The US Department of the Interior (DOI) has announced plans to revise the Bureau of Ocean Energy Management’s (BOEM) 2024 Risk Management and Financial Assurance Rule for offshore oil and gas operations. This revision aims to align with a regulatory framework proposed during the Trump administration in 2020 and is intended to reduce financial burdens on energy producers and stimulate domestic energy development.
The rule has faced criticism and legal challenges from Gulf states and mid-size oil and gas companies who argued that the additional financial requirements would impose undue burdens and hinder investment in energy projects.
Specific details have not been shared; however, the DOI”s proposed revision seeks to alleviate these concerns by reducing costs and regulatory hurdles, thereby freeing up capital for companies to invest in leasing, exploration, drilling, and production activities.
US DOI Announces Intention to Revise Offshore Financial Assurance Rule to Stimulate Domestic Energy Development