National OCS Program

One of BOEM’s core responsibilities is to develop the National OCS Oil and Gas Leasing Program, in which the Secretary selects areas to make available for oil and gas development subject to the principles and criteria outlined in the OCS Lands Act.  Several of the required considerations for the program development focus on economics.  A portion of the economic analysis is aggregated into a cost-benefit type analysis called a “net benefits analysis”.  BOEM conducts this analysis to inform leasing decisions by examining the societal benefits and costs associated with the anticipated OCS exploration, development, production, and decommissioning activities.  In addition, BOEM economists analyze national energy needs, national and regional energy markets, the equitable sharing of developmental benefits and environmental risks, and the consideration of fair market value. 

The following documents explain the calculation and results of BOEM’s net benefits analysis and the methodology behind two of the models used in that analysis: