 12/09/1975 2001 

MC 709 MC 709 2,599 MC 709 2/01/1987 

MC 837 MC 837 1,524 EW 878 7/03/2000 

MC 929 MC 929 2,250 MC 929 11/01/1987 

McKinley GC 416 4,019 GC 416 7/14/1998 

Medusa MC 582 2,223 MC 582 10/10/1998 2003 

Medusa North MC 538 2,223 MC 582 10/10/1998 2004 

Mensa MC 731 5,318 MC 731 12/01/1986 1997 

Merganser AT 37 8,015 AT 037 11/28/2001 

Mica MC 211 4,580 MC 211 5/01/1990 2001 

Mighty Joe Young GC 737 4,415 

Mirage MC 941 3,927 MC 899 1/04/1998 

Moccasin GB 254 1,920 GB 254 7/23/1993 

Morgus MC 942 3,960 MC 899 1/04/1998 

Morpeth EW 921 1,696 EW 921 5/01/1986 1998 

Mosquito Hawk GB 269 1,102 GB 269 3/06/1996 

Nansen EB 602 3,675 EB 602 9/25/1999 2002 

Navajo EB 690 4,210 EB 602 9/25/1999 2002 

Navarro GC 37 2,019 

Neptune(AT-BHP) AT 575 6,220 AT 575 9/26/1995 
43 

Project Name Area/Block 

Water 

Depth 

(ft)2 Field 

Field 

Discovery 

Date3

Year of 

First 

Production 

Year of 

Last 

Production 

Neptune 

(VK-Kerr-McGee) VK 826 1,930 VK 825 11/01/1987 1997 

Ness GC 507 3,947 GC 507 12/27/2001 

Nile VK 914 3,535 VK 914 4/30/1997 2001 

Nirvana MC 162 3,724 MC 162 11/30/1994 

Northwestern GB 200 1,736 GB 200 5/14/1998 2000 

Oregano GB 559 3,400 GB 559 3/27/1999 2001 

Oyster EW 917 1,195 EW 873 12/01/1985 1998 

Pardner MC 401 1,139 WD 152 10/01/19684 2003 

Penn State GB 216 1,450 GB 260 11/01/1991 1999 

Petronius VK 786 1,753 VK 786 7/14/1995 2000 

PI 525 PI 525 3,430 PI 525 4/30/1996 

Pilsner EB 205 1,108 EB 205 5/02/2001 2001 

Pluto MC 674 2,828 MC 718 10/20/1995 1999 

Pompano VK 990 1,290 VK 990 5/01/1981 1994 

Popeye GC 116 2,000 GC 116 2/01/1985 1996 

Poseidon (GC) GC 691 4,489 GC 691 2/27/1996 

Poseidon (MC) MC 772 5,567 MC 728 6/30/2002 

Prince EW 1003 1,500 EW 958 7/20/1994 2001 

Princess MC 765 3,600 MC 807 4/01/1989 2002 

Ptolemy GB 412 1,322 GB 412 7/01/1984 

Puma GC 823 4,129 

Ram-Powell VK 956 3,216 VK 956 5/01/1985 1997 

Raptor EB 668 3,710 EB 668 9/13/2003 2004 

Red Hawk GB 877 5,334 GB 877 10/18/2001 2004 

Rigel MC 252 5,225 MC 252 11/29/1999 

Rockefeller EB 992 4,872 EB 992 11/28/1995 

Rocky GC 110 1,785 GC 110 8/07/1987 1996 

San Jacinto DC 618 7,850 

San Patricio AT 153 4,785 AT 153 8/09/2001 

Sangria GC 177 1,487 GC 177 8/22/1999 2002 

Serrano GB 516 3,153 GB 516 7/23/1996 2001 

Shasta GC 136 1,048 GC 136 7/01/1981 1995 

Shenzi GC 653 4,238 

Silvertip AC 815 9,226 

South Dachshund LL 2 8,340 

Spiderman DC 621 8,087 
44 

Project Name Area/Block 

Water 

Depth 

(ft)2 Field 

Field 

Discovery 

Date3

Year of 

First 

Production 

Year of 

Last 

Production 

St. Malo WR 678 7,036 

Sturgis AT 183 3,710 

Supertramp MC 26 1,272 MC 026 5/27/1994 

SW Horseshoe EB 430 2,285 EB 430 5/03/2000 

Swordfish VK 962 4,677 VK962 11/15/01 

Tahiti GC 640 4,292 

Tahoe VK 783 1,500 VK 783 12/01/1984 1994 

Thunder Hawk MC 734 5,724 

Thunder Horse MC 778 6,050 MC 778 4/01/1999 

Thunder Horse 

North MC 776 5,660 

Ticonderoga GC 768 5,250 

Tiger AC 818 9,004 

Timberwolf MC 555 4,749 MC 555 10/30/2001 

Tobago AC 859 9,627 

Tomahawk EB 623 4,114 EB 579 1/28/2003 2003 

Trident AC 903 9,743 

Triton MC 728 5,373 MC 728 6/30/2002 

Troika GC 244 2,721 GC 244 5/30/1994 1997 

Tubular Bells MC 725 4,334 

Tulane GB 158 1,054 GB 200 5/14/1998 2002 

Typhoon GC 237 2,679 GC 236 10/01/1984 2001 

Ursa MC 809 3,800 MC 807 4/01/1989 1999 

Virgo VK 823 1,130 VK 823 1/01/1993 1999 

VK 862 VK 862 1,043 VK 862 10/01/1976 1995 

VK 917 VK 917 4,370 VK 917 12/08/2001 

VK 962 VK 962 4,677 VK 962 11/15/2001 

Vortex AT 261 8,344 

Wrigley MC 506 3,700 

Yosemite GC 516 4,150 GC 472 2/01/1989 2002 

Zia MC 496 1,804 MC 582 10/10/1998 2003 

Zinc MC 354 1,478 MC 354 8/01/1977 1993 

1

 A block may be listed under more than one project name due to lease relinquishment, expiration, or termination and subsequent

re-leasing. Some announced discoveries never reached the project stage and are listed under their prospect names. 2

 Water depths shown reflect depth at facility. If project is subsea or undeveloped, water depth reflects depth of deepest well 

location in project. 3

 The absence of a field discovery date indicates an industry-announced discovery without a qualified well on the lease. These

discoveries have not necessarily been confirmed by the MMS and they are not yet classified as fields by the MMS. 4 The deepwater portion of the Pardner project was discovered in 2002. 
45 

Appendix B. Deepwater Studies Program.

Active Studies [MMS Project Number] 

Deepwater Program: Repeatability and Effectiveness of Subsurface Controlled Safety Valves [403] 

Deepwater Program: Project Offshore Deep Slopes (PODS): Seafloor Stability on the Continental 

Shelf/Slope [404] 

Deepwater Program: Damage Tolerance of Synthetic-Fiber Mooring Ropes; Phase I: Small-Scale 

Experiments [407] 

Deepwater Program: Development of a Blowout Intervention Method and Dynamic Kill Simulated for 

Blowouts Occurring in Ultra-Deepwater [408] 

Deepwater Program: World Wide Assessment of Industry Leak Detection Capabilities for Single and 

Multiphase Pipelines [409] 

Deepwater Program: Damaged Polyester Rope-Large Scale Experiments JIP [416] 

Deepwater Program: Deepwater Field Measurements [417] 

Deepwater Program: Risk-Extend Comparative Risk Assessment (CRA) for a SPAR-Based FPSO [418] 

Deepwater Program: Long Term Integrity of Deep-Water Cement Systems [426] 

Deepwater Program: Evaluation of Secondary BOP Intervention Methods in Well Control [431] 

Deepwater Program: Regional Synthesis of the Sedimentary Thermal History and Hydrocarbon 

Maturation in the Deepwater Gulf of Mexico [432] 

Deepwater Program: Evaluation of Methods of Detecting and Monitoring of Corrosion Damage in Risers 

[433] 

Deepwater Program: Strain-Based Design of Pipelines [434] 

Deepwater Program: Reliability Analysis of Deepwater Anchors [437] 

Deepwater Program: Technology Assessment of Alternatives for Handling Associated Gas Produced 

from Deepwater Oil Developments in the GOM [443] 

Deepwater Program: ROV/AUV Capabilities [446] 

Deepwater Program: Characterizing Natural Gas Hydrates in the Deepwater Gulf of Mexico [461] 

Deepwater Program: Assessment of Performance of Deepwater Floating Production Facilities [471] 

Deepwater Program: Project Offshore Deep Slopes (PODS) - Phase II [472] 

Deepwater Program: Deep-Sea Furrows [479] 

Deepwater Program: Deepwater Riser VIV Project - CFD Simulation of Riser VIV [481] 

Deepwater Program: An Assessment of Magnetization Effects on Hydrogen Cracking for Thick Walled 

Pipelines [487] 

Deepwater Program: Risk Assessment for Submarine Slope Stability [491} 

Deepwater Program: New Touch-Down Zone Solutions for Steel Catenary Risers [494] 

Deepwater Program: Design of Cathodic Protection Systems for Deep Water Compliant Petroleum 

Production Risers [496] 

Deepwater Program: Probabilistic Reliability and Integrity Assessment of Large-Diameter Compliant 

Risers for Ultra-Deepwater Operations [497] 

Deepwater Program: Assessment of New and/or Improved Repair Techniques for Ageing or Damaged 

Structures [502] 
46 

Deepwater Program: Seafloor Interaction with Steel Catenary Risers [510] 

Deepwater Program: Drilling and Completion Gaps for High Temperature and High Pressure in Deep 

Water [519] 

Deepwater Program: Methodologies for Measuring and Monitoring Hydrogen for Safety in Advanced 

High Strength Linepipe Steel Applications [522] 

Deepwater Program: SCR Flex Joint Design and Performance JIP [530] 

Deepwater Program: Deepwater GOM Pipeline Damage Characteristics and Repair Options [532] 

Deepwater Program: An Analysis of the Socioeconomic Effects of OCS-Activities on Ports and 

Surrounding Areas in the Gulf of Mexico [GM-92-42-56] 

Deepwater Program: Potential Spatial and Temporal Vulnerability of Pelagic Fish Assemblages in the 

Gulf of Mexico to Surface Oil Spills Associated with Deepwater Petroleum Development [GM-92-

42-61] 

Deepwater Program: Observation of Deepwater Manifestation of Loop Current Rings [GM-92-42-72] 

Deepwater Program: Deepwater Currents at 92° W [GM-92-42-73] 

Deepwater Program: Foraminiferal Communities of Bathyal and Abyssal Hydrocarbon Seeps, Northern 

Gulf of Mexico: A Taxonomic, Ecologic, and Geologic Study [GM-92-42-86] 

Deepwater Program: Assessing and Monitoring Industry Labor Needs [GM-98-06] 

Deepwater Program: Benefits and Burdens of OCS Deepwater Activities on Selected Communities and 

Local Public Institutions [GM-98-10] 

Deepwater Program: Northern Gulf of Mexico Continental Slope Habitats and Benthic Ecology [GM-99-

02] 

Deepwater Program: Effects of Oil and Gas Exploration and Development at Selected Continental Slope 

Sites in the Gulf of Mexico [GM-00-01] 

Deepwater Program: Exploratory Study of Deepwater Currents in the Gulf of Mexico [GM-01-02] 

Deepwater Program: Cooperative Research on Sperm Whales and Their Response to Seismic 

Exploration in the Gulf of Mexico [GM-01-04C] 

Deepwater Program: Understanding the Processes that Maintain the Oxygen Levels in the Deep Gulf of 

Mexico [GM-02-06] 

Deepwater Program: Deepwater Current Measurements at 25° N; 90° W in Mexican Territory [GM-02-

x14] 

Deepwater Program: Survey of Deepwater Currents in the Western Gulf of Mexico [GM-03-01] 

Deepwater Program: Direct Observations of Ocean Currents over the Western Slope in the Gulf of 

Mexico [GM-03-01b] 

Deepwater Program: Characterization of Gulf of Mexico Deepwater Hard Bottom Communities with 

Emphasis on Lophelia Coral [GM-03-02] 

Deepwater Program: The Archaeological and Biological Analysis of World War II Shipwrecks in the 

Gulf of Mexico: A Pilot Study of the Artificial Reef Effect in Deepwater [GM-03-07] 

Deepwater Program: Survey of Deepwater Currents in the Eastern Gulf of Mexico [GM-04-01] 

All reports are available at our web sites — 

http://www.gomr.mms.gov/homepg/regulate/environ/deepenv.html. 

http://www.mms.gov/tarprojectcategories/deepwate.html 
47 

Appendix C. Average Annual GOM Oil and Gas Production. 

Year 

Shallowwater Oil 

(MBOPD) 

Deepwater 

Oil 

(MBOPD) 

Total GOM 

Oil 

(MBOPD) 

Shallowwater Gas 

(BCFPD) 

Deepwater 

Gas 

(BCFPD) 

Total GOM 

Gas 

(BCFPD) 

1947 0 0 0 0.0 0.0 0.0

1948 0 0 0 0.0 0.0 0.0

1949 0 0 0 0.0 0.0 0.0

1950 1 0 1 0.0 0.0 0.0

1951 1 0 1 0.0 0.0 0.0

1952 2 0 2 0.1 0.0 0.1

1953 3 0 3 0.1 0.0 0.1

1954 7 0 7 0.2 0.0 0.2

1955 11 0 11 0.2 0.0 0.2

1956 19 0 19 0.2 0.0 0.2

1957 32 0 32 0.3 0.0 0.3

1958 54 0 54 0.4 0.0 0.4

1959 81 0 81 0.6 0.0 0.6

1960 111 0 111 0.8 0.0 0.8

1961 153 0 153 0.9 0.0 0.9

1962 210 0 210 1.2 0.0 1.2

1963 264 0 264 1.5 0.0 1.5

1964 305 0 305 1.8 0.0 1.8

1965 372 0 372 2.0 0.0 2.0

1966 480 0 480 2.7 0.0 2.7

1967 574 0 574 3.5 0.0 3.5

1968 695 0 695 4.4 0.0 4.4

1969 801 0 801 5.3 0.0 5.3

1970 901 0 901 6.6 0.0 6.6

1971 1,029 0 1,029 7.5 0.0 7.5

1972 1,022 0 1,022 8.2 0.0 8.2

1973 1,002 0 1,002 9.1 0.0 9.1

1974 926 0 926 9.4 0.0 9.4

1975 848 0 848 9.4 0.0 9.4

1976 824 0 824 9.7 0.0 9.7

1977 778 0 778 10.3 0.0 10.3
48 

Year 

Shallowwater Oil 

(MBOPD) 

Deepwater 

Oil 

(MBOPD) 

Total GOM 

Oil 

(MBOPD) 

Shallowwater Gas 

(BCFPD) 

Deepwater 

Gas 

(BCFPD) 

Total GOM 

Gas 

(BCFPD) 

1978 757 0 757 11.6 0.0 11.6

1979 720 2 721 12.8 0.0 12.8 

1980 711 14 725 13.0 0.0 13.1 

1981 711 10 721 13.4 0.0 13.4 

1982 748 36 784 12.7 0.0 12.8 

1983 806 72 878 11.1 0.1 11.2 

1984 905 68 973 12.4 0.1 12.5 

1985 904 58 962 11.1 0.1 11.2 

1986 924 52 976 11.0 0.1 11.1 

1987 852 47 899 12.3 0.1 12.5 

1988 791 36 827 12.5 0.1 12.6 

1989 743 27 770 12.7 0.1 12.7 

1990 720 33 753 13.4 0.1 13.5 

1991 746 63 808 12.8 0.2 12.9 

1992 734 102 836 12.5 0.2 12.8 

1993 746 101 847 12.5 0.3 12.8 

1994 748 115 862 12.8 0.4 13.3 

1995 795 151 947 12.6 0.5 13.1 

1996 814 198 1,012 13.2 0.8 14.0 

1997 831 296 1,127 13.1 1.0 14.1 

1998 781 436 1,218 12.3 1.5 13.8 

1999 740 617 1,357 11.6 2.3 13.9 

2000 691 743 1,434 10.9 2.7 13.6 

2001 663 862 1,526 10.6 3.2 13.9 

2002 597 955 1,552 8.8 3.6 12.5 

2003 573 958 1,531 8.2 3.9 12.1

2004* 522 922 1,444 7.3 3.9 11.2

*Estimate from Gulf of Mexico Oil and Gas Production Forecast: 2005 Through 2014 (In press). 
The Department of the Interior Mission

As the Nation's principal conservation agency, the Department of the Interior has responsibility 

for most of our nationally owned public lands and natural resources. This includes fostering 

sound use of our land and water resources; protecting our fish, wildlife, and biological diversity; 

preserving the environmental and cultural values of our national parks and historical places; 

and providing for the enjoyment of life through outdoor recreation. The Department assesses 

our energy and mineral resources and works to ensure that their development is in the best 

interests of all our people by encouraging stewardship and citizen participation in their care. 

The Department also has a major responsibility for American Indian reservation communities 

and for people who live in island territories under U.S. administration. 

The Minerals Management Service Mission 

As a bureau of the Department of the Interior, the Minerals Management Service's (MMS) 

primary responsibilities are to manage the mineral resources located on the Nation's Outer 

Continental Shelf (OCS), collect revenue from the Federal OCS and onshore Federal and Indian 

lands, and distribute those revenues. 

Moreover, in working to meet its responsibilities, the Offshore Minerals Management Program 

administers the OCS competitive leasing program and oversees the safe and environmentally 

sound exploration and production of our Nation's offshore natural gas, oil and other mineral 

resources. The MMS Minerals Revenue Management meets its responsibilities by ensuring the 

efficient, timely and accurate collection and disbursement of revenue from mineral leasing and 

production due to Indian tribes and allottees, States and the U.S. Treasury. 

The MMS strives to fulfill its responsibilities through the general guiding principles of: (1) being 

responsive to the public's concerns and interests by maintaining a dialogue with all potentially 

affected parties and (2) carrying out its programs with an emphasis on working to enhance the 

quality of life for all Americans by lending MMS assistance and expertise to economic 

development and environmental protection.