Business

Companies bid $192 million in 1st Gulf oil sale under Biden

 A man wears a face mark as he fishes near docked oil drilling platforms, Friday, May 8, 2020, in Port Aransas, Texas. source Eric Gay

NEW ORLEANS (AP) — Energy companies have offered a combined $192 million for drilling rights on federal oil and gas reserves in the Gulf of Mexico in the first government lease sale under President Joe Biden.

Wednesday’s auction laid bare the hurdles Biden faces to achieve climate goals that depend on deep cuts in fossil fuel emissions.

Shell, BP, Chevron, ExxonMobil and other companies bid on tracts totaling nearly 2,700 square miles.

Since it takes years before crude is pumped, the leases could produce oil and gas long past 2030, when scientists say the world needs to have drastically cut greenhouse gas emissions to stave off catastrophic climate change.

Written by Associated Press

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