House Republicans ask Salazar to not delay March 18 OCS lease sale

Fifteen US House Republicans asked US Interior Secretary Ken Salazar in a March 5 letter not to delay a Gulf of Mexico oil and gas lease sale which is scheduled for March 18.

"Later this month, the Department of the Interior will conduct a lease sale in what is believed to be one of America's best untapped areas, the 181 South area of the Gulf of Mexico. Today, I lead a number of my colleagues in sending a letter to Secretary Salazar stressing the importance of moving forward with this critical lease sale," said Doc Hastings (R-Wash.), ranking minority member of the House Natural Resources Committee.

In his opening statement at a March 5 hearing by the committee's Energy and Mineral Resources Subcommittee on energy outlooks and the role of federal onshore and offshore resources in meeting future energy demand, Hastings said that Salazar's Feb. 4 cancellation of successful leases from a December lease sale in Utah, his Feb. 10 announcement that he would delay development of a five-year Outer Continental Shelf plan begun last summer, and his Feb. 25 withdrawal of a Jan. 14 oil shale lease solicitation "show a clear trend against oil and gas development and job creation.

"My colleagues and I are concerned that should the department act to delay the Central Gulf Oil and Gas Lease Sale No. 208, it will further establish a dangerous trend of blocking new American-made energy and the creation of new American jobs. Additionally, a delay of this sale would throw obstacles in the way of providing American oil and gas that the [US] Energy Information Administration says the nation will need well past 2030 and also discourage energy companies from pursuing new opportunities in our country," Hastings maintained.

The letter, which also was signed by Doug Lamborn (R-Colo.), the ranking minority member of the subcommittee, and 13 other House Republicans, said that the sale "may bring in billions of dollars to the US Treasury, open an entirely new frontier of the Gulf for oil development, and save and create thousands of jobs.

Revenue from this initial leasing in the Gulf's 181 South area will be shared with Alabama, Mississippi, Louisiana and Texas, thereby helping the states deal with the current economic downturn, it continued. The US Minerals Management Service's own estimates say that this lease sale could result in production of 800 million to 1.3 billion bbl of oil and 3.3-5.4 trillion cubic feet of natural gas, "resources that are critically needed by American consumers and which will help us offset our future energy needs," the letter said.

Not proceeding with this lease sale on schedule could threaten not only future leasing in that part of the Gulf but also the entire OCS program, it warned. "Preparation for a lease sale as large as the annual Central Gulf Sale requires a massive commitment of human and financial capital by dozens of companies. If these companies no longer trust that the government will hold the lease sales that it announces, many will no longer bid or they will reduce their bids, resulting in lower government receipts and less energy produced," the 15 House Republicans told Salazar in their letter.

A spokeswoman for Salazar told OGJ Washington Pulse on March 7 that the sale remains on the secretary's schedule and that he plans to attend.

Contact Nick Snow at nicks@pennwell.com

Related Articles

BPC report examines 40 possible options to reform RFS

12/16/2014 The Bipartisan Policy Center issued a report outlining 40 possible options for reforming the federal Renewable Fuels Standard in an effort to move ...

Turkish refinery secures Canadian financing

12/16/2014 Export Development Canada (EDC) said it is participating as lead arranger in the $3.3 billion debt-financing consortium supporting STAR Rafineri AS...

Encana to focus spending on four core shale assets in 2015

12/16/2014 Encana Corp., Calgary, reported plans to spend $2.7-2.9 billion on its capital budget with roughly 80% of this total directed towards four of what ...

Development plan outlined for Gullfaks Rimfaks Valley

12/16/2014 A consortium led by Statoil ASA has submitted a development plan for the Rutil discovery in the North Sea’s Gullfaks Rimfaks Valley that will exten...

Cenovus trims budget, slows oil sands work

12/16/2014 Cenovus Energy Inc., Calgary, is trimming its capital spending in response to declining crude oil prices and will slow development of some of its t...

Pengrowth starts commercial steam operations at Lindbergh thermal project

12/16/2014 Pengrowth Energy Corp., Calgary, reported the startup of commercial steam operations at Phase 1 of its Lindbergh thermal project in the Cold Lake a...

Repsol to acquire Talisman in $13 billion deal

12/16/2014 Spain’s Repsol SA has agreed to acquire all shares of Talisman Energy Inc. of Calgary for $8.3 billion along with assumed debt of $4.7 billion. The...

MARKET WATCH: Oil prices continue falling awaiting economic statistics

12/16/2014 Oil prices on the New York market dropped in Dec. 15 trading following reports of supply disruptions in Libya and awaiting reports of economic stat...

Angola’s Sonangol secures $2 billion loan for refinery, other projects

12/15/2014 China Development Bank (CDB) has extended a $2 billion line of credit to state-owned Sonangol EP to support expansion projects in Angola’s oil and ...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected