The U.S. Interior Department has introduced a policy to increase oil production in the Gulf of America by 100,000 barrels per day, following an executive order from President Donald Trump titled “Unleashing American Energy.”
The initiative, announced by Interior Secretary Doug Burgum, aims to enhance domestic energy output through technical advancements in offshore drilling.
Enhanced Drilling Techniques to Drive Output
The new policy allows offshore oil operations in the Gulf to tap multiple reservoirs simultaneously at higher pressure levels, increasing production by approximately 10%. The permitted pressure for extraction has risen from 200 psi to 1,500 psi, utilizing a process called “downhole commingling.”
This approach, endorsed by industry leaders, draws on a September 2023 University of Texas study projecting up to 61% more oil production over the next 30 years. Previously, regulations relied on a 2010 study to set production and pressure limits.
“This is a major win for domestic energy,” said Kenneth Stevens, principal deputy director of the Bureau of Safety and Environmental Enforcement.
“Thanks to the tireless work of our technical experts and our industry partners, this advancement enables increased recovery from existing wells, reducing the cost per barrel and strengthening our nation’s energy independence.”
Reversal of Prior Restrictions
The policy follows Trump’s reversal of a late-term Biden administration ban on new offshore oil and gas drilling along much of the U.S. coast, including parts of the eastern Gulf of Mexico, the East Coast, the Pacific, and Alaskan waters.
Trump rescinded the ban on his first day in office, criticizing it for contributing to economic challenges.
“Climate extremism has exploded inflation and overburdened businesses with regulation,” Trump stated in his pronouncement. He also signed an order declaring a national energy emergency, lifting federal regulations deemed burdensome to energy production.
The Interior Department’s actions align with Trump’s broader energy agenda, which includes addressing inflation, which he noted reached 22% under Biden.
“We’re going to make a lot of money from energy. We have more than anybody else,” Trump said on January 20 while signing the orders.
Broader Energy and Symbolic Initiatives
Burgum framed the policy as a step toward energy security and economic benefits. “This is a monumental milestone in achieving American energy dominance,” he said.
“We’re delivering more American energy, more efficiently, and with fewer regulatory roadblocks. That means lower costs, more jobs, and greater security for American families and businesses as President Trump promised.”
In addition to energy reforms, Trump’s January 20 orders included renaming the Gulf of Mexico to the Gulf of America and restoring the name of Mount McKinley in Alaska.
These symbolic changes accompany the administration’s focus on expanding domestic energy production to bolster economic and energy independence.
