The US is set to hold an oil and gas lease sale in the Gulf of Mexico (GOM), which is expected in June this year, continuing plans initiated by the Biden administration.
The Bureau of Ocean Energy Management estimates that undiscovered fields in the Gulf hold 29.59 billion barrels (bbbl) of oil and 54.84 trillion cubic feet (tcf) of gas.
The lease sale is part of a programme of only three Gulf lease sales, a historically low number that has caused discontent among the oil and gas industry and drilling states.
The industry is uncertain about purchasing leases due to sliding oil prices and infrequent sales.
Recent oil prices dropped to approximately $65 per barrel, influenced by China’s additional tariffs in response to Trump’s tariff hikes, reported Reuters.
US Secretary of the Interior Doug Burgum said: “Unlike under President Biden, we will not leave our critical energy resources locked up when so many Americans are suffering through the unnecessarily high cost of living imposed by the previous administration.
“Unleashing America’s energy resources will lower prices at the pump, at the grocery store and across all aspects of American life while strengthening our national security.”
The last GOM lease sale took place in late 2023, raising a total of $382m, the highest since 2015, the report said.
Trump’s administration, in contrast to Biden’s, withdrew from the Paris Agreement on climate change and sought to reduce regulations on emissions from oil, gas and coal operations. The Biden plan also included sales in 2027 and 2029.
Legal challenges have impacted Gulf lease sales, particularly concerning the endangered Rice’s whale.
A federal judge ruled in March that the Interior Department had not adequately analysed the impacts of a 2023 sale on both the whale and greenhouse gas emissions, casting doubt on the status of hundreds of leases.
