Congress should extend mandate to experiment with alternative bidding systems in leasing offshore lands

Technical Report · Fri May 27 04:00:00 EDT 1983

OSTI ID:5366823

Bowsher, C A

The Outer Continental Shelf Lands Act Amendments of 1978 required the Interior Department to experiment with alternatives to the traditional bidding system in leasing offshore lands for oil and gas development. This experiment, extending over a 5-year period, is scheduled to end in September 1983. The alternative systems are designed to reduce the amount of up-front money required by companies to obtain an offshore lease, in return for a greater share of the revenues from any follow-on production. By reducing up-front money, the alternative systems are supposed to increase participation and competition in offshore lease sales. GAO found that the initial effects of the alternative systems on company participation and competition have generally paralleled or bettered the results of the traditional system, although up-front money required to obtain leases was not always reduced as theorized. Additional time and testing are needed before the full effects on the leasing program can be determined. Accordingly, GAO recommends that the legislation be amended to require use of the alternative systems or an additional 5 years so that more information will be available to judge their overall merits.

• Research Organization: General Accounting Office, Washington, DC (USA). Office of the Comptroller General
• OSTI ID: 5366823
• Report Number(s): GAO/RCED-83-139; ON: DE84900825
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
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& Business Aspects
03 NATURAL GAS
030600 -- Natural Gas-- Economic
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29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
294002* -- Energy Planning & Policy-- Petroleum
294003 -- Energy Planning & Policy-- Natural Gas
BIDS
COMPETITION
CONTINENTAL MARGIN
CONTINENTAL SHELF
GEOLOGIC DEPOSITS
LEASING
MINERAL RESOURCES
NATURAL GAS DEPOSITS
PETROLEUM DEPOSITS
RESOURCES