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Gulf Coast Oil Exploration to Increase

September 27th, 2012

According to reports, on September 26, 2012, the Obama Administration announced that it plans to plans to auction 38 million acres of offshore oil and gas leases next year. The administration said this is a significant step for our nation's energy independence and for the economy of our region. Sources say that the administration is attempting to stay true to a timeline which was mapped out before the oil spill, and which was then halted in the wake of the oil spill.

According to the Bureau of Ocean Energy Management, the sale is scheduled for March 30, 2013 in New Orleans. The sale will include about 7,250 federally owned oil and natural gas drilling tracts located between three and 230 miles off the coasts of Louisiana, Alabama and Mississippi. Regulators estimate the sale could lead to production of almost a trillion barrels of oil and almost 4 trillion cubic feet of natural gas.

The government believes that these are significant energy resources that would greatly expand the Gulf Coast's role in domestic production, while providing jobs for many Gulf Coast residents. Some of the eventual royalties from these tracts also should help pay for restoring vital marshes in south Louisiana.

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