The Economics Division provides guidance, analyses and recommendations on economic and analytical issues related to the design, implementation, and post sale evaluation of offshore lease sales for energy and non-energy minerals, and for royalty relief. The division is also responsible for the estimates of potential revenues and costs expected to result from the development of the 5-year Outer Continental Shelf (OCS) Oil and Gas leasing program. It conducts economic analysis for policy development, resource estimation analyses, evaluation of proposed legislation, and design and review of applications for royalty relief. 

Economic analysis is coordinated with the Resource Evaluation Division to develop short term (sale specific) and long term (generic) studies. Short term study areas include development and analysis of alternative bidding systems and leasing system parameters, minimum bid levels, length of lease terms, and generation of offshore assumptions and inputs for economic evaluation of resources and policy initiatives.

The Division also provides analysis and legal testimony on litigated issues such as the 5-Year program, moratoria, and suspensions. Long term study areas include analysis of the macroeconomic impacts of offshore leasing on energy markets, merger activity, collusive behavior, joint bidding, industry competition and rates of return, bid adequacy criteria, cash bonus and royalty payments projections, assessment of the 5-Year program, capital markets constraints, relevant offshore regulations, and preparation of various economic reports to Congress, including the annual bidding system and competition report.

Academic Backgrounds That May Be Sought by the Economics Division for Future Employees

Work undertaken in the Economics Division is by nature completed within a multi-disciplinary team framework. Knowledge and experience in the following specialty areas are essentials in performing duties in the division: economics, operations research, petroleum engineering, statistics, and mathematical modeling. Workable knowledge of databases and information technology is necessary to help in the treatment of data for analytical purposes. Skill in oral and written communications recommended.

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Last Updated: 10/22/2007, 01:48:34 PM