Image: BOEM
With a gun to its head within the type of a mandate underneath the Inflation Reduction Act of 2022 (IRA), the Bureau of Ocean Energy Management (BOEM) yesterday held Gulf of Mexico Lease Sale 259. It generated $263,801,783 in excessive bids for 313 tracts protecting 1.6 million acres in federal waters of the Gulf of Mexico. A complete of 32 corporations participated within the lease sale, submitting $309,798,397 in whole bids.
“I am glad to see the Administration carrying out this mandated Gulf oil and gas lease sale that I included in the Inflation Reduction Act,” commented Senator Joe Manchin (D-W. Va.). “This record lease sale is further evidence that the IRA is holding this administration’s feet to the fire to continue the fossil fuel production we need. The federal government is charged with ensuring that the United States is responsibly developing and utilizing all of our energy resources, and to do that it’s critical that we get our federal leasing programs back on track. As the superpower of the world, it is vital that we have a reliable, domestic energy supply chain that enhances our energy security, reduces our reliance on foreign nations and helps our friends and allies. We don’t have to choose between energy security and the environment — our offshore production is among the cleanest in the world, and continuing to support this production will ensure America continues to be a global energy leader,” stated Chairman Manchin.
You can obtain all of the gross sales statistics here
Almost half the profitable bids got here on blocks within the deepwater Gulf, some so far as 40 miles offshore. According to Reuters, Chevron was essentially the most lively bidder providing $108 million in 75 excessive bids, BP supplied $47 million for 37 blocks. ExxonMobil’s bids totaled lower than $10 million for all 69 blocks the place it was excessive bidder.
The ExxonMobil acreage was in shallow waters simply off the Texas coast adjoining to areas it beforehand acquired. It’s thought the shallow water acreage may very well be used to care for the storage a part of the power main’s plans for large-scale carbon capture and storage in the Houston area.
The public sale generated the best bids since 2017, however got here at a time when inexperienced power advocates, together with many inside BOEM, stay against giant fossil gasoline initiatives.
NOIA: “SALE NEEDLESSLY OVERDUE”
“Lease Sale 259 is a chance to strengthen our nationwide safety pursuits and develop home power provides within the face of geopolitical uncertainty and tight international demand. Lease Sale 259 is the primary Gulf of Mexico offshore oil and fuel lease sale since November 2021. Mandated by the Inflation Reduction Act, which was signed into legislation by President Biden, Lease Sale 259 and the resumption of Gulf of Mexico oil and fuel lease gross sales has been needlessly overdue. Companies want lease alternatives to discover and probably develop home power assets. Our nationwide power wants clearly rely on a dedication to continued U.S. offshore power growth. U.S. Gulf of Mexico offshore power manufacturing is a key part of a nationwide power technique that can guarantee Americans can proceed to have entry to basic home power that’s produced safely, sustainably, and responsibly.
“Operations within the U.S. Gulf of Mexico adhere to the best security and environmental requirements. The multitude of corporations concerned in offshore power growth are working collaboratively to shrink an already small carbon footprint. From electrifying operations to deploying progressive options that cut back the dimensions, weight, and half rely of offshore infrastructure – thus growing security and lowering emissions – the U.S. Gulf of Mexico hosts a high-tech revolution. Oil produced from the U.S. Gulf of Mexico has a carbon depth one-half that of different producing areas. The applied sciences utilized in deepwater manufacturing – which represents 92% of the oil produced within the U.S. Gulf of Mexico – place this area among the many lowest carbon depth oil-producing areas on the planet .
“The preceding gap in leasing underscores why the next federal offshore oil and gas leasing program must be finalized and implemented as quickly as possible. Policies that restrict domestic offshore development require imports to make up the shortfall, and that supplemental production comes from higher-emitting operations in other countries to the detriment of our energy security, economic wellbeing, and emissions and climate progress.”
