Few companies, cautious bidding on offshore oil leases

Associated Press

NEW ORLEANS

The federal government’s annual sale of oil and gas leases in the Gulf of Mexico attracted hardly any interest Wednesday, reflecting a dismal outlook for offshore drilling.

Only three oil companies bid, on just 24 of the nearly 4,400 tracts offered for drilling and exploration in the Gulf of Mexico off the Texas coast. None competed against each other.

“Everything about this sale screams wariness,” said Stewart Glickman, an analyst for S&P Global Market Intelligence.

Between them, BP Exploration and Production Inc., BHP Billiton Petroleum Inc., and Exxon Mobil Corp. offered a total of $18 million, the Bureau of Ocean Energy Management said.

For perspective, that’s about 32 millionths of the combined market capital of the bidders’ parent companies, which totals more than half a trillion dollars.