Photo: Shutterstock / marchello74
WASHINGTON, Feb 16 (Reuters) – The Trump administration on Friday said it would offer the largest oil and gas offshore auction in U.S. history on March 21 for areas in federal waters off the Gulf Coast, less than a year after a similar sale yielded little corporate interest.
The Interior Department said it would offer 77.3 million acres (31.3 mln hectares) offshore Texas, Louisiana, Mississippi, Alabama and Florida for oil and gas development, an auction that includes all available unleased areas in the Gulf of Mexico. The blocks are from 3 to 231 miles (5 to 372 km) offshore and in waters 9 to 11,115 feet (3 to 3,390 meters) deep.
The department announced the auction in October, without an exact date. The sale is in support of President Donald Trump’s so-called America First Offshore Energy Strategy, which aims to reduce energy imports and boost jobs in the industry.
But offshore drilling is expensive in a time of relatively low oil prices held in check partially by plentiful supplies of onshore petroleum, which is cheaper to produce.
A lease sale in August last year got a tepid response from oil companies. The offer of 73 million acres received $121.14 million in high bids for 90 tracts covering 508,096 acres (205,619 hectares).
Bureau of Ocean Energy Management spokesman John Filostrat has said that Interior hopes for “a healthy number of bids, more so than we did in August.”
(Reporting by Timothy Gardner Editing by Marguerita Choy)
(c) Copyright Thomson Reuters 2018.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 105,881 members that receive our newsletter.
Have a news tip? Let us know.
The U.S. Department of the Interior has announced a final rule that modernizes regulations governing offshore wind projects in federal waters, which could help to boost the deployment of the...
Swiss marine power company WinGD will record the first installation of its new X-S short-stroke engine design following successful factory acceptance tests with engine builder Dalian Marine Diesel in March....
(Bloomberg) — The Biden administration is taking steps to jump-start the fledgling offshore wind sector, outlining a five-year leasing plan that would include turbines in the far reaches of the...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 105,881 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
