Obamas War On Jobs Escalates
New rules discourage oil exploration in the gulf.
Oil industry leaders and their Capitol Hill allies complained Tuesday that the Obama administration’s plan to hike the minimum bid for offshore drilling leases and shorten the duration of those contracts will discourage companies from making bets on marginal fields in the Gulf of Mexico and ultimately curb domestic energy production.
At issue is the Interior Department’s decision to boost the minimum bid companies must offer for deep-water tracts from $37.50 per acre to $100, while simultaneously shrinking the length of most of those leases from 10 to seven years.
posted by Michael at
5:48 AM
1 Comments:
this is the rest of the paragraph.
"The move is designed to spur companies to diligently develop any offshore areas they lease."
another relevant quote from the article.
In his first public appearance as director of the Interior Department’s Bureau of Ocean Energy Management, Beaudreau said the higher bid requirement was rooted in an “incredibly robust analysis that showed acreage that had been sold for less than $100 per acre (over 15 years of lease sales) had experienced virtually no drilling whatsoever.”
“Not a single exploration well had been drilled in those areas. Companies had simply — because it was cheap — bought that acreage and done nothing with it,” Beaudreau told the Platts Energy Podium. Those tracts “had simply been bought too cheap and warehoused.”
Post a Comment
Subscribe to Post Comments [Atom]
<< Home