The region-wide Gulf of Mexico Lease Sale 250 generated $124,763,581 in high bids for 148 tracts covering 815,403 acres in federal waters of the Gulf of Mexico. A total of 33 companies participated in the lease sale, submitting $139,122,383 in bids.
However, the companies that bid, bid for 1% of the offered area, with bids regarding $153 an acre, which is 35% lower than last year. Despite the fact that the auction raised $124.76 million in winning bids, slightly more than last year's auction, it was just a fraction of the amount raised in a much smaller lease sale in 2013, Reuters reported.
Many say that this year's lease sale didn't have the correct timing. US crude oil is doing very well lately, because of new drilling technology that opened the way for cheaper reservoirs. Meanwhile, Brazil and Mexico are also in the game of drilling investment in their own deepwater acreage, which often has better terms.
Interior Assistant Secretary for Land and Minerals Management Joe Balash seemed satisfied with the results saying that:
Today’s lease sale is yet another step our nation has taken to achieve economic security and energy dominance. Today’s results will help secure high-paying offshore jobs for rig and platform workers, support staff onshore, and related industry jobs, while generating much needed revenue to fund everything from conservation to infrastructure.