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Released November 21, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)
The Bureau of Ocean Energy Management (BOEM), part of the U.S. Department of the Interior, announced the second of 30 lease sales outlined in U.S. President Donald Trump's so-called One Big Beautiful Bill Act.
Tapping offshore reserves, the government said, ensures the U.S. economy is insulated from global shocks that can upend the energy sector.
"Energy independence is a cornerstone of U.S. economic strength, national security and global stability, boosting American energy dominance and reducing reliance on unstable foreign producers," BOEM stated on Wednesday. "By continuing to expand offshore capabilities, the United States ensures affordable energy for consumers, strengthens domestic industry and reinforces its role as an energy superpower."
Trump rescinded a prior order that placed a de facto moratorium on new offshore drilling on his return to the White House in January. Offshore production is less expensive than production from inland basins, and typically lower in carbon intensity, and the administration believes more leases would ensure domestic energy security. Lease sales under Trump's spending bill are slated out to the 2040s.
"The predictable schedule meets the law's requirements while advancing the Trump administration's priorities of growing the economy, reducing dependence on foreign energy and keeping America a global energy leader," the Interior Department said when announcing the tentative schedule in August.
Mars, a crude oil grade found in the Gulf of Mexico, is medium-sour. Nevertheless, with wells depleting quickly onshore, the region is the only source of meaningful production growth year-on-year.
Based on estimates from the U.S. Energy Information Administration (EIA), Lower 48 crude oil production is on pace for a 1% annual decline to average 11.13 million barrels per day (BBL/d). Offshore production, meanwhile, is expected to increase by 3.1% to average 1.97 million BBL/d by next year.
Apart from production gains, activity offshore has accelerated so far in 2025. British energy company BP (London, England) in September made an investment decision for the Tiber-Guadalupe project in the Gulf of Mexico. Utilizing a floating production platform, BP is expecting net production of around 80,000 BBL/d.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can view the related project reports and plant profile.
"If you're going to auction off 80 million acres of our public waters to the oil industry, the least you can do is not break the law in a plethora of ways as you do it," said Earthjustice senior attorney George Torgun.
Key Takeaways
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Summary
The Trump administration announced plans to put offshore acreage on the auction block for drillers, though environmental groups have already sued.Dozens More to Go
A March 2026 lease sale for around 80 million acres in the U.S. territorial waters of the Gulf of Mexico marks the second of the 30 such auctions slated under a major spending bill, the government announced.The Bureau of Ocean Energy Management (BOEM), part of the U.S. Department of the Interior, announced the second of 30 lease sales outlined in U.S. President Donald Trump's so-called One Big Beautiful Bill Act.
Tapping offshore reserves, the government said, ensures the U.S. economy is insulated from global shocks that can upend the energy sector.
"Energy independence is a cornerstone of U.S. economic strength, national security and global stability, boosting American energy dominance and reducing reliance on unstable foreign producers," BOEM stated on Wednesday. "By continuing to expand offshore capabilities, the United States ensures affordable energy for consumers, strengthens domestic industry and reinforces its role as an energy superpower."
Trump rescinded a prior order that placed a de facto moratorium on new offshore drilling on his return to the White House in January. Offshore production is less expensive than production from inland basins, and typically lower in carbon intensity, and the administration believes more leases would ensure domestic energy security. Lease sales under Trump's spending bill are slated out to the 2040s.
"The predictable schedule meets the law's requirements while advancing the Trump administration's priorities of growing the economy, reducing dependence on foreign energy and keeping America a global energy leader," the Interior Department said when announcing the tentative schedule in August.
Is More U.S. Oil Needed?
Much of the U.S. refining sector is tailored to run a heavier crude oil slate, drawing on suppliers such as Canada and Mexico. West Canadian Select is a heavy, sour crude oil, helping to make Canada the top exporter of crude oil to the U.S. economy, accounting for about 60% of foreign deliveries.Mars, a crude oil grade found in the Gulf of Mexico, is medium-sour. Nevertheless, with wells depleting quickly onshore, the region is the only source of meaningful production growth year-on-year.
Based on estimates from the U.S. Energy Information Administration (EIA), Lower 48 crude oil production is on pace for a 1% annual decline to average 11.13 million barrels per day (BBL/d). Offshore production, meanwhile, is expected to increase by 3.1% to average 1.97 million BBL/d by next year.
Apart from production gains, activity offshore has accelerated so far in 2025. British energy company BP (London, England) in September made an investment decision for the Tiber-Guadalupe project in the Gulf of Mexico. Utilizing a floating production platform, BP is expecting net production of around 80,000 BBL/d.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can view the related project reports and plant profile.
Early Opposition
But despite the trajectory, the lease plans are already facing pressure from environmental advocates. Earthjustice led a group suing over a failure to follow the National Environmental Policy Act, which requires public comments, among other things, for offshore leases."If you're going to auction off 80 million acres of our public waters to the oil industry, the least you can do is not break the law in a plethora of ways as you do it," said Earthjustice senior attorney George Torgun.
Key Takeaways
- The second of 30 offshore lease sales is scheduled for March
- 80 million acres are up for grabs
- Environmental groups say Trump skirted the law in his offshore plans
- U.S. offshore is the only source of meaningful oil production growth
- 3.1% increase in offshore crude oil production expected year-on-year
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
