The Department of Interior Announces Ambitious Offshore Lease Plan

Following quickly on the passage of the Trump Administration’s One Big Beautiful Bill Act, the Department of Interior has scheduled a series of oil and gas lease sales for the U.S. Gulf and Cook Inlet in Alaska. This move represents the most ambitious long-term lease plan for offshore Alaska in years.

Interior Secretary Doug Burgum expressed his support for the One Big Beautiful Bill Act, stating, “It is a landmark step toward unleashing America’s energy potential. Under President Trump’s leadership, we’re putting in place a bold, long-term program that strengthens American Energy Dominance, creates good-paying jobs, and ensures we continue to responsibly develop our offshore resources.”

Lease Plan Details

The lease plan includes a commitment to hold auctions twice annually for acreage in the Gulf between 2025 and 2040. The Gulf offshore patch currently accounts for about 15 percent of U.S. oil output, and with the maturation of onshore shale fields like the Eagle Ford and Permian, the Gulf is expected to play an even larger role in the nation’s oil production.

While the announcement signals a significant increase in commitment to leasing in Alaska, the level of industry interest in Cook Inlet remains uncertain. In recent years, only one company, Hilcorp, has participated in federal and state lease auctions for the area. The latest BOEM auction in 2022 saw a single bid of $64,000 from Hilcorp for a lease block.

Regional Support

The announcement has garnered support regionally, particularly from Alaska’s state government, which heavily relies on the oil and gas industry for tax revenue. Commissioner John Boyle of the Alaska Department of Natural Resources emphasized the importance of continued activity and investment in the Cook Inlet to secure local natural gas supplies for Alaskans.

Oil Price Outlook

Despite the ambitious lease plan, the near-term oil price outlook may not incentivize more exploration and production activities. The U.S. EIA forecasts a decrease in average Brent crude prices to $51 per barrel next year, down from the current $66. This decrease is expected to lead to cheaper gas and diesel prices for American consumers, but it may also result in a slight decline in total U.S. oil production.

The agency stated, “As crude oil prices fall, we expect U.S. producers will accelerate the decreases in drilling and well completion activity. We forecast U.S. crude oil production to decline to 13.1 million b/d by 4Q26.”