Oil companies offer $382M for offshore drilling rights in last sale before 2025
ABC News
Oil companies have offered $382 million for drilling rights in the Gulf of Mexico after courts rejected the Biden administration’s plans to scale back the sale to protect an endangered whale species
WASHINGTON -- Oil companies offered $382 million for drilling rights in the Gulf of Mexico on Wednesday after courts rejected the Biden administration's plans to scale back the sale to protect an endangered whale species.
The auction was the last of several offshore oil and gas lease sales mandated under the 2022 climate law. It comes as President Joe Biden’s Democratic administration tries to navigate between energy companies seeking greater oil and gas production and environmental activists who want to stop new drilling to help combat climate change.
Companies including Chevron, Hess and BP offered bids on more than 300 parcels covering 2,700 square miles (7,000 square kilometers), according to the U.S. Department of Interior's Bureau of Ocean Energy Management.
The dollar amount of the successful bids marked a sharp increase from the previous sale in March 2023, when the Interior Department awarded leases covering about 2,500 square miles (6,500 square kilometers) for $250 million.
The next sale will be conducted in 2025, to the frustration of energy companies and Republicans who say the administration is hampering U.S. oil production.
