Doug Burgum Unveils Major Deregulatory Shift to Boost Gulf Oil and Gas Production

Big news on the energy front: Interior Secretary Doug Burgum is set to overhaul a major Biden-era federal rule on Friday, aiming to slash costs for private energy firms. This move follows his recent trip to a liquefied natural gas (LNG) export facility on the Gulf Coast—clearly, he's wasting no time making waves.

The upcoming rule change is expected to "massively deregulate" previous requirements, especially those that have been weighing down Gulf Coast oil and gas producers with hefty start-up costs. The 2024 Bureau of Ocean Energy Management (BOEM) had projected $6.9 billion in new supplemental financial assurances would be needed to cover oil lessees' defaults. This translated into an extra $665 million in insurance premiums, which, not surprisingly, left energy companies with less cash to invest in new drilling and expansion. Talk about a buzzkill for "American energy dominance," as Donald Trump likes to call it.

Burgum says the revised rule will let U.S. energy producers redirect their capital into future leasing, exploration, and production, all while still protecting taxpayers. "Cutting red tape," he claims, will level the playing field and let American companies invest in ways that strengthen domestic energy security and benefit Gulf states and their communities. The message: less paperwork, more drilling.

The BOEM will still require lessees on the outer continental shelf to provide financial assurances, but the Trump administration is pushing for more balanced regulations overall. During his Gulf visit, Burgum met with energy workers at the LNG facility, emphasizing how his department wants to better support the industry. With the Gulf of America currently pumping out around 1.8 million barrels of crude oil and 2 billion cubic feet of natural gas daily, any boost will be felt far and wide. If energy policy were a reality show, this would be the part where everyone grabs popcorn.