Sentiment in the US offshore oil and gas industry is “generally upbeat” heading into the nation's next Gulf of Mexico lease sale, according to trade group National Ocean Industries Association (NOIA).
On Wednesday in New Orleans, the Bureau of Ocean Energy Management (BOEM) will offer 77.8 million acres for a region-wide lease sale, including all available unleased areas in federal waters of the Gulf of Mexico.
“The overall industry mood seems generally upbeat heading into Lease Sale 253,” said NOIA Vice President of Communications and Member Development Nicolette Nye. “The offshore market appears steady -- oil prices have stabilized, rig rates and supply chain prices are more competitive, and companies have improved the efficiency of their operations leading to lower breakeven points and higher returns.
“In addition, there have been tremendous advances in seismic processing and seismic imaging, which could drive new interest in both shallow and deepwater areas.
“While there is some uncertainty regarding pending regulations, such as financial assurance and fair market valuation, the U.S. Gulf of Mexico continues to offer attractive investment opportunities.”
Lease Sale 253 will be the fifth of 10 planned under the 2017-2022 Outer Continental Shelf (OCS) Oil and Gas Leasing Program. It will include approximately 14,585 unleased blocks, located from three to 231 miles offshore, in the Gulf’s Western, Central and Eastern planning areas in water depths ranging from 3 meters to 3,400 meters.
The Gulf of Mexico OCS, covering about 160 million acres, is estimated to contain about 48 billion barrels of undiscovered technically recoverable oil and 141 trillion cubic feet of undiscovered technically recoverable gas.
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