ABSTRACT

An analysis of joint bidding in offshore sales is of more than passing interest. From 1953, when the federal government initiated its offshore leasing program, through 1973, over 30 oil and gas sales were held, offering 20 million acres, over half of which have been bid on and leased. This chapter presents information gathered from industry and government publications, and from a series of interviews with industry and government spokesmen on the formation and behavior of joint ventures. The first systematic offshore leasing program in the United States was adopted by the state of Louisiana in August, 1945. The alternative bidding method uses the percentage royalty as the bidding objective. Before considering the complexities of tract evaluation, it is instructive to touch on some of the technical aspects of offshore exploration. Since offshore exploration is only permitted from the surface geophysical techniques, notable seismic survey, are most frequently employed.