Tomorrow’s Gulf Lease Sales Important Even Today - NOIA

NOIA President Randall Luthi today issued the following statement in advance of tomorrow’s Central and Eastern Gulf of Mexico Oil and Gas Lease Sales:
 
“Historically, Central and Eastern Gulf of Mexico lease sales have drawn strong interest from industry; however, a combination of factors – continued low commodity prices, increased Federal regulation, and the Administration’s clear lack of support for domestic fossil fuel production – could result in rather small sales tomorrow, continuing the downward trend witnessed over the past few years.  In this tough economic environment, we have seen a pattern of some companies submitting bids in an attempt to shore up existing production areas and pick up leases near known deposits, while others bet against the curve, and pick up some future important areas.
 
“Regardless of market conditions, offshore lease sales are always good for the industry, and are a source of jobs, economic development, revenue to local, state and federal government, and safe, reliable and affordable energy for American consumers. The offshore oil and gas industry has continually demonstrated a commitment to providing tremendous economic and energy benefits for our nation, despite the fact that over 85% of U.S. offshore areas are closed to leasing and exploratory activities, and have been for decades.
 
“Even when faced with the Administration’s recent short-sighted removal of the Atlantic sale from the 2017-2022 OCS Oil and Gas Leasing Proposed Program and bombarded by numerous stricter and overly burdensome regulations, the offshore industry remains forward looking and is confident that the future will continue to bring new opportunities to safely produce reliable and affordable oil and natural gas for American consumers, bolster the U.S. economy, and increase domestic energy security.”