BOEM to hold Gulf of America OCS lease sale, proposes first Cook Inlet

Petroleum News

The U.S. Interior Department's Bureau of Ocean Energy Management said Nov. 7 that it is taking two major steps toward expanding offshore energy development pursuant to Trump's One Big Beautiful Bill Act, which the President signed in July.

BOEM will hold an oil and gas lease sale for the Gulf of America next month and has proposed another in March for Alaska's Cook Inlet.

(See map in the online issue PDF)

The Final Notice of Sale for Lease Sale Big Beautiful Gulf 1 (BBG1) for the Gulf of America will make about 80 million acres available and will take place on Dec. 10. It will be the first of 30 sales in the area through 2040 that were included in One Big Beautiful Bill Act.

The Gulf's offshore continental shelf spans roughly 160 million acres, with an estimated 29.59 billion barrels of undiscovered, technically recoverable oil and 54.84 trillion cubic feet of natural gas. Certain areas are excluded, including blocks withdrawn on Sept. 8, 2020, blocks beyond the U.S. Exclusive Economic Zone in the Eastern Gap, and areas within the Flower Garden Banks National Marine Sanctuary.

BOEM also proposes making about 1 million acres available for leasing in Alaska's Cook Inlet. The Big Beautiful Cook Inlet 1 (BBC1) sale, scheduled for March 4, 2026, would be the first of at least six Cook Inlet lease sales, scheduled annually from 2026 to 2028, and from 2030 to 2032.

The Proposed Notice will publish in the Federal Register on Nov. 10, initiating a 60-day comment period for affected state governors and local governments. A Final Notice of Sale will follow, at least 30 days before the scheduled lease sale on March 4, 2026.

To encourage strong industry participation, BOEM has set a 12.5% royalty rate -- the lowest rate allowed by statute -- for both shallow and deepwater leases.

"President Trump's signing of the One Big Beautiful Bill Act marked the beginning of a new chapter for oil and gas development in the Gulf of America and Alaska's Cook Inlet," said BOEM Acting Director Matt Giacona. "BOEM is now moving forward with a predictable, congressionally mandated leasing schedule that will support offshore oil and gas development for decades to come."

-PETROLEUM NEWS