API responds to BOEMRE announcement of GOM lease sale

API has responded to the announcement by BOEMRE that it will  will hold the first oil and natural gas lease sale in the Gulf of Mexico since March 2010 (details HERE):

Erik Milito, group director of upstream and industry operations at API, said:

“We welcome seeing the scheduling of the first oil and gas lease sale in the Gulf in 21 months. Continued and expanded development of offshore oil and gas resources will bring a much needed infusion of jobs, government revenues, and energy security to the nation. In fact, a recent study shows that expanded oil and gas development on federal lands, including the offshore, can create more than 500,000 jobs and more than $190 billion in government revenues by 2025,” said API Upstream Director Erik Milito.

“We hope that many more lease sales will follow in the Gulf, as well as other offshore regions such as Alaska and the Atlantic. If this lease sale moves forward as planned, we will avoid 2011 being the first year without an offshore lease sale since 1958.

“Included in the announcement is a rate increase that more than doubles the minimum bid for deepwater leases. We are hopeful that this does not discourage investment in these vital domestic resources. We caution efforts that discourage investment in U.S. resources during this time of economic and regulatory uncertainty.

“Despite our concerns, we look forward to this and other offshore lease sales, which continually serve to highlight the industry’s commitment to develop American resources while spurring the economy.”

August 22, 2011