Oil and gas lease bidding in Gulf of Mexico drops anew

Louisiana News

GULF OF MEXICO – MAY 09: A drilling platform is seen near the site where the Deepwater Horizon oil platform sank as work continues to contain the oil leak on May 9, 2010 in the Gulf of Mexico. The Deepwater Horizon oil rig operated by BP is leaking an estimated 5,000 barrels of oil a day into the Gulf and the slick has now reached nearby land. Efforts to contain the spill, including a 98-ton containment box to cap the leak, have done little to slow its flow. (Photo by Joe Raedle/Getty Images)

NEW ORLEANS (AP) — Bidding on federal oil and gas leases in the Gulf of Mexico is the lowest since gulf-wide sales began in August 2017, and lower even than any sale for the productive central Gulf since 1993.

The Bureau of Ocean Energy Management says 22 companies made $93 million in high bids Wednesday on 71 tracts.

The low interest comes during a price war between Russia and Saudi Arabia and drops in drops in travel because of the new coronavirus .

Oil prices plummeted Wednesday to $20.37 a barrel.

Environmental groups, meanwhile, filed a court challenge seeking to block execution of the leases.

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