First Gulf of America Lease Sale Under One Big Beautiful Bill Generates $300 Million
On December 10, 2025, the Bureau of Ocean Energy Management (BOEM) conducted the Gulf of America Oil and Gas Lease Sale under the One Big Beautiful Bill Act (OBBB), marking its first offshore lease sale since December 2023 and first under OBBB. With more than $300 Million bidders participating this sale demonstrated continued industry interest despite reduced participation levels compared to prior lease cycles.
This sale marked an important step forward for federal offshore energy policy, marking the first of 30 lease sales mandated by OBBB through 2040 in the Gulf of America. Under this legislation, royalties for these lease sales were reduced from 16.67 percent under Inflation Reduction Act 2022 (IRA), to 12.5 percent - marking its lowest rate since 2007.
Comparison to Previous Lease Sale and Industry Participation
This December 2025 sale saw 219 companies submit bids, as opposed to 352 at Lease Sale 261, held on December 20, 2023. That sale generated total high bids of $382,168,507 across 299 awarded leases covering approximately 1,659,224 acres; although this sale saw less overall bids and tracts receiving bids; nonetheless it proved industry confidence that Gulf deepwater opportunities continue to attract robust investments at current commodity price levels.
Policy Framework and Future Leasing Schedule
The One Big Beautiful Bill Act mandates an extensive multi-year leasing program through March 2040. The next sale scheduled by this bill will take place on March 20, 2026 in Alaska's Cook Inlet followed by Gulf sales later that month. The Trump Administration has also proposed a five-year leasing plan with expanded oil and gas leasing off of California and Florida coastlines, creating potential new leasing areas. Monitor key developments including: (1) finalization of a five-year leasing plan by the administration, (2) resolution of litigation challenging offshore exploration and production activities, (3) industry participation levels in sales as companies assess their investment climate under new regulatory framework,