The Bureau of Ocean Energy Management (BOEM) is launching a major expansion of offshore oil and gas development in the U.S. They have announced the final details for a large lease sale in the Gulf of America and are proposing the first of six lease sales in Alaska's Cook Inlet.
These actions are part of a long-term leasing program mandated by Congress, which includes 30 lease sales in the Gulf and six in Alaska under the One Big Beautiful Bill Act.
The first lease sale, known as Big Beautiful Gulf 1 (BBG1), will open about 80 million acres for bidding on December 10, 2025. The Outer Continental Shelf in the Gulf of America is believed to contain around 29.59 billion barrels of oil and 54.84 trillion cubic feet of natural gas that can be technically recovered.
Matt Giacona, the Acting Director of BOEM, commented, “The signing of the One Big Beautiful Bill Act by President Trump signals a new era for oil and gas development in the Gulf of America and Alaska's Cook Inlet. BOEM is progressing with a scheduled leasing plan set by Congress that will support offshore oil and gas development for many years.”
To encourage participation from the industry during tough market conditions—especially with WTI crude prices recently dropping to the low $60s—BOEM has established royalty rates at the minimum allowable rate of 12.5% for both shallow and deepwater leases.
In Alaska, BOEM's planned Cook Inlet lease sale will offer about one million acres, with the final sale expected on March 4, 2026. The schedule includes annual sales from 2026 to 2028, and again from 2030 to 2032.
A Proposed Notice will be published in the Federal Register today, starting a 60-day comment period for affected state governors and local governments before finalizing the sale terms.
These lease sales are likely to generate billions in revenue through upfront payments, annual fees, and royalties from production. In fiscal year 2024, Outer Continental Shelf leases accounted for 14% of U.S. oil production and 2% of natural gas production, contributing $7 billion to federal revenue.
This revenue supports the U.S. Treasury and coastal states through sharing programs, funding projects for restoration, hurricane protection, education, and other services.
In April, the Department of the Interior began work on the 11th National OCS Oil and Gas Leasing Program to replace the current 2024-2029 program, which includes just three lease sales, all in the Gulf of America. A significant change is the designation of the High Arctic as the 27th OCS planning area off the coast of Alaska.
The Final Notice of Sale for BBG1 will be published in the Federal Register today, with public bids scheduled for 9 a.m. Central Time on December 10, streamed live for industry watchers. More information on the lease sales is available on BOEM's website.