Trump Administration Expands Offshore Oil and Gas Development in Gulf of America
The Trump administration is reversing Biden administration policies that halted offshore leasing and restricted oil and natural gas development. Interior Secretary Doug Burgum has directed the Bureau of Ocean Energy Management to hold the administration’s first offshore lease sales in the Gulf of America, with the first proposed notice of sale slated for June.
According to the Interior Department, expanding offshore capabilities ensures affordable energy for consumers, strengthens domestic industry, and reinforces the United States’ role as an energy superpower. The move is expected to generate tens of thousands of high-paying jobs throughout the industry.
The Bureau of Ocean Energy Management released a new analysis stating that there is a significant increase in estimated oil and natural gas reserves in the Gulf of America Outer Continental Shelf. The updated assessment identified 18 new discoveries and revealed a 22.6% increase in remaining recoverable reserves.
Shell Offshore Inc., a subsidiary of Shell plc, also announced the beginning of production at Dover, a second subsea tieback connecting new wells to existing infrastructure in the Gulf of America. Dover’s estimated peak production is 20,000 barrels of oil equivalent a day.
Outer Continental Shelf oil and gas activities have generated billions of dollars in revenue, funding infrastructure, education, public services, wildlife conservation, and contributing to U.S. energy independence and national security.
Offshore production in the Gulf of America accounts for nearly 1.8 million barrels of oil per day, making it the third greatest volume in the country. The Permian Basin in west Texas leads the U.S. in oil and natural gas production.
Sources: The Center Square
