Companies bid $264M in Gulf oil sale mandated by climate law

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Oil companies including Chevron and ExxonMobil offered a combined $264 million for drilling rights in the Gulf of Mexico in a sale mandated by last year’s climate bill compromise

. Burning that oil would increase planet-warming carbon dioxide emissions by tens of millions of tons, the analysis found.Bids were up 38% fromand marked the most offered in a sale since 2017. Chevron USA was the top bidder, offering $108 million for 75 tracts. BP Exploration and Production had $47 million in high bids and Shell Offshore had $20 million in high bids.the administration could conduct as it faces continued pressure over approval of the ConocoPhillips Willow project in Alaska.

The sale came two days before a deadline set in last year's climate bill. The bill also prohibits leasing public lands for renewable power unless tens of millions of acres are first offered for fossil fuels. That was a concession toManchin issued a statement saying the sale results showed the climate bill was “holding this administration’s feet to the fire” to continue fossil fuel production.

The vast majority of tracts had only one bidder as the company offers were opened Wednesday in New Orleans, in a state that is economically dependent on the oil and gas industry and especially vulnerable to climate change. ExxonMobil offered almost $10 million on 69 tracts in the northwest Gulf. The company in 2021 bid nearly $15 million for tracts in the same area. It includes shallow waters — less than 656 feet deep — where oil has mostly played out.

ExxonMobil spokesperson Todd Spitler declined to say if there was a link between its bids and the ship channel proposal.

 

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