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The Trump administration has launched its offshore energy comeback with a dramatic opening salvo: a Gulf of Mexico lease sale that pulled in $279.4 million in high bids and drew heavyweight players Chevron, BP and Shell into a competitive frenzy reminiscent of an arms race beneath the waves.

First of 30 Mega-Sales Under July Energy Law

The Interior Department’s Bureau of Ocean Energy Management (BOEM) announced Wednesday that the auction marked the first of 30 required offshore offerings under President Donald Trump’s sweeping “One Big Beautiful Bill”—a tax-and-spending package signed in July that sharply pivots U.S. energy policy back toward aggressive offshore development.

These are the first Gulf drilling rights offered since 2023. BOEM said the auction supports a Jan. 20 executive order from the Trump administration demanding agencies accelerate offshore oil and gas expansion.

BOEM Praises Industry Confidence

“The strong bidding we saw today reflects sustained industry confidence in the long-term potential of the U.S. outer continental shelf,” said acting BOEM director Matt Giacona, adding that the results underscore the administration’s determination to “expand responsible offshore development.”

Acreage and Royalty Shake-Up: Lowest Rate Since 2007

The agency opened bidding on 81.2 million acres across the Gulf, setting a 12.5% royalty rate—the lowest legally allowed under the July bill. That’s a dramatic drop from the 16.7% rate mandated by former President Joe Biden’s 2022 Inflation Reduction Act, a policy shift BOEM says is designed to spark broader participation.

Royalty revenues will flow to the U.S. Treasury, Gulf Coast states, the Land and Water Conservation Fund, and the Historic Preservation Fund.

Chevron Snaps Up Deep-Water Prize Amid Ongoing Litigation

Chevron delivered Wednesday’s knockout punch with the single largest bid: $18.6 million for drilling rights in the Keathley Canyon deep-water territory—an area prized for complex geology and high-yield potential.

The bid comes just weeks after a Washington federal judge allowed Chevron to intervene in litigation aimed at halting lease sales under the July bill. Chevron argued it has been more aggressive than the federal government in defending offshore leasing rights and should be permitted to join the fight.

BP Dominates Bid Count; Joint Venture Trails Close Behind

A joint venture of Woodside Energy Deepwater and Repsol locked in the day’s second- and third-largest bids—$15.2 million and $12.2 million—for tracts in the Walker Ridge region, a well-known frontier for deep-water wildcatting.

BP submitted the most high bids overall, posting 51 winning bids totaling $61.9 million. Chevron followed with 24 high bids at $53.1 million.

Other top performers included: