Friday, December 16, 2011

First Offshore Lease Auction Since BP Oil Spill Fetches $337.7 Million (ContributorNetwork)

For the first time since the BP Deepwater Horizon oil spill in the Gulf of Mexico in April 2010, the federal government held an auction to sell offshore petroleum leases in the region, according to the Associated Press. Although the auction fetched $337.7 million in winning bids, 20 companies placed bids cumulatively worth $712.7 million.

Oil companies bid on drilling rights for 191 areas located in the Gulf off the coast of Texas. ConocoPhillips was the biggest buyer, followed by Exxon Mobil and BP. With this auction completed, here are some facts on the efforts to continue and stop offshore drilling ventures in the Gulf:

* MSNBC reported several environmental groups, including Oceana, Defenders of Wildlife, the Natural Resources Defense Council, and the Center for Biological Diversity filed a complaint in federal court seeking a temporary halt on the auction.

* The complaint asserts that by proceeding with the auction, the Interior Department's Bureau of Ocean Energy Management fails to consider the impacts the BP oil spill had and ignores new information on emergency management.

* In October, BP announced it had received its first offshore drilling permit from the federal government since the oil spill, according to CNN Money.

* BP is looking to resume drilling for oil and establish five new wells at a site located roughly 250 miles southwest of New Orleans.

* Bloomberg noted that following the disaster in the Gulf, the Obama administration issued a moratorium on deepwater drilling.

* Even after the official moratorium was lifted and a second one was imposed by Department of the Interior Secretary Ken Salazar and then quickly cancelled, as of this past February, no new deepwater permits had been issued.

* The Guardian reported in December 2010, the Obama administration reversed its decision to allow for the expansion of offshore drilling in the eastern Gulf of Mexico, as well as off the Atlantic and Pacific coasts until at least 2017.

* Despite excluding drilling in the Arctic region, the ban received praise from environmental groups but the oil and gas industry criticized the decision.

* Last month, President Barack Obama took a major step by agreeing to allow for more oil and natural gas exploration and drilling in both the Gulf and off the coast of Alaska, reported BBC News.

* Even though the move opens the area for more oil production, Republicans have continued to push for a more extensive expansion to allow for more leases to drill in both regions.

Rachel Bogart provides an in-depth look at current environmental issues and local Chicago news stories. As a college student from the Chicago suburbs pursuing two science degrees, she applies her knowledge and passion to both topics to garner further public awareness.

Source: http://us.rd.yahoo.com/dailynews/rss/science/*http%3A//news.yahoo.com/s/ac/20111214/sc_ac/10681045_first_offshore_lease_auction_since_bp_oil_spill_fetches_3377_million

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