U.S. administration awards Gulf of Mexico drilling leases to oil giants

The Biden administration on Wednesday reinstated $190 million worth of leases to companies bidding to explore for oil and gas in the Gulf of Mexico.

The administration sought to stress that the sale would “protect biologically sensitive resources, mitigate potential adverse effects on protected species and avoid potential ocean user conflicts.”

The gulf was the scene of the massive Deepwater Horizon oil spill in 2010, a rig that was operating on behalf of BP.

Federal offshore oil production in the gulf accounts for 15% of total U.S. crude oil production, and federal offshore natural gas production in the gulf accounts for 5% of total U.S. output.

Chevron submitted the highest sum of winning bids at $47 million. Other major successful bidders included Anadarko, BP, Shell and Exxon Mobil.