GOM Lease Sale 257 Reinstatement Reaction

GOM Lease Sale 257 Reinstatement Reaction
LOGA, NOIA, and the API react to the news.

Earlier this week, the Bureau of Ocean Energy Management (BOEM) announced that, in compliance with congressional direction in the Inflation Reduction Act, the organization had accepted the 307 highest valid bids from Lease Sale 257 in the Gulf of Mexico.

In response to the development, Louisiana Oil & Gas Association (LOGA) President Mike Moncla said, “this has been a long time coming”.

“On behalf of the Louisiana Oil & Gas Association, I want to thank Attorney General Jeff Landry for his strong, capable leadership that helped make this lease sale possible,” Moncla added.

“This lease sale is an important victory, not only for the 250,000+ oil and gas workers in the state but for every American who is facing high energy costs,” Moncla continued.

National Ocean Industries Association (NOIA) President Erik Milito said, “the reinstatement of Lease Sale 257 is essential in keeping energy flowing from the Gulf of Mexico”.

“Communities along the Gulf Coast and throughout the country rely upon Gulf of Mexico oil and gas development for good-paying jobs, affordable energy supplies, and important funding for local infrastructure needs, coastal restoration and resiliency, and parks and recreation programs. It had been nearly two years since companies were last able to secure new leases from a region that is recognized as national strategic asset,” he added.

“At a time of inflationary energy price impacts and global energy insecurity, the Gulf of Mexico oil and gas sector continues to shine as an economic engine that operates under world class safety standards and produces among the lowest carbon barrels of oil in the world,” Milito went on to state.

In a statement posted on the American Petroleum Institute’s (API) Twitter page, which was also included in a Wall Street Journal story, the API’s vice president of upstream policy, Cole Ramsay, said, “we are pleased that the Interior has finally offered the first offshore leases of this administration, but it is disappointing that it took 19 months and an act of Congress to get us to this point”.

Highest Valid Bids

The 307 highest valid bids from Lease Sale 257 total $189,888,271, BOEM highlighted. The sale was originally held in November last year, although a federal judge invalidated the results in February 2022. 

“Leases resulting from the sale include stipulations to protect biologically sensitive resources, mitigate potential adverse effects on protected species, and avoid potential ocean user conflicts”, BOEM noted in a statement posted on its website.  

“The Inflation Reduction Act is a historic and transformational investment toward achieving President Biden’s ambitious goals to tackle the climate crisis while lowering costs for working families and creating good-paying jobs,” BOEM added.

“It will enable the Interior Department to continue playing a leading role in the transition to a clean energy economy. We are committed to implementing the law, including direction regarding the federal oil and gas programs,” BOEM continued.

To contact the author, email andreas.exarheas@rigzone.com


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