The Bureau of Ocean Energy Management (BOEM) announced yesterday that Gulf of Mexico Lease Sale 257 generated $191.7 million in high bids for 308 tracts covering 1.7 million acres in federal waters of the U.S. Gulf.
A total of 33 companies participated in the lease sale, submitting $198.5 million in total bids. Lease Sale 257 offered approximately 15,148 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 (three to 3,400 meters).
“Lease Sale 257 reflects the U.S. Gulf of Mexico’s record as a low carbon energy basin. Energy companies are increasingly making decisions that incorporate climate and ESG factors and want to produce oil from regions with a low carbon intensity," National Ocean Industries Association (NOIA) President Erik Milito, said ina statement. "With its world class infrastructure and prospective resources, the Gulf of Mexico provides an incredible value proposition in society’s efforts to tackle climate change while preserving jobs and economic growth and mitigating against inflationary energy prices.
“While providing a lower carbon energy alternative to oil produced by foreign, higher emitting producers, like Russia and China," Milito continued, "the Gulf of Mexico supply chain is also contributing to the build-out of the American offshore wind sector and is investing in emissions mitigation solutions such as carbon capture and storage."
Milito added that policymakers, regardless of party, "should embrace the Gulf of Mexico and recognize it as a national strategic energy asset."
“Continued leasing is critical to our energy future; good decisions today will benefit America tomorrow."
Revenues received from offshore oil and gas leases (including high bids, rental payments and royalty payments) are directed to the U.S. Treasury, certain Gulf Coast states (Texas, Louisiana, Mississippi and Alabama) and local governments, the Land and Water Conservation Fund and the Historic Preservation Fund.
Lease Sale 257 was the eighth offshore sale held under the 2017-2022 National OCS Oil and Gas Leasing Program.
All terms and conditions for Gulf of Mexico Regionwide Sale 257 are detailed in the Final Notice of Sale information package, which is available at http://www.boem.gov/Sale-257.