Trump Administration Holds First Gulf of America Offshore Oil and Gas Lease Sale Since 2023

The Bureau of Ocean Energy Management (BOEM) on Dec. 10, 2025, held its Gulf of America Oil and Gas Lease Sale, the first offshore oil and gas lease sale since December 2023 and the first lease sale conducted under the One Big Beautiful Bill Act (OBBB).¹ The sale generated more than $300 million in high bids.²

This sale marks a significant milestone in federal offshore energy policy, representing the first of 30 lease sales in the Gulf of America mandated by the OBBB. The sale was also notable as the first to feature the reduced 12.5 percent royalty rate established by the OBBB, down from the 16.67 percent rate that had been in effect under the Inflation Reduction Act of 2022 (IRA), and the lowest rate since 2007.³

Policy Background

Previous Administration's Actions

The Biden Administration took several actions that affected offshore oil and gas leasing in the Gulf of Mexico. In early 2021, the administration paused any new oil and gas leasing on federal lands and waters to review the leasing program.⁴ Though courts subsequently blocked this pause, lease sales were not held during this period. Additionally, the Biden Administration's 2024-2029 Five-Year Program for oil and gas leasing included only three scheduled lease sales in the Gulf – the fewest in the program's more than 50-year history. In U.S. Congress, the IRA increased the minimum royalty rate for offshore oil and gas leases from 12.5 percent to 16.67 percent.⁵

Current Administration and Congressional Actions

Since January 2025, the Trump Administration and Congress have taken significant steps to expand offshore oil and gas development:

• OBBB. Congress passed the OBBB, which mandates 30 oil and gas lease sales in the Gulf of America over the coming years. This sale was the first of those 30 mandated sales.⁶ The next lease sale mandated by the OBBB is scheduled for March 2026 in Alaska's Cook Inlet, followed by another Gulf sale later that month.
• Reduced Royalty Rate. Section 50102 of the OBBB repealed the IRA's royalty rate increase, returning the offshore royalty rate to 12.5 percent.⁷
• Expanded Leasing Areas. The administration has proposed a new five-year leasing plan that includes expanded offshore oil and gas leasing, including potential new areas off the coasts of California and Florida.

Comparison with December 2023 Lease Sale 261

The last Gulf lease sale (Lease Sale 261) was held on Dec. 20, 2023. That sale saw 26 companies participate, submitting 352 bids for 311 tracts covering approximately 1,728,344 acres. The total amount bid was $441,896,332, with total high bids of $382,168,507. BOEM awarded 299 leases covering approximately 1,659,224 acres, with total high bids accepted of $372,460,408. The highest accepted bid was $25,500,085 for Mississippi Canyon block 389.⁸ Though the December 2025 sale generated fewer total bids (219 compared to 352) and covered fewer tracts receiving bids (219 compared to 311), the more than $300 million in high bids demonstrates continued industry interest in Gulf deepwater opportunities, especially considering commodity prices.⁹

Key developments to watch include the administration's finalization of a new five-year leasing plan, resolution of the pending litigation challenging offshore exploration and production, and industry participation levels in upcoming sales as companies evaluate the investment climate.

For more information about this Holland & Knight alert or offshore oil and gas leasing matters, please contact the authors.

Notes

¹ One Big Beautiful Bill Act, Pub. L. No. 119-21 (July 4, 2025).

² Interior Advances American Offshore Energy Dominance with First Lease Sale Under the One Big Beautiful Bill Act, U.S. Department of the Interior, Dec. 10, 2025.

³ Id.

⁴ See Exec. Order No. 14008, 86 Fed. Reg. 7619 (Jan. 27, 2021).

⁵ Pub. L. No. 117-169, § 50261.

⁶ Pub. L. No. 119-21.

⁷ Pub. L. No. 119-21, § 50102.

⁸ Lease Sale 261, Bureau of Ocean Energy Management.

⁹ Interior Advances American Offshore Energy Dominance with First Lease Sale Under the One Big Beautiful Bill Act, U.S. Department of the Interior, Dec. 10, 2025.

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