First of 30 oil lease sales planned for Gulf of Mexico draws $279 million in bids from companies [View all]
Source: AP
Updated 5:04 PM EST, December 10, 2025
WASHINGTON (AP) — Oil companies offered $279 million for drilling rights in the Gulf of Mexico on Wednesday in the first of 30 sales planned for the region under Republican efforts to ramp up U.S. fossil fuel production.
The sale came after President Donald Trump’s administration recently announced plans to allow new drilling off Florida and California for the first time in decades. That’s drawn pushback, including from Republicans worried about impacts to tourism.
Wednesday’s sale was mandated by the sweeping tax-and-spending bill approved by Republicans over the summer. Under that legislation, companies will pay a 12.5% royalty on oil produced from the leases. That’s the lowest royalty level for deep-water drilling since 2007.
Thirty companies submitted bids, including industry giants Chevron, Shell and BP, federal officials said. The total amount of high bids was down by more than $100 million from the most recent lease sale in the Gulf of Mexico, under former Democratic President Joe Biden, in December 2023.
Read more: https://apnews.com/article/trump-gulf-of-mexico-oil-lease-sale-1bff978fb31b8eeaf4ebe2e448e39e4b
AP ain't playin'!!!
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