The Department of the Interior (DOI) announced last week a long-awaited offshore leasing schedule that includes Alaska’s Cook Inlet and the Gulf Coast. These two regions are critical to ensuring America’s energy security for decades to come.
As Independent Petroleum Association of America CEO and President Jeff Eshelman said of the news:
“Our companies need certainty to plan future opportunities and to keep America the leading oil and gas producer. The DOI announcement is a strong signal that US offshore production is a priority of the Trump Administration. It will encourage our producers to keep investing.”
The first lease, up for auction on December 10, 3025, will kick off a slate of 30 offshore oil and natural gas leases scheduled through 2040.
U.S. Gulf Coast: Benefits to Texas and Louisiana
The new offshore leasing program promises decades of opportunity in the Gulf area, where regular lease sales have been slated through 2040. The U.S. Goal Coast is an indispensable pillar of domestic energy supply. For instance, federal offshore production from the Gulf currently accounts for roughly 15 percent of total U.S. crude oil output.
With a robust leasing schedule in place, Gulf oil and gas output is projected to average about 2.5 million barrels of oil equivalent per day from 2022 through 2040, according to NOIA. This continued development in the Gulf Coast will play a key role in U.S. energy security and export capacity, especially as global demand remains at record highs.
Gulf offshore development is also a major economic engine for Texas, Louisiana, and their neighbors, with the offshore industry supporting an estimated 345,000 well-paid jobs in the region. In addition to jobs and private investment, federal royalties from Gulf production flow back to the region’s states through the congressionally mandated Gulf of Mexico Energy Security Act (GOMESA). In 2025, DOI disbursed $353 million in offshore revenue sharing to the four Gulf states (Alabama, Louisiana, Mississippi and Texas) to support coastal conservation, hurricane protection and infrastructure projects.
Offshore energy development in the Gulf is also funding conservation nationwide through the Great American Outdoors Act of 2020. This landmark law directs up to $1.9 billion per year in offshore oil and gas royalties to repair and upgrade facilities in national parks, forests, and other public lands. And it permanently allocates $900 million annually to the Land and Water Conservation Fund (LWCF). In total, about $2.8 billion per year is invested in conservation efforts across the country thanks to a program almost entirely funded by revenue from the oil and gas industry.
Alaska: Cornerstone of U.S. Energy Security
The Last Frontier holds 3.4 billion barrels of crude reserves and 125 trillion cubic feet of natural gas reserves. Today, Alaska supplies nearly 15 percent of U.S. crude production and anchors offshore development that is critical to meeting growing energy demand.
In 2022 alone, oil and gas development generated more than $4 billion in state revenue and 70,000 local jobs. Additionally, the industry has contributed over $180 billion to Alaska, consistently funding schools, infrastructure and essential services. In most years, oil and gas has supplied around 90 percent of the state’s unrestricted General Fund revenues.
In their recent visit to Alaska, Secretary Burgum and Energy Secretary Wright reaffirmed the administration’s commitment to strengthening U.S. energy independence. Secretary Wright doubled down on Alaska’s role in achieving this goal:
“Today, oil is the largest source of energy on the planet and the fastest source of energy on the planet is natural gas. You have the big two right here: let’s double oil production, build the big, beautiful twin pipeline, and we will help energize the world, strengthen our country and strengthen our families.”
The offshore lease sales will now follow a congressionally mandated schedule, ensuring a predictable, legally binding process that’s protected from shifting political agendas. The scheduled sales offer stability that will incentivize investment and promote energy security and stability for the United States. These market signals are poised to have immediate and long-term impacts on the U.S. energy sector.
Bottom Line: From Alaska to Texas and Louisiana, America’s offshore oil and gas industry drives local economies while powering the nation. Ensuring predictable lease sales in both regions will continue to strengthen local communities, fuel economic growth, and safeguard American energy security.
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