Image: BOEM
The Bureau of Ocean Energy Management reports that today’s oil and also gas Lease Sale 252 produced $244,299,344 in high quotes for 227 systems covering 1,261,133.85 acres in government waters of the Gulf ofMexico
That’s still way listed below the $405 million produced by the December Massachusetts overseas wind sale, yet substantially much better than the $178 million produced by the August 2018 GoM lease sale
In today’s sale, thirty business sent 257 quotes that amounted to $283,782,480. Among them:
- Shell Offshore Inc sent 87 high quotes amounting to $84,827,644. Its greatest quote, $8,201,988, was for the deepwater Alaminos Canyon block 343.
- Equinor Gulf of Mexico LLC sent 3 high quotes amounting to $29,205,659. Its greatest quote, and also the sale’s greatest, was $24,495,776, was for the deepwater Mississippi Canyon block 801.
- Anadarko United States Offshore LLC sent 27 high quotes amounting to $24,061,854. Its greatest quote, $4,567,505, was for the ultra-deepwater Mississippi Canyon block 783.
- Hess Corp sent 12 high quotes amounting to $17,940,072. Its greatest quote, $10,100,991, was for the ultra-deepwater Mississippi Canyon block 684.
- BP Exploration & &Production Inc sent 23 high quotes amounting to $15,451,679.
- Total E&P U.S.A.Inc sent 2 high quotes amounting to $15,006,020. Its greatest quote, $9,003,010, was for the ultra-deepwater Mississippi Canyon block 693.
“Today’s lease sale shows strong bidding by established companies, which indicates that the Gulf of Mexico will continue to be a leading energy source for our nation long into the future,” stated Department of the Interiors Assistant Secretary for Land and alsoMinerals Management Joe Balash “The results from today will help secure well-paying offshore jobs, while generating much-needed revenue to fund everything from conservation to infrastructure.”
Analysts were a little bit extra determined.
“We saw a modest increase in overall spend, but it was outpaced by the increase in acreage leading to lower amount per acre, furthering our hypothesis that it is a buyer’s market in the Gulf of Mexico,” stated William Turner, elderly study expert at Wood Mackenzie.
“Shell had the most bids and was the highest spender but went at it alone, picking up acreage across the entire region,” statedTurner “The highest bid of the round came from Equinor with $24.5 million. The block (MC 801) is next door to the W&T-operated Gladden Deep exploration prospect. It was the most competitive block in the round, receiving four bids totalling over $37 million.”
National Ocean Industries Association (NOIA) President Randall Luthi provided the adhering to declaration relating to today’s Gulf of Mexico Lease Sale 252:
Gulf of Mexico Lease Sale 252 permitted the Federal federal government to inspect the temperature level of the overseas market in the united state Gulf of Mexico despite the slow-moving speed of recouping asset rates. Lease Sale 252 not just mirrors the reasonably steady oil rates, yet additionally the initiatives by the general market to reduce expenses. Much of the expense cutting has actually significantly impacted solution business, as their revenue margin stays slim or non-existent. However, the trajectory of this and also the previous couple of sales reveals security and also assists develop a brand-new typical for the united state overseas market. Companies remain to bolster existing advancement procedures (in both superficial and also deep water) in recognized geologic locations, yet are not yet all set for hefty financial investment in genuinely brand-new deepwater jobs.
While today’s sale reveals that the Gulf of Mexico is still an essential container for power manufacturing and also financial development for the united state, it additionally highlights that the Gulf of Mexico is still the ONLY overseas container readily available in the united state in which united state business might bid. As the worldwide overseas power recuperation warms up, the united state should acknowledge that we are not the only gamer at the overseas table. Other containers in the Western Hemisphere, consisting of Guyana, Brazil and also Mexico (as well as onshore united state manufacturing) have actually ended up being magnets for financial investment bucks. Part I of a current IHS Markit record validates that our existing government financial framework has actually made the price of return for united state overseas jobs, specifically in deepwater locations, much less eye-catching than prices of return in various other areas. Policymakers need to keep in mind and also locate brand-new means to draw in and also maintain worldwide financial investment bucks in the united state Gulf of Mexico, a location that has a lengthy background as the gold requirement of overseas power manufacturing.”
Randall Luthi, NOIA
You can obtain all sale statistics HERE
