Trump Administration Advances Third ‘Big Beautiful’ Gulf Lease Sale as Offshore Program Gains Momentum

The Bureau of Ocean Energy Management announced Wednesday it will auction approximately 80.4 million acres of federal waters in the Gulf of America in August, marking the third offshore oil and gas lease sale under the Trump administration’s accelerated energy development program.

Lease Sale Big Beautiful Gulf 3, or BBG3, will offer roughly 15,066 unleased blocks located between 3 and 231 miles offshore, spanning water depths from 9 feet to more than 11,100 feet. The announcement follows two previous sales held earlier this year as part of the One Big Beautiful Bill Act, which mandates 30 Gulf lease sales and six Cook Inlet sales in Alaska over the coming decades.

“Lease Sale BBG3 marks another major milestone in the Gulf of America,” said BOEM Acting Director Matt Giacona. “Building on the momentum of BBG1 and BBG2, this proposed sale reinforces BOEM’s commitment to regular offshore leasing as required under the One Big Beautiful Bill Act. By offering leases with a competitive 12.5% royalty rate, BBG3 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’s 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. In fiscal year 2024 alone, the region generated $6.5 billion in federal royalties, along with $372.5 million in bonus bids and $122.8 million in rental revenue.

The sale schedule represents a significant acceleration from previous offshore leasing programs. Giacona earlier described the second sale, BBG2, as “a key step in advancing BOEM’s offshore oil and gas program in the Gulf of America,” pointing to what the agency views as sustained industry interest following the inaugural BBG1 sale.

However, recent auction results suggest the market may be cooling. The first BBG1 sale generated $279.4 million in high bids for 181 blocks, with 30 companies submitting 219 bids totaling $371.9 million. While major operators including BP, Chevron, and Shell participated, the results fell short of the December 2023 Gulf lease sale which drew 352 bids worth $441.9 million across 311 tracts.

Weaker bidding coincided with lower oil prices, with WTI trading around $58.50 at the time of BBG1—well below late-2023 levels. To bolster participation, BOEM set royalty rates at 12.5 percent for both shallow and deepwater leases, the lowest deepwater rate offered since 2007.

Certain areas will be excluded from the BBG3 sale, including blocks subject to the September 8, 2020, presidential withdrawal; blocks adjacent to or beyond the U.S. Exclusive Economic Zone in the Eastern Gap; and blocks within the boundaries of the Flower Garden Banks National Marine Sanctuary.

The Proposed Notice of Sale will be published in the Federal Register on February 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 in the Federal Register at least 30 days prior to the scheduled lease sale date.

The sale directly supports Executive Order 14154, “Unleashing American Energy,” which directs federal agencies to accelerate offshore energy development.Interior Secretary Doug Burgum has described the early lease results as evidence that the administration’s energy strategy is gaining traction, citing job creation, investment, and energy security as core objectives.

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