LEASING ACTIVITY

The DWRRA encouraged extensive leasing in the deepwater GOM.

Figure 7. Location of known gas hydrates in the Gulf of Mexico. (Click image to enlarge)

Figure 8. Gas hydrates on the seafloor in Green Canyon Block 185 (photo courtesy of GERG/Texas A&M University). (Click to enlarge)

Activity slowly increased from 1992 through 1995, but immediately after the DWRRA was enacted, deepwater leasing activity exploded.

Figure 9 shows the recent history of deepwater leasing.

Figure 9. Deepwater leases issued in the Gulf of Mexico.

Other factors also contributed to this activity, including improved 3-D seismic data coverage, several key deepwater discoveries, the recognition of high deepwater production rates, and the evolution of deepwater development technologies.

The GOM leasing status is shown in figure 10.

Figure 10. Active leases in the Gulf of Mexico. (Click image to enlarge)

There are about 3,600 active leases in water depths less than 1,000 ft (305 m), about 150 active leases in 1,000-1,499 ft (305-457 m) of water, about 1,800 active leases in 1,500-4,999 ft (457-1,524 m) of water, about 1,500 active leases in 5,000-7,499 ft (1,524-2,286 m) of water, and about 750 active leases in water depths of 7,500 ft (2,286 m) and greater. 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. Appendix C provides a chronological listing of all Gulf of Mexico lease offerings arranged by sale number, location, and date.

Figure 11 shows the historic total active leasing trends by water-depth range. Notice the dramatic increase in active deepwater leases from 1995 through 1998. In 1999, the number of active deepwater leases surpassed that of shallow-water leases.

Figure 11. Total active leases by water depth. (Click image to enlarge)

Operators contend with numerous obstacles when venturing into the deepwater arena. Figure 12 illustrates natural features and manmade zones that require special considerations for oil and gas activities. Although the topographic features are located primarily along the shelf break, they may be obstacles to pipelines from deepwater developments to the shelf infrastructure.