The Bureau of Ocean Energy Management's (BOEM) second Gulf oil and gas lease sale under the One Big Beautiful Bill Act generated $46,976,423 in high bids — an 84% drop from the program's first sale held last year.
Lease sale Big Beautiful Gulf 2 (BBG2), held Wednesday, included 25 offshore blocks covering approximately 141,000 acres in federal waters of the U.S. Gulf of Mexico, renamed by the Trump administration as the Gulf of America. Thirteen companies submitted 38 bids totaling $69,838,782, the Department of the Interior announced.
"Today's lease sale reflects President Trump's continued focus on strengthening America's energy security while supporting jobs and economic growth across the Gulf of America," said Secretary of the Interior Doug Burgum. "By advancing responsible offshore development, we're ensuring that the United States remains a global energy leader and that American families benefit from reliable, affordable energy for years to come."
The Trump administration has sharply increased the pace of Gulf lease sales after the Biden administration moved to limit offshore oil and gas leasing.
The One Big Beautiful Bill Act (Public Law 119-21), signed in July 2025, requires 30 Gulf of Mexico oil and gas lease sales through 2040. BBG2 is the second of those sales.
The first lease sale under the act, BBG1, held in December, generated $300.4 million in high bids for 181 blocks. Thirty companies submitted 219 bids totaling $371.9 million.
BP Exploration & Production submitted the highest bid at $21 million for a single block in the deepwater Green Canyon area, accounting for nearly 45% of total high bids in the sale. Chevron U.S.A. submitted high bids totaling $10.9 million for two blocks, and Shell Offshore submitted high bids totaling $1.9 million for two blocks.
Other companies submitting winning bids included LLOG Exploration Offshore, Walter Oil & Gas Corp., Woodside Energy (Deepwater), Anadarko US Offshore, Houston Energy, Red Willow Offshore, Navitas Petroleum US, CL&F Offshore, Focus Exploration, and Renaissance Offshore.
"Lease Sale BBG2 represents a significant advancement in BOEM's offshore oil and gas program in the Gulf of America," said BOEM Acting Director Matt Giacona. "Following the substantial industry interest in Lease Sale BBG1, this proposed sale is intended to sustain investment in the U.S. Outer Continental Shelf [OCS] and bolster American energy independence."
The Final Notice of Sale was published in the Federal Register on Feb. 5. Results are posted on BOEM's website, with a final statistical summary to be released within 90 days.
BOEM offered approximately 15,000 unleased blocks across the Western, Central, and portions of the Eastern Gulf Planning Areas. The agency applied a 12.5% royalty rate for both shallow and deepwater leases, the lowest deepwater rate since the George W. Bush administration.
The relatively modest bidding activity comes as oil prices have surged past $100 per barrel due to the ongoing U.S.-Israeli military conflict with Iran, which has disrupted global oil supplies. However, Gulf of Mexico drilling activity has remained relatively flat, with approximately nine rigs operating, according to Baker Hughes data.
The Gulf's OCS spans 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, according to BOEM.
In fiscal year 2025, oil production on the OCS totaled 677.2 million barrels, representing 14% of all domestic production, or an average of approximately 1.86 million barrels of oil per day.
BOEM plans to hold the third Gulf lease sale under the One Big Beautiful Bill Act, BBG3, on Aug. 12.
