BOEM sets date for Big Beautiful Gulf 2 offshore oil and gas lease sale

Image: BOEM

Rapidly following up on its release earlier this month of the Final Notice of Sale for the Big Beautiful Gulf 1 (BBG1) offshore oil and gas lease sale the Bureau of Ocean Energy Management today announced a Proposed Notice of Sale for the second offshore oil and gas lease sale under the One Big Beautiful Bill Act. The proposed lease sale, known as Big Beautiful Gulf 2, or BBG2, is scheduled to take place on March 11, 2026.

This sale is the second of thirty Gulf of America oil and gas lease sales required by the One Big Beautiful Bill Act.

“Lease Sale BBG2 marks another major milestone in advancing a robust and forward-looking offshore oil and gas program in the Gulf of America,” said BOEM Acting Director Matt Giacona. “Building on the momentum of BBG1, this proposed sale reinforces BOEM’s commitment to restoring certainty and long-term investment in the U.S. Outer Continental Shelf. By offering leases under a competitive 12.5% royalty rate, BBG2 sends a clear signal that the era of regulatory uncertainty is behind us, and a new phase of responsible energy leadership has begun.”

Lease Sale BBG2 proposes to offer approximately 15,000 unleased blocks covering about 80 million acres on the U.S. Outer Continental Shelf in the Gulf of America. The blocks, located 3 to 231 miles offshore, span water depths from 9 feet to more than 11,100 feet.

The Gulf of America Outer Continental Shelf spans approximately 160 million acres and is estimated to contain 29.59 billion barrels of undiscovered, technically recoverable oil and 54.84 trillion cubic feet of natural gas.

Certain areas will be excluded from the sale, including blocks subject to the September 8, 2020, presidential withdrawal; blocks adjacent to or beyond the U.S. Exclusive Economic Zone in the Eastern Gap; and blocks within the boundaries of the Flower Garden Banks National Marine Sanctuary.

Economic & strategic benefits

Outer Continental Shelf oil and gas activities generate billions of dollars from lease sales, rental fees and royalties. The funds are distributed to the U.S. Treasury, as well as states through several different revenue sharing programs that fund coastal restoration and hurricane protection projects. The largest portion goes to the General Fund of the U.S. Treasury, which benefits all U.S. citizens through funding of daily operations of the federal government. Offshore development fuels state and federal revenues, helping fund infrastructure, education and public services.

Next steps

The Proposed Notice of Sale will be published in the Federal Register on Nov. 20, 2025, initiating a 60-day comment period for affected state governors and local governments. Following the review of governor input, BOEM will publish a final notice of sale in the Federal Register at least 30 days prior to the scheduled lease sale date on March 11, 2026. More information, including the PNOS package and a detailed map of the proposed lease sale area, is available HERE.