Tepid response expected in today's Gulf of Mexico Lease Sale

This morning, bids will be opened for Lease Sale 208, an offering of Federal mineral leases in the central Gulf of Mexico.

Early indications are that a relatively low number of blocks have received bids, and there are relatively few blocks with multiple bids.

This morning’s Lease Sale 208 will offer 6,200 blocks in the central Gulf of Mexico, covering more than 33.5 million acres off the coasts of Louisiana, Mississippi and Alabama. …

[Private equity analyst Brian] Uhlmer expects that the government will be watching the results of the auction as closely as analysts to gauge the energy industry’s response to tax proprosals, as well as its general health. Ken Salazar, the new interior secretary, is scheduled to open the auction this morning and tour the Louisiana coast.

“This sale will be a leading indicator of operators’ views of the current administration,” Uhlmer said. “If it’s very weak, it could potentially send a signal to the government.”

Full story here. I’ll try to update later today as the results come in.