This should be an interesting sale. Below are some of the questions that may be answered:
- Will the Rice’s whale issues affect bidding for deepwater leases? The 5th Circuit’s ruling removes the Rice’s whale lease stipulation. However, BOEM’s Notice to Lessees and Operators (NTL) includes the same provisions and still stands pending further consultations with NOAA. Although the NTL is a “guidance document” (wink-wink), there are ways of making it stick through the plan approval process. Even without binding requirements, companies might choose to fully comply with the NTL to minimize legal risks.
- Will the uncertainty about future sales spur or constrain bidding? Absent legislative action, no sale will be held in 2025.
- Will the 14 blocks with rejected high bids at Sale 259 receive bids at Sale 261? If so, will the bids be higher or lower? Is it prudent to reject high bids without knowing when the next sale might be held?
- Will bp, Chevron, Shell, Equinor, Oxy, and Woodside continue to be bullish on the GoM?
- Will Red Willow Offshore, owned by the Southern Ute tribe, again be an active bidder?
- Will Exxon again seek to acquire carbon sequestration leases at an oil and gas lease sale? After a long absence, it would be good to see the US super-major acquire leases for oil and gas purposes. Ditto for ConocoPhillips.
- How many companies will participate in the sale? 30-35 would be a nice outcome.
- What will be the sum of the high bids? >$300 million would be a solid result.
BOEM will live stream the opening of bids at 9 am CDT on Dec. 20, 2023
BOEM
Bud's Offshore Energy (BOE) 
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