The US Department of the Interior has released a draft proposal for a new five-year offshore oil and gas leasing program from the Bureau of Ocean Energy Management, covering 2026 to 2031. This program would introduce up to 34 new lease sales across federal waters in Alaska, the US Gulf of Mexico, and California, encompassing 1.27 billion offshore acres.

Scope and Distribution of Proposed Lease Sales

The proposed program is particularly aggressive in Alaska, scheduling 21 potential auctions covering nearly the entire coastline. It would add seven auctions in the US Gulf, including two in the eastern region near Florida, and six in federal waters near California. Notably, no lease sales are planned for the US east coast. These 34 new sales are in addition to the 36 lease sales already mandated by the One Big Beautiful Bill Act passed by Congress in July, which called for 30 sales in the US Gulf and six in Alaska's Cook Inlet through 2040.

Historical Context and Environmental Concerns

The proposal marks a significant shift, as the federal government has not permitted drilling in the eastern section of the US Gulf since 1995 due to oil-spill concerns, and no new leasing has occurred in federal waters near California since the mid-1980s. The existing lease sales under the recent act are already facing legal challenges from environmental groups, with a December sale being contested in court.

Approval Process and Timeline

The Department of the Interior aims to implement the new program by October 2026, but it must undergo a multi-stage review process. This process begins with a 60-day public comment period on the current draft, followed by the issuance of a revised draft and a subsequent 90-day comment period. After further revisions, the proposal is sent to Congress and the president for review, and the DoI cannot grant final approval until they have had 60 days to analyse it. This proposed program would replace the current five-year BOEM program approved by the Biden administration in 2024, which scheduled only three lease sales through 2029.

Recent Policy Volatility

The proposal continues a pattern of volatile offshore auction policy. The Trump administration attempted to expand leasing in 2018 but abandoned the plan a year later after a court overturned it. The Biden administration initially paused all new leasing on public lands and federal waters upon taking office in 2021 but eventually held three Gulf lease sales—one following a court battle and two mandated by the Inflation Reduction Act of 2022. President Biden also attempted to block leasing on 625 million offshore acres as he left office, but a judge ruled this action illegal in October.