Western GofM Oil/Gas Lease Bidding: NOIA Comments

National Ocean Industries Association President Randall Luthi encouraged by sales, urges further offshore developments.

Tthe NOIA president's statement is as follows:

"This sale is on-par with expectations and shows that the offshore oil and natural gas industry is still committed to domestic exploration and production. The Federal government benefits from this sale through non-income tax revenue and the promise of future income through rents and potential royalties upon production.  With enormous economic challenges facing the U.S., and the impending "fiscal-cliff" dominating the national conversation, it is gratifying to see the offshore industry stepping up to the plate and providing hundreds of millions of dollars to the U.S. treasury.

American energy consumers also stand to benefit from this sale through the increased energy security and reliability that successful development of leased tracts will bring.

Any sale is good news for the offshore oil and natural gas industry, Federal government, and energy consumers, but today’s sale should also serve as a reminder that Federal policy has placed nearly all of our offshore energy "eggs" in one basket.

The Gulf of Mexico is America's offshore energy hub – the source of about 30% of our domestic oil and around 11% of our domestic natural gas.  But, as we saw this summer, storms that pass through the region can temporarily shut-off this vital spigot, causing spikes in fuel prices.  Diversification into other offshore areas would spread our energy "eggs" out over several baskets, increasing domestic energy security and reliability and reducing our dependence on foreign sources.
 
“By restricting activity to the same 15% of the outer continental shelf that the industry has been picking over for decades, the Administration is ensuring that our offshore energy resources are being underdeveloped.  We are all losing as a result. A true "all-of-the-above" energy policy would include opening up access to new offshore areas for exploration and development of oil and natural gas.”"