Trump Administration Completes First Gulf Lease Sale Under One Big Beautiful Bill Act

The Department of the Interior announced today that the Bureau of Ocean Energy Management has conducted Lease Sale Big Beautiful Gulf 1, generating $279.4 million in high bids for 181 blocks spanning 80 million acres in federal waters of the Gulf of America.

Thirty companies submitted 219 bids totaling $371.9 million in what marks the first mandatory offshore oil and gas lease sale required under the One Big Beautiful Bill Act.

“President Trump made clear from day one that the United States will no longer be held back by bad policy or foreign dependence,” said Secretary of the Interior Doug Burgum. “Today’s lease sale is another major milestone in rebuilding American Energy Dominance by unlocking investment, strengthening our energy security, creating jobs and ensuring Americans have access to affordable and reliable energy.”

Acting Bureau of Ocean Energy Management Director Matt Giacona said the strong bidding reflects “sustained industry confidence in the long-term potential of the U.S. outer continental shelf and the clear direction of this Administration to expand responsible offshore development.”

BP, Chevron and Shell were among the top bidders at Wednesday’s sale, the first government auction of oil and gas drilling rights in the Gulf of Mexico since 2023.

The sale comes at a challenging moment for the industry, with WTI crude prices trading at $58.50, significantly below the low to mid-$70s range seen in December 2023. To encourage strong participation amid these market conditions, BOEM set royalty rates at 12.5% for both shallow and deepwater leases—the lowest deepwater rate since 2007.

By comparison, the previous Gulf lease sale in December 2023 saw significantly stronger participation and bidding. That sale attracted 26 companies who submitted 352 bids for 311 tracts covering approximately 1.7 million acres, with total bids reaching $441.9 million. BOEM awarded 299 leases covering approximately 1.66 million acres for $372.5 million in accepted high bids.

In today’s sale, the Bureau offered approximately 15,000 unleased blocks across the Western, Central and portions of the Eastern Gulf Planning Areas. The Gulf of America’s Outer Continental Shelf spans 160 million acres and holds an estimated 29.59 billion barrels of undiscovered, technically recoverable oil and 54.84 trillion cubic feet of natural gas.

The sale represents the opening move in a congressionally mandated leasing program spanning decades, with 30 Gulf lease sales and six Alaska Cook Inlet sales required under the One Big Beautiful Bill Act. Results will be posted on the Bureau of Ocean Energy Management’s website, with a final statistical summary published within 90 days.

Revenues from offshore energy activities continue to provide critical funding for the U.S. Treasury, Gulf Coast states, the Land and Water Conservation Fund, and the Historic Preservation Fund. In fiscal year 2024, offshore development generated $6.5 billion in royalties, $372.5 million in bonuses, and $122.8 million in rental payments.

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