Energy Law

Demand Falls for Offshore Leases; Economy, Policy Shifts Reflected in Bids

By Katie Cambre

As reported in the Louisiana Mid-Continent Oil & Gas Association Daily News Summary, a federal auction of drilling tracts in the central Gulf of Mexico drew far fewer bids at much lower prices than during past auctions, and analysts attributed the decline to a poor economy and new energy policies proposed by President Barack Obama.

The lean sale directly affects Louisiana, which shares with Alabama, Mississippi, and Texas revenue from an area of the Gulf, which accounted for 5.8 million acres included in the auction.

Still, analysts and federal officials called the sale a success, pointing to fierce competition for several different areas.

For further information, see http://www.nola.com/business/t-p/index.ssf?/base/money-2/1237441027220440.xml&coll=1
 

Full post as published by The Energy Law Blog on March 23, 2009 (boomark / email).