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Oil and Gas Leasing
Florida State-owned Waters
        State-
              Gulf of Mexico:
                   A Briefing
                            g



                    October 5, 2009
Geographic Orientation
Western          Central        Eastern
           Planning        Planning        Planning
             Area            Area            Area
                                             A




Gulf of Mexico - Minerals Management Service Planning Areas
Smackover Trend
                                                                       Federal/State Boundary
                                                                            Atlantic Ocean
                                                                         (3 Geographic Miles)
                                                                           (3 Nautical Miles)




Onshore Oil Trends




                                 Federal/State Boundary
                                      Gulf of Mexico
                                    (3 Marine Leagues)
                                     (9 Nautical Miles)
                                   (10.36 Statute Miles)




                                                           Sunniland
                                                            Trend
Gulf of Mexico Production and Revenue
Offshore Oil Development Sequence




        Geographical representation of locations for the 1,196 proved fields in the Gulf of Mexico. The bar heights in
        the figure are proportional to total proved reserves (barrel of oil equivalent) for each proved field by decade.


Source: OCS Report, MMS 2009-022, Estimated Oil and Gas Reserves
Historic Petroleum Production and Pricing:
                                                                                                             Onshore and State-owned Waters for Gulf of Mexico States
                                                                                            $100.00
                                                                                            $100 00                                                                     4,000,000,000
                                                                                                                                                                        4 000 000 000
                                                             chasers (Dollars per Barrel)




                                                                                                             Crude Oil


                                                                                             $90.00          Texas                                                      3,600,000,000

                                                                                                             Louisiana
                                                                            s




                                                                                             $80.00          Alabama                                                    3,200,000,000

                                                                                                             Mississippi




                                                                                                                                                                                           tewide Petroleu Production (BOE)
                                                                                             $70.00                                                                     2,800,000,000
                                                                                                             Florida
        U.S. Crud Oil Wellhead Acquisition Price by First Purc




                                                                                             $60.00                                                                     2,400,000,000




                                                                                                                                                                                                         um
                                                                                             $50.00                                                                     2,000,000,000



                                                                                             $40.00                                                                     1,600,000,000




                                                                                                                                                                                        Stat
                                                                                             $30.00                                                                     1,200,000,000



                                                                                             $20.00                                                                     800,000,000
                de




                                                                                             $10.00                                                                     400,000,000



                                                                                                $-                                                                      0

                                                                                                      1930   1940          1950   1960   1970   1980   1990   2000



Crude Oil Data Source: Energy Information Administration - http://www.eia.doe.gov/
Production Data for Individual States reported from Publicly Available Sources.
Summary of Actual Production and Revenues in State-owned Waters
                y                                      State-


                                                       Alabama                  Texas           Louisiana          Florida        Mississippi


                               State Waters
                                                            3 NM                  9 NM               3 NM             9 NM            3 NM
                               (nautical miles)



          Supporting           Coastline                                                                           750 miles
                                                          50 miles              370 miles          450 miles                         30 miles
                               (statute miles)                                                                     (gulf-side)
         Information

                               Start/Peak of
                               Production in                                                                                           n/a
                                                       1980s / 1990s          1950s / 1980s     1950s / 1980s          n/a
                               State-owned
                               Waters

                               Crude Oil
                               Production in
                                                          528,000              36,000,000       2,000,000,000          n/a             n/a
                               State-owned
                               Waters (bbl)
         Production -
         Cumulative            Natural Gas
                               Production in
                                                        560,000,000            727,000,000      2,163,000,000          n/a             n/a
                               State-owned
                               Waters (BOE)


                               Direct Revenues
                               from State-owned         $2.97 billion        Undifferentiated   Undifferentiated      None            None
                               Waters
          Revenue -
          Cumulative
                               Direct Revenues
                               from Federal OCS         $274 million           $810 million      $1.14 billion     $2.4 million     $25 million
                               8g Disbursements




Production and Revenue Data for Individual States reported from Publicly Available Sources.
Cumulative State Production for Onshore and State-owned
                                                         State-
                  Waters Areas and Hypothetical Market Values
                                                        Alabama                     Texas           Louisiana            Florida           Mississippi
                                                       1944 through 2008      1932 through 2008    1945 through 2008   1943 through 2008   c.1951 through 2008




                             Crude Oil
                             Production (bbl)           691,675,990               56,742,303,000   15,882,674,421       603,744,743         2,137,644,810
          Historic
      Production for
       Onshore and
         in State-
      owned Waters
                             Natural Gas
                             Production (mcf)          8,745,520,020          416,218,251,641      150,361,591,360      638,865,674        10,635,730,038




                             Historic Production
                             of Crude Oil               $48.4 Billion              $4.0 Trillion     $1.1 Trillion      $42.3 Billion       $149.6 Billion
                             at $70/bbl




        Value of
         Historic            Historic Production
      Production at          of Natural Gas             $43.7 Billion              $2.0 Trillion     $0.7 Trillion       $3.2 Billion        $53.2 Billion
         Today’s
          o y                at $5/mcf
      Market Prices



                             Summary of the
                             Value of Historic          $92.1 Billion              $6.0 Trillion    $1.8 Trillion       $45.5 Billion       $202.8 Billion
                             Production




Production Data for Individual States reported from Publicly Available Sources.
Value Projections based on 2009 Pricing.
Overview of Development and Production
Jack- p
Jack-up drilling rig six miles off Dauphin Island, Alabama (1991)
               g g                    p          ,         (1991)
                                                                )
Aerial-view from Dauphin Island, Alabama
                                Natural Gas Production Platforms
                                       South of Mobile Bay
                                          September 2009
Fort Morgan Peninsula, Alabama




   Dauphin Island,
      Alabama
Ground-level View from Dauphin Island, Alabama
                                Natural Gas Production Platforms
                              South of Mobile Bay - September 2009




             Natural Gas Production Platform                                     Natural Gas Production Platform
                                               Natural Gas Production Platform
                    7.2 Nautical Miles                                                  4.5 Nautical Miles
                                                      2.6 Nautical Miles
Fort Morgan Peninsula,
Alabama




                                                                                 View to the Southeast from Eastern End
                                                                                       of Dauphin Island, Alabama
End of Presentation

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Offshore Oil Gas Florida State Owned Waters Briefing V17

  • 1. Oil and Gas Leasing Florida State-owned Waters State- Gulf of Mexico: A Briefing g October 5, 2009
  • 3.
  • 4. Western Central Eastern Planning Planning Planning Area Area Area A Gulf of Mexico - Minerals Management Service Planning Areas
  • 5. Smackover Trend Federal/State Boundary Atlantic Ocean (3 Geographic Miles) (3 Nautical Miles) Onshore Oil Trends Federal/State Boundary Gulf of Mexico (3 Marine Leagues) (9 Nautical Miles) (10.36 Statute Miles) Sunniland Trend
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11. Gulf of Mexico Production and Revenue
  • 12. Offshore Oil Development Sequence Geographical representation of locations for the 1,196 proved fields in the Gulf of Mexico. The bar heights in the figure are proportional to total proved reserves (barrel of oil equivalent) for each proved field by decade. Source: OCS Report, MMS 2009-022, Estimated Oil and Gas Reserves
  • 13. Historic Petroleum Production and Pricing: Onshore and State-owned Waters for Gulf of Mexico States $100.00 $100 00 4,000,000,000 4 000 000 000 chasers (Dollars per Barrel) Crude Oil $90.00 Texas 3,600,000,000 Louisiana s $80.00 Alabama 3,200,000,000 Mississippi tewide Petroleu Production (BOE) $70.00 2,800,000,000 Florida U.S. Crud Oil Wellhead Acquisition Price by First Purc $60.00 2,400,000,000 um $50.00 2,000,000,000 $40.00 1,600,000,000 Stat $30.00 1,200,000,000 $20.00 800,000,000 de $10.00 400,000,000 $- 0 1930 1940 1950 1960 1970 1980 1990 2000 Crude Oil Data Source: Energy Information Administration - http://www.eia.doe.gov/ Production Data for Individual States reported from Publicly Available Sources.
  • 14. Summary of Actual Production and Revenues in State-owned Waters y State- Alabama Texas Louisiana Florida Mississippi State Waters 3 NM 9 NM 3 NM 9 NM 3 NM (nautical miles) Supporting Coastline 750 miles 50 miles 370 miles 450 miles 30 miles (statute miles) (gulf-side) Information Start/Peak of Production in n/a 1980s / 1990s 1950s / 1980s 1950s / 1980s n/a State-owned Waters Crude Oil Production in 528,000 36,000,000 2,000,000,000 n/a n/a State-owned Waters (bbl) Production - Cumulative Natural Gas Production in 560,000,000 727,000,000 2,163,000,000 n/a n/a State-owned Waters (BOE) Direct Revenues from State-owned $2.97 billion Undifferentiated Undifferentiated None None Waters Revenue - Cumulative Direct Revenues from Federal OCS $274 million $810 million $1.14 billion $2.4 million $25 million 8g Disbursements Production and Revenue Data for Individual States reported from Publicly Available Sources.
  • 15. Cumulative State Production for Onshore and State-owned State- Waters Areas and Hypothetical Market Values Alabama Texas Louisiana Florida Mississippi 1944 through 2008 1932 through 2008 1945 through 2008 1943 through 2008 c.1951 through 2008 Crude Oil Production (bbl) 691,675,990 56,742,303,000 15,882,674,421 603,744,743 2,137,644,810 Historic Production for Onshore and in State- owned Waters Natural Gas Production (mcf) 8,745,520,020 416,218,251,641 150,361,591,360 638,865,674 10,635,730,038 Historic Production of Crude Oil $48.4 Billion $4.0 Trillion $1.1 Trillion $42.3 Billion $149.6 Billion at $70/bbl Value of Historic Historic Production Production at of Natural Gas $43.7 Billion $2.0 Trillion $0.7 Trillion $3.2 Billion $53.2 Billion Today’s o y at $5/mcf Market Prices Summary of the Value of Historic $92.1 Billion $6.0 Trillion $1.8 Trillion $45.5 Billion $202.8 Billion Production Production Data for Individual States reported from Publicly Available Sources. Value Projections based on 2009 Pricing.
  • 16. Overview of Development and Production
  • 17.
  • 18. Jack- p Jack-up drilling rig six miles off Dauphin Island, Alabama (1991) g g p , (1991) )
  • 19. Aerial-view from Dauphin Island, Alabama Natural Gas Production Platforms South of Mobile Bay September 2009 Fort Morgan Peninsula, Alabama Dauphin Island, Alabama
  • 20. Ground-level View from Dauphin Island, Alabama Natural Gas Production Platforms South of Mobile Bay - September 2009 Natural Gas Production Platform Natural Gas Production Platform Natural Gas Production Platform 7.2 Nautical Miles 4.5 Nautical Miles 2.6 Nautical Miles Fort Morgan Peninsula, Alabama View to the Southeast from Eastern End of Dauphin Island, Alabama