Oil companies shelled out a lot of money Wednesday to buy up oil and gas lease blocks in the Gulf of Mexico. Apparent proceeds appear to be about 192 million dollars, up 70 million dollars from last year.
Director of the Tulane Energy Institute Eric Smith said it’s a higher than expected number, and evidence that the industry, and its financiers, are still bullish on the immediate future of fossil fuels.
This comes despite a strong push for clean energy, but while world governments haggle over how to hit carbon neutrality by 2050, Smith said the industry sees a window of opportunity for new fossil fuel projects over the next decade.
“They (hydrocarbons) are not going away any time soon,” said Smith. “You’ve got a window here that is long enough that you could conceivably pick up these leases and have them in production in anywhere from three to ten years and still run out the life before you are up against the peg in 2050.”
The Biden Administration attempted to halt the sale but was defeated in court. Administration officials said proceeding with this sale, and its potential developments, makes it more difficult for the world to reach carbon neutrality by 2050, and avert catastrophic levels of global warming.
Smith noted the high number of deepwater lease sales bodes well for the Houma economy.
“If those are developed it will act as a renaissance for some of the Houma-type yards,” said Smith.
