Houston Chronicle by Paul Takahashi Nov. 19, 2020
Oil companies stock up on offshore Gulf of Mexico leases before Biden takes office
Offshore oil companies are buying up leases in the U.S. Gulf of Mexico as they expect to face new regulations under the incoming Biden presidency.
The last federal auction under the Trump administration for leases in the U.S. Gulf of Mexico netted about $120 million, an improvement over the March auction that resulted in $93 million. The bidding at the Wednesday auction exceeded expectations, given the oil downturn driven by the coronavirus pandemic, according to S&P Global Platts, an energy research firm
“One of the main likely drivers behind the slightly better-than-expected performance of Lease Auction 256 is the looming regulatory uncertainty that will come along with a change of a US administration next year,†said Sami Yahya, Platts’ senior energy analyst. “The Biden administration discussed plans to ban drilling on federal lands, which may have led some operators to jump at the chance of securing more blocks before the window becomes limited in the future.â€
Oil and gas companies that drill heavily on federal lands and waters are preparing for new regulations and restrictions under the incoming Biden presidency by applying for more drilling permits and building up a deep inventory of leases on federal property. Biden campaigned on the promise of banning drilling on federal property in an effort to curb the effects of climate change.
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https://www.houstonchronicle.com/business/energy/article/Oil-companies-stock-up-on-offshore-Gulf-of-Mexico-15739239.php
