Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged BBG1, BBG2, BBG3, bids, big beautiful Gulf of America, lease sale, MMA, oil and gas, pre-sale stats on August 11, 2026| Leave a Comment »
The pre-sale statistics are attached.
The table below compares the pre-sale stats for BBG3 with those for BBG1 and 2. The number of BBG3 bids, while well below BBG1, which was the first sale in 2 years, bounced nicely from BBG2 levels.
| BBG1 12/10/2025 | BBG2 3/11/2026 | BBG3 8/12/2026 | |
| tracts bid on | 181 | 25 | 59 |
| total bids | 219 | 38 | 69 |
| shelf bids (<200m) | 12 | 2 | 12 |
| deepwater (>400m) | 168 | 23 | 47 |
| companies bidding | 26 | 13 | 12 |
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged big beautiful Gulf of America, independents, lease sale, majors, number of bids, Sale BBG1 on December 12, 2025| Leave a Comment »
While the majors and large independents garner most of the attention, smaller companies are an integral part of the mosaic that is the Gulf of America petroleum province. Some focus on producing and identifying remaining reserves on the shelf; others partner in deepwater projects.
Sale participants like Arena, Cantium, Walter, W&T, Beacon, Kosmos, and Houston Energy are well established Gulf leaseholders. Red Willow has attracted attention as a successful Southern Ute energy corporation.
Some BBG1 participants may be lesser known:
Collective bids by category:
Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged BBG1, big beautiful Gulf of America, Gulf of America lease sale, low rental rates, low royalty rates on November 11, 2025| Leave a Comment »
The first ever Gulf of America oil and gas lease sale 😉 will be held on Dec. 10, 2025. Instead of numbering the sale sequentially (i.e. Sale 262), the sale has been designated OCS Oil and Gas One Big Beautiful Bill Act Lease Sale 1 (BBG1). 🙄 This change is a bit too cute for some of us old-timers, but we’ll judge the sale by its results, not its name.
The Notice of Sale is attached. The terms are very attractive, with the lowest allowable royalty rate (1/8th) on all shelf and deepwater leases. Note the comparison of royalty rates in the table below. The 6.25% difference for deepwater leases is substantial when you consider their high production potential.
| Gulf Sale No. | Date | % royalty: <200m water depth | % royalty: >200m water depth |
| 256 | 11/18/2020 | 12.5 | 18.75 |
| 257 | 11/17/2021 | 12.5 | 18.75 |
| 258 | 12/30/2022 | 18.75 | 18.75 |
| 259 | 3/29/2023 | 18.75 | 18.75 |
| 261 | 12/20/2023 | 18.75 | 18.75 |
| BBG1 | 12/10/2025 | 12.5 | 12.5 |
The rental rates for the BBG1 Sale are also very attractive compared to Sale 261:
| Water Depth | Sale 261 rental rates ($/ac) | BBG1 Sale rental rates ($/ac) |
| 0 to <200m | years 1-5: $10 year 6: $20 year 7: $30 year 8+: $40 | years 1-5: $7 year 6: $14 year 7: $21 year 8+: $28 |
| 200 to <400m | years 1-5: $16 year 6: $32 year 7: $48 year 8+: $64 | years 1-5: $11 year 6: $22 year 7: $33 year 8+: $44 |
| 400+ m | years 1-5: $16 year 6: $22 year 7: $22 year 8+: $22 | years 1-5: $11 year 6: $16 year 7: $16 year 8+: $16 |
Will the bidding reflect the very favorable lease terms?
Bud's Offshore Energy (BOE) 