Energy companies are not showing a lot of interest in offshore leases for natural gas being offered by the government.
With prices down two-thirds, it’s no surprise.
Producers put up $115.5 million in winning bids on 162 federal tracts during today’s auction by the Minerals Management Service.
That’s down sharply from last year’s western Gulf of Mexico sale when $483.9 million in winning bids were put up for 313 tracts.
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Unlike the annual central Gulf sale of leases off coastal Louisiana, Mississippi and Alabama — which is oil dominated — the Texas coastal sale is centered on natural gas.
A year ago, gas was trading at around $9.50 per thousand cubic feet on the New York Mercantile Exchange — compared with about $3.11 currently. (AP)
