What Is Offshore Leasing? 

What is offshore leasing?  

Offshore leasing refers to the process by which the federal government grants companies the right to explore and extract oil and gas from areas under the ocean floor within its jurisdiction, typically on the outer continental shelf. Through the oil and gas leasing process, federal officials set leasing policy, schedule lease sales, and review projects before development can move forward.  

Companies can bid for access to offshore areas, but projects still must go through planning, environmental review, permitting, and safety requirements before exploration or production can begin.  

Why does offshore leasing matter right now? 

Offshore leasing matters because it helps shape future U.S. energy supply. Offshore projects take years of planning and major investment, which means today’s leasing decisions can affect how much American energy is available well beyond the 2030s.  

When leasing is delayed, limited, or uncertain:  

• Companies, workers, and communities have less certainty about future offshore projects.  

• Energy planning becomes more difficult because the Gulf of America supplies approximately 14 percent of U.S. crude oil production.  

Future production can decline: one analysis projected that stopping federal leasing and development could reduce offshore oil production by 44 percent and offshore natural gas production by 68 percent by 2030, putting related jobs and public revenue at risk.  

How does offshore leasing impact Americans? 

Offshore leasing can affect Americans in several ways:  

• Reliable supply:  Onshore and offshore production enhance the supply of energy Americans rely on for transportation, manufacturing, electricity generation, and everyday products — with a single offshore well able to recover more than 10 million barrels of oil equivalent over its lifetime. 

• Jobs and local economies:  Offshore production helps power America’s economy by creating around 250,000 high-skilled American jobs, generating public revenue, and supporting ports, manufacturers, and a broad U.S. supply chain. 

• Carbon Footprint: U.S. offshore oil production from the Gulf of America has among the lowest carbon intensity in the world. 

How can I take action to support offshore leasing?   

Individuals can stay informed and engaged on offshore leasing and broader energy policy issues in several ways.  

• Join Energy Citizens : Joining Energy Citizens is a simple way to stay informed about offshore leasing and other energy issues that affect affordability, reliability, and domestic energy production.  

• Learn More : Understanding the offshore leasing process can help explain how offshore resources are reviewed, leased, and potentially developed.  

• Contact Your Elected Officials: Offshore leasing can help support long-term energy security, project certainty, and reliable domestic energy supplies. Reaching out to lawmakers is one way individuals can make their voices heard on these issues.