Historic Gulf of Mexico Oil Auction Breaks Records Amid Industry Shifts

The U.S. government's latest oil and gas drilling rights auction in the Gulf of Mexico garnered $279.4 million in high bids, with BP and Chevron emerging as top bidders. This marks the first auction under President Trump's tax reforms, reflecting a strategic shift towards regular offshore leasing.

In a pivotal event marking a shift in U.S. energy policy, the first government auction of oil and gas drilling rights under President Donald Trump's tax reforms closed on Wednesday in the Gulf of Mexico, securing $279.4 million in high bids.

Energy giants BP, Chevron, and Shell dominated the sale, reflecting renewed interest in offshore drilling. Notably, BP emerged as the most frequent bidder, while Chevron placed the auction's highest bid of $18.6 million in the Keithley Canyon deepwater area.

This auction is the first of 30 mandated by Trump's legislation aimed at boosting industry participation. Officials noted a decline in bids compared to the previous 2023 sale, attributing it to a new predictable leasing schedule. The auction also featured a lower royalty rate of 12.5%, stimulating company participation.

(With inputs from agencies.)