U.S. Schedules Gulf of America Oil and Gas Lease Sale for This December
Reverses the War on American Energy policies of the Autopen Administration.
The Trump administration is continuing to push its “America First” energy agenda, this time with a move to hold a sale of oil and gas drilling rights on 80 million acres in the Gulf of America this December with reduced royalty fees.
The sale would be the first of three outlined in a Biden-era five-year offshore drilling program that included the smallest ever number of oil and gas auctions.
The Trump administration in April kicked off the process to develop a new five-year program to maximize energy development. Trump has ordered government agencies to identify ways to increase already record high U.S. oil and gas production, arguing that past administrations had unnecessarily curtailed drilling to combat climate change.
The administration plans to offer about 15,000 unleased blocks located 3 to 231 miles (5-372 km) offshore, according to BOEM, a division of the Department of the Interior. It is proposing a royalty rate of 16.67%, the minimum required by law, for both shallow and deepwater leases.
Recent oil and gas auctions have required drillers to pay 18.75% on the value of oil produced in deep water.
Just a reminder of what things were like under the Autopen Administration:
The Biden Administration: Cancels oil and gas leases to make America more energy dependent
Also the Biden Administration: Spends $520 million to make Ukraine’s energy infrastructure 'more resilient' pic.twitter.com/qQc8hwDqQD
— Daniel Turner (@DanielTurnerPTF) September 7, 2023
According to the reports, the U.S. Bureau of Ocean Energy Management (BOEM) has scheduled this oil and gas lease sale for December 10. Details of the planned sale have been released in a Proposed Notice of Sale (PNOS) published in the Federal Register.
The BOEM’s PNOS kicks off a 60-day comment period for the affected state governors and local governments. Following the comment period, the agency will issue a Final Notice of Sale in the Federal Register at least 30 days before the scheduled public bid reading, which will be livestreamed via Zoom.
The 2023 sale attracted 352 bids from 26 participating companies. The auction generated about $382 million in high bids, mostly from major oil companies with Shell, Occidental, Repsol, Chevron, and BP setting the pace.
This is a significant move, as the Gulf of America is the premier offshore source for oil and gas.
The Gulf of America is the nation’s primary source of offshore oil and natural gas production, accounting for 97% of all oil and natural gas production in offshore waters.
Today, 14% of total U.S. crude oil production and 2% of natural gas production comes from the Gulf of America. A report from the National Ocean Industries Association found that the Gulf of America also produces some of the lowest carbon intensity barrels in the world.
The Gulf of America Outer Continental Shelf is estimated to contain around 48 billion barrels of undiscovered, recoverable oil & 141 trillion cubic feet of natural gas. Responsible usage of these assets helps keep energy prices low & inflation even lower.https://t.co/nY2nE4nHol
— Secretary Doug Burgum (@SecretaryBurgum) June 26, 2025
This lease sale is the first of three planned under the 2024–2029 Outer Continental Shelf Oil and Gas Leasing Program and signals a renewed push for offshore oil and gas development in U.S. federal waters, courtesy of the Make America Great Again agenda.
“Offshore oil and gas play a vital role in our nation’s energy portfolio, with the Gulf of America supplying 14% of domestically produced oil,” said BOEM’s Principal Deputy Director Matt Giacona. “This proposed lease sale demonstrates BOEM’s commitment to advancing American Energy Dominance and fostering the production of affordable, reliable energy resources for the nation.”
The OCS spans approximately 160 million acres and is estimated to contain around 48 billion barrels of undiscovered, recoverable oil and 141 trillion cubic feet of natural gas.
Not only will this help our energy profile, but will give our allies other petroleum options rather than those from potentially Chinese-influenced sources.
We’re back, baby!!! https://t.co/AB4jQicr0V
— Leslie Eastman ☥ (@Mutnodjmet) July 4, 2025
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Comments
Good although they should keep the royalty fees as is if the market will bear them. We could use the money.
A few “maybes” to consider:
1) The lower lease rate could open the field to some of the smaller, less wealthy drillers;
2) The cost of the lease will be part of the cost of doing business, and end up at the gas pump (or meter) for the consumer to deal with. Or in the cost of getting any item to market, again hitting the consumer. The plan is to keep inflation down, not enrich the G.
3) Treating the lease rate like the tax rate– lower taxes results in increased revenue, so lower lease rate yields more participants and, thus, higher revenue. Accounting magic.
I can but 2 and 3 but not 1. I would expect you need deep pockets or a Yuge line of credit to be able to afford to drill in any body of water,
Leslie why would you cite an article that can’t get the name of the water body correct?
GOM is no more.
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