Area-wide lease sales in the Gulf of Mexico over the past 2 yr have received an enthusiastic response from the oil industry. More tracts have been bid upon and acquired per sale, total larger lease bonuses have been paid, and exploratory drilling has rebounded. Several new geologic plays are now under way in Texas, deep-water Louisiana, and the eastern Gulf. Many companies are now involved in offshore leasing and exploration. This activity has returned people to the work force and boosted the economies of effected coastal states. Industry should be able to reduce the reserve and production decline and decrease forthcoming supply shortfalls as a result of area-wide leasing.

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