TOPLINE:
The One Big Beautiful Bill (OBBB) unleashes American energy by requiring 36 oil and gas lease sales in the Gulf of America and the Cook Inlet of Alaska through 2040.
BACKGROUND:
Offshore oil and gas production delivers substantial economic and energy benefits to Americans, contributing $30 billion to GDP in fiscal year 2024. Offshore drilling supplies about 668 million barrels of oil (14% of total domestic output) and 700 billion cubic feet of natural gas (2% of total domestic output) per year. Government revenue from offshore oil and gas activities was $5.8 billion in fiscal year 2025, benefiting American taxpayers. Leases are issued for five to 10 years and then may be extended for decades if the leases produce reliable energy for Americans.
What OBBB Did:
Why It Matters?
- More offshore oil and gas leases will create additional jobs beyond the 266,000 positions that offshore oil and gas already provides.
- Natural gas is responsible for about 40% of U.S. electricity generation, so expanded offshore energy production is an important contributor to affordable electricity prices.
- Each barrel of crude oil produces about 20 gallons of gasoline, 12 gallons of diesel, 4 gallons of jet fuel, and other oil products. Expanding the supply of oil and gas improves the affordability of everyday goods and services like groceries, clothing, and airfare.
- Harnessing America’s natural resources increases its energy security and shields the country from price volatility due to foreign conflicts and disasters.
Where Can I Find Changes?
OBBB Section 50102; 43 U.S.C. § 1331, 1337.
BOTTOMLINE:
Abundant energy is a key driver of economic dynamism, affordability, and energy security. Expanding the energy supply by simply opening more opportunities to explore and drill for oil and gas is a win-win for American consumers, workers, and companies alike.
This memo is part of the One Big Beautiful Booklet, a collection of more than 60 memos that examine and summarize the major aspects of the One Big Beautiful Bill – the signature legislative achievement of President Trump and the 119th Congress.
