We manage the research, development, and demonstration of new and improved technologies that can enable the U.S. petroleum industry develop the Nation's oil and gas resources in a more cost effective and environmentally protective manner. My comments today focus on the insights we have gained over many years in the development and deployment of improved exploration and production technologies and in the evaluation of policy initiatives to support the Nation's energy supply objectives. As a result of this experience, we have found that technological change in the U.S. oil and gas industry can be characterized as a history of continuous innovation, going back to the first oil well drilled by Colonel Drake in Pennsylvania in 1859. This trend extends to today, to the latest advances in technology that allow for exploration in waters of the Gulf of Mexico that are over two miles deep. Technological advances have led to impressive gains in productivity and efficiency.
Industry is now able to explore and develop prospects in ever more diverse and challenging settings.
To expand public awareness of the environmental benefits associated with advanced exploration and production technology, DOE in 1999 published a report entitled Environmental Benefits of Advanced Oil and Gas Exploration and Production Technology. Oil and natural gas provide most of the energy America uses for transportation, industrial, residential and commercial applications. Moreover, domestic production enhances our Nation's energy security, and provides public revenues and other benefits. And as our economy continues to expand, the demand for oil and natural gas is expected to grow in the foreseeable future. In terms of oil and natural gas, the United States is the most explored and developed region of the world.