New Federal Deepwater Oil Lease Bids Announced
Thirty oil companies bid a total of about $300 million for drilling rights as part of the Big Beautiful Gulf 1 (BBG1) oil and gas lease sale, the Bureau of Ocean Energy Management (BOEM) announced December 10. The lease sale involved 181 blocks spanning 80 million acres of deep water off the Gulf Coast. The total bid amounts were down from $382 million offered in the most recent lease sale in the Gulf under former President Joe Biden in December 2023.
The leases are part of Trump’s plan to ramp up U.S. oil production. Trump is also opening up areas off the coasts of Florida and California to renewed drilling.
“This sale reflects a significant step in the federal government’s efforts to restore U.S. energy dominance and advance responsible offshore energy development,” said Laura Robbins, acting director of the Gulf region for the Bureau of Ocean Energy Management, part of the Department of Interior, which manages oil leases on federal lands.
The BOEM offered approximately 15,000 unleased blocks across the western, central and portions of the eastern Gulf planning areas. To encourage strong participation and spur investment, a 12.5 percent royalty rate was applied for shallow and deepwater leases, the lowest deepwater rate since 2007. The final notice of sale was published in the Federal Register on November 10. For the first time in a decade, companies were invited to attend the sale in person, and the event was livestreamed for public viewing. Results will be posted on the Bureau of Ocean Energy Management’s website, with a final statistical summary published within 90 days.
The American Petroleum Institute said, “We applaud [Interior] Secretary [Doug] Burgum and Congress for restoring a clear path for long-term investment in the Gulf of America that strengthens U.S. energy leadership and security. After two years of unnecessary delay in federal offshore leasing, today’s sale marks the beginning of a new generation of opportunity for safe, responsible development in the Gulf.”
The deep waters of the Gulf is the nation’s primary source of offshore oil and natural gas production, accounting for 97 percent of all oil and natural gas production in offshore waters. Today, 14 percent of total U.S. crude oil production and 2 percent of natural gas production comes from the Gulf. A report from the National Ocean Industries Association found the Gulf also produces some of the lowest carbon intensity barrels in the world.
More information on the December 10 lease sale, including lease terms, maps and bid results, is available at www.boem.gov. Search for earch for BBG1.
