The U.S. Department of the Interior has announced its intent to revise the Bureau of Ocean Energy Management’s 2024 Risk Management and Financial Assurance for OCS Lease and Grant Obligations Rule and proceed with development of a new rule that is consistent with the Trump administration’s 2020 proposed regulatory framework. The revised measure leveraging the 2020 proposed rule will massively cut costs and red tape related to the current Biden process and free up billions of dollars for American producers to use to lease, explore, drill, and produce oil and gas in the Gulf of America while protecting American taxpayers against high-risk decommission liabilities.
This action underscores the Department’s commitment to supporting domestic energy production, protecting American jobs, and reducing regulatory burdens on oil and gas producers. The previous administration’s rule was estimated to increase financial assurance requirements for offshore oil and gas operators by $6.9 billion in additional bonding, costing businesses an additional $665 million in premiums each year. This has limited the ability of many companies operating in the Gulf of America to invest in energy development projects.
'This revision will enable our nation’s energy producers to redirect their capital toward future leasing, exploration, and production all while financially protecting the American taxpayer,' said Secretary Doug Burgum. 'Cutting red tape will level the playing field and allow American companies to make investments that strengthen domestic energy security and benefit the Gulf of America states and their communities.'
The Bureau of Ocean Energy Management will continue to require all operators on the Outer Continental Shelf to provide financial assurance for their decommissioning obligations. Under President Trump, the responsibility for stewardship will remain with industry—not the American taxpayer—while the Administration works toward a more balanced regulatory approach.
The Department expects to finalize the rule in 2025 and will welcome public comments on the proposal.
Source: US Department of the Interior
