White House Proceeds with Plan to Restart Oil and Natural Gas Production Offshore California -- OPIS

Dow Jones
01/27

The Bureau of Ocean Energy Management is asking for public input on Trump administration efforts to reopen oil and gas leasing offshore California.

BOEM in separate Monday announcements asked exploration and production companies to identify areas in which they may have an interest and to asked for public comments on potential leasing off the Southern and Central California.

The agency said the calls were the first steps in the agency's leasing process.

The calls cover potential sales in the two planning areas, with first sales in both the areas tentatively scheduled for sometime in 2027, the agency said.

A 30-day comment period will begin on Tuecaay when the notices will be published in the Federal Register.

Information gathered in the process is expected to be used by BOEM to determine whether to continue to pursue sales in the proposed regions.

"Issuing these calls doesn't constitute a decision to hold a lease sale, nor does it preclude areas from being removed from future consideration," the agency said.

If BOEM does decide to open the areas for leasing, it would potentially open California's coast to offshore drilling for the first time in 40 years.

The proposal, part of an Interior Department plan that calls for 34 oil and gas lease sales in federal waters off the Gulf of Mexico, Alaska, Florida and California, has been roundly criticized by Democrats in California. Gov. Gavin Newsom called the plan "idiotic" and "reckless" and said it endangers the state's coastal economy and communities.

But Trump's efforts to ramp up federal lease sales has been welcomed by industry groups. The American Petroleum Institute on Friday said it was joining more than 80 other national, state and local energy, business and manufacturing organizations in submitting comments in favor of the sale plan.

API said it and nine other offshore energy associations and industry groups also asked BOEM "to maintain all proposed acreage with no additional areas rmoved from future leasing consideration."

Further, the groups said they support expanding the leasing program to new areas, including off the West Coast and Alaska as well as the South-Central Gulf of Mexico and the Atlantic.

The Trump has sought to expand the federal leasing program after the Biden administration curtailed future sales.

The Trump administration's first auction of oil and gas leases in the Gulf of Mexico was held in December and attracted $279 million in high bids.

 

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

 

Reporting by Steven Cronin, scronin@opisnet.com ; Editing by Jeffrey Barber, jbarber@opisnet.com

(END) Dow Jones Newswires

January 26, 2026 16:27 ET (21:27 GMT)

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