OCS Resource Management and Sustainable Development

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OCS Resource Managementand Sustainable
Development

• Carolita Kallaur, Associate Director
• Minerals Management Service
• U.S. Department of the Interior

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U.S. Outer Continental Shelf

• Administration
• 1.5 billion acres 8,000 leases 4,000 platforms
• Production
• 22 of U.S. oil 25 of U.S. natural gas
• Revenue
• Since 1953 - 123 billion from OCS leases
• Last 10 years - 78 royalties, 19 bonuses, 3
  rentals

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MMS Responsibilities

• Legislative mandate
• Expedite exploration development on OCS
• Protect human, marine, coastal environments
• Obtain fair equitable return for public
• Preserve maintain competition
• Balance objectives under all market conditions

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Sustainable Development
and OCS Program

• Production - crucial component of energy supply
• Money from OCS leasing and production
• Generates wealth for economy
• Reinvestment can support sustainable development
• Natural gas a cleaner fuel bridge to future
• MMS must
• Enforce standards to protect environment
• Work with industry to improve processes
• Promote sharing of best practices

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Developing a Position

• Relationship of OCS production energy use to
  Sustainable Development (SD)
• Important part of a broad-based discussion
• Implementation of SD concepts
• Analysis of MMS programs industrys role in
  meeting goals
• Report available at www.mms.gov

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Defining Concepts

• Environmental sustainability
• Emphasizes preservation of natural capital
• Economic sustainability
• Allow substitution of one set of assets and/or
  liabilities for another
• Net outcome must be better than starting point
• Sustainable development - evolving process
• Improves economy, environment, society for
  present future generations

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Oil Gas Remains Crucial

• Oil natural gas to meet energy demand
• Next 20 to 30 years
• MMS committed to fulfilling its obligations
• Global climate change concern a factor in SD
  debate
• Natural gas - a bridge to the future?
• Cleaner burning fuel
• Feedstock for promising alternative fuels

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Wealth Reinvestment

• OCS production creates wealth for U.S.
• Wise wealth reinvestment - OCS development can
  support SD
• Alternative fuels new technologies
• Economic growth
• Preservation of land, water, cultural resources
  
• Education
• Social progress in local communities

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Resource Protection
System Improvement

• MMS must focus on core responsibilities
• Environmental protection safe operations
• MMS must ensure
• Orderly development process
• Conservation of resources
• Improve systems knowledge base
• Performance-based regulations
• Environmental technology research programs

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Getting the Word Out

• Share information best practices
• Domestic - workshops, safety alerts, recognition
  of superior performance
• International - government to government
  interaction meeting/conference participation
• Recognize globalization of offshore industry
• Committed to involvement in international
  standard-setting groups
• International Regulators Forum

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Where Do We Go From Here?

• Develop internationally recognized guidelines
• Comprehensive consistent with SD goals
• Standardization of SD indicators
• Develop performance measures consistent with SD
  principles
• Ensure safe environmentally sound development
• Create bridge to sustainable future

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In Summary

• OCS oil gas program crucial source of energy
  wealth
• Sustainable development requires long-term action
• Alternative fuels new technologies
• Environmental protection
• Improved human capital processes
• Cannot achieve sustainability in isolation