A May report from the Department of the Interior announced the largest onshore lease sale in history of more than 33,000 premium acres in the Permian Basin, generating over $4 billion. Republicans credit the new possibility of American energy dominance to the Trump administration reversing Biden-era energy policy with the “One Big, Beautiful Bill.”
“This lease sale is just the latest example of President [Donald] Trump and Congressional Republicans reversing the Biden administration’s anti-energy policies,” House Majority Leader Steve Scalise told the Daily Signal.
Under the Mineral Leasing Act of 1920, the government acts as the landlord, leasing out federal land and drilling rights to oil companies. The federal government collects royalties from sales, which benefit the federal government and the taxpayer.
In 2024, the Biden administration’s anti-oil policies increased royalties from 12.5% to 16.67%, harming American oil companies and, in turn, Americans. The GOP’s One Big, Beautiful Bill reversed the royalties back to 12.5%.
“By restoring the pre-Biden royalty rate and restarting predictable quarterly lease sales, the Working Families Tax Cut gave energy producers the certainty to make major, long-term investments in American production,” Scalise continued. “That’s creating jobs, strengthening energy security, and generating massive new revenue for taxpayers and local communities.”
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“America is sitting on some of the richest energy resources in the world, and President Donald J. Trump is committed to putting those resources to work for the American people,” Secretary of the Interior Doug Burgum said in a press release.
The One Big, Beautiful Bill officially repealed an Inflation Reduction Act provision to reverse the royalty rate for oil and gas leases on federal land to 12.5%. This $4 billion revenue is proof that this reversal has made it easier for producers to drill more and keep more of their money to be used for growing their companies, creating new jobs, driving technological innovation, and investing in future lease sales.
The massive tax cut bill also directed the Department of the Interior to resume mandatory quarterly onshore lease sales, mandating at least four lease sales per year in various states. Companies bid for the lease, granting it to the highest bidder. With this $4 billion sale, the next competition is likely to be even greater or more competitive.
“This over $4 billion lease sale is another sign that President Trump’s American Energy Dominance Agenda is delivering results,” Burgum continued. “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.”
Texas and New Mexico aren’t the only states with energy wins. Also resulting from the One Big, Beautiful Bill, the department announced in March a record $460.9 million in energy revenue to Alabama, Louisiana, Mississippi, and Texas. This revenue record was reached because the legislation raised the statutory cap.
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