The U.S. Department of the Interior (DOI) announced this week that Bureau of Ocean Energy Lease Sale Big Beautiful Gulf 2, or BBG2, generated $46,976,423 in high bids.
In the statement, the DOI highlighted that the sale is the second non-discretionary offshore oil and gas lease sale required under President Trump’s ‘One Big Beautiful Bill Act’ in the Gulf and included 25 blocks covering approximately 141,000 acres in federal waters.
According to the statement, 13 companies submitted 38 bids totaling $69,838,782. The Final Notice of Sale was published in the Federal Register on February 5, “outlining lease areas, fiscal terms, and sale procedures”, the DOI highlighted. Lease sale bidders were invited to attend the sale in person, and the lease sale was also live streamed for the general public on BOEM’s website, the DOI pointed out.
“[This] 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,” Secretary of the Interior Doug Burgum said in the statement,
“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,” he added.
BOEM Acting Director Matt Giacona said in the statement, “lease Sale BBG2 represents a significant advancement in BOEM’s offshore oil and gas program in the Gulf of America”.
“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.”
In the statement, the DOI highlighted that BOEM offered approximately 15,000 unleased blocks across the Western, Central, and portions of the Eastern Gulf Planning Areas.
“To attract strong industry participation and maximize investment, the agency applied a 12.5 percent royalty rate for both shallow and deepwater leases, the lowest deepwater rate since the George W. Bush administration,” the DOI stated.
“The Gulf of America’s Outer Continental Shelf spans 160 million acres and is estimated to contain 29.59 billion barrels of undiscovered, technically recoverable oil and 54.84 trillion cubic feet of natural gas,” it added.
In Fiscal Year 2025, oil production on the Outer Continental Shelf made up 677.2 million barrels, according to the DOI, which pointed out that this represented 14 percent of all domestic production.
“Offshore development plays a key role in supporting high-paying jobs, local economies, and long-term domestic energy supply,” the DOI said.
“Offshore energy development also fuels long-term economic growth by supporting infrastructure, education, and public services,” it added.
In a statement posted on its site in December last year, the DOI announced that BOEM “successfully conducted Lease Sale Big Beautiful Gulf 1, which is the first mandatory offshore oil and gas lease sale required under the One Big Beautiful Bill Act”.
“The sale generated $300,425,222 in high bids for 181 blocks across 80 million acres in federal waters of the Gulf of America. Thirty companies submitted 219 bids totaling $371,881,093,” that statement noted.
Responding to the conclusion of the BBG2 lease sale, National Ocean Industries Association (NOIA) President Erik Milito noted in a statement sent to Rigzone that “America’s offshore energy industry continues to reinforce its commitment to investment in U.S. energy, economic, and national security”.
“NOIA applauds President Trump, Secretary Burgum, and Congress for rebuilding the predictable leasing cadence that American energy dominance requires,” he added.
“Continued access to the oil and gas resources of the Gulf of America is a national security imperative. Volatile oil markets and escalating geopolitical tensions, including the ongoing conflict with Iran, are a reminder that American energy is a prerequisite for American strength and stability,” he continued.
Milito went on to note in the statement that lease sales like BBG2 “drive investment across all 50 states, support hundreds of thousands of good-paying jobs, and deliver massive revenues for American taxpayers in support of our national parks, conservation efforts, coastal restoration, and urban recreation programs”.
In a statement posted on the Sierra Club’s website on March 11, the Sierra Club criticized the latest lease sale, with Athan Manuel, director of Sierra Club’s Lands Protection Program, noting that “offshore drilling is one of the riskiest … kinds of oil extraction, incompatible with coastal economies or ecosystems”.
To contact the author, email andreas.exarheas@rigzone.com
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