The U.S. Bureau of Land Management reported that Devon Energy Corp. was the dominant force in a landmark sale of oil and gas drilling rights on federal lands in New Mexico and Texas. This auction, conducted on 20th May 2026, generated a record-breaking $4 billion, with Devon Energy alone accounting for more than half of that total. The sale’s immense value shattered previous records for onshore government oil and gas auctions.
This significant U.S. oil and gas auction comes at a time when global oil supplies have been impacted by the Iran war, consequently increasing demand for U.S. crude oil. The previous record for such an auction stood at $972 million in 2018. The Interior Department indicated that the sale reflects robust industry interest in drilling on public lands, underscoring the strategic importance of these resources.
“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 auction comprised 74 parcels, covering a total of 33,530 acres. The majority of these lands are situated within New Mexico’s Permian Basin, widely recognized as the nation’s most productive oil field. This strategic location likely contributed to the heightened bidding activity and record-breaking sale figures for the U.S. oil and gas auction.
Devon Energy, headquartered in Oklahoma City, emerged as the leading participant, securing 25 parcels with total bonus bids amounting to $2.5 billion, according to results published on a government website. While a company spokesperson was not immediately available for comment, their substantial investment highlights their confidence in the region’s oil and gas potential.
Federal Abstract Company, a firm specializing in land services, secured the second-highest position as an auction participant, with total bids reaching $1.1 billion for five parcels. Other notable participants in the U.S. oil and gas auction included Buffalo Frontier LLC, Veer Capital Partners LLC, and Ridge Runner II Nominee Corp., indicating broad industry engagement.
Devon Energy also set new records for individual parcel bids. The company paid the highest-ever price for a single parcel, submitting a bid of $405.8 million for 1,280 acres in Lea County. Furthermore, Devon established a new benchmark for the highest price per acre, paying $357,129 for a 640-acre parcel, also located in Lea County, further emphasizing the high value placed on these oil drilling rights in the Permian Basin.
