The Trump administration is proposing to hold a sale of oil and gas drilling rights on 80 million acres (3.24 billion square metres) in the Gulf of Mexico on December 10, according to the US Bureau of Ocean Energy Management (BOEM).
The sale would be the first of three outlined in a Biden-era five-year offshore drilling program that included the smallest ever number of oil and gas auctions.
The administration plans to offer about 15,000 unleased blocks located three to 231 miles offshore, according to BOEM, a division of the Department of the Interior. It is proposing a royalty rate of 16.67 per cent, the lowest rate since 2007, BOEM said.
"Offshore oil and gas play a vital role in our nation's energy portfolio, with the Gulf of America supplying 14 per cent of domestically produced oil," BOEM Principal Deputy Director Matt Giacona said in a statement. "This proposed lease sale demonstrates BOEM’s commitment to advancing American energy dominance and fostering the production of affordable, reliable energy resources for the nation.”
(Reporting by Nichola Groom; editing by Diane Craft)