Federal offshore oil and gas lease bonus bid rejections: viewpoints of bidders and owners

Conference · Tue Mar 01 04:00:00 EST 1983 · Soc. Pet. Eng. AIME, Pap.; (United States)

OSTI ID:5630984

Lohrenz, J; Dougherty, E L

The Federal Government currently estimates values of leases offered in offshore oil and gas sales. After sales, the estimates are compared with highest bonus bids to decide whether to issue a lease or not. Over the past decade the Government has opted via this process not to issue leases on approximately one out of seven leases receiving bonus bids. The Government avows this assures fair market value is received. The authors believe this avowal is hogwash. The authors support this belief with logical argument, quantitative analysis, and statistical study. They conclude that by following the current policy, the Federal Government acting as agent for all of us, the collected people and owners of the lands in question, is acting to the detriment of the account they should serve. Alternative policies are proposed which both increase the efficiency of bringing offshore oil and gas resources to use and decrease the expense the Government burdens the owners with.

• Research Organization: Gulf Oil Corp.
• OSTI ID: 5630984
• Report Number(s): CONF-830386-
• Conference Information: Journal Name: Soc. Pet. Eng. AIME, Pap.; (United States) Journal Volume: SPE 11309
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000* -- Petroleum-- Legislation & Regulations
03 NATURAL GAS
031000 -- Natural Gas-- Legislation & Regulations
BIDS
COST ESTIMATION
ECONOMICS
FINANCIAL INCENTIVES
GEOLOGIC DEPOSITS
GOVERNMENT POLICIES
INDUSTRY
LAND LEASING
LAND OWNERSHIP
LEASING
MINERAL RESOURCES
NATURAL GAS DEPOSITS
NATURAL GAS INDUSTRY
NORTH AMERICA
OFFSHORE SITES
OWNERSHIP
PETROLEUM DEPOSITS
PETROLEUM INDUSTRY
RESOURCES
USA