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Washington launches new sale of 80 million offshore oil acres

US authorities will hold a large offshore oil block sale in the Gulf of America in March, covering nearly 80 million acres under favourable fiscal terms.

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The Bureau of Ocean Energy Management (BOEM) has announced the second offshore oil and gas lease auction in the Gulf of America. Scheduled for 11 March 2026, this operation is part of the One Big Beautiful Bill Act, a federal law mandating 30 such sales in the region.

Massive volumes offered for exploration

The BBG2 (Big Beautiful Gulf 2) sale plans to auction approximately 15,000 currently unleased blocks, covering a total area of nearly 80 million acres on the US Outer Continental Shelf. These areas are located between 5 and 370 kilometres offshore, in water depths ranging from 3 to over 3,385 metres.

Geological estimates indicate a potential of 29.59 billion barrels of technically recoverable oil, as well as 54.84 trillion cubic feet of undiscovered natural gas. The Gulf of America remains one of the most active offshore basins under US jurisdiction.

Fiscal framework and territorial exclusions

The BBG2 sale will operate under a royalty rate set at 12.5%, aimed at enhancing the competitiveness of the US offer. BOEM states its intention to restore investor confidence by reinforcing the predictability of the lease allocation schedule.

Several areas will be excluded from the sale, notably those affected by the 8 September 2020 presidential withdrawal order, blocks located beyond the US Exclusive Economic Zone in the Eastern Gap, and areas within the Flower Garden Banks National Marine Sanctuary.

Budgetary impact and revenue distribution

Offshore oil and gas activities are a significant source of revenue for the United States. Proceeds from lease sales, royalties and rentals are largely directed to the federal budget, supporting public finances. A portion is also redistributed to coastal states through revenue-sharing mechanisms, notably to fund shoreline restoration and hurricane protection projects.

“BBG2 sends a clear signal to the market that we are entering a phase of regulatory stability,” said Acting BOEM Director Matt Giacona, adding that the current policy aims to ensure a climate conducive to energy investment.

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