Oil companies offered $279 million for drilling in the Gulf of Mexico

Oil companies offered $279 million for drilling rights in the Gulf of Mexico during the first of 30 planned lease sales in the region, part of the Republican administration’s efforts to increase fossil fuel production in the United States. This was reported by Associated Press, writes UNN.

DetailsThe sale, which took place on Wednesday, is a key element of President Donald Trump’s policy to restore the country’s energy dominance.

The sell-off was driven by a massive tax and spending bill approved by Republicans in the summer. Under this legislation, companies will pay a 12.5% royalty on oil extracted from these leases.

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This is the lowest deepwater drilling royalty rate since 2007. Thirty companies, including industry giants Chevron, Shell, and BP, submitted bids, although the total amount of high bids decreased by more than $100 million compared to the previous Gulf of Mexico lease sale, which took place under former Democratic President Joe Biden in December 2023.

This move comes after the Trump administration recently announced plans to allow new drilling off the coasts of Florida and California for the first time in decades.

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This has drawn backlash, including from Republicans concerned about the potential impact of such drilling on tourism. Laura Robbins, acting director of the Gulf of Mexico region for the Bureau of Ocean Energy Management (part of the Department of the Interior), commented that “this sale reflects a significant step in the federal government’s efforts to restore U.S. energy dominance and advance responsible offshore energy development.”

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