Back in August, I touched on the growing sentiment among Super Major and Major energy companies that the US Gulf of Mexico will remain a critical offshore oil and gas basin for years to come. In that same month, during the annuals Offshore Technology Conference in Houston, Shell announced as part of its long-term energy transition strategy that it would remain committed to the US GOM. Shell, among others, will remain committed to the US GOM because it has an advantageous low-carbon position relative to others oil producing basins. During the much discussed ongoing energy transition, Super Major and Major energy companies must still maintain oil and gas production. They must do so to both provide the necessary energy that simply cannot be supplied by alternatives sources and to maintain the necessary cash flows to support the investment in alternative energy sources.
The lease sale of 257 offshore blocks in the US GOM that took place the week of November 15th is another clear indication of this commitment. This lease sale garnered $191 million in winning bids over 308 total lease blocks with thirty-three companies submitting bids. This bodes very well for both the offshore oil and gas industry and the US GOM.