- The Interior Department plans to expand offshore oil and gas leasing in the “Gulf of America,” reversing a Biden-era drilling ban. Interior Secretary Doug Burgum said the move will reduce energy costs and boost national security by tapping into domestic energy resources.
- The Bureau of Ocean Energy Management estimates that the Gulf holds over 7 trillion cubic feet of natural gas and nearly 6 billion barrels of oil, an increase of 22.6% from 2021.
- Legal challenges over environmental concerns, particularly regarding the endangered Rice’s whale, have put the status of hundreds of offshore leases in doubt.
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The U.S. Department of the Interior announced plans to expand offshore oil and natural gas leasing in the “Gulf of America.” This move reverses a previous drilling moratorium in the region, which was instituted under the Biden administration.
“Unlike under President Biden, we will not leave our critical energy resources locked up when so many Americans are suffering through the unnecessarily high cost of living imposed by the previous administration,” Interior Secretary Doug Burgum said. “Unleashing America’s energy resources will lower prices at the pump, at the grocery store and across all aspects of American life while strengthening our national security.”
Why is the Interior Department expanding offshore drilling?
Burgum has directed the Bureau of Ocean Energy Management (BOEM) to prepare for the administration’s first offshore lease sale, tentatively scheduled for proposal in June. The department said the initiative will help create more affordable energy, bolster domestic industry and reinforce national security.
How much energy is potentially available in the Gulf?
According to BOEM’s updated estimates, the Gulf now holds 7.15 trillion cubic feet of recoverable natural gas and 5.77 billion barrels of oil—resources that could power the entire planet for approximately two and a half months. These figures also represent a 22.6% increase from 2021 reserve assessments.
Burgum described the findings as evidence that the U.S. is “sitting on a treasure trove of energy.” Meanwhile, BOEM’s Gulf of America Regional Director, Dr. James Kendall, said the new data “reaffirms the Gulf’s vital role in ensuring a reliable, affordable domestic energy supply.”
What happens next?
However, recent lease sales in the region have been stymied by court decisions centered on environmental concerns, particularly the impact of drilling on the endangered Rice’s whale.
In March, a federal judge ruled that the Interior Department had not adequately analyzed the potential environmental consequences of a 2023 lease sale, including effects on whale populations and projected greenhouse gas emissions. The ruling put the status of hundreds of other leases in doubt.
