facebook
twitter
search
search

U.S. opens Gulf acreage to energy companies

Lease builds on 'critical' component of U.S. energy portfolio.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   Aug. 20, 2014 at 9:47 AM

WASHINGTON, Aug. 20 (UPI) -- More than 20 million acres off the coast of Texas were opened up for bidding for energy explorers Wednesday in New Orleans, the U.S. government said.

John Rodi, regional director for the Bureau of Ocean Energy Management, opened the auction for 21 million acres for oil and gas development in New Orleans.

BOEM said Lease Sale 238 offers more than 4,000 tracts ranging from nine miles to 250 miles off the Texas coast. Water depths range from 16 to more than 10,975 feet.

The agency, a division of the U.S. Interior Department, said the acreage could lead to the production of between 116 million and 200 million barrels of oil and 538 billion and 938 billion cubic feet of natural gas.

The U.S. government placed a brief moratorium on deep water oil and gas drilling in the wake of the Deepwater Horizon tragedy in 2010. Eleven rig workers were killed in an accident that resulted in the worst offshore oil spill in U.S. history.

In May, U.S. Deputy Interior Secretary Mike Connor said the Gulf of Mexico is a "critical component of our nation's domestic energy portfolio."

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
Compact cannon for British armored vehicles
Volvo unveils new child seat concept
JetBlue first major airline to offer direct New York to Cuba flights
New Zealand military receives medium heavy military trucks
BBC to lay off 1,000 people to make up for $234M in lost revenue