Economic Impact in the U.S. of Deepwater Projects:
A Survey of Five Projects

 OCS Study MMS 2004-041

The Minerals Management Service (MMS), Gulf of Mexico OCS Region, announces the availability of a new study report, Economic Impact in the U.S. of Deepwater Projects:  A Survey of Five Projects.

Deepwater development activity in the Gulf of Mexico has been increasing over the last several years.  As exploration expands beyond the limits of 1,000 feet, technology is changing to meet the challenges of developing fields in deep water.  Developing these fields must be done safely, efficiently, and economically while protecting the marine environment.  Deepwater development is achieved through the use of countless vendors, contractors and subcontractors.

This report describes the scale and technological complexities of deepwater projects.  First, it analyzes data that are available on the construction and operations of five groundbreaking deepwater projects:  Ursa, Baldpate, Pompano, Neptune Spar, and Morpeth.  Data on the operating costs and personnel levels for Ursa and on the development of Morpeth are particularly informative.  Second, the report addresses the onshore employment effects of the Morpeth project on the Houma area, showing that it accounted for a significant proportion of shipyard employment during its construction.  Since complete data on any single project are lacking, this report develops a generalized chronology of field development from pre-lease acquisition through operations that details the technical and economic considerations and strategies that drive company decision-making.  The authors end this discussion by highlighting differences between these and ones made for shallow water projects.

This report is available only in compact disc format.  The discs are available from the Minerals Management Service, Gulf of Mexico OCS Region, at a charge of $15.00 by referencing OCS Study MMS 2004-041.  The report may be ordered through the Minerals Management Service’s on-line ordering system at http://www.gomr.mms.gov/WebStore/front.asp.  You will be able to obtain this report also from the National Technical Information Service in the near future.  Here are the addresses.  You may also inspect copies at selected Federal Depository Libraries.