The first sale of oil and gas drilling leases in the U.S. Gulf since 2023, and the first of 30 sales mandated by the tax cut and spending bill signed by President Trump in July, drew $279.4 million in high bids.
Led by BP, Chevron, and Shell, the sale reverses policy under the Biden administration, which had reduced planning for oil and gas while promoting renewable energy in the name of confronting climate change.
Companies submitted 219 bids on 1.02 million acres, about 1.3% of the acreage offered.
Other bidders included Anadarko, LLOG Exploration Offshore, Talos Energy, and Murphy Exploration & Production.
The Bureau of Ocean Energy Management offered 81.2 million acres in the Gulf of Mexico, renamed by the Trump administration as the Gulf of America, at a royalty rate of 12.5%, a new lower rate permitted by the 2025 tax and spending package proposed byTrump and passed by the Republican-dominated Congress. Under the 2022 Inflation Reduction Act, during the Biden administration, energy companies paid a minimum 16.66% royalty rate.
The last Gulf sale in 2023, with 352 bids, raised $382 million, the highest of any federal offshore lease sale since 2015. The Trump administration sought a lower royalty rate to attract more bidders and investment.
“We’re entering a new era of offshore American energy dominance,” said Matt Giacona, acting director of BOEM, when the online auction began.
Industry groups cheered the sale. "The door has reopened to the Gulf of America," National Ocean Industries Association President Erik Milito said in a statement. “Continued leasing gives companies the resources they need to explore, develop, and produce responsibly. These sales drive economic growth, support cutting-edge technology, and provide a fair return to taxpayers.
“Leasing is one of the tools to achieve energy dominance, and it is a critical one: the more leases offered, the higher the likelihood of commercially viable discoveries that keep investment dollars in the U.S. and strengthen our global leadership," Milito added.
At least two lease sales must be held each year through 2039, followed by one more in 2040.
Interior Secretary Doug Burgum said the plan aligns with a Trump executive order directing federal agencies to speed up offshore oil and gas development. According to Burgum, the sales will spur investment, boost U.S. energy security, and create jobs.
