I was pleasantly surprised by the revenue generated in the recent BOEM oil and gas lease auction, especially considering the efforts to limit exploration and production.
The auction yielded approximately $400 million in revenues. In contrast, the most recent ‘GOM Wind’ auction produced around $6 million in revenues.
What an indicator of the contrast between the two different energy approaches! Energy investors obviously understand where the ROI comes from and the risks of abandoning oil and gas investments.
For purposes of comparison, the following are the last 3 BOEM lease sales and the lease sale prior to Covid.
BOEM lease sale (253) on 8-21-2019, pre-Covid, had 27 participating companies for a total of approximately $160 million in high bids on 151 blocks.
BOEM lease sale (257) on 11-17-2021 had 33 participating companies for a total of around $200 million in high bids on 303 blocks.
BOEM lease sale (259) on 3-29-2023 had 32 participating companies for a total of approximately $260 million in high bids on 313 blocks.
BOEM lease sale (261) on 12-20-2023 had 26 participating companies for a total of around $400 million in high bids on 311 blocks.
Observe that the revenue generated is steadily increasing.
I think it is fair to say that the majority of Gulfslope’s domestic and foreign investors hoped to share in a rare opportunity to create enormous wealth that an emerging oil and gas company can produce.
But when U.S. Oil and Gas E&P businesses are not allowed to have a free market to control the way they make their own profits in the Industry, then the whole system is at risk.
U.S. government overreach by using unfair rules and regulations against one particular industry, in this case the oil and gas industry, which happens to be ONE of the LARGEST PROFIT PRODUCING industries, can and will stifle and potentially destroy Capitalism.
Over the past three years, the DOI and DOE has been laying the foundation for a reduction in oil and gas BOEM lease auctions and the permitting process as a whole.
Even with the positive amendments to NEPA’s permitting process in the ‘2023 Fiscal Responsibility Act’, they have been relentlessly enforcing additonal EPA and NEPA restrictions to achieve a negative impact on as much exploration and production as possible. But it appears that despite all these efforts companies did not hesitate to bid 50% more dollars in this week’s lease auction. The obvious conclusion is energy from oil and gas will exist far into the future as has been predicted in all the recent forecasts.
Fortunately for the consumer, they have not yet been completely successful in their mission for power and control over energy production. Thus far it has mostly been a losers game of cat and mouse retaliation. When you get in the way of the Federal Offshore ‘Atlantic Wind’ lease auctions to protect the Right whales, then they retaliate by new restrictions on Federal Offshore ‘GOM Oil and Gas’ lease auctions in the name of the Rice’s whales.
Due to circumstances being fluid, investors should plan to rely on information released by Gulfslope Energy in the upcoming 10-K and other reliable sources.
Tiger01, I was elated by your post. However, I believe they officially referred to it as ‘Recoverable Resources’. You do not have reserves until after a discovery.
Mrs. Smith
