NOIA Outlook on Central Gulf of Mexico Lease Sale 235

For Immediate Release: Tuesday, March 17, 2015

Contact:  Nicolette Nye, (202) 465-8463, nicolette@nullnoia.org

NOIA Outlook on Central Gulf of Mexico Lease Sale 235

Washington, D.C. – National Ocean Industries Association President Randall Luthi issued the following statement in advance of tomorrow’s  Gulf of Mexico offshore oil and gas lease sale:

“This sale will be interesting due to low oil prices, which just dropped further this week.  But even in this environment, U.S. oil and natural gas companies are planning ahead, and remain committed to the Gulf of Mexico.

 

“The past few Central Sales have shown a trend away from shallow areas  to deep water, and that trend may continue, at an even a greater pace.  Deep water projects take a longer term view of the market. Producers understand that the price of oil could roller coaster several times over the years it takes to achieve production, and bet on the outcome that higher oil prices during production will make the overall project profitable.

“Shorter time frames for active exploration within the lease terms are factors that may impact bidding in this sale, especially for companies tight on capital.

“However, current market conditions should make opportunities to purchase leases abutting or near to existing finds, particularly attractive both in shallow and deep water.

“It is yet to be seen whether low oil prices and stricter lease terms will conspire to bring the chickens home to roost at this sale.”

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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 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.