January 16, 2025

Cassidy Leads Senate Push to Hold Offshore Lease Sales in the Gulf of Mexico

WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA), member of the U.S. Senate Energy and Natural Resources Committee, led the introduction of the Offshore Energy Security Act of 2025. The legislation requires the U.S. Department of the Interior (DOI) to hold two offshore oil and gas lease sales per year for 10 years. It is cosponsored by U.S. Senators Katie Britt (R-AL), Tommy Tuberville (R-AL), Roger Wicker (R-MS), and Cindy Hyde-Smith (R-MS). 

“The Biden administration shut down offshore energy development. 2024 was the first time in over 50 years there was not a single lease sale held in the Gulf,” said Dr. Cassidy. “This distinctly violates the law, costs thousands of Louisiana jobs, drives up oil prices, and empowers foreign dictators. We’re putting an end to this.”

“It is past time to unleash American energy dominance. Alabama’s Gulf Coast plays an essential role in fueling our nation and supporting our military readiness—I look forward to working with the Trump Administration to reverse leftwing policies and reckless federal overreach in order to drive down costs for hardworking Alabama families,” said Senator Britt.

“For the last four years, the Biden administration has waged war on American energy. This intentional attack has depleted our domestic energy supply and made us dependent on foreign adversaries. Offshore energy development in the Gulf of Mexico is essential to our nation’s all-of-the-above energy strategy, offering immense economic, national security, and environmental advantages. We need to fully tap into our abundant energy resources, including in the Gulf. I’m proud to join Senator Cassidy in this effort, and will continue working with the Trump administration to restore America’s energy independence,” said Senator Tuberville.

“Offshore energy production in the Gulf of Mexico is vital to our economic and national security,” said Senator Hyde-Smith. “The Offshore Energy Security Act of 2025 will help ensure that our resources are being properly managed to better the lives of Mississippians and the nation by unleashing American energy dominance.”

The current five-year plan for offshore oil and gas drafted under the Biden-Harris administration only suggests three lease sales over five years. Given that 2024 was the last year without an offshore lease sale in more than 50 years, it is important to provide long-term leasing certainty that companies can rely on.

In addition to mandating sales, the bill also defines acreage, stipulates lease terms and conditions, defines which previously finalized environmental reviews will apply to the sales, and ensures that both issued leases and drilling permit applications are not either invalidated, remanded, or delayed as a result of civil litigation. The bill also codifies President Trump’s 2020 memorandum to withdraw the Eastern Gulf of Mexico from leasing for the duration of the legislation.

The Offshore Energy Security Act of 2025:

  • Mandates two offshore oil and gas lease sales per year for 10 years;
  • Provides certainty to offshore energy producers to continue investing in the United States; and
  • Codifies President Trump’s 2020 memorandum on leasing in the Eastern Gulf of Mexico.

The legislation is supported by the American Petroleum Institute (API), National Ocean Industries Association (NOIA), Louisiana Mid-Continent Oil & Gas Association (LMOGA), Gulf Energy Alliance (GEA), and Consumer Energy Alliance (CEA).

“Energy development on federal waters is critical not only to meeting current and future energy demand, but also for supporting American jobs, local economies and conservation programs. We applaud Sen. Cassidy for standing up for American energy and working to ensure a steady and predictable offshore leasing program,” said API Vice President of Upstream Policy Holly Hopkins. 

“NOIA thanks Senator Cassidy for his efforts to provide congressional direction to the national OCS leasing program. By explicitly codifying annual lease sales with competitive stipulations that protect the environment and return fair value to taxpayers, the OESA will ensure oil and gas development resumes in the Central and Western U.S. Gulf for the next decade. Speedy passage of this legislation has never been more critical with the largest offshore drilling ban in U.S. history enacted just weeks ago by President Biden,” said NOIA President Erik Milito.

“The Louisiana Mid-Continent Oil & Gas Association (LMOGA) strongly supports the Offshore Energy Security Act of 2025, a critical step toward ensuring the stability and growth of energy production in the Gulf of Mexico. This legislation not only secures our national energy independence but also sustains the Gulf South economy by creating operational certainty, supporting thousands of high-wage jobs, and contributing significantly to state and local revenues. We urge Congress to pass this vital bill to maintain the energy security and economic prosperity of our region and nation,” said LMOGA President Tommy Faucheux 

“Senator Cassidy recognizes the critical need for predictable and regular lease sales in federal waters off Louisiana’s coast. The Gulf Energy Alliance (GEA) commends his leadership in introducing the Offshore Energy Security Act of 2025, which mandates at least two area-wide offshore lease sales annually. The GEA, a coalition of leading independent offshore oil and natural gas producers, depends on these lease sales and policies that promote sustainable investment, innovation, and job creation in the Gulf of Mexico. Following President Biden’s removal of over 625 million acres of offshore waters from oil and gas development, this legislation is vital to driving additional investments and ensuring the production of the world’s cleanest oil. The offshore energy industry is essential to America’s energy independence and global leadership. Senator Cassidy’s bill will solidify the nation’s position as an energy powerhouse for years to come,” said GEA Executive Director Kevin Bruce

“CEA applauds Senator Cassidy for introducing the Offshore Energy Security Act of 2025 that mandates offshore lease sales in the Gulf of Mexico. This is a critical step forward in strengthening American energy security at a time when families, small business, and manufacturers need stable and affordable energy. It is unconscionable that leasing in the Gulf of Mexico has been limited over that past several years, causing market uncertainty, increasing U.S. inflation, negatively impacting consumers, harming U.S. national security. Senator Cassidy is right to step up to help ensure we can keep energy prices down and energy security strong. CEA looks forward to working with Congress to quickly pass this commonsense legislation and sending it to the President for his signature,” said CEA Vice President Kaitlin Hammons

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