AmericasOffshore

US House authorises online auctions for offshore oil and gas leases

The US House of Representatives has passed a bill that provides the Interior Secretary with the power to approve internet-based lease sales for oil and natural gas prospects in the U.S. Outer Continental Shelf.

This Innovation in Offshore Leasing Act was advanced by advocates as a means of conducting government business more efficiently and more cost effectively.

Proposed by Representative Garret Graves (a Republican for Louisiana) and Representative Alan Lowenthal (a Democrat for California), the bill would most impact oil and gas industries in the US Gulf of Mexico by requiring the Bureau of Ocean Energy Management (BOEM) to conduct online auctions for leases there.

Previously auctions were held in real, physical settings with real people present.

Critics, including environmental groups, say the livestreamed auction process shuts out the public’s voice and consequently poses a threat to wildlife, coastal communities and the climate.

Offshore industry body the National Ocean Industries Association (NOIA) hailed what it called “… a bipartisan and common-sense way to incorporate modern technology and transparency into the offshore lease sale process”.

Two weeks ago the first online-only auction of US Gulf of Mexico offshore oil blocks went ahead without a technical hitch. But the response was fairly underwhelming with only 24 bids from three companies on the 4,399 blocks up for grabs.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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