Today the U.S. government holds the first offshore lease sale in two years.
Energy companies have shown a lot of interest in this sale, says LSU Center for Energy Studies director Greg Upton.
"There's certainly a lot of excitement around this lease sale," said Upton. "I think a lot of the excitement really comes around the policy uncertainties that we've seen in the last few years."
Upton says petroleum companies expect Trump administration policies to be a lot more favorable than the Biden administration. But, he also says modest oil prices and high levels of production right now may be dampening some of that enthusiasm.
"In a way, it's really a positive story of innovation, it's a positive story of economic growth, but on the flip side, it's not a forecast of a lot of new employment and activity in that sectors," he said.
Upton said at the government's prediction of $55 a barrel for oil next year, that's not much reward for new exploration. But he says it usually takes a few years after a lease sale is concluded before that exploration starts.