NOIA’s Vice President of Governmental and Political Affairs, Tim Charters, issued the following statement regarding Lease Sale 251 to be held in the Gulf of Mexico on Wednesday, August 15

“This lease sale is a barometer and a step in the recovering health of the offshore oil and gas industry. While the recovery is neither uniform nor universal, efficiency improvements in the last few years are starting to bear fruit and some offshore sectors are showing profits, although the margins are slim. Unfortunately, the Administration’s decision to not lower future deepwater royalty rates to match shallow water and onshore royalty rates does nothing to hasten overall recovery.

“Companies will consider technological capabilities, operational efficiencies and oil futures as they weigh how much capital to invest in this lease sale. The good news is that higher oil prices are providing producers a sense of certainty that has been lacking in recent years. In addition, the Administration’s efforts to streamline and reduce some burdensome regulations, that do not enhance safety, will encourage companies to continue to invest in the U.S. Gulf of Mexico -- an integral slice of America’s economic and energy security pie.”