U.S. Interior’s First Lease Sale Under the One Big Beautiful Bill Act Generates $279 Million

The U.S. Interior Department on Dec. 10 announced that the Bureau of Ocean Energy Management completed Lease Sale Big Beautiful Gulf 1, launching a new phase of offshore oil and gas development under the One Big Beautiful Bill Act. The auction generated $279 million in high bids for 181 blocks across federal waters in the Gulf of America. Thirty companies participated, submitting 219 bids worth $372 million as the federal government moves to expand domestic supply and meet the directives of Executive Order 14154 to strengthen energy security and lower costs.

The agency offered about 15,000 unleased blocks across the Western, Central and portions of the Eastern Gulf planning areas. Federal officials applied a 12.5 percent royalty rate for shallow and deepwater areas to spur participation, marking the lowest deepwater rate since 2007. The final notice of sale appeared in the federal register on Nov. 10, 2025. Companies were invited to attend the event in person for the first time in ten years, and the auction was livestreamed for public access. The regulator will publish full results online, followed by a complete statistical summary within 90 days.

The Gulf of America’s Outer Continental Shelf spans about 160 million acres and contains an estimated 29.59 billion barrels of undiscovered oil and 54.84 trillion cubic feet of natural gas. These resources account for a significant share of the nation’s long-term offshore oil and gas potential. Revenues continue to support the U.S. Treasury, Gulf Coast states, the Land and Water Conservation Fund and the Historic Preservation Fund. In fiscal year 2024, offshore activity delivered $6.5 billion in royalties, $372.5 million in bonuses and $122.8 million in rental payments.

Lease Sale Big Beautiful Gulf 1 signals a renewed federal strategy centered on expanding offshore oil and gas production, improving economic opportunity and advancing national energy goals.