Motion to Intervene and Protest of Sierra Club under CP09-6 et. al.

DOE/EIA-M063(2011) Documentation of the Oil and Gas Supply Module (OGSM) July 2011 Office of Energy Analysis U.S. Energy Information Administration U.S. Department of Energy Washington, DC 20585 This report was prepared by the U.S. Energy Information Administration, the independent statistical and analytical agency within the Department of Energy. The information contained herein should not be construed as advocating or reflecting any policy position of the Department of Energy or any other organization. i U.S. Energy Information Administration/Oil and Gas Supply Module Documentation Update Information This edition of the Documentation of the Oil and Gas Supply Module reflects changes made to the oil and gas supply module over the past year for the Annual Energy Outlook 2011. The major changes include: x Texas Railroad Commission District 5 is included in the Southwest region instead of the Gulf Coast region. x Re-estimation of Lower 48 onshore exploration and development costs. x Updates to crude oil and natural gas resource estimates for emerging shale plays. x Addition of play-level resource assumptions for tight gas, shale gas, and coalbed methane (Appendix 2.C). x Updates to the assumptions used for the announced/nonproducing offshore discoveries. x Revision of the North Slope New Field Wildcat (NFW) exploration wells drilling rate function. The NFW drilling rate is a function of the low-sulfur light projected crude oil prices and was statically estimated based on Alaska Oil and Gas Conservation Commission well counts and success rates. x Recalibration of the Alaska oil and gas well drilling and completion costs based on the 2007 American Petroleum Institute Joint Association Survey drilling cost data. x Updates to oil shale plant configuration, cost of capital calculation, and market penetration algorithms. x Addition of natural gas processing and coal-to-liquids plants as anthropogenic sources of carbon dioxide (CO2). ii U.S. Energy Information Administration/Oil and Gas Supply Module Documentation Contents 1. Introduction ...................................................................................................................1-1 Model Purpose ...........................................................................................................1-2 Model Structure .........................................................................................................1-5 2. Onshore Lower 48 Oil and Gas Supply Submodule .....................................................2-1 Introduction................................................................................................................2-1 Model Purpose ...........................................................................................................2-1 Resources Modeled ...............................................................................................2-1 Processes Modeled .........................................................................