Before leaving office in early 2009, the Bush Administration released a draft offshore drilling plan that is being taken up by the Obama Administration.
Back in April, Policy Integrity contributed public comments that argued that the proposal disregarded basic economic principles and failed to take into account the potential value of waiting to drill, risking billions of dollars in “option” value.
Today, Policy Integrity submitted a second set of comments that provide details on incorporating a real options framework into the draft plan. The memo also discusses how the leasing process and procedures might work in a way that optimizes option value.