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Obama Admin to Hold GOM Lease Sale

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A day after promising a 75-percent increase in offshore exploration, President Barack Obama's administration announced Thursday that it will hold a new oil and gas lease sale in the Gulf of Mexico.

"Expanding offshore oil and gas production is a key component of our comprehensive energy strategy to grow America's energy economy, and will help us continue to reduce our dependence on foreign oil and create jobs here at home," said Secretary of the Interior Ken Salazar in a statement.

The lease sale, set to be held on June 20 in New Orleans, will cover approximately 38 million acres of available unleased areas offshore Louisiana, Mississippi, and Alabama. The Bureau of Ocean Energy Management (BOEM) estimates the sale could produce up to 1 billion barrels of oil and 4 trillion cubic feet of natural gas.

BOEM has also increased the minimum bid for deepwater to $100 per acre, up from $37.50, in an effort to "ensure that taxpayers receive fair market value for offshore resources and to provide leaseholders with additional impetus to invest in leases that they are more likely to develop".

"The President has made it clear that developing our domestic oil and gas resources is a significant part of this administration's efforts to grow our economy and create jobs. This lease sale is part of our commitment to safe and responsible development of the Outer Continental Shelf," said Salazar.

Obama is scheduled to highlight the sale in Nevada later Thursday.

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
JC | Jan. 30, 2012
It is absolutely a hoax and an election-year PR move. Nothing more than that.

Glen | Jan. 27, 2012
Obama knows that the Gas prices will effect his election. He is offering the oil companies a lease opportunity but when they come down to getting permits the EPA will not let them drill. Its a Hoax. Its all for show with no substance. If this was a real area of concern he would have done this his 1st year as president.

Jeremy Cudnohowski | Jan. 27, 2012
Really, for who? US companys ( I hope ) you pump it here, it should stay here. The US is sitting on volume of cubic Energy for the highest bidder and usually its not us.

nigel strong | Jan. 27, 2012
$37.50 to $100,looks like gas is on the way up. Does anybody really believe he is running this country anymore.Its about as stupid as thinking Rupert Murdoch never encouraged Hacking.

Phil Walton | Jan. 27, 2012
What a reversal from just a couple of years ago. It goes to show what an impact the oil and gas industry has on the economy.

John Brown | Jan. 27, 2012
What is Obama waiting on lets do it !

Bob | Jan. 26, 2012
So, he suddenly has "gotten religion", "seen the light", has "converted, and is now a "new man." Is anyone going to buy the leases given the administrations commitment to actions preventing exploiting the leases? A lease is worthless if you cant drill, pump, and transport. The administration has made it quite clear they don't want drilling, pumping or transporting to occur. Whitewashing a leopard doesn't change its spots...



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