popular articles

United States: Five-Year Plan Limits Offshore Oil Sales

U.S. Department of the Interior announces historic plan, reducing offshore oil and gas sales to three auctions in the Gulf of Mexico over five years

Please share:

The U.S. Department of the Interior, headed by Secretary Deb Haaland, has finalized a five-year plan marking a turning point in the country’s offshore energy policy. The plan calls for just three oil and gas auctions in the Gulf of Mexico for the years 2024-2029, representing the lowest number of sales in U.S. history. This stands in stark contrast to the Trump administration’s 2018 proposal, which envisaged 47 sales across all US coastal areas.
Under the Inflation Reduction Act, the Department of the Interior is required to offer at least 60 million acres for offshore oil and gas lease sales before issuing leases for offshore wind power. The Biden administration has emphasized its efforts to align this program with the goal of zero net emissions by 2050. The three planned sales are considered the minimum necessary to enable the offshore wind energy program to continue, aiming to reach 30 GW of offshore wind energy by 2030.
Analysts at S&P Global Commodity Insights do not foresee any immediate impact on US oil production as a result of this reduced leasing program. However, medium- to long-term impacts are more likely, particularly if reduced auctions and further restrictions on operations cause producers to abandon the Gulf of Mexico in favor of other opportunities, either within the US or abroad.

Alternatives and Mitigation Measures

On December 14, Haaland signed the decision file and approval for the new program. The dossier includes a memo from the Director of the Bureau of Ocean Energy Management, Elizabeth Klein, detailing the four options under consideration. Finally, the chosen option, limited to three sales in the Gulf of Mexico, will be subject to mitigation measures to reduce impacts on sensitive marine habitats and specific seabed features.
The record of decision emphasizes that, under the final program, Secretary Haaland retains the discretion to determine if, when and under what conditions an auction should take place, as well as the precise area to be offered. BOEM plans to hold an auction in the Gulf of Mexico, called Lease Sale 261, on December 20, which will be the last opportunity for oil and gas producers to acquire new leases in federal waters until 2025.

This five-year plan represents a significant shift in US offshore energy strategy, reflecting a transition towards more sustainable environmental goals while balancing current energy needs. The implications of this decision for the oil and gas industry and for renewable energy initiatives will be closely watched in the years to come.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Germany’s energy transition slowed in 2024, with a mere 3% reduction in greenhouse gas emissions. Political and economic uncertainty hampers investments in key sectors, particularly industry and transport.
Moldova and Gazprom are at odds over a debt estimated between $9 million and $700 million, exacerbating Transnistria's energy crisis. The separatist region faces the risk of total power outages in the midst of winter.
Moldova and Gazprom are at odds over a debt estimated between $9 million and $700 million, exacerbating Transnistria's energy crisis. The separatist region faces the risk of total power outages in the midst of winter.
In France, the energy check program recorded more than 200,000 requests in the last two days of 2024, highlighting growing pressure to meet the needs of low-income households amid the energy crisis.
In France, the energy check program recorded more than 200,000 requests in the last two days of 2024, highlighting growing pressure to meet the needs of low-income households amid the energy crisis.
The electricity volume traded on the Indian Energy Exchange surged by 29% in December, reaching an all-time high, driven by a significant drop in day-ahead market prices.
The electricity volume traded on the Indian Energy Exchange surged by 29% in December, reaching an all-time high, driven by a significant drop in day-ahead market prices.
With 707 TWh produced in 2024, SPIC illustrates the impact of public investments on the management and expansion of energy resources in China.
Joe Biden announces a ban on offshore drilling over an immense maritime area, challenging Donald Trump's energy production ambitions days before the presidential transition.
Joe Biden announces a ban on offshore drilling over an immense maritime area, challenging Donald Trump's energy production ambitions days before the presidential transition.
Three weeks after Cyclone Chido, nearly a third of Mayotte's households remain without electricity, while recovery efforts advance with increased mobilization of EDF and EDM teams.
Three weeks after Cyclone Chido, nearly a third of Mayotte's households remain without electricity, while recovery efforts advance with increased mobilization of EDF and EDM teams.
In 2024, Germany set a new record with 59% of its electricity produced from renewable sources, marking a key milestone after the complete shutdown of nuclear power. A balance of ecological progress and energy challenges.
In 2024, Germany set a new record with 59% of its electricity produced from renewable sources, marking a key milestone after the complete shutdown of nuclear power. A balance of ecological progress and energy challenges.
With the end of the Arenh mechanism in 2025, Aluminium Dunkerque is calling on EDF to offer competitive prices to remain internationally competitive while meeting decarbonization requirements.
The United Kingdom achieved a historic record of 58% low-carbon electricity in 2024, marking a key step in its energy transition and sending a strong signal to European political and economic actors.
The United Kingdom achieved a historic record of 58% low-carbon electricity in 2024, marking a key step in its energy transition and sending a strong signal to European political and economic actors.
India reaches an installed energy capacity of 457 GW in 2023, doubling in a decade. This growth highlights the delicate balance between energy transition and the need to meet rising electricity demand.
India reaches an installed energy capacity of 457 GW in 2023, doubling in a decade. This growth highlights the delicate balance between energy transition and the need to meet rising electricity demand.
In 2024, renewable energy in Portugal accounted for 71% of electricity consumption, a record driven by significant growth in photovoltaic and hydropower production, according to the national grid operator REN.
In 2024, renewable energy in Portugal accounted for 71% of electricity consumption, a record driven by significant growth in photovoltaic and hydropower production, according to the national grid operator REN.
Iran will meet European diplomats in Geneva on January 13 amidst controversy over its 60% uranium enrichment, according to the International Atomic Energy Agency (IAEA).
A massive power outage plunged Puerto Rico into darkness on New Year's Eve, affecting more than a million households. The structural challenges of the energy grid reveal significant shortcomings.
A massive power outage plunged Puerto Rico into darkness on New Year's Eve, affecting more than a million households. The structural challenges of the energy grid reveal significant shortcomings.
A suspected sabotage of the EstLink 2 cable connecting Finland to Estonia results in travel bans for seven sailors. A thorough investigation highlights significant geopolitical implications.
A suspected sabotage of the EstLink 2 cable connecting Finland to Estonia results in travel bans for seven sailors. A thorough investigation highlights significant geopolitical implications.
ADNOC forecasts 1.744 million barrels per day for its Murban crude exports in December 2025, a slight drop compared to November. March 2025 will experience a significant reduction of 70,000 barrels per day.
ADNOC forecasts 1.744 million barrels per day for its Murban crude exports in December 2025, a slight drop compared to November. March 2025 will experience a significant reduction of 70,000 barrels per day.
Despite the end of the tariff shield on February 1, French households will benefit from a 14% reduction in their electricity bills. This measure is tied to the absence of adoption of the 2025 budget, which nevertheless has side effects.
EDF and its representative unions finalize a salary agreement for 2025. The deal includes a global increase of 2.7%, while negotiations remain open in several gas sector companies.
EDF and its representative unions finalize a salary agreement for 2025. The deal includes a global increase of 2.7%, while negotiations remain open in several gas sector companies.
The Environmental Authority calls for increased efforts to ensure France meets European climate goals, emphasizing a significant reduction in energy consumption to align with the requirements of the "Fit for 55" plan.
The Environmental Authority calls for increased efforts to ensure France meets European climate goals, emphasizing a significant reduction in energy consumption to align with the requirements of the "Fit for 55" plan.
Re-elected with 55% of the votes, Maia Sandu embodies the pro-European choice of Moldovans. This decision, however, faces external interference and a growing energy crisis.
Re-elected with 55% of the votes, Maia Sandu embodies the pro-European choice of Moldovans. This decision, however, faces external interference and a growing energy crisis.
The Inter-American Court of Human Rights has condemned Colombia for violating U'wa rights by approving seven energy projects impacting 370 km of their protected ancestral lands.
Green electricity outages in Germany jeopardize Olaf Scholz’s energy policy. Amid internal criticism and European tensions, the German model is under scrutiny ahead of the legislative elections.
Green electricity outages in Germany jeopardize Olaf Scholz’s energy policy. Amid internal criticism and European tensions, the German model is under scrutiny ahead of the legislative elections.
Spanish lawmakers rejected the continuation of an exceptional tax on energy companies, highlighting significant parliamentary disagreement and raising concerns about the future of investments tied to the country's energy transition.
Spanish lawmakers rejected the continuation of an exceptional tax on energy companies, highlighting significant parliamentary disagreement and raising concerns about the future of investments tied to the country's energy transition.
Starting July 2025, a European label will allow passengers to compare CO2 emissions from flights, aiming to promote less polluting options.
Starting July 2025, a European label will allow passengers to compare CO2 emissions from flights, aiming to promote less polluting options.

Advertising