Late November and early December 2025 saw significant policy shifts within the US offshore oil sector due to the Trump administration's expansion of leasing activities. Key developments included an historic lease sale in the Gulf of America as well as a proposed five-year leasing program signaling renewed federal support for deepwater exploration despite legal and environmental pressures.
Gulf of America Lease Sale Marks New Era
On December 10, 2025, the Bureau of Ocean Energy Management (BOEM) hosted its Gulf of America Oil and Gas Lease Sale under the One Big Beautiful Bill Act (OBBB), marking its first auction since December 2023 and drawing more than $300 million in high bids across 219 tracts despite reduced bid numbers than past events. This event demonstrated renewed industry interest in deepwater opportunities despite reduced bidding activity compared with prior sales.
The sale introduced a reduced royalty rate of 12.5 percent, the lowest since 2007 and down from the previous 16.67 percent under the Inflation Reduction Act. As the first of 30 mandated Gulf lease sales by the OBBB, it represents a pivotal milestone in federal offshore energy policy, with future sales expected to test industry participation amid evolving commodity prices and investment climates.
Interior Proposes Sweeping Offshore Leasing Expansion
On November 20, 2025, the Department of the Interior released its 11th National Outer Continental Shelf Oil and Gas Leasing Program proposal, detailing up to 34 lease sales across 21 planning areas totalling 1.27 billion acres through 2031. This draft includes six Pacific Coast sales--the first since 1984--21 off Alaska; seven Gulf of Mexico lease sales; as well as new areas like Gulf of America Program Area A and B.
Secretary of the Interior Doug Burgum highlighted the plan as reversing prior restrictions, ensuring long-term energy dominance. The American Petroleum Institute praised it as a historic step to unlock offshore resources and support affordability amid rising demand. Public comments opened November 24, with final approval targeted for October 2026, though each sale will face additional review.
Legal and Political Roadblocks Emerge
The expansion faces immediate opposition. Environmental groups including Healthy Gulf, Center for Biological Diversity, and Natural Resources Defense Council filed a federal lawsuit to halt the December Gulf auction, alleging violations of the National Environmental Protection Act and Administrative Procedure Act. California Governor Gavin Newsom criticized the Pacific proposals, vowing to protect coastal economies.
Industry analysts note caution among majors, who may prioritize lower-risk shale plays over deepwater investments requiring billions. Prior Trump-era plans encountered lawsuits, and experts anticipate similar challenges, potentially delaying implementation.
Broader Industry Context
These US developments occur against a global backdrop of offshore growth, though no specific November-December 2025 events beyond policy shifts were reported in the period. Ongoing litigation, new five-year plan finalization, and upcoming auctions will shape the sector's trajectory into 2026.