US to sell Gulf of Mexico oil and Gas Leases in December

According to the U.S. Bureau of Ocean Energy Management, the Trump administration proposes to sell oil and gas drilling on 80 million acres of the Gulf of Mexico by December 10.

Donald Trump has changed the name of the Gulf of Mexico to the Gulf of America.

This sale is the first in a five-year drilling program, launched by Biden during the period of the auction.

BOEM, an Interior Department division, said that the administration planned to offer approximately 15,000 unleased offshore blocks, located between 3 and 231 miles off shore. BOEM reported that the administration is proposing to charge a royalty of 16.67%. This is the lowest rate in years.

Matt Giacona, BOEM's Principal Deputy Director, said in a press release that offshore oil and gas plays a crucial role in the nation's energy mix. The Gulf of America supplies 14% of our domestically produced oil. This proposed lease sale shows BOEM's dedication to American Energy Dominance, and the production of reliable, affordable energy resources for our nation. (Reporting Nichola Groom ; Editing by Diane Craft).

(source: Reuters)