A federal auction of 77 million acres in the Gulf of Mexico for offshore oil production has garnered only "modest interest" from the oil industry, according to an article in The New York Times.
According to the article ("Auction of Oil Drilling Tracts in Gulf Draws Tepid Interest"), "Companies bid on only 1 percent of the acreage," with only $125 million going to the government.
Major oil companies are taking a "wait and see" approach to exploration at this time, a senior research analyst at Wood Mackenzie stated.
While the administration is attempting to "revive exploration and production in the Gulf of Mexico," that production has been hurt by sliding oil prices during the last four years. Also, drilling in both the gulf and other deep waters has "slowed considerably" following the 2010 BP Deepwater Horizon explosion.
In January, Interior Secretary Ryan Zinke announced that Florida would be exempts from President Trump's offshore drilling plan, according to another article in the Times ("Drilling Off Florida Is Still on the Table, Interior Official Says").
The Trump administration has lifted a drilling bad imposed by President Barack Obama. However, the lack of interest in the auction may help the environment, at least for the short term.
To read the main article in its entirety, click here. To read the earlier article, click here.
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