Gulf Lease Sale Will Provide Economic, Energy Benefits -NOIA

U.S. Gulf lease sale will provide economic and energy benefits even in tough times for the industry, according to National Ocean Industries Association (NOIA) President Randall Luthi.

“We look forward to tomorrow’s Western Gulf of Mexico lease sale, but do not anticipate jaw-dropping results under current conditions.  Low commodity prices, uncertainty over new regulations, including the proposed BOP/well control rule, and the trend of increasing litigation over permitting and leases are among the factors converging to discourage operators from vigorous bidding.  However, there could be some interesting outliers from operators bidding on blocks surrounding current prospects," Luthi said.

“Whatever the outcome of this sale, it will ultimately result in needed jobs, increased economic activity, more revenue to state and federal governments and the production of reliable and affordable oil to fuel our vehicles and natural gas to power, heat and cool our homes and businesses.  The offshore oil and gas industry has continually demonstrated a commitment to providing these tremendous economic and energy benefits for our nation, despite the fact that over 85 percent of U.S. offshore areas are closed to leasing and exploratory activities, and have been for over a generation.  Given this track-record, NOIA members are hopeful that the final 2017 -2022 OCS oil and natural gas leasing program, or Congress, will actually open up new offshore areas for exploration.”