(Reuters) -The Trump administration on Thursday unveiled a five-year plan to hold as many as 34 auctions for oil and gas drilling rights leases in the Gulf of Mexico and in federal waters off the coasts
of Alaska and California.
The Interior Department proposal is aligned with President Donald Trump's energy-dominance agenda to supercharge domestic fossil fuel production. It is likely to set off a fresh conflict with California Governor Gavin Newsom, a Democrat who is among the president's harshest critics.
The plan contemplates 21 sales off the coast of Alaska starting next year, seven in the Gulf of Mexico and six in the Pacific Ocean from northern to southern California.
Oil and gas leases in federal waters accounted for 14% of U.S. oil production and 2% of domestic natural gas production in fiscal-year 2024, according to federal data. The vast majority of that output is from leases in the Gulf of Mexico.
The proposal would replace a schedule set by the administration of former President Joe Biden that included just three lease sales in the Gulf of Mexico.
"The Biden administration slammed the brakes on offshore oil and gas leasing and crippled the long-term pipeline of America’s offshore production," Interior Secretary Doug Burgum said in a statement. "By moving forward with the development of a robust, forward-thinking leasing plan, we are ensuring that America’s offshore industry stays strong, our workers stay employed, and our nation remains energy dominant for decades to come.”
Federal waters typically start 3 nautical miles off the coast and extend about 200 nautical miles.
Oil and gas industry groups praised the plan.
"We commend Secretary Burgum and the Department of the Interior for taking this important step to fix a leasing program that was wholly insufficient," National Ocean Industries Association President Erik Milito said in a statement. "We look forward to working with policymakers to ensure the Gulf continues to lead America's energy future."
The Trump plan does not include any sales in the Atlantic Ocean. The Republican governor of South Carolina had asked for his state to be left out of the plan, as had the Democratic governor of North Carolina.
Newsom has said that any plan to open up drilling in federal waters off the coast of his state would be "dead on arrival."
His office did not immediately respond to a request for comment.
Conservation groups derided the proposal.
"This draft plan is an oil spill nightmare!" Oceana Campaign Director Joseph Gordon said in a statement. "The last thing America needs now is a massive expansion of offshore drilling that could shut down our shores with catastrophic oil spills."
(Reporting by Nichola Groom in Los Angeles; Editing by Rod Nickel and Matthew Lewis)
