Trump Admin Expands Oil & Gas Drilling In Gulf Of America, Eyes Alaska Next
The Department of the Interior announced on Nov. 7 two major steps to expand offshore oil and gas leasing under President Donald Trump’s One Big Beautiful Bill Act, unveiling plans for the first lease sale in the Gulf of America and another proposed auction in Alaska’s Cook Inlet.
The measures are the first in a schedule of 30 offshore sales in the Gulf of America and six in Alaska, part of what the Interior Department’s Bureau of Ocean Energy Management (BOEM) described as the Trump administration’s effort to “unleash American energy dominance” and cement the United States’ position as a global energy powerhouse.
“President Trump’s signing of the One Big Beautiful Bill Act marked the beginning of a new chapter for oil and gas development in the Gulf of America and Alaska’s Cook Inlet,” acting BOEM Director Matt Giacona said in the statement.
“BOEM is now moving forward with a predictable, congressionally mandated leasing schedule that will support offshore oil and gas development for decades to come.”
As Tom Ozimek reports for The Epoch Times, the first sale – officially titled Big Beautiful Gulf 1 – will open roughly 80 million acres across the Gulf of America for leasing. The area spans approximately 160 million acres, containing an estimated 29.6 billion barrels of undiscovered, technically recoverable oil and 54.8 trillion cubic feet of natural gas.
The Interior Department said the sale advances the president’s goal of boosting domestic energy output and reducing reliance on foreign suppliers, while fulfilling the directives outlined in Trump’s executive order “Unleashing American Energy.”
To attract participation, BOEM set a 12.5 percent royalty rate—the lowest permitted by statute—for both shallow- and deep-water leases. Certain environmentally sensitive or legally restricted zones, including the Flower Garden Banks National Marine Sanctuary and blocks beyond the U.S. Exclusive Economic Zone, will remain off-limits.
Alongside the Gulf of America sale, BOEM released a proposed notice of sale for Big Beautiful Cook Inlet 1, which would make about 1 million acres available for leasing in Alaska’s Cook Inlet. The sale is the first of six required by the One Big Beautiful Bill, scheduled annually from 2026 to 2028 and again from 2030 to 2032.
The proposed sale has similar terms to those of the Gulf sale, including the 12.5 percent royalty rate.
The offshore leases will help support high-paying jobs, coastal infrastructure, and state-level revenue sharing while bolstering federal finances, according to BOEM.
Proceeds from lease sales, rental fees, and royalties flow primarily into the Treasury’s General Fund, helping fund government operations, and portions go to Gulf Coast states for restoration and hurricane protection.
Oil Permits Continue Through Shutdown
The twin announcements come as the administration continues to prioritize conventional energy development during the ongoing federal government shutdown, which started on Oct. 1. According to contingency plans, the Interior Department will keep processing oil and gas permits—deemed essential to national energy security—while halting nearly all renewable energy activities, which Trump has criticized as costly and inefficient.
During his first term, Trump kept oil and gas permitting active throughout the 34-day government shutdown in 2018–2019.
President Barack Obama’s administration halted drilling permits and canceled at least one lease sale during the 2013 shutdown.
Some environmental groups have criticized the current administration’s decision to prioritize oil and gas permitting during the shutdown, saying it reflects a bias toward fossil fuel interests.
Meanwhile, Energy Secretary Chris Wright blamed Democrats for refusing to back the Republican stopgap spending measure to keep the government open, writing on social media that his department remains committed to “delivering affordable, reliable and secure energy to the American people.”
Tyler Durden
Wed, 11/12/2025 – 05:45