	Introduction and Background

In the wake of the Deepwater Horizon explosion and oil spill in the Gulf of Mexico on April 20, 2010, Congress continues to debate how much of the outer continental shelf (OCS) should be available for oil and gas development. On December 1, 2010, the Obama Administration announced its Revised Program (RP) for the remainder of the 2007-2012 OCS Leasing Program. Among other components, the RP eliminates five Alaskan lease sales (sales 209, 212, 214, 217, and 221) that had been contemplated in the current lease program. Lease sale 219 in the Cook Inlet (scheduled to be held in 2011) was cancelled because of a lack of industry interest. Further, the Obama Administration, under executive authority, withdrew the North Aleutian Basin Planning Area from oil and gas leasing activity until June 30, 2017. Public hearings began in 2010 on the scope of the 2012-2017 OCS oil and gas leasing program, but three planning areas in Alaska (Cook Inlet, Chukchi, and Beaufort Sea) are being scoped as well. On November 8, 2011, the Administration announced its second draft proposed oil and gas leasing program for 2012-2017, which excludes all three Atlantic and all four Pacific Coast planning areas at least through 2017. On December 14, 2011, the Obama Administration held lease sale 218 in the Western Gulf of Mexico, the first sale since the oil spill. A combined lease sale in the Central Gulf of Mexico (sale 216 and 222) is scheduled for June 20, 2012, the final sale of the 2007-2012 leasing program. Congress and the Administration are likely to give careful consideration to which parts of the OCS to keep open and which to protect through leasing moratoria. Most recently, legislation introduced in the House—the Energy Security and Transportation Jobs Act ( H.R. 3410 ) on November 14, 2011—combines some of the language from bills passed earlier by the House ( H.R. 1230 and H.R. 1231 , discussed below) and incorporates this proposal into H.R. 7 , the American Energy and Infrastructure Jobs Act of 2012, as Title XVII – Subtitle B. Subtitle B of this act would require BOEM to offer lease sales in the most prospective areas in each of the OCS Planning Areas for the 2012-2017 5-Year Leasing Program specifically, areas that contain more than 2.5 billion barrels of oil or more than 7.5 trillion cubic feet of natural gas. H.R. Another bill ( H.R. The House passed H.R. A characteristic of the U.S. oil market, as well as the world oil market, is that the access to supply tends to be sequential. Normally, the first source of oil used by a nation is domestic production, if available. The development of the offshore areas would be unlikely to eliminate U.S. dependence on foreign energy sources, and may not even reduce it. Resource Estimation and Technological Change

			Estimation Techniques in the OCS

Exploration and production proceed in stages during which increasing data provide increasing certainty about volumes of oil and gas present. Analysis of Estimates

The assessments of UTRR on the U.S. OCS by the BOEM provide estimates whose statistical certainty varies by region, because the availability of geologic data varies widely by region. Nine lease sales have occurred to date. Resources . Undiscovered technically recoverable resources (UTRR) .
Access to potential oil and gas resources under the U.S. Outer Continental Shelf (OCS) continues to be controversial. Moratoria on leasing and development in certain areas were largely eliminated in 2008 and 2009, although a few areas remain legislatively off limits to leasing. The 112th Congress may be unlikely to reinstate broad leasing moratoria, but some Members have expressed interest in protecting areas (e.g., the Georges Bank or Northern California) or establishing protective coastal buffers. Pressure to expand oil and gas supplies and protect coastal environments and communities will likely lead Congress and the Administration to consider carefully which areas to keep open to leasing and which to protect from development.
The oil spill that occurred on April 20, 2010, in the Gulf of Mexico brought increased attention to offshore drilling risks. Consideration of offshore development for any purpose has raised concerns over the protection of the marine and coastal environment.
On December 1, 2010, the Obama Administration announced its Revised Program (RP) for the remainder of the 2007-2012 OCS Leasing Program. Among other components, the RP eliminates five Alaskan lease sales (sales 209, 212, 214, 217, and 221) that had been contemplated in the current lease program. Lease sale 219 in the Cook Inlet (scheduled to be held in 2011) was cancelled because of a lack of industry interest. Further, the Obama Administration, under executive authority, withdrew the North Aleutian Basin Planning Area from oil and gas leasing activity until June 30, 2017. Public hearings began in 2010 on the scope of the 2012-2017 OCS oil and gas leasing program, but three planning areas in Alaska (Cook Inlet, Chukchi, and Beaufort Sea) are being scoped as well. On November 8, 2011, the Administration announced its second draft proposed oil and gas leasing program for 2012-2017, which excludes all three Atlantic and all four Pacific Coast planning areas at least through 2017. On December 14, 2011, the Obama Administration held lease sale 218 in the Western Gulf of Mexico, the first sale since the oil spill. A combined lease sale in the Central Gulf of Mexico (sale 216 and 222) is scheduled for June 20, 2012, the final sale of the 2007-2012 leasing program.
Three bills that were passed in the House in May 2011 would address permitting efficiencies (H.R. 1229), enforce certain lease sales in the current five-year planning period (H.R. 1230) and require lease sales in the "most promising" OCS Planning Areas during the 2012-2017 Lease Program (H.R. 1231). Most recently, legislation introduced in the House—the Energy Security and Transportation Jobs Act (H.R. 3410) on November 14, 2011—combines some of the language from bills passed earlier by the House (H.R. 1230 and H.R. 1231, discussed below) and incorporates this proposal into H.R. 7, the American Energy and Infrastructure Jobs Act of 2012, as Title XVII – Subtitle B.
Exploration and production proceed in stages during which increasing data provide increasing certainty about volumes of oil and gas present. The Bureau of Ocean Energy Management (BOEM) conducts assessments of undiscovered technically recoverable resources (UTRR) on the U.S. OCS. The statistical certainty of these assessment estimates varies by region because the availability of geologic data varies widely by region. One characteristic of the U.S. oil market, as well as of world oil markets, is that the access to supply tends to be sequential. Normally, the first source of oil used by a nation is domestic production, if available. The ultimate impact of oil and gas development in offshore areas will depend on oil and gas prices, volumes of resources actually discovered, infrastructure development, and restrictions placed on development, all of which currently carry significant uncertainties.