Posted: Nov 27, 2012 10:48 PM by Maddie Garrett
Updated: Nov 27, 2012 11:00 PM
Wednesday could be a big day for the oil and gas industry in Louisiana, with more than 20 million acres up for sale in the Western Gulf of Mexico. The areas are open for oil and gas exploration and development and are being put up for sale by the US Department of the Interior. However, only about 650,000 acres have been bid on by oil and gas companies, that's just over 3%.
So what does this mean for Acadiana? According to the Louisiana Oil and Gas Association (LOGA), it has the potential to mean a lot.
LOGA's Gifford Briggs said a lease sale doesn't mean immediate jobs, but it could be good for business down the line.
"If we continue to see growth and we continue to see leasing activity that means that companies are investing in the Gulf of Mexico and that's going to be good news for Lafayette and the Acadiana region because we have such a tremendous service sector that takes care of the Gulf of Mexico," said Briggs.
The sale is a directive from the White House, part of President Barack Obama's energy plan. So does this sale change LOGA's opposition to the President's policies?
"I don't know that this is the result of any change one way or the other of the current administration's policies towards the Gulf of Mexico or drilling in general," replied Briggs.
When it comes to oil and gas, LOGA is opposed to many of the President's policies, particularly reducing tax incentives for the industry. Still, Briggs thinks this leas sale is a good sign.
"We're positive about the lease sales and we want to see those things continue, but we're going to continue to fight the administration on the things he wants to do that we believe is going to harm the industry," he said.
The oil and gas lease sale starts at 9:00 am in the Mercedes Superdome in New Orleans.