OFFSHORE OIL AND GAS A FLORIDA PERSPECTIVE David

OFFSHORE OIL AND GAS A FLORIDA PERSPECTIVE David R. Mica Executive Director Florida Petroleum Council

American Petroleum Institute § § § Formed 1919 Over 400 members Voice of the petroleum industry

FLORIDA PETROLEUM COUNCIL One of 28 Petroleum Councils n Two Professionals and Office Manager n

Some API Members

FLORIDA n n n 15. 4 Million Residents Fourth largest, third by 2020 14% Black - near that percentage Hispanic 30% born in Florida Median Age 38. 3 (4 years older than National) (largest exports from TIA tropical fish & bodies back North) n 9. 2% Population below poverty level

THREE STATES IN ONE South Florida Cuban (& other Latin Americans) Haitians, North Eastern & Retirees Central Florida South Florida Immigrants, Puerto Ricans, Retirees North Florida Native Floridians, South & Central Florida Immigrants, Redneck Riviera, Military & Military Retirees

FLORIDA POLITICS n Microcosm of the United States 96 Clinton 2000 ? ? Most consider themselves moderate to conservative n Voter Registration Traditionally Democrat, now Equal Registration

UNITED STATES CONGRESS n Bob Graham (D) Old Florida…. South Florida Dairyman & Developer State Senator 70’s Governor 1980 -1988 U. S. Senate 1988 – present n Bill Nelson (D) Old Florida…Central 70’s State House 80’s U. S. House 90’s Insurance Commissioner 2000 U. S. Senate

FLORIDA U. S. HOUSE DELEGATION – 8 Democrats – 15 Republicans *Bill Young (Chairman of House Appropriations)

GOVERNOR JEB BUSH n Ties to DC – Chief of Staff Kathleen Shanahan – Secretary FDEP David Struhs – Cabinet Reorganization Gives More Power – Re-election in 2002 * Janet Reno * Bill Mc. Bride

FLORIDA LEGISLATURE n Senate n House n 25 Republicans n 77 Republicans n 15 Democrats n 43 Democrats

BIG ISSUES n Tax Reform – – 1 billion budget 1970 50 billion budget 2002 n Re-Apportionment n Term Limits – – 60+ in 2000 Many more 200

ENVIRONMENTAL Florida Politicians Routinely Pray on Voters Fear of Environmental Catastrophes *Wetlands *Growth Management *Beach Restoration *Water Quality & Quantity *Waste Management *Everglades Loss *Air Quality ***Offshore Drilling

Offshore Areas • State Jurisdiction - 3 Miles (Except Texas and Western Florida - 3 Marine Leagues -Approx. 10 Miles) • Federal Jurisdiction - Remainder of EEZ

FLORIDA OIL & GAS ONSHORE - HISTORICAL FACTS n n n First Discovered 1943 at Sunniland in Collier County Humble Oil claimed $50, 000 for that discovery that was a prize offered by the Governor & Cabinet 1970 Largest onshore field east of the Mississippi River discovered in Jay, Florida n n Jay ultimately expected to provide 600 million barrels of oil & 800 billion cubic feet of natural gas S. W. Florida has produced 111, , 224 barrels, 9, 821 mmcf gas

FLORIDA OIL & GAS OFFSHORE – HISTORICAL FACTS n n n 1944 Governor & Cabinet leased from Apalachicola to Naples to Coastal Petroleum Company (13 wells from 1947 -1968) 1946 Governor and Cabinet leased areas in the Keys to Gulf Oil Company (4 wells from 1947 -1959) 1983 Getty Oil Company drilled last well in Florida waters in East Bay in site of Pensacola

OCS LEASING NEAR FLORIDA n n 1973 leases 30 -40 miles n South of Panama City in Destin Dome 1974 Exxon finds Norphlet sand formation (a formation known to be n hydrocarbon rich Exxon suspends operations after 15 dry holes n 1984 Lease Sale 79 brings in $310 million n 1985 Shell Oil confirms natural gas but relinquishes lease in 1990 because of low yield and non-commercial viability 1987 Chevron discovers block 56 Natural Gas 1. 5 trillion cubic feet estimated To date, 47 wells drilled offshore the Florida quadrant December ‘ 01 Lease Sale 181 brings in $350 million

EASTERN GULF OF MEXICO 47 Exploratory Wells Drilled (13 Discoveries) 1 st Production - February 1999 (Pensacola Block 881) 3 Developments Pending • Destin Dome Blocks 1 & 2 • Destin Dome 56 Unit • De. Soto Canyon Blocks 133 & 177 1 Pending Exploration Plan (De. Soto Canyon Block 927)

OIL & GAS FIELD MAPS AND STATE LEASES

EASTERN GULF OF MEXICO HISTORY • Largest of 3 Planning Areas in the Gulf of Mexico • 75. 585 Million Acres • 11 Lease Sales Held To Date • 146 Active Leases

EASTERN GULF OF MEXICO HISTORY • Last Sale in EGOM (Sale 116 - November 16, 1988) • Congressional Moratoria • Administrative Deferrals • Presidential Executive Order

INITIAL PROPOSED OCS LEASE SALE 181 EASTERN GULF OF MEXICO

MODIFIED OCS LEASE SALE 181

n American Petroleum Institute www. api. org n Florida Petroleum Council www. florida@api. org n James Madison Institute www. jamesmadison. org

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