NOIA Issues Statement Ahead of Gulf Oil and Gas Lease Sale

For Immediate Release: Monday, August 13, 2018
Contact:  Nicolette Nye,   (202) 465-8463, nnye@nullnoia.org

NOIA Issues Statement Ahead of Gulf Oil and Gas Lease Sale

Washington, D.C.NOIA’s Vice President of Governmental and Political Affairs, Tim Charters, issued the following statement regarding Lease Sale 251 to be held in the Gulf of Mexico on Wednesday, August 15:

“This lease sale is a barometer and a step in the recovering health of the offshore oil and gas industry. While the recovery is neither uniform nor universal, efficiency improvements in the last few years are starting to bear fruit and some offshore sectors are showing profits, although the margins are slim. Unfortunately, the Administration’s decision to not lower future deepwater royalty rates to match shallow water and onshore royalty rates does nothing to hasten overall recovery.

“Companies will consider technological capabilities, operational efficiencies and oil futures as they weigh how much capital to invest in this lease sale. The good news is that higher oil prices are providing producers a sense of certainty that has been lacking in recent years. In addition, the Administration’s efforts to streamline and reduce some burdensome regulations, that do not enhance safety, will encourage companies to continue to invest in the U.S. Gulf of Mexico — an integral slice of America’s economic and energy security pie.”

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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.