For nearly three years, offshore energy producers, Gulf Coast workers and state leaders have urged Washington to restore clarity and predictability to U.S. offshore development. The Department of the Interior (DOI) and the Bureau of Ocean Energy Management’s (BOEM) five year offshore leasing plan is more than a procedural update; it is a path forward that can bring back predictability to one America’s most critical energy engines.

The five-year offshore oil and gas program, required under the Outer Continental Shelf Lands Act (OCSLA), should have been in place since July 1, 2022 when the previous plan expired. However, it was more than a year later (September 29, 2023) before the Biden administration published its draft final 2024-2029 plan, which included the lowest number of auctions in the program’s history.

DOI announced a Secretary’s Order titled “Unleashing American Offshore Energy that terminates the 2023-2029 plan, and published the first draft of a revised 2026-2031 plan which includes 34 proposed sales across the Gulf of America and coasts of Alaska and California.

When offshore exploration projects stall, it creates a cascade effect, freezing multi-year investments, and halting thousands of jobs and economic benefits. As Independent Petroleum Association of America (IPAA) President and CEO Edith Naegele underscored in a statement:

“A robust Five-Year Plan is essential to U.S. national security needs as it reduces our dependence on foreign oil, ensures a stable domestic energy supply, and supports hundreds of thousands of direct and indirect jobs. Independent oil and natural gas producers commend the Trump Administration on its thoughtful first iteration of the national OCS oil and gas leasing program, commonly referred to as the Five-Year Plan. As designed by the Outer Continental Shelf Lands Act (OCSLA), Five-Year Plans have a vigorous multi-iteration development process with several steps for analysis and extensive public comment. IPAA strongly supports broad inclusion of all OCS areas to ensure areas of high interest make it into the final plan. This will ensure a competitive bidding process among producers which ensures a good return to the American people via billions of dollars paid annually to the U.S. Treasury.” 

The Latest Plan – Expanding Offshore Energy Potential.

The draft OCS leasing program spans the years 2026-2031, and will include as many as 34 potential offshore lease sales. Notably, the proposed lease sales includes federal waters off the coasts of California and Florida, which haven’t seen new offshore oil and gas development in decades.

Erik Milito, president of the National Ocean Industries Association, lauded the DOI and BOEM’s move to expand the areas where lease sales are available. Milito told POLITICO:

“We need to make sure we’re not missing out on potential strategic opportunities 10, 15, 20 years down the road, because the production we have now is because of decisions we made 10, 15 years ago.”

The complete breakdown of proposed leases includes 21 areas off the coast of Alaska, seven in the Gulf of America, and six along the Pacific coast. Alaska’s lease sales are proposed to start in 2026, with the remaining sales in the Gulf and Pacific to commence in 2027. In addition to the leasing program, the DOI has confirmed it will hold four lease sales in the next twelve months: one in December 2025, two in March 2026, and one in August 2026.

This is especially exciting on the heels of recent BOEM analysis that estimated the Gulf of America has an additional 1.3 billion barrels of oil equivalent since the Bureau’s 2021 report, bringing the total reserve estimate over seven billion barrels of oil equivalent.

Offshore Oil Product Is a Cornerstone to US Energy Security

The Gulf of America produced roughly 1.8 million barrels per day of crude oil in 2024, nearly 15 percent of total U.S. crude output. Without consistent offshore leasing, those volumes inevitably decline, lowering America’s production capacity. That decline does not make global energy demand disappear; it simply shifts demand to other producing countries to fill the gap.

Recent years have been marked by global energy uncertainty. Supply disruptions from Russia’s invasion of Ukraine and other geopolitical tensions have strained markets and driven price volatility. In 2024, the International Energy Forum reported that while upstream investment has recovered since the pandemic, it remains below the level needed to meet demand through 2030, with about $740 billion per year required to ensure energy security. These challenges show what policymakers already know: energy security begins at home.

As Secretary of the Interior Doug Burgum noted earlier this year:

“The Gulf of America is a powerhouse, and by streamlining permitting and expanding access, we’re not just powering our economy—we’re strengthening our national security and putting thousands of Americans back to work.”

Jobs, Revenues and Economic Benefits

The economic ripple effects of offshore activity extend far beyond the platforms themselves. Over the past two decades, offshore energy production in the Gulf of America has produced nearly $150 billion in total revenue for the United States, coastal states, and their parishes and counties.

According to the Bureau of Labor Statistics, the U.S. offshore sector supported 270,000 jobs in 2024 and average around 354,000 jobs each year through 2040. Most of these jobs are across the gulf states of Louisiana, Texas, Mississippi and Alabama, creating thousands of local jobs for welders, engineers, crane operators and small-business suppliers all supporting the offshore industry.

This is in part because the Gulf of America is an essential supply-chain hub. Many rigs, fabrication yards, shipyards and service companies are clustered in the Gulf region, which means lease sales help maintain not just production, but the industry that supports it.

Every lease sale brings in billions of dollars in federal revenue, part of which flows directly back to states and local governments through the Gulf of Mexico Energy Security Act (GOMESA). Those dollars fund coastal restoration, hurricane protection, and infrastructure upgrades helping the same communities that make American energy possible. The state of Louisiana has used offshore dollars to restore barrier islands and rebuild natural storm buffers.

Every postponed lease sale and delayed approval chips away at America’s competitiveness. Offshore projects require 10 to 15 years from exploration to first production, so uncertainty today means reduced output in the 2030s. A predictable five-year plan signals to investors that the U.S. is open for business and willing to compete globally for market share, offshore technology and thousands of jobs.

Bottom Line: A Predictable Offshore Future Helps Power American Energy

The five-year offshore leasing plan is not just about drilling, it’s about direction. For years, the absence of a clear plan has undermined America’s commitment to energy leadership. By publishing a strong, balanced program, the administration can secure domestic supply, protect consumers from volatility, fund coastal resilience and keep American workers leading the world in what we do best safe and responsible offshore production.

When the United States invests in its own energy future, Americans not only win at the pump, but also ensure a reliable and secure energy supply to meet the nation’s growing energy needs.