NOIA: Offshore Industry Will Move Past Unprecedented Price Stress

National Ocean Industries Association (NOIA) President Erik Milito issued the following statement after the conclusion of the region-wide Gulf of Mexico Lease Sale 254: 

“Today’s Gulf of Mexico oil and natural gas lease sale shows how important long-term offshore energy production is. While bidding did take a tough hit, it could have been substantially worse due to the unprecedented near-term financial constraints created by the COVID-19 virus and the oil price war between Saudi Arabia and Russia. Long-term projections for energy demand, including oil and natural gas, show strong growth for the foreseeable future. Offshore projects are undertaken with the long-term outlook in mind.

“We should also remember that lease sales are just the start of the offshore investment window. Companies will spend millions of dollars exploring, evaluating and, hopefully, producing from many of today’s lease blocks. NOIA member companies remain committed to providing energy security, economic growth and a high standard of living through American offshore energy production.”

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