GoM Lease Sale to yield greater focus : NOIA
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.”
