A Trump administration sale of oil and gas drilling rights on federal lands in New Mexico and Texas generated $4 billion in winning bids, the Interior Department said on Wednesday. The sale’s total obliterated that of previous onshore government oil and gas auctions at a time when the Iran war has cut global supplies and raised demand for U.S. crude oil.
The previous record total for a Bureau of Land Management oil and gas lease sale was $972 million in 2018, according to trade group Western Energy Alliance.
The sale of 74 parcels covered 33,530 acres, primarily in New Mexico’s Permian basin, the nation’s most productive oil field. The Interior Department said the sale reflected strong industry demand for drilling on public lands.
“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 highest sale price for a single parcel was $405.8 million for 1,280 acres in Lea County. The highest price per acre was $357,129 per acre for a 640-acre parcel, also in Lea County.
Interior did not publish the names of the winning bidders.
(Reporting by Nichola Groom; Editing by Mark Porter)