Companies bid millions to tap Western Gulf
Thursday, August 21, 2008 2:57 PM PDT
WASHINGTON (AP) — Energy companies bid hundreds of millions of dollars Wednesday to explore for oil and natural gas beneath 1.8 million acres in the western Gulf of Mexico, while looking forward to the possibility of future drilling in federal waters now off-limits.
The results of the first lease sale since offshore drilling emerged as a key campaign issue after gasoline prices topped $4 a gallon only muddied the waters as to how much politics can really influence oil production, and by extension, energy prices.
While firms bid $487.3 million to win the rights to drill 319 tracts of the Gulf, most in deep water, 90 percent of the area put up for sale Wednesday did not receive a single bite. Most of the leases purchased came with 10-year terms, unlikely to influence prices now.
The highest bid of the 47 received Wednesday — $61 million — came from StatoilHydro USA, a subsidiary of the Norwegian oil giant. Exxon Mobil Corp., which has been relatively inactive in the Gulf in recent years, posted the most winning bids. The company plans to spend $127.3 million to explore 130 tracts.
Chevron USA Inc. was the second biggest spender Wednesday — paying $127.2 for the rights to drill in 20 tracts — a day after Republican presidential candidate John McCain visited one of its offshore platforms.
