Both revenue sharing and energy production should be increased on the Outer Continental Shelf (OCS), according to a group of governors representing Alabama, Alaska, Louisiana, Mississippi and Texas.
“As our states recover from both Covid-19 and the economic downturn, we need to build a path to recovery by looking for ways to stimulate our respective economies, create jobs and provide relief for our families and businesses,” said Alabama Gov. Kay Ivey. “With Gulf of Mexico and Alaska energy as the lifeblood of our nation, it is important to continue to supply the country with energy to meet our critical needs and consider its role in our recovery efforts.
“We continue to ask that Congress works to increase revenue sharing for coastal states and to find a long-term compromise that allows for broad access across the entire Gulf of Mexico, including the deepwater Central and Eastern Gulf. A commitment to access coupled with enhanced revenue sharing for coastal states will significantly add to state revenues and help drive the economy and contribute to securing America’s energy security for generations.”
In May the OCS Governors Coalition called on Congress to remove the $375 million cap on Gulf of Mexico Energy Security Act of 2006 funds and establish a revenue sharing program for Alaska.
Although offshore activity overall has been down recently, Mississippi Canyon (MC) blocks have intrigued deepwater explorers. In the 2019 Lease Sale 252 overseen by the Interior Department’s Bureau of Ocean Energy Management last year, the top three single highest bids were for MC blocks.
More recently, Covington, LA-based LLOG Exploration Offshore LLC pulled the trigger on the Taggart discovery in MC Block 816, which would be developed via a tieback to the Devil’s Tower deepwater spar.
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