Gulf of America Oil Bonanza: Big Beautiful Bill Unleashes Lease Sale
Published Date: 11/9/2025
Notice
Summary
On December 10, 2025, the government will hold a big lease sale for oil and gas drilling spots in the Gulf of America’s Outer Continental Shelf. Companies wanting to bid must submit their offers by December 9. This sale follows new rules from the One Big Beautiful Bill Act, aiming to keep things fair and clear while opening up opportunities for energy development and government revenue.
Analyzed Economic Effects
7 provisions identified: 6 benefits, 1 costs, 0 mixed.
Long-term schedule: 30+ Gulf lease sales
The One Big Beautiful Bill requires at least 30 offshore Gulf of America lease sales through 2040. It directs at least one sale by December 15, 2025; at least two sales each calendar year from 2026 through 2039 (by March 15 and August 15); and at least one sale by March 15, 2040.
Dec 10, 2025 sale and bid deadline
If you want to bid for oil and gas blocks, BOEM will open bids at 9:00 a.m. Central on December 10, 2025. All sealed bids must be received before 10:00 a.m. Central on Tuesday, December 9, 2025.
Royalty rates set; 12.5% for this sale
The OBBBA requires royalty rates be set no lower than 12.5% and no higher than 16 2/3%. For Lease Sale BBG1, BOEM sets the royalty rate at 12.5% for blocks in all water depths.
GOMESA revenue-sharing increase to $650M
The OBBBA increases Gulf of Mexico Energy Security Act (GOMESA) revenue sharing from $500 million to $650 million through 2034. After 2034, annual caps continue at $500 million per year through 2055, and after 2055 there will be no caps on GOMESA revenue sharing.
35 Bcf Royalty Suspension for ultra-deep gas
Leases from this sale may be eligible for a Royalty Suspension Volume (RSV) of 35 billion cubic feet on gas from ultra-deep wells. Eligibility applies to wells in less than 400 meters water depth that are completed to 20,000 feet True Vertical Depth Subsea (TVDSS) or deeper, subject to price thresholds in 30 CFR part 203.
Minimum 80 million acres must be offered
The OBBBA requires that at least 80 million acres be offered in Gulf of America lease sales, or if less than 80 million acres are available, then all available unleased acres must be offered.
10-year primary term for deepwater leases
The OBBBA requires a 10-year primary lease term for leases offered in water depths of 800 meters or deeper.
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Key Dates
Department and Agencies
Related Federal Register Documents
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