MMS Offshore Resource Evaluation Program: Components and Functions
George Dellagiarino
The Minerals Management Service (MMS) administers the Department of the Interior's (DOI) activities for mineral resources on the outer continental shelf (OCS). The primary responsibility of the MMS Resource Evaluation Program is to investigate the mineral potential of the OCS, predominantly for oil and gas, and to assure the receipt of fair market value for those resources. The program consists of two components: (1) geologic and geophysical (G & G) data acquisition and analyses, and (2) resource economic and engineering (E & E) evaluation.
Objectives of the G & G component are data acquisition and production of maps
for resource evaluation. Initially, this component provides information and
analyses used to develop regional maps identifying areas favorable for
hydrocarbon accumulation. Following area identification
for a proposed lease
sale, the emphasis shifts to more detailed mapping and analysis of individual
prospects.
The E & E component uses information from the first component. Objectives
include the development of (1) estimates of economically recoverable resources
and their undiscovered resource base, (2) E & E parameters on a sale-and
tract-specific basis, and (3) E & E methodologies and studies. Procedures used
to develop probabilistic resource estimates are incorporated in a computer model
called PRESTO, an acronym for "Probabilistic Resource ESTimates-Offshore." These
estimates assume that hydrocarbons are present in the sale area. Impacts of
alternative royalty rates, minimum bids, lease terms, and bidding systems
are
analyzed through the use of another computer model called TSL80. The resource
economic value of
tracts
offered for lease is determined by calculating the
amount o economically recoverable resources, estimating recovery factors,
production profiles and operating costs, and performing a discounted cash-flow
analysis. The MMS uses a computer simulation model called MONTCAR to do this
task. MONTCAR uses the Monte Carlo or range-of-values technique for handling
calculations with uncertain input data.
Products and responsibilities of the program include geology reports for
specific planning areas, reports to Congress on bidding systems
and undiscovered
resources, and a cooperative agreement between MMS and the state of geological
surveys.
AAPG Search and Discovery Article #91024©1989 AAPG Pacific Section, May 10-12, 1989, Palm Springs, California.