NOIA: Gulf Lease Sale Will Provide Economic & Energy Benefits Even in Tough Times for Industry

RandallLuthi_webFor Immediate Release: Tuesday, August 18, 2015
Contact:  Nicolette Nye, (202) 465-8463, nicolette@nullnoia.org

Gulf Lease Sale Will Provide Economic & Energy Benefits Even in Tough Times for Industry

 “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.

“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% 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.”

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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 more than 325 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