Gulf Lease Sale Good, But We Need to Explore New Areas
May 2, 2018
The most recent federal Gulf of Mexico oil and natural gas lease sale was described in some media reports as "disappointing," "modest" and "tepid." But there's another, more positive way to look at it.
First, every offshore lease sale the federal government holds is welcome by industry, because each represents new opportunity for the market to work as it should - with companies making investment decisions based on the potential for significant natural gas and oil production. It has to be that way, because offshore development is expensive and can take seven years or more to result in production. In this post, former Bureau of Ocean Energy Management Tommy Boudreau elaborates on other factors that shaped the recent lease sale.
As the U.S. considers developing more of its outer continental shelf (OCS), remember that about 94 percent of the federal OCS remains off limits to development. So making progress is all important - especially with the prospect for even more progress in a new offshore leasing program the administration is crafting. The end goal is to harness more of our offshore reserves to strengthen America's future energy security while supporting local, state and national economies. Jason McFarland, International Association of Drilling Contractors president, in an interview with E&ENews:
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