Petroleum Exploration and the Atlantic OCS

Abstract

The largest Atlantic outer continental shelf (OCS) lease sale was the first one, Sale 40 in 1976. Ninety-three Baltimore Canyon Trough petroleum leases were issued, and industry's winning bids total $1.1 billion. The highest bonus bids were for leases overlying the Schlee Dome, then called Great Stone Dome, a large structure with a very large fetch area. By 1981, seven dry wells on the dome moderated this initial flush of optimism. However, subeconomic quantities of gas and light oil were discovered on the nearby Hudson Canyon Block 598-642 structure. Now after 9 lease sales, 410 lease awards, and 46 exploration wells, United States Atlantic petroleum exploration activity is in a hiatus. Fifty-three leases remain active under suspensions of operation. Twenty-one lease blocks, about 50 mi offshore from Cape Hatteras, have been combined as the Manteo Exploration Unit. Mobil and partners submitted an exploration plant for the unit in 1989. The Atlantic OCS has petroleum potential, especially for gas. With only 46 exploration wells, entire basins and plays remain untested. During the present exploration inactivity, some petroleum evaluation of the Atlantic OCS continues by the Minerals Management Service and others. Similarities and differences are being documented between United States basins andmore » the Canadian Scotian Basin, which contains oil and gas in commercial quantities. Other initiatives include geochemical, thermal history, seismic stratigraphic, and petroleum system modeling studies. The gas-prone Atlantic OCS eventually may make an energy contribution, especially to nearby East Coast markets.« less