The Trump administration makes a bold move which will please the "Drill, baby, drill" crowd.
The U.S. Department of the Interior quietly announced last week it would begin selling thousands of oil and gas drilling leases in the Gulf of Mexico.
“If our economy is going to continue to grow, we're going to need more oil and natural gas, and shale isn't going to cover all the bases,” says Phil Flynn, energy analyst with PRICE Futures Group.
“The energy industry provides air conditioning, gasoline, natural gas. All of these things make our lives better. They power our lives. They power our economy.”
The move fulfills a campaign pledge by President Trump to unlock offshore drilling.
“When the economy was looking at its bleakest and it didn't look like it had a lot going for it, the U.S. energy industry was the one bright spot that really kept hopes alive in the U.S. economy, and I don't think they get enough credit,” says Flynn.
Revenues from the lease sales will be split between the Treasury, Texas and other Gulf states, and conservation funds.