U.S. Interior Department Unveils Offshore Leasing Plan to Boost Energy Production

The U.S. Department of the Interior has announced a strategic initiative aimed at enhancing domestic energy production. This plan includes a long-term schedule for offshore oil and gas lease sales, as well as updated regulations for commingling practices in petroleum development. These measures are part of the implementation of the One Big Beautiful Bill Act (H.R. 1), which seeks to strengthen U.S. energy independence and promote responsible resource management.

Expanding Offshore Energy Development

The Department’s new strategy outlines a plan for at least 30 lease sales in the Gulf of America and six additional sales in Alaska’s Cook Inlet through 2032. This ambitious initiative reflects the administration’s commitment to ensuring a stable domestic energy supply. Interior Secretary Doug Burgum stated, “The One Big Beautiful Bill Act is a landmark step toward unleashing America’s energy potential.”

The Gulf of America remains a crucial element of U.S. energy production, accounting for approximately 14–15% of total crude oil output. By establishing a clear leasing schedule, the Department aims to attract continued investment in deepwater infrastructure, which supports hundreds of thousands of jobs and generates billions of dollars annually in gross domestic product, as well as federal and state revenues.

Alaska’s Cook Inlet is positioned as both an energy hub and a gateway to the Arctic. Development in this region promises to reduce reliance on foreign energy imports and create new employment opportunities, thereby bolstering local economies. The Department has described Cook Inlet as essential for long-term U.S. energy security. The first scheduled sale under this framework, titled “Big Beautiful Gulf 1,” is set for December 10, 2025. The Bureau of Ocean Energy Management is expected to publish its final notice at least 30 days prior to this date.

Updated Commingling Policy for Enhanced Efficiency

In conjunction with the leasing plan, the Interior Department has introduced updated oil and gas commingling rules designed to modernize production standards and enhance operational efficiency. Commingling involves combining petroleum streams from various sources into a single system for measurement and processing, which is vital for maximizing resource recovery.

The updated regulations, developed by the Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Land Management (BLM), aim to streamline approval processes while upholding rigorous safety and environmental standards. Secretary Burgum noted, “From day one, the Trump administration has worked to cut red tape, strengthen America’s Energy Dominance and ensure responsible resource development.”

The key changes include the establishment of clearer expectations for offshore commingling practices by BSEE, which prioritizes well integrity and safety. Additionally, the BLM has expanded commingling authority for onshore operations on public and tribal lands while full regulatory updates are finalized. Field offices are now instructed to process applications swiftly and consistently under the Act’s provisions.

These initiatives align with the Executive Order titled “Unleashing American Energy” and Secretary Burgum’s broader agenda to enhance domestic energy production while safeguarding long-term resource value. Officials have emphasized that these regulatory reforms will remove unnecessary barriers without compromising safety, environmental protections, or taxpayer interests.

Together, the offshore leasing plan and commingling updates represent a significant shift toward predictable, efficient, and responsible energy development. By providing clarity for industry stakeholders while prioritizing U.S.-based production, the Department aims to strengthen national energy security and maintain America’s status as a global energy leader.