US offering 15,000 blocks in upcoming offshore lease sale

The U.S. Bureau of Ocean Energy Management (BOEM) has unveiled plans for an oil and gas lease sale in the Gulf of Mexico, known as Lease Sale 262. This sale will present approximately 15,000 unleased blocks across the Gulf’s Western, Central, and Eastern Planning Areas, covering around 324,000 square kilometers. While this marks the first of three lease sales under the 2024–2029 Outer Continental Shelf Oil and Gas Leasing Program, it comes amid growing opposition from various states and communities.

Details of Lease Sale 262

Lease Sale 262 will include blocks located between five and 370 kilometers offshore, with water depths ranging from three to 3,400 meters. According to BOEM’s principal deputy director, Matt Giacona, offshore oil and gas are crucial to the nation’s energy supply, contributing 14% of domestic oil production. The Gulf of Mexico Outer Continental Shelf, spanning approximately 650,000 square kilometers, is estimated to contain around 48 billion barrels of undiscovered, recoverable oil and 141 trillion cubic feet of natural gas.

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The leases from this sale will be focused strictly on oil and gas exploration and development. Certain areas will be excluded, such as those subject to a presidential withdrawal from September 2020 and those within the boundaries of the Flower Garden Banks National Marine Sanctuary. In a bid to encourage industry participation and reduce production costs, BOEM is proposing a royalty rate of 16.6% for both shallow and deepwater leases, marking the lowest rate for deepwater since 2007.

A 60-day comment period for state governors and local governments will follow the announcement. After this period, BOEM will issue a Final Notice of Sale in the Federal Register at least 30 days before the proposed public bid reading, which is scheduled for December 10, 2025.

Growing Bipartisan Opposition

The announcement of Lease Sale 262 has ignited bipartisan backlash against the offshore drilling initiative. A coalition of senators has introduced legislation aimed at banning offshore drilling along the New England coast, with support from representatives in all states except Vermont. Furthermore, a separate bill seeks to permanently prohibit offshore oil and gas leasing off the California coast, while another proposal targets new leases in California, Oregon, and Washington.