The US Department of the Interior has released a draft proposal for a new five-year offshore oil and gas leasing program from the Bureau of Ocean Energy Management (BOEM), covering 2026 to 2031. This proposed program is notably more expansive than the current schedule.

Scope of the Proposed Leasing Program

The draft program proposes up to 34 new lease sales across federal waters in Alaska, the US Gulf of Mexico, and near California. These new sales would cover 1.27 billion offshore acres. This is in addition to the 36 lease sales already mandated by the One Big Beautiful Bill Act passed by Congress in July, which authorized 30 sales in the US Gulf and six in Alaska’s Cook Inlet through 2040. The proposal is particularly aggressive in Alaska, scheduling 21 potential auctions throughout its coastline. It also includes seven auctions in the US Gulf, with two in the eastern region near Florida, and six in federal waters near California.

Historical Context and Regional Significance

The proposal marks a significant shift for certain regions. The federal government has not permitted drilling in the eastern section of the US Gulf since 1995 due to oil-spill concerns. Furthermore, no new leasing has occurred in federal waters near California since the mid-1980s. According to the BOEM map, no lease sales are planned for the US east coast. BOEM has already initiated actions under the existing congressional mandate, scheduling two Gulf lease sales for December and March and beginning work on the first Cook Inlet sale, though the December sale is already facing a legal challenge from environmental groups.

Approval Process and Timeline

The Department of the Interior aims to implement the new five-year program by October 2026. The approval process involves several stages: a 60-day public comment period on the current draft, followed by the issuance of a revised draft and a subsequent 90-day comment period. After further revisions, the proposal is sent to Congress and the president for review. The DoI cannot grant final approval until Congress and the White House have had 60 days to analyse it. This proposed program would replace the current five-year BOEM program approved by the Biden administration in 2024, which scheduled only three lease sales through 2029.

Recent Policy Volatility

This proposal is the latest development in a period of volatile offshore leasing policy. The Trump administration attempted to significantly expand offshore leasing in 2018 but abandoned the plan a year later after a court overturned it. Upon taking office in January 2021, the Biden administration paused all leasing on public lands and in federal waters. However, it eventually held three Gulf lease sales—one after a prolonged court battle and two mandated by the Inflation Reduction Act of 2022. In January, as he was leaving office, an attempt to block 625 million offshore acres from new leasing was ruled illegal by a judge in October. A statement from the Department of the Interior framed the new draft program as a necessary step to ensure the strength of America's offshore industry, maintain employment, and sustain the nation's energy dominance.