The U.S. Department of the Interior has completed its first mandatory offshore oil and gas lease sale under the One Big Beautiful Bill Act, marking a major policy reset for federal offshore energy development.
U.S. Interior Secretary Doug Burgum. Image: S&P Global
The Bureau of Ocean Energy Management (BOEM) on Wednesday concluded Lease Sale Big Beautiful Gulf 1 (BBG1), generating $279.4 million in high bids across 181 blocks covering roughly 80 million acres in federal waters of the Gulf of America. In total, 30 companies submitted 219 bids totaling $371.9 million.
Interior Secretary Doug Burgum framed the sale as a cornerstone of the Trump administration’s effort to accelerate offshore development and reduce reliance on foreign energy supplies.
“President Trump made clear from day one that the United States will no longer be held back by bad policy or foreign dependence,” Burgum said. “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.”
The lease sale fulfills requirements of the One Big Beautiful Bill Act, enacted earlier this year, and supports Executive Order 14154, Unleashing American Energy, which directs federal agencies to streamline permitting and expand offshore oil and gas development.
BOEM Acting Director Matt Giacona said industry participation reflected renewed confidence in federal offshore leasing. “The strong bidding we saw today 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,” Giacona said.
For the first time in a decade, companies were permitted to attend the sale in person, with proceedings also livestreamed for public viewing. The final notice of sale was published in the Federal Register on Nov. 10, 2025, with a final statistical summary expected within 90 days.
BOEM offered approximately 15,000 unleased blocks across the Western, Central and portions of the Eastern Gulf planning areas. To encourage participation, Interior applied a 12.5% royalty rate for both shallow- and deepwater leases—the lowest deepwater rate since 2007.
Industry groups welcomed the sale as a long-awaited restart of offshore leasing after a two-year pause.
“We applaud Secretary 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,” said Holly Hopkins, API’s vice president of upstream policy. “Today’s sale marks the beginning of a new generation of opportunity for safe, responsible development in the Gulf.”
The National Ocean Industries Association (NOIA) echoed that sentiment, calling the sale foundational to U.S. energy production.
“The door has reopened to the Gulf of America,” said NOIA President Erik Milito. “After two long years without lease sales, this is a milestone for America’s energy future. Leasing attracts investment, supports jobs in all 50 states, and provides a fair return to taxpayers.”
The Gulf of America accounts for 97% of offshore U.S. oil and gas production, contributing about 14% of total U.S. crude output and 2% of natural gas production. The region’s outer continental shelf holds an estimated 29.6 billion barrels of undiscovered oil and 54.8 Tcf of natural gas.
Interior officials said additional Gulf lease sales are expected as part of a renewed offshore strategy aimed at strengthening national security, sustaining Gulf Coast communities and maintaining U.S. global energy leadership.