Analysis of changes introduced under the proposed OCS leasing schedule
This paper examines seven questions pertaining to the Proposed 5-Year Outer Continental Shelf (OCS) Oil and Gas Leasing Schedule. Litigation has proved to be inherent to the OCS leasing program and it is most likely that the number of lawsuits will increase if the proposed leasing schedule is approved. The preparation of area-wide Environmental Impact Statements can expedite the leasing process, provided that court actions do not lengthen their scheduled timeline. While the economic benefits of expanded OCS drilling may be great, the lack of good research upon which to base estimates of environmental cost precludes any reliable cost-benefit analysis. Use of planning areas should facilitate OCS oil and gas exploration, but it remains to be seen if less detailed environmental assessments will result in adequate protection of the marine and coastal environments. The proposed OCS leasing schedule should encourage technological development and most industries that support OCS exploration, development, and production activities indicate that their development of technology and inventory of supplies are increasing in anticipation of increased OCS activity. Bonus bidding systems (1) provide the federal government with immediate revenues, (2) provide a conclusive method for awarding leases, and (3) limit bidding to companies who can afford large front-end payments. Although untested, non-bonus bidding systems may (1) eventually generate greater revenues, available at the time of production, (2) increase competition, and (3) reduce the possibility of land banking. Current procedures for awarding leased tracts provide 10-year terms in OCS where exploration is difficult, which includes deep-water tracts.
- Research Organization:
- Rogers, Golden and Halpern, Inc., Philadelphia, PA (USA)
- DOE Contract Number:
- AC01-81EV10472
- OSTI ID:
- 6432057
- Report Number(s):
- DOE/EV/10472-T6; ON: DE85000726
- Country of Publication:
- United States
- Language:
- English
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020700* -- Petroleum-- Economics
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03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
BIDS
CONTINENTAL MARGIN
CONTINENTAL SHELF
ENVIRONMENTAL IMPACTS
GEOLOGIC DEPOSITS
LAWSUITS
LEASING
MINERAL RESOURCES
NATURAL GAS DEPOSITS
PETROLEUM DEPOSITS
RESOURCES