Today’s 40 million-acre central Gulf of Mexico lease sale facilitated by the Department of Interior drew much attention due to BP’s return to action after being banned from the past 3 government auctions. The lease sale drew considerable attention from oil majors and independents, with most of the 380 bids submitted for deep-water territory. The previous central Gulf lease sale held in March 2013 drew 407 bids.

With so much media and industry attention focused on onshore US shale plays, this lease sale reaffirms the importance companies place on deep-water prospects as engines of oil and gas production growth and reserve replacement.

“I know there’s exciting stuff happening in a lot of different areas . . . but the Gulf of Mexico is and will be here to stay,” Acting Assistant Interior Secretary Tommy Beaudreau said Wednesday. “The gulf of Mexico and the offshore industry of the United States is and will continue to be one of the bedrocks of the nation’s energy portfolio and our country’s energy future.” – Fuel Fix