Trump administration announced auction for oil and gas drilling licenses in Gulf of Mexico

The Trump administration has announced plans to auction off oil and gas drilling rights across more than 320,000 square kilometers in the Gulf of Mexico. Set for December 10, the sale will include both shallow-water and deepwater tracts. The proposal also calls for lowering the minimum royalty rate to 16.67%, down from the current 18.75% for deepwater leases.

The reduced royalty rates aim to draw more bidders to the auction while cutting development costs for energy companies. This move aligns with President Trump’s January 2025 directive to boost domestic oil and gas production.

According to the Bureau of Ocean Energy Management (BOEM), the Gulf of Mexico accounts for 14% of total US oil production. BOEM leadership emphasized that this initiative is designed to strengthen the nation’s energy independence and ensure affordable energy supplies. Public hearings on the proposal will last 60 days, after which the final list of available lease blocks will be published.