--> MMS Offshore Resource Evaluation Program: Components and Functions, by George Dellagiarino; #91024 (1989)

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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.