The Department of the Interior is proposing to reduce financial assurance requirements for offshore oil and gas companies, rolling back portions of a 2024 rule.
The proposal would eliminate requirements that forced companies to set aside approximately $6.9 billion in supplemental financial assurance.
The change is expected to save the industry about $484 million annually in compliance costs, the Interior Department said.
“For too long, Washington red tape has strangled American energy producers and held back small businesses,” said Interior Secretary Doug Burgum. “President Trump is delivering on his promise to put American workers first, cut burdensome regulations and unleash our vast energy potential. These updates will free up billions of dollars for exploration and development, create good-paying jobs and unlock domestic energy production so we are never forced to rely on foreign adversaries for the resources that power our economy.”
The Bureau of Ocean Energy Management is acting in response to President Trump's Executive Order 14154, "Unleashing American Energy."
The 2024 rule required oil and gas companies to provide increased financial assurance to cover potential decommissioning costs for offshore infrastructure, ensuring taxpayers would not bear the burden if companies failed to properly plug wells and remove platforms.
The proposal would modernize how BOEM evaluates financial risks and lower the amounts companies must set aside for future decommissioning. BOEM would use updated risk metrics and data from the Bureau of Safety and Environmental Enforcement while maintaining taxpayer protections, according to the department.
The proposal will be published in the Federal Register with a 60-day public comment period.
