Interior Hosts Gulf Lease Sale Under Energy Act

Lease Sale BBG2 generated $46.9 million in high bids for 141,000 acres in the Gulf of America

Mar. 12, 2026 at 3:52am

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The Department of the Interior announced that its Bureau of Ocean Energy Lease Sale Big Beautiful Gulf 2, or BBG2, generated $46,976,423 in high bids. The sale included 25 blocks covering approximately 141,000 acres in federal waters of the Gulf of America. Thirteen companies submitted 38 bids totaling $69,838,782.

Why it matters

The lease sale supports President Trump's executive order to expand offshore oil and gas development in order to strengthen national energy security, lower energy costs, and increase economic competitiveness. Offshore energy development fuels long-term economic growth by supporting infrastructure, education, and public services, and advances U.S. energy independence.

The details

Lease Sale BBG2 is the second non-discretionary offshore oil and gas lease sale required under President Trump's "One Big Beautiful Bill Act" in the Gulf of America. The sale was intended to sustain investment in the U.S. Outer Continental Shelf and bolster American energy independence. To attract strong industry participation, the agency applied a 12.5% royalty rate for both shallow and deepwater leases, the lowest deepwater rate since the George W. Bush administration.

  • The Final Notice of Sale was published in the Federal Register on Feb. 5, 2026.
  • The lease sale was held on March 12, 2026.

The players

Department of the Interior

The U.S. federal executive department responsible for the management and conservation of most federal land and natural resources.

Bureau of Ocean Energy Management (BOEM)

A bureau within the Department of the Interior that manages the development of the nation's offshore resources in an environmentally and economically responsible way.

Kate MacGregor

Deputy Secretary of the Department of the Interior.

Lanny Erdos

Acting Assistant Secretary for Land and Minerals Management at the Department of the Interior.

Doug Burgum

Secretary of the Interior.

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What they’re saying

“Today's 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.”

— Doug Burgum, Secretary of the Interior

“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.”

— Matt Giacona, BOEM Acting Director

What’s next

The results of the lease sale will be posted on www.boem.gov within 90 days, with a final statistical summary to be released.

The takeaway

This lease sale underscores the federal government's continued push to expand offshore oil and gas development in order to strengthen U.S. energy security, lower energy costs, and support economic growth in the Gulf region. However, the long-term environmental impacts of increased offshore drilling remain a concern for many.