The Trump administration on March 18 will hold a sale of oil and gas leases in federal waters, testing drillers’ appetite for investment amid a steep slide in oil prices that has cast doubt over energy projects around the globe.

The more than 78 million-acre (31.6 million hectares) sale will include all available unleased areas in federal waters of the Gulf of Mexico (GoM). It is the first such sale since August 2019, which received $159.4 million in high bids.

Firing up offshore drilling is a crucial part of President Donald Trump’s “energy dominance” agenda to maximize domestic production of crude oil, natural gas and coal.

But the energy industry is facing crisis after the coronavirus pandemic decimated world demand for fuel and crushed prices. OPEC and its allies have opted not to cut production, further adding to a worldwide supply glut. U.S. oil prices have dropped roughly in half since the middle of February to about $27 per barrel.

Before the slump, recent lease sales of similar size in the GoM have attracted bids on just a small fraction of available acreage. But two auctions in 2019 generated the highest annual bid level in four years, according to the U.S. Bureau of Ocean Energy Management, which oversees the sales.

The March 18 lease sale was scheduled late last year, long before countries including the U.S. took unprecedented steps to contain a coronavirus pandemic that has curbed demand for crude and products such as gasoline and jet fuel.

Oil and gas companies around the world in recent days have announced plans to slash spending.

The rapid spread of the coronavirus highlights the particular challenges that large offshore operators face. Companies like BP and Shell, which have platforms that house more than 200 people in tight quarters, have had to add health screening for employees during the pandemic.

While operators of onshore rigs can go home each day, offshore workers generally spend 14 days together in dormitory-style housing with shared cafeterias.

Offshore