Next month, the Bureau of Ocean Energy Management (BOEM) will offer some 45 million acres in the Gulf of Mexico for oil and gas exploration in two lease sales, an increase of 2.2 million acres that was originally announced in September 2015.
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Image of John Rodi, Interior Secretary Sally Jewel, and Hopper. Image from BOEM Flickr. |
Central Planning Area Sale 241 increased to encompass about 8349 unleased blocks, covering 44.3 million acres that is located 3- 230nm offshore Louisiana, Mississippi and Alabama, in water depths ranging from nine to more than 11,115ft (3-3400m). In September, Sale 241 covered 7919 blocks over 42.1 million acres, marking a 5% difference.
Eastern Planning Area Sale 226 encompasses 162 whole or partial unleased blocks covering about 595,475 acres, which are located at least 125mi offshore at 2657-10,213ft water depth (810-3113m). The area is south of eastern Alabama and western Florida, with the nearest point of land sitting 125mi northwest in Louisiana.
“These lease sales continue the President's commitment to create jobs through the safe and responsible exploration and development of the Nation's domestic energy resources,” said BOEM director Abigail Ross Hopper. “As an important component of the U.S. energy portfolio, the Gulf of Mexico holds vast energy resources that can continue to spur economic opportunities for Gulf producing states as well as further reduce the Nation's dependence on foreign oil.”
Both lease sales, which mark the ninth and 10th offshore auctions in President Obama’s Five Year Program, will be held consecutively in New Orleans, Louisiana, on 23 March. The program’s first eight lease sales offered more than 60 million acres for development and made US$3 billion in high bids.
In August 2015, BOEM’s eighth lease sale, Sale 246, saw only $22.7 million in bids, which industry advocates said reflected current market conditions. Only a total of 33 bids from only five companies were received on 33 tracts that covered 190,080 acres. Lease Sale 246 offered 4083 unleased blocks, covering about 21.9 million acres, some 9-250nm offshore in water depths ranging 16-10,975ft (5-3340m).
In March 2015, Sale 235, the seventh lease sale, made 7788 unleased blocks covering about 41.2 million acres offshore Louisiana, Mississippi and Alabama available for lease. After extensive economic analysis, BOEM awarded 161 leases on tracts covering 923,711 acres to the successful high bidders who participated in the sale, valued at $533 million.
During the sale, 42 companies submitted 195 bids totaling $583 million on 169 tracts, however, BOEM rejected eight high bids, totaling $5.7 million after determining that the value of those bids was insufficient to provide the public with fair market value for the tracts.
Read more:
BOEM to offer 40 million acres in GoM lease sales
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