Gulf of Mexico Oil and Gas Lease Sale Attracts $159 Million in High Bids

August 29, 2019 by Dan McCue

WASHINGTON – Last week’s sales of Gulf of Mexico leases for oil and gas exploration generated over $159 million in high bids for 151 tracts covering 835,000 acres in federal waters, the Interior Department reports.

A total of 27 companies participated in the sale, officially known as “Gulf of Mexico Lease Sale 253,” submitting more than $175 million in bids.

The interest in the sale suggests that there’s a renewed optimism in the oil and gas industry in offshore projects.

In 2018, two sales on leases in the central Gulf netted about $303 million. A sale in March pulled in $244 million, meaning the latest sale would have needed to capture just $60 million to beat last year.

It surpassed that by $115 million.

“We are excited about the results from [the] lease sale, which show a continued upward trend for the year,” said Andrea Travnicek, the Interior Department’s deputy assistant secretary for Land and Minerals Management.

“The Gulf of Mexico continues to be a critical part of our nation’s energy infrastructure strengthening our country through increased national security, job creation, and revenues for the American people, ” Travnicek added.

Lease Sale 253 included 14,585 unleased blocks, located from three to 231 miles offshore, in the Gulf’s Western, Central and Eastern Planning Areas in water depths ranging from nine to more than 11,115 feet.

“The Gulf of Mexico is the crown jewel of our nation’s energy portfolio,” said Mike Celata, director of the Bureau of Ocean Energy Management’s New Orleans office.

“As one of the most productive basins in the world, the development of its resources are essential to the nation’s energy security,” he added.

The National Ocean Industries Association said the blocks in deepwater and ultra-deepwater regions witnessed strong interest from energy companies in this sale, and most of the bids were for blocks close to existing platforms, which can further lead to more cost savings and increased efficiencies.

Revenues received from the leases (including high bids, rental payments and royalty payments) will be directed to the U.S. Treasury, certain Gulf Coast states (Texas, Louisiana, Mississippi, and Alabama), the Land and Water Conservation Fund, and the Historic Preservation Fund.

Energy

Emission Reductions Due to COVID Could Encourage Green Energy Investment
Energy
Emission Reductions Due to COVID Could Encourage Green Energy Investment
March 4, 2021
by Daniel Mollenkamp

The widespread disruptions of COVID led to an unprecedented drop in global greenhouse emissions. However, many post-coronavirus investments are fossil fuel heavy, including those in the U.S., emphasizing the policy commitments that need to be made to capitalize on these emission reductions, said a report from... Read More

Decline in Emissions and Transportation Sector Energy Demand in 2020
Climate
Decline in Emissions and Transportation Sector Energy Demand in 2020
February 24, 2021
by Reece Nations

Although 2020 was an economically woeful year due to the coronavirus pandemic, a joint report by BloombergNEF and the Business Council for Sustainable Energy indicates renewable energy sources made record contributions to the country’s power grid.  The annual report, called the Sustainable Energy in America Factbook,... Read More

British Court Ruling Against Oil Company Could Expand Liability for Foreign Accidents
Energy
British Court Ruling Against Oil Company Could Expand Liability for Foreign Accidents
February 19, 2021
by Tom Ramstack

A ruling by Britain's top court last week that said Royal Dutch Shell oil company could be liable in English courts for pollution by its subsidiary in Nigeria, is likely to expand the company’s potential liability abroad. The court’s decision also creates a likelihood of liability... Read More

Intense Winter Weather Causing Blackouts and Complicating Texas’ COVID-19 Vaccination Efforts
In The States
Intense Winter Weather Causing Blackouts and Complicating Texas’ COVID-19 Vaccination Efforts
February 17, 2021
by Reece Nations

AUSTIN, Texas — Rolling blackouts caused by an unprecedented winter storm have delayed the delivery of hundreds of thousands of doses of COVID-19 vaccinations across Texas, state health officials said Tuesday.  Texas was set to receive 407,650 first doses and 333,650 second doses of COVID-19 vaccines... Read More

BOEM Cancels Planned Gulf of Mexico Lease Sale
Energy
BOEM Cancels Planned Gulf of Mexico Lease Sale
February 16, 2021
by TWN Staff

The Bureau of Ocean Energy Management on Friday cancelled an oil and gas exploration lease sale for a sizable swath of the Gulf of Mexico. Lease Sale 257, which was scheduled to be live-streamed from New Orleans on March 17, would have been the eighth offshore... Read More

Biden Announces Additional Members of His Energy and Jobs Team
White House
Biden Announces Additional Members of His Energy and Jobs Team
February 10, 2021
by TWN Staff

WASHINGTON – Joe Biden is adding two new members to his energy and jobs team: David Turk, deputy secretary of Energy and Julie Su, deputy secretary of Labor. They will support the work of Secretary of Energy nominee Jennifer Granholm and Secretary of Labor nominee Marty... Read More

News From The Well
scroll top