On Thursday, an auction of federal oil and gas leases closed with a weak result from drillers, lower than the recent sales in the state.
The Trump Administration’s US Bureau of Land Management (BLM) sold 93 land parcels covering more than 45,000 acres in New Mexico and the average bid was USD169/acre, according to an online auction site EnergyNet. In comparison, February’s sales result was USD1,386/acre.
The sale was the continuation of the administration’s oil and gas leasing program after the five-month pause due to the coronavirus pandemic. It also reflects the industry’s appetite for investment.
Going forward, BLM will hold some more lease sales in September for parcels in Nevada, Wyoming, Montana, North Dakota Colorado, Utah, Alabama, Louisiana, Michigan, and Mississippi.
