LMOGA on Central Gulf of Mexico Lease Sale 216/222

06 21, 2012 by Louisiana Mid-Continent Oil and Gas Association

Today's Central Gulf of Mexico Lease Sale 216/222 in New Orleans, the first in over two years, is another great step forward for the oil and gas industry in continuing to develop offshore resources. With nearly $1,704,500,995 in total high bids and the highest individual bid at $157,111,000 the numbers announced today clearly demonstrate that industry remains committed to doing business in the Gulf of Mexico.

This is a solid lease sale that illustrates the continued importance of the Gulf to America’s energy future. We are pleased with today's results, but as the last lease sale under the current five-year OCS leasing plan we can't ignore the inefficiencies of the 2012-2017 offshore plan. Today's sale will help develop new resources, but an expanded five-year plan that opens up new areas for drilling opportunities is critical to securing America's energy future.

With a $77.3 billion impact on our state and over 300,000 jobs supported, the economic impacts of the oil and gas industry on the state of Louisiana alone are incredible. With estimates of up to 1 billion barrels of oil and 4 trillion cubic feet of natural gas undiscovered in the region up for sale today, the potential benefits for the economies of the Gulf Coast are very promising. The Gulf of Mexico has a strong future as an attractive investment area for drilling activity and today’s lease sale will create jobs and increase revenues for the state of Louisiana. We look forward to the completion of the new five-year leasing plan and are hopeful another successful Gulf lease sale will be included in the new program.

Chris John
President, Louisiana Mid-Continent Oil and Gas Association

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