Sometimes it’s a tad amazing just how fast this nation’s energy policy turned 180 degrees. Drill, baby, drill is now the order of the day, and the oil companies are digging in. On Thursday, we learned that the second round of big, beautiful Gulf of America oil and natural gas leases has just concluded, and has drawn $47 million in bids.
The second auction of oil and gas leases in the Gulf of America since President Donald Trump’s election in 2024 drew almost $47 million in high bids, with 98% of the activity in offshore areas deeper than 800 meters, according to sales results released by the Bureau of Offshore Energy Management.
The Big Beautiful Gulf 2 auction in New Orleans on Wednesday drew 38 bids from 13 companies on 25 blocks covering about 141,000 acres in federal waters off the coasts of Texas, Louisiana and Mississippi, according to the agency.
“Lease Sale BBG2 represents a significant advancement in BOEM’s offshore oil and gas program in the Gulf of America,” said Matt Giacona, the agency’s acting director. “Following the substantial industry interest in Lease Sale BBG1, this proposed sale is intended to sustain investment in the U.S. Outer Continental Shelf and bolster American energy independence,” Giacona said.
As noted, much of the area leased is in areas are in deep water, which presents some unique (and expensive) technological challenges, meaning that the companies placing these bids are estimating recoverable resources well in excess of the cost of the lease and the development of the field. That’s good news.
There’s a lot to recover, too. Current estimates are 5.77 billion barrels of oil, and 7.15 trillion cubic feet of natural gas. These estimates, mind you, are technically recoverable resources with current technology; there is very likely more down there that may be recoverable in a few years with new technologies. These estimates (obviously) also don’t include any reserves as yet undiscovered.
It’s a good deal for the national treasury, too.
In the 2025 fiscal year, the 677.2 million barrels of oil produced on the U.S. Outer Continental Shelf represented 14% of all domestic output.
During his 2026 State of the Union address, Trump pointed to record-breaking domestic oil and gas production as a fulfillment of his promise to prioritize American energy independence.
Government taxes, bonuses and fees generated in offshore federal waters totaled about $5.8 billion in the 2025 fiscal year, according to the U.S. Department of the Interior.
A billion here, a billion there, and pretty soon we’re talking real money.
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And, of course, this oil and gas is literally the lifeblood of our economy. Everything we do, everything we buy, every economic decision we make, depends on natural gas and petroleum. The vast majority of all the high-tech products we use, from smartphones to automobiles, would be impossible to build without petroleum by-products. Every product, every commodity, every service in our economy is dependent on oil and gas, to extract, to refine, to manufacture, to produce – everything.
So, this is good news. And no, we’re not tired of winning yet.
Editor’s Note: Thanks to President Trump’s leadership and bold policies, America’s economy is back on track.
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