The Interior Department announced Wednesday that a federal oil and gas lease auction covering lands in New Mexico and Texas has broken all previous records, bringing in $4 billion in winning bids.
The astronomical total far surpassed any previous onshore federal oil and gas lease auction, coming at a time when the Iran war has reduced global oil supplies and increased demand for American crude.
According to the Western Energy Alliance trade group, the previous record for a Bureau of Land Management oil and gas lease auction was $972 million in 2018.
Wednesday’s auction involved 74 parcels spanning 33,530 acres, with most of the land located in New Mexico’s Permian basin, which ranks as the country’s top oil-producing region.
Officials said the record-breaking results demonstrate robust industry interest in drilling opportunities on federal property.
“This over $4 billion lease sale is another sign that President Trump’s American Energy Dominance Agenda is delivering results,” Interior Secretary Doug Burgum said in a statement. “By cutting costs and removing barriers to development, we are unleashing American energy, strengthening national security, creating jobs and generating significant revenue for taxpayers and local communities.”
The most expensive single parcel sold for $405.8 million and covered 1,280 acres in Lea County. The highest per-acre price reached $357,129 for a 640-acre tract, also located in Lea County.
The Interior Department has not released the identities of the successful bidders.
