March sale of Gulf of Mexico drilling tract leases will likely be delayed

In light of this year's oil spill, a planned March lease-sale of federally owned offshore oil and natural gas drilling tracts in the central Gulf of Mexico will likely be delayed as the Interior Department conducts an environmental review of possible impacts of dilling in the region, according to analysts and other industry observers. The study is expected to take six months, meaning that it might not be finished by the time the auction is slated to be held, Erik Milito, director of upstream and industry operations for the American Petroleum Institute, told reporters Monday in a conference call. Milito questioned the necessity of the analysis, saying that the agency has conducted thorough assessments in the past, while cautioning that any delay could "decrease future energy production if we don't develop new prospects at a regular pace."...more