NOIA Comments on Tomorrow’s Gulf of Mexico Lease Sale

For Immediate Release: Tuesday, March 20, 2018
Contact:  Nicolette Nye, (202) 465-8463, nicolette@nullnoia.org

NOIA Comments on Tomorrow’s Gulf of Mexico Lease Sale

Washington, D.C. – NOIA President Randall Luthi today issued the following statement in advance of tomorrow’s Region-wide Gulf of Mexico Lease Sale 250:

“The historic size of tomorrow’s Region-wide Gulf of Mexico lease sale, combined with improving market conditions and a shallow water incentive, may draw more interest from industry than we have seen in recent years.

“Operators are global in nature and will bid where they believe they will get the most ‘bang for their buck’. The results of recent sales in the Mexican side of the Gulf of Mexico demonstrate that the United States cannot tread water by offering the same acreage time and time again without additional incentives. The good news is that as commodity prices and market conditions have slowly improved, the Trump administration has worked to safely reduce regulatory burden and also incentivize industry investment by offering a 12.5% royalty rate for shallow water leases. We hope these positive factors will be reflected in bidding activity tomorrow.

“The offshore oil and gas industry remains committed to safely providing tremendous energy and economic benefits for the United States and is forward looking.  The U.S. Gulf of Mexico will continue to be a vital part of America’s economic and energy future.”

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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 250 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.