NEW ORLEANS — The federal government collected nearly $47 million in winning bids from an offshore oil and gas lease sale in the Gulf of America, part of the Trump administration’s effort to expand domestic energy production and strengthen national energy security.
What This Means for You
- Federal Lease Sale Generates Revenue: Offshore drilling rights brought in nearly $47 million in winning bids.
- Energy Development May Expand: The sale opens additional Gulf of America areas for potential oil and gas exploration.
- Domestic Energy Supply Focus: Officials say expanded offshore development is intended to support U.S. energy production.
The Department of the Interior said that Wednesday’s Bureau of Ocean Energy Management’s Lease Sale Big Beautiful Gulf 2 — known as BBG2 — generated $46,976,423 in high bids.
Deputy Secretary Kate MacGregor and Acting Assistant Secretary for Land and Minerals Management Lanny Erdos attended the lease sale.
Offshore Blocks Offered in Gulf Waters
The lease sale included 25 offshore blocks — parcels of federal seabed offered for energy exploration — covering roughly 141,000 acres in federal waters of the Gulf of America.
Thirteen energy companies submitted 38 bids totaling $69,838,782 during the auction.
Interior Secretary Doug Burgum said the lease sale is intended to strengthen domestic energy production.
“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,” Burgum said. “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.”
Lease Sale Required Under Federal Law
The BBG2 auction is the second offshore lease sale required under the “One Big Beautiful Bill Act,” a law passed under President Donald J. Trump that mandates certain offshore oil and gas lease sales in the Gulf of America.
The sale also supports Executive Order 14154, titled “Unleashing American Energy,” which directs federal agencies to expand domestic oil and gas development.
Matt Giacona, acting director of the Bureau of Ocean Energy Management, said the sale follows strong industry interest in an earlier auction.
“Lease Sale BBG2 represents a significant advancement in BOEM’s offshore oil and gas program in the Gulf of America,” Giacona said. “Following the substantial industry interest in Lease Sale BBG1, this proposed sale is intended to sustain investment in the U.S. Outer Continental Shelf and bolster American energy independence.”
Royalty Rate Set to Encourage Industry Participation
To encourage bidding, federal officials set a 12.5 percent royalty rate for both shallow-water and deepwater leases.
A royalty rate determines the percentage of oil or gas revenue companies must pay to the federal government after production begins.
Officials said the 12.5 percent rate is the lowest deepwater royalty level offered since the George W. Bush administration.
The Bureau of Ocean Energy Management offered roughly 15,000 unleased blocks across western, central, and parts of the eastern Gulf planning areas for potential development.
Offshore Production Remains Major Energy Source
Federal data show the Gulf of America’s Outer Continental Shelf — the underwater area beyond state waters where the federal government manages energy development — spans about 160 million acres.
Government estimates suggest the region contains about 29.59 billion barrels of undiscovered, technically recoverable oil and 54.84 trillion cubic feet of natural gas.
In fiscal year 2025, oil produced from the Outer Continental Shelf totaled about 677.2 million barrels, accounting for roughly 14 percent of all U.S. oil production.
That equals an average of about 1.86 million barrels of oil produced each day.
Officials said offshore energy development supports domestic energy supply as well as jobs, infrastructure investment, and local economies.
Next Steps for the Lease Sale
The Final Notice of Sale for the auction was published in the Federal Register on February 5, 2026, outlining the lease areas, fiscal terms, and bidding procedures.
Companies were allowed to attend the auction in person, while the event was also livestreamed on the Bureau of Ocean Energy Management’s website.
The agency said complete results will be posted at www.boem.gov, with a final statistical summary expected within 90 days.
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