The Future of Offshore Energy Must Focus on Economic Growth and Security

In the face of election hype and political turbulence, the US offshore energy sector remains resilient. This industry powers our nation, supports hundreds of thousands of jobs across all 50 states, and bolsters national security. From the Gulf of Mexico to the emerging offshore wind farms along the East Coast—and the potential of carbon sequestration, hydrogen, and critical minerals—this sector drives economic growth and ensures our energy security.

GULF OF MEXICO

The Gulf of Mexico has been central to US offshore oil and gas production since the 1940s, consistently producing over 1 million barrels per day since the 1990s. Gulf production now reaches close to 2 million barrels daily, with lower emissions than global averages. Despite policy setbacks, 2025 offers hope—one that could be brighter with supportive policies in place.

2024 marks the first year since 1958 without a Gulf lease sale, with only three planned over the next five years. These cuts are hard to justify given the Gulf’s stable, affordable, low-carbon energy, which fuels growth and generates billions in revenue.

Litigation also clouds the Gulf’s outlook. A recent court ruling against the National Marine Fisheries Service’s Gulf Biological Opinion (BiOp) has heightened regulatory uncertainty, potentially affecting every permit or plan. Fortunately, the court delayed vacatur of the BiOp until May 2025, preventing a permitting bottleneck. Additionally, the proposed expansion of the Rice’s whale critical habitat, based on incomplete science, could harm energy production without real benefits to the species.

Addressing this should be a priority for Congress and the administration.

INNOVATION, SAFETY & EFFICIENCY

Despite these challenges, Gulf innovation endures. Chevron’s Anchor project, which achieved its first oil in August 2024, exemplifies industry commitment to innovation, safety, and efficiency. Projects like Beacon Offshore Energy’s Shenandoah and bp’s Kaskida further reinforce the Gulf’s status as a premier global energy basin.

Meanwhile, US offshore wind projects are advancing. With over 15 GW of offshore wind electricity contracted, more than $24 billion has been invested into the supply chain, with contracts in 39 states. Offshore wind has generated jobs and investments in Louisiana, Texas, North Carolina, Wisconsin, and Florida.

Similarly, offshore carbon sequestration and critical minerals offer strong potential. The new carbon sequestration leasing regime, though delayed, is close to becoming reality. As the energy transition demands more critical minerals, the US can produce these from the seafloor, reducing dependence on countries like China.

As the nation moves beyond elections, it’s crucial for Congress and the White House to unite on a comprehensive offshore energy policy. Offshore oil, gas, and renewable projects offer job creation, energy security, environmental stewardship, and significant government revenue—at no taxpayer cost. By seizing this moment, policymakers can fuel the innovation and investment needed to keep the US at the forefront of global energy leadership.

This feature appeared in ON&T Magazine’s 2025 Special Edition, The Future of Ocean Technology, Vol. 5, to read more access the magazine here.

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