Released April 25, 2025 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--It's been an eventful few weeks for the Department of the Interior (DOI) as the agency seeks to boost production of hydrocarbons and critical minerals from federal waters and lands under the leadership of Secretary Doug Burgum, a former governor of oil state North Dakota.
On April 10, the DOI said a new estimate of offshore oil and gas reserves in the Gulf of Mexico (designated the Gulf of America by the Trump administration) revealed a "significant" gain in those reserves, about 1.3 billion barrels of oil equivalent (boe), which would bring oil and gas reserves in the Gulf to about 7.04 billion boe. The new estimate updated an estimate made in 2021.
The updated resource picture in the Gulf now stands at 5.77 billion barrels of oil and 7.15 trillion cubic feet (Tcf) of natural gas, a 22.6% increase in recoverable reserves, the DOI said in an April 10 press release. The new analysis was conducted by the DOI's Bureau of Ocean Energy Management (BOEM).
The updated assessment evaluated more than 140 oil and gas fields, identifying 18 new discoveries and analyzing more than 37,000 reservoirs across 1,336 fields in the Gulf, the DOI said, adding that larger resource base offers drillers "continued opportunity and momentum in offshore development."
"This new data confirms what we've known all along--America is sitting on a treasure trove of energy, and under President Trump's leadership, we're unlocking it," said Burgum. "The Gulf of America is a powerhouse, and by streamlining permitting and expanding access, we're not just powering our economy--we're strengthening our national security and putting thousands of Americans back to work."
The Gulf accounts for about 97% of all offshore oil and gas produced in the U.S. On an annual basis, approximately 14% of U.S. oil and 5% of U.S. natural gas are extracted from the Gulf, according to James Kendall, BOEM Gulf of America regional director. "These updated estimates reaffirm the Gulf's vital role in ensuring a reliable, affordable domestic energy supply."
BOEM oversees nearly 3.2 billion offshore acres of the Outer Continental Shelf (OCS), with about 160 million acres located in the Gulf.
That expanded estimate of Gulf oil and gas reserves came about a week after Burgum directed BOEM to move forward with a national OCS oil and gas lease sale. That national lease sale, the 11th, was formally announced April 18. It will be published in the near future in the Federal Register. Publication will start the clock on a 45-day period where members of the public and industry will have a chance to comment.
Oil and gas lease sales were few and far between during the Biden administration, which was decried by the oil and gas industry, Republican elected officials and GOP-aligned commentators. For more on that, see January 7, 2025, article - Biden Bans Oil & Gas Development Along Outer Continental Shelf.
Burgum said the national lease program would include a "transparent and inclusive public engagement process" for the purpose of "reinforcing our commitment to responsible offshore energy development," which he said would drive job creation, bolster economic growth and strengthen American energy foundations.
Then, in another announcement, the DOI said it was changing its policy for downhole comingling in the Gulf's Paleogene (Wilcox) reservoirs, expanding the allowable pressure differential from 200 pounds per square inch (psi) to 1,500 pounds psi, a 650% increase. The move was expected to result in a production increase of 100,000 barrels of oil per day (BBL/d) over the next 10 years. That announcement was made April 24.
The DOI said the change was the result of "extensive technical consultation with offshore industry leaders." It added that results from a University of Texas study on commingling show that commingled production maximizes per-well oil production compared to sequential schemes. Over 30 years, it provides 61% more oil recovery, and over 50 years, it yields 21% more.
"This is a monumental milestone in achieving American Energy Dominance," Burgum said of the change in downhole comingling policy. "We're delivering more American energy, more efficiently, and with fewer regulatory roadblocks. That means lower costs, more jobs and greater security for American families and businesses."
The change in downhole comingling policy was overseen by the DOI's Bureau of Safety and Environmental Enforcement (BSEE).
In a fourth DOI announcement, also made Thursday, the agency said it was using President Donald Trump's invocation of an "energy emergency" to dramatically shorten the time allowed for environmental review of hydrocarbon projects and critical minerals.
The National Emergencies Act invoked by Trump is a 49-year-old law enacted by Congress to give the president extraordinary powers to change or countermand existing federal policies and procedures when he declares a state of emergency exists.
The DOI said the April 24 move was made to strengthen U.S. energy supplies. But those supplies already have never been higher. The U.S. is the largest producer of crude oil and natural gas as well as the largest exporter of natural gas. U.S. crude oil production has surged about 53% over the last five decades, to approximately 13.2 million BBL/d in 2024 from about 8.6 million BBL/d in the 1970s, according to the U.S. Energy Information Administration.
In a flurry of announcements on his first day as the 47th president, Trump declared an "national energy emergency," which stated "Our Nation's current inadequate development of domestic energy resources leaves us vulnerable to hostile foreign actors and poses an imminent and growing threat to the United States' prosperity and national security....Accordingly, the Department of the Interior is acting swiftly to reduce these vulnerabilities by facilitating the rapid permitting of energy and critical mineral projects that are vital to the nation's economic resilience and energy independence." For more on Trump's declaration of an "energy emergency," see January 21, 2025, article - Trump Invokes 'Energy Emergency,' Vows to 'Drill Baby Drill' and January 22, 2025, article - Far-Reaching Executive Actions on Energy Pour Out of White House.
The new permitting procedures will take a multi-year process down to just 28 days at most. The DOI said the sharp reduction in time allowed for environmental review is "designed to expedite the review and approval, if appropriate, of projects related to the identification, leasing, siting, production, transportation, refining, or generation of energy within the United States."
Trump's declaration of an "energy emergency" allows the DOI to fundamentally alter congressionally enacted laws such as the National Environmental Policy Act (NEPA), Endangered Species Act and the National Historic Preservation Act.
The new expedited NEPA review process flowing from the DOI statement means projects analyzed in an environmental assessment (EA), normally taking up to one year, will now be reviewed within approximately 14 days. Projects requiring a full environmental impact statement (EIS), typically a two-year process, will be reviewed in roughly 28 days.
Legal challenges are likely. One litigious group that typically clashes swords with federal environmental policy is the Center for Biological Diversity. The group's director of public lands, Randi Spivak, said in a statement that the effort would benefit fossil fuel companies at the expense of the public. "These so-called emergency procedures are nothing but grease on the skids for corporate interests to speed approvals that will harm people's health, our public lands and the climate."
The new DOI procedures apply to actions relating to a wide range of energy sources, including:
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) platform 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 200,000 current and future projects worth $17.8 Trillion (USD).
On April 10, the DOI said a new estimate of offshore oil and gas reserves in the Gulf of Mexico (designated the Gulf of America by the Trump administration) revealed a "significant" gain in those reserves, about 1.3 billion barrels of oil equivalent (boe), which would bring oil and gas reserves in the Gulf to about 7.04 billion boe. The new estimate updated an estimate made in 2021.
The updated resource picture in the Gulf now stands at 5.77 billion barrels of oil and 7.15 trillion cubic feet (Tcf) of natural gas, a 22.6% increase in recoverable reserves, the DOI said in an April 10 press release. The new analysis was conducted by the DOI's Bureau of Ocean Energy Management (BOEM).
The updated assessment evaluated more than 140 oil and gas fields, identifying 18 new discoveries and analyzing more than 37,000 reservoirs across 1,336 fields in the Gulf, the DOI said, adding that larger resource base offers drillers "continued opportunity and momentum in offshore development."
"This new data confirms what we've known all along--America is sitting on a treasure trove of energy, and under President Trump's leadership, we're unlocking it," said Burgum. "The Gulf of America is a powerhouse, and by streamlining permitting and expanding access, we're not just powering our economy--we're strengthening our national security and putting thousands of Americans back to work."
The Gulf accounts for about 97% of all offshore oil and gas produced in the U.S. On an annual basis, approximately 14% of U.S. oil and 5% of U.S. natural gas are extracted from the Gulf, according to James Kendall, BOEM Gulf of America regional director. "These updated estimates reaffirm the Gulf's vital role in ensuring a reliable, affordable domestic energy supply."
BOEM oversees nearly 3.2 billion offshore acres of the Outer Continental Shelf (OCS), with about 160 million acres located in the Gulf.
That expanded estimate of Gulf oil and gas reserves came about a week after Burgum directed BOEM to move forward with a national OCS oil and gas lease sale. That national lease sale, the 11th, was formally announced April 18. It will be published in the near future in the Federal Register. Publication will start the clock on a 45-day period where members of the public and industry will have a chance to comment.
Oil and gas lease sales were few and far between during the Biden administration, which was decried by the oil and gas industry, Republican elected officials and GOP-aligned commentators. For more on that, see January 7, 2025, article - Biden Bans Oil & Gas Development Along Outer Continental Shelf.
Burgum said the national lease program would include a "transparent and inclusive public engagement process" for the purpose of "reinforcing our commitment to responsible offshore energy development," which he said would drive job creation, bolster economic growth and strengthen American energy foundations.
Then, in another announcement, the DOI said it was changing its policy for downhole comingling in the Gulf's Paleogene (Wilcox) reservoirs, expanding the allowable pressure differential from 200 pounds per square inch (psi) to 1,500 pounds psi, a 650% increase. The move was expected to result in a production increase of 100,000 barrels of oil per day (BBL/d) over the next 10 years. That announcement was made April 24.
The DOI said the change was the result of "extensive technical consultation with offshore industry leaders." It added that results from a University of Texas study on commingling show that commingled production maximizes per-well oil production compared to sequential schemes. Over 30 years, it provides 61% more oil recovery, and over 50 years, it yields 21% more.
"This is a monumental milestone in achieving American Energy Dominance," Burgum said of the change in downhole comingling policy. "We're delivering more American energy, more efficiently, and with fewer regulatory roadblocks. That means lower costs, more jobs and greater security for American families and businesses."
The change in downhole comingling policy was overseen by the DOI's Bureau of Safety and Environmental Enforcement (BSEE).
In a fourth DOI announcement, also made Thursday, the agency said it was using President Donald Trump's invocation of an "energy emergency" to dramatically shorten the time allowed for environmental review of hydrocarbon projects and critical minerals.
The National Emergencies Act invoked by Trump is a 49-year-old law enacted by Congress to give the president extraordinary powers to change or countermand existing federal policies and procedures when he declares a state of emergency exists.
The DOI said the April 24 move was made to strengthen U.S. energy supplies. But those supplies already have never been higher. The U.S. is the largest producer of crude oil and natural gas as well as the largest exporter of natural gas. U.S. crude oil production has surged about 53% over the last five decades, to approximately 13.2 million BBL/d in 2024 from about 8.6 million BBL/d in the 1970s, according to the U.S. Energy Information Administration.
In a flurry of announcements on his first day as the 47th president, Trump declared an "national energy emergency," which stated "Our Nation's current inadequate development of domestic energy resources leaves us vulnerable to hostile foreign actors and poses an imminent and growing threat to the United States' prosperity and national security....Accordingly, the Department of the Interior is acting swiftly to reduce these vulnerabilities by facilitating the rapid permitting of energy and critical mineral projects that are vital to the nation's economic resilience and energy independence." For more on Trump's declaration of an "energy emergency," see January 21, 2025, article - Trump Invokes 'Energy Emergency,' Vows to 'Drill Baby Drill' and January 22, 2025, article - Far-Reaching Executive Actions on Energy Pour Out of White House.
The new permitting procedures will take a multi-year process down to just 28 days at most. The DOI said the sharp reduction in time allowed for environmental review is "designed to expedite the review and approval, if appropriate, of projects related to the identification, leasing, siting, production, transportation, refining, or generation of energy within the United States."
Trump's declaration of an "energy emergency" allows the DOI to fundamentally alter congressionally enacted laws such as the National Environmental Policy Act (NEPA), Endangered Species Act and the National Historic Preservation Act.
The new expedited NEPA review process flowing from the DOI statement means projects analyzed in an environmental assessment (EA), normally taking up to one year, will now be reviewed within approximately 14 days. Projects requiring a full environmental impact statement (EIS), typically a two-year process, will be reviewed in roughly 28 days.
Legal challenges are likely. One litigious group that typically clashes swords with federal environmental policy is the Center for Biological Diversity. The group's director of public lands, Randi Spivak, said in a statement that the effort would benefit fossil fuel companies at the expense of the public. "These so-called emergency procedures are nothing but grease on the skids for corporate interests to speed approvals that will harm people's health, our public lands and the climate."
The new DOI procedures apply to actions relating to a wide range of energy sources, including:
- Crude oil
- Natural gas
- Lease condensates
- Natural gas liquids
- Refined petroleum products
- Uranium
- Coal
- Biofuels
- Geothermal energy
- Kinetic hydropower
- Critical minerals
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) platform 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 200,000 current and future projects worth $17.8 Trillion (USD).
