The federal government says it expects to take in $133.8 million in high bids for drilling rights in the western Gulf of Mexico from last week’s lease auction – a sale that underscored the oil and natural gas industry’s continued interest in deep-water development. Fuel Fix reports:

"Just 11 of the 116 blocks that were snapped up are located in less than 200 meters of water and some 40 of the sold tracts are in water depths of more than 1,600 meters. … Tommy Beaudreau, director of the Bureau of Ocean Energy Management that held the auction, said the bidding reinforced the 'significant interest in the deep water, in particular, in the Western Gulf, and in these sub-salt plays.'”

Industry reactions:

• National Ocean Industries Association President Randall Luthi: The auction was... more »