American Petroleum Institute

Rule Changes

Defending Gulf auctions and lower royalty rates as essential for energy security

Donald Trump's second-term energy agenda has moved from a single Gulf auction to a full-scale offshore transformation. The December 10 Gulf lease sale—81.2 million acres at a 12.5% royalty rate, generating $279.4 million—was just the opening move. By year's end, the administration had proposed a sweeping 2026-2031 leasing plan covering 1.27 billion acres off California, Florida and Alaska, and scheduled a second Gulf sale for March 11, 2026. It simultaneously halted all five major East Coast offshore wind projects, citing national security risks; Shell-INEOS's early January oil discovery south of New Orleans showed the industry's bet on deepwater Gulf prospects.

Updated May 10