IAEE Members and subscribers to The Energy Journal: Please log in to access the full text article or receive discounted pricing for this article.

The Cost of OCS Bid Rejection

The U.S. Interior Department periodically offers Outer Continental Shelf (OCS) tracts for lease at seated bid auction. The bid variable typically is the bonus, a sum paid by the lessee at commencement of the lease. A tract is awarded only to the high bidder. However, the seller often deems even the high bid insufficient, rejecting it and withholding the tract for possible laterauction.

Purchase ( $25 )

Energy Specializations: Petroleum – Exploration and Production

JEL Codes: D44: Auctions, C70: Game Theory and Bargaining Theory: General, C72: Noncooperative Games, Q20: Renewable Resources and Conservation: General, Q21: Renewable Resources and Conservation: Demand and Supply; Prices, Q41: Energy: Demand and Supply; Prices

Keywords: Oil exploration, Outer continental shelf, US, Bid rejection, Oil leases

DOI: 10.5547/ISSN0195-6574-EJ-Vol7-No1-6

Published in Volume 7, Number 1 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.


© 2023 International Association for Energy Economics | Privacy Policy | Return Policy