BOEM Announces Second Gulf Lease Sale Under Energy Expansion Program

The Bureau of Ocean Energy Management has announced a Proposed Notice of Sale for its second offshore oil and gas lease sale under the One Big Beautiful Bill Act, scheduled for March 11, 2026.

The sale, designated Big Beautiful Gulf 2 (BBG2), will offer approximately 15,000 unleased blocks covering about 80 million acres on the U.S. Outer Continental Shelf in the Gulf of America.The blocks are located between 3 and 231 miles offshore, spanning water depths from 9 feet to more than 11,100 feet.

BBG2 represents the second of thirty Gulf of America oil and gas lease sales mandated by the One Big Beautiful Bill Act.The legislation commits the Department to a predictable sale schedule aimed at expanding American energy production and strengthening U.S. energy dominance.

The first sale in the series, Big Beautiful Gulf 1, is scheduled to hold a public bid reading on December 10, 2025. That sale will also make roughly 80 million acres available for leasing and features a 12.5% royalty rate for both shallow and deepwater leases.

“Lease Sale BBG2 marks another major milestone in advancing a robust and forward-looking offshore oil and gas program in the Gulf of America,” said BOEM Acting Director Matt Giacona. “Building on the momentum of BBG1, this proposed sale reinforces BOEM’s commitment to restoring certainty and long-term investment in the U.S. Outer Continental Shelf. By offering leases under a competitive 12.5% royalty rate, BBG2 sends a clear signal that the era of regulatory uncertainty is behind us, and a new phase of responsible energy leadership has begun.”

The Gulf of America Outer Continental Shelf spans approximately 160 million acres and is estimated to contain 29.59 billion barrels of undiscovered, technically recoverable oil and 54.84 trillion cubic feet of natural gas. However, certain areas will be excluded from the sale, including blocks subject to a September 2020 presidential withdrawal, blocks adjacent to or beyond the U.S. Exclusive Economic Zone in the Eastern Gap, and blocks within the Flower Garden Banks National Marine Sanctuary.

The Proposed Notice of Sale will be published in the Federal Register on November 20, initiating a 60-day comment period for affected state governors and local governments. Following the review of governor input, BOEM will publish a final notice of sale at least 30 days prior to the scheduled lease sale date.

Offshore energy activities in the region generate billions of dollars from lease sales, rental fees and royalties, with funds distributed to the U.S. Treasury and states through revenue sharing programs that support coastal restoration and hurricane protection projects.

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