The Discoverer Inspiration, a Transocean drill vessel, is gearing up for drilling operations in the Gulf of America on July 10, 2010, as part of the Deepwater Horizon oil response. The Trump administration is overturning policies set by the Biden administration that had stopped offshore leasing, leading to lawsuits and impeding oil and natural gas development. The Interior Department, under the direction of Secretary Doug Burgum, is expanding offshore capabilities and plans to conduct the administration’s first offshore lease sales in the Gulf of America, with a proposed notice of sale scheduled for June.
This move aims to ensure affordable energy for consumers, boost the domestic industry, and strengthen the country’s position as an energy superpower. By opening up the Outer Continental Shelf, which had been restricted under the previous administration, the initiative is expected to create tens of thousands of high-paying jobs in the industry.
A recent analysis by the Bureau of Ocean Energy Management (BOEM) revealed a significant increase in estimated oil and natural gas reserves in the Gulf of America Outer Continental Shelf. The updated assessment identified new discoveries and analyzed numerous reservoirs, resulting in an additional 1.3 billion barrels of oil equivalent since 2021. This brings the total reserve estimate to 7.04 billion barrels of oil equivalent, including 5.77 billion barrels of oil and 7.15 trillion cubic feet of natural gas, representing a 22.6% increase in remaining recoverable reserves.
Interior Secretary Burgum emphasized that the United States possesses abundant energy resources, and the administration’s efforts to unlock this potential will strengthen the economy, enhance national security, and create job opportunities for Americans. The Gulf of America is highlighted as a crucial energy hub that, through streamlined permitting and expanded access, will drive economic growth and employment.
BOEM’s comprehensive review identified a substantial increase in original reserves, totaling 4.39 billion barrels of oil equivalent. Despite the production of 3.09 billion barrels of oil equivalent since 2020–2021, the net increase signals ongoing opportunities and progress in offshore development.
The Gulf of America currently supplies 14% of the nation’s oil, underscoring its importance in maintaining a reliable and affordable domestic energy supply. With nearly 3.2 billion acres under its jurisdiction, including approximately 160 million acres in the Gulf, BOEM plays a pivotal role in overseeing offshore energy activities.
The Interior Department asserts that energy dominance is crucial for the country’s economic strength and global leadership. By expanding offshore capabilities, the United States aims to provide affordable energy, create high-paying jobs, and reduce reliance on foreign adversaries. The envisioned expansion of leasing activities is anticipated to generate tens of thousands of jobs across various sectors, revitalizing coastal economies and driving innovation in the American energy landscape.
Additionally, Shell Offshore Inc., a subsidiary of Shell plc, announced the commencement of production at Dover, a new subsea tieback that connects additional wells to existing infrastructure.
Shell’s Dover field, located in the Gulf of Mexico, is part of the company’s Appomattox production hub. The estimated peak production at Dover is 20,000 barrels of oil equivalent per day. Discovered during the first Trump administration in 2018, Dover is situated in Mississippi Canyon, approximately 170 miles southeast of New Orleans. Shell projects that Dover holds 44.5 million barrels of recoverable resources, contributing to the stable and secure energy supply. Offshore oil and gas activities on the Outer Continental Shelf have generated significant revenue through lease sales, fees, and royalties for the federal government and states, supporting infrastructure, education, public services, and conservation efforts. Additionally, offshore production in the Gulf of Mexico plays a crucial role in enhancing U.S. energy independence, national security, and global stability by reducing reliance on foreign suppliers. The Gulf of Mexico ranks third in the country for oil production, with nearly 1.8 million barrels per day, following the Permian Basin in west Texas, which leads in oil and natural gas output.
