Trump Administration Waives Rules on Endangered Species for Offshore Drillers

---

Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

---

Summary

Pointing to concerns about a reliance on foreign suppliers, the Trump administration said would-be drillers are freed from regulations on endangered species. Offshore accounts for about 15% of total U.S. oil production.

---

No Self-Harm

Crude oil production off the U.S. Gulf Coast must not be held hostage by litigation over endangered species, Interior Secretary Doug Burgum said Tuesday.

The Endangered Species Committee, consisting of top-ranked officials from the Interior Department, the Department of Defense and elsewhere, met Tuesday for the first time in 30 years. Amid one of the worst energy crises in the modern era, the committee voted to waive rules and grant an exemption to requirements spelled out in the Endangered Species Act.

The U.S. territorial waters of the Gulf of Mexico account for about 15% of total U.S. crude oil production. Offshore production is expected to average 1.97 million barrels of oil per day (BBL/d) this year, a 3.6% increase from the 2025 level should the forecast prove accurate.

U.S. Defense Secretary Pete Hegseth said U.S. foreign adversaries are advantaged when offshore production is curtailed so it's best to avoid self-imposed harm.

"When development in the Gulf is chilled, we are prevented from producing the energy we need as a country and as a department," Hegseth said.

Burgum added that sustained oil production offshore was essential to U.S. national security, though the environmental advocacy community cried foul. By March 18, the Center for Biological Diversity had filed a lawsuit seeking to prevent the meeting entirely, arguing there was no justification for convening.

"Burgum's real goal with this fake 'crisis' is to test the limits of his power to needlessly and illegally kill endangered species," said Kieran Suckling, the executive director for the center.

Burgum said the energy sector would not be held hostage by litigation.

Is This a War Response?

By March 18, when the center filed its lawsuit, the joint U.S.-Israeli war against Iran had pushed the price for Brent crude oil to $102 per barrel, up 42% on the month. The price on Tuesday moved within sight of $110 per barrel, triggered by the loss of production from Persian Gulf nations and the closure of the Strait of Hormuz.

Nevertheless, it would take years for an energy company to take advantage of the exemptions and add more barrels to the market. British energy company BP is behind one of the larger developments offshore, working to advance the floating production unit for its Kaskida prospect.

With a total investment value of around $2.5 billion, BP aims to produce around 100,000 BBL/d by late 2029.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Plant Database can learn more about Kaskida--including capacities, investment values and necessary equipment--from a detailed project report.

Elsewhere, interest in offshore drilling is waning. The second lease sale under the so-called One Big Beautiful Bill Act generated $47 million from 38 bids covering some 140,000 acres offshore.

The first bill under the act from December generated $279.4 million in bids. The second generated the least interest in more than a decade.

Industrial Info is tracking 260 operational offshore production platforms and installations in the U.S. Gulf of Mexico. Subscribers can learn more about these developments from a detailed list of plant profiles.

Trump's signature spending initiative, the act from last year mandates 30 lease sales in the Gulf of Mexico by 2040.

By the Numbers

• 100,000 BBL/d in new offshore oil by 2029
• 15% of U.S. oil comes from offshore

Key Takeaways

• Trump waives rules on endangered species for offshore drilllers.
• Advocates said it's just another example of the administration inventing emergencies.

---

About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).