Gulf lease sale draws $1.2 billion in high bids

A nearly 39 million-acre oil and gas lease sale in the central Gulf of Mexico has drawn $1.2 billion in high bids by offshore energy producers. The Bureau of Ocean Energy Management says 52 companies submitted 407 bids today on 320 tracts, each located between three miles and 230 miles off the coasts of Louisiana, Alabama and Mississippi. The tracts, covering more than 1.7 million acres, are in water depths of nine feet to more than 11,115 feet. BOEM estimates the sale could lead to the production of up to 890 million barrels of oil and 3.9 trillion cubic feet of natural gas. Louisiana Mid-Continent Oil and Gas Association President Chris John issued a statement after the sale, calling it “another great step forward for the oil and gas industry in continuing to develop offshore resources.” While the association is pleased with the results, John says, it “can’t ignore the inefficiencies of the federal 2012-2017 offshore plan. Today’s sale will help develop new resources, but opening up new areas of the [outer continental shelf] for drilling opportunities is critical to securing America’s energy future.” U.S. Interior Secretary Ken Salazar opened today’s lease sale before visiting Louisiana’s Big Branch Marsh National Wildlife Refuge to see the progress of a marsh restoration project.