The Bureau of Ocean Energy Management (BOEM) announced two major steps toward expanding offshore energy development.
BOEM released the final notice of sale for lease sale Big Beautiful Gulf 1 (BBG1), the first of 30 lease sales set for the Gulf of Mexico required by recent legislation, and the proposed notice of sale for Big Beautiful Cook Inlet 1 (BBC1), the first of six lease sales mandated for Alaska’s Cook Inlet.
“BOEM is now moving forward with a predictable, congressionally mandated leasing schedule that will support offshore oil and gas development for decades to come,” said Matt Giacona, BOEM’s acting director.
BBG1
BBG1 will make roughly 80 million acres available for leasing across the Gulf. The Gulf’s outer continental shelf spans roughly 160 million acres, with an estimated 29.59 billion bbl of undiscovered, technically recoverable oil and 54.84 Tcf of natural gas. Certain areas are excluded, including blocks withdrawn on 8 September 2020, blocks beyond the US Exclusive Economic Zone in the Eastern Gap, and areas within the Flower Garden Banks National Marine Sanctuary.
The BOEM has set a 12.5% royalty rate—the lowest rate permitted by statute—for both shallow and deepwater leases.
The final notice of sale was published in the Federal Register on 10 November, initiating a 30-day waiting period. BOEM will hold a public bid reading on 10 December.
BBC1
The proposed notice of sale for BBC1 would make approximately 1 million acres available for leasing in Alaska’s Cook Inlet (Fig. 1). This is the first of at least six Cook Inlet lease sales required by legislation, scheduled annually from 2026 to 2028 and from 2030 to 2032.
The BOEM has set the royalty rate for both shallow and deepwater leases also at 12.5%.
The proposed notice was published in the Federal Register on 10 November, initiating a 60-day comment period for affected state governors and local governments. A final notice of sale is planned to follow, at least 30 days before the scheduled lease sale on 4 March 2026.
