Market and Regulatory Forces at Play in Tomorrow’s Livestream Western Gulf Lease Sale

RandallLuthi_webFor Immediate Release: Tuesday, August 23, 2016
Contact:  Nicolette Nye, (202) 465-8463, nicolette@nullnoia.org

Market and Regulatory Forces at Play in Tomorrow’s Livestream Western Gulf Lease Sale

 Washington, D.C. – NOIA President Randall Luthi today issued the following statement in advance of tomorrow’s Western Gulf of Mexico Oil and Gas Lease Sale:

 “Industry, like everyone else, will be watching tomorrow’s Western Gulf of Mexico Sale proceedings via livestream broadcast.  It is unlikely this new sale format will impact industry bidding.  Commodity prices and the concern over ever increasing regulatory burdens will determine the sale’s outcome.

“There are some factors that could generate some interesting undercurrents in this sale.  With the recent changes in Mexican law, our neighbor to the south is eager to attract U.S. companies into their portion of the Gulf of Mexico. The continuing onslaught of ever-changing U.S. regulatory policies may tilt companies towards investing more in Mexican waters and thus dampen interest in this sale.

“In contrast, there are interesting deepwater leases in what is known as the transboundary area and it is now possible for U.S. companies to reach exploration and production agreements with companies, such as PEMEX, to develop these resources.

“In many ways, this sale may be a test canary, and it offers companies with the appetite the opportunity to pick up some future prime prospects.

“Regardless of the market or regulatory environment, every offshore lease sale, no matter the size, is an important source of jobs, economic development, revenue to the government, and safe, reliable and affordable energy for American consumers. Even though the Administration’s short-sighted removal of the Atlantic sale from the 2017-2022 OCS Oil and Gas Leasing Proposed Program keeps over 85% of U.S. offshore areas closed to leasing and exploratory activities, as they have been for decades, the offshore oil and gas industry  remains committed to providing tremendous economic and energy benefits for our nation.”

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ABOUT NOIA

NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of both traditional and renewable energy resources on the nation’s outer continental shelf.  NOIA’s mission is to secure reliable access and a fair regulatory and economic environment for the companies that develop the nation’s valuable offshore energy resources in an environmentally responsible manner. The NOIA membership comprises about 300 companies engaged in business activities ranging from producing to drilling, engineering to marine and air transport, offshore construction to equipment manufacture and supply, telecommunications to finance and insurance, and renewable energy.