PolicyBrief
S. 109
119th CongressJan 16th 2025
Offshore Energy Security Act of 2025
IN COMMITTEE

The "Offshore Energy Security Act of 2025" mandates a minimum of 20 offshore oil and gas lease sales in the Gulf of Mexico over the next 10 years, while also extending the moratorium on oil and gas leasing in the Eastern Gulf of Mexico, South Atlantic Planning Area, and Straits of Florida Planning Area until 2035. The bill aims to expedite offshore energy production while safeguarding existing leases from legal challenges and promoting environmental conservation.

Bill Cassidy
R

Bill Cassidy

Senator

LA

LEGISLATION

Gulf of Mexico Drilling Guaranteed: New Bill Mandates 20 Offshore Lease Sales, Extends Moratoriums

The "Offshore Energy Security Act of 2025" locks in a schedule for offshore oil and gas drilling in the Gulf of Mexico while also extending some environmental protections. Here's the breakdown:

Drilling in Overdrive

The bill guarantees at least 20 offshore oil and gas lease sales in the Gulf of Mexico over the next decade (2026-2035). The Secretary of the Interior must hold two sales every year – by March 31st and August 31st – and each sale has to offer up at least 74 million acres. That's like putting a huge chunk of the Gulf up for grabs, year after year.

For folks working in the oil and gas industry, this could mean more job opportunities and potentially bigger paychecks. Think rig workers, engineers, and support staff. But for coastal communities, it's a mixed bag. More drilling could boost local economies, but it also raises concerns about spills and environmental impact.

Legal Shield for Leases

Here's a kicker: If environmental groups sue to challenge the environmental reviews of these lease sales, existing leases and drilling permits are protected (SEC. 2). Basically, lawsuits won't automatically stop drilling. The Secretary of the Interior has to fix any violations the court finds, but the drilling can continue. Leaseholders also get a heads-up about any lawsuits (within 60 days) and can pause their lease term for 90 days while the legal stuff plays out.

Moratorium Extension - with a Twist

The bill extends a ban on oil and gas leasing in the Eastern Gulf of Mexico until December 31, 2035. It also throws the South Atlantic and the Straits of Florida into the no-drilling zone (SEC. 2). So, some areas are off-limits.

But – and this is important – the Secretary can issue leases in these protected areas "for environmental conservation purposes" (SEC. 2). This could mean projects like restoring wetlands or protecting marine life. Or, and this is where it gets tricky, it could be used to justify leases that aren't really about conservation. It will be very important for the public to keep a close eye on how this is used.

The Bottom Line

This bill is a balancing act. It pushes for more domestic energy production in the Gulf while keeping some environmental safeguards in place. The guaranteed lease sales could be a boon for the oil and gas industry, and potentially bring revenue to Gulf Coast states. But the legal protections for drilling permits and the "conservation" loophole in the moratorium raise questions about how strictly environmental concerns will be handled. It's like the government is saying, "Drill, baby, drill – but also, let's try to be responsible about it." Whether that works out in practice is something we'll have to watch closely.