Gulf of Mexico Oil and Gas Lease Sale Attracts $159 Million in High Bids
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.
In The News
WASHINGTON - The U.S. solar energy market has surpassed 100 gigawatts of installed electric generating capacity, doubling the size of the industry over the last three-and-a-half years, according to a new report from the Solar Energy Industries Association and Wood Mackenzie. The market insight report covering... Read More
WASHINGTON — Energy Secretary Jennifer Granholm would like to see more public-private cooperation on cyber defenses and said U.S. adversaries already are capable of using cyber intrusions to shut down the U.S. power grid. "I think that there are very malignant actors who are trying," she... Read More
The Connecticut House on Wednesday unanimously passed SB 952, which will set a target of 1 GW of energy storage to be deployed by 2030. The bill, which passed the state Senate last month, establishes goals, program requirements and authority to procure energy storage. It also... Read More
WASHINGTON - The Department of the Interior on Tuesday canceled all oil and gas leases in the Arctic National Wildlife Refuge pending a new environmental review. The sale of the leases was one of the final acts of the Trump administration, occurring on the same day... Read More
ARLINGTON, Va. - Venture Global LNG unveiled plans last week to capture and sequester carbon at two of its liquid natural gas facilities in Louisiana. Having concluded a comprehensive engineering and geotechnical analysis at the sites in Calcasieu Pass and Plaquemines, La., the company says it... Read More
MENLO PARK, Calif. — In an economic analysis of the company’s solar and wind projects that support its data centers across the nation, Facebook iterated its adherence to broader sustainability initiatives. As of last year, Facebook’s fleet of energy-intensive data centers are powered entirely by renewable... Read More