Gulf oil bidding seen as lackluster
A Gulf of Mexico lease sale this week attracted what some analysts and industry officials describe as weak interest from oil and gas companies amid persistent low crude prices.
Companies offered $121.1 million in high bids on 90 tracts at Wednesday’s federal lease sale, the Bureau of Ocean Energy Management said.
It was the first time since 1983 that the federal government opened every available Gulf tract to offers.
Nonetheless, it attracted fewer bids and less than half the money than the previous sale in March, when only areas off Louisiana, Mississippi and Alabama were opened to leasing, agency figures show. At that sale, companies submitted $247.8 million in high bids on 163 tracts. Of those, the bureau rejected 10 bids as too low and accepted $264 million total…