U.S. Interior Department Unveils Vast Offshore Leasing Program; Global Wind Projects Advance

Trump Administration Announces Extensive Offshore Energy Leasing Initiative

On November 20, the Department of the Interior released a Secretary's Order entitled 'Unleashing American Offshore Energy,' with instructions to the Bureau of Ocean Energy Management to create a more expansive 11th National Outer Continental Shelf Oil and Gas Leasing Program by October 2026 compared with Biden administration's 2024-2029 program which Trump administration considered too limited. This proposal marks an significant departure from previous administration's plan that had only limited leasing plans published.

The National Outer Continental Shelf Oil and Gas Leasing Program 2026-2031 proposes up to 34 potential offshore lease sales across 21 of 27 Outer Continental Shelf planning areas covering an estimated 1.27 billion acres, covering 21 off Alaska, seven in the Gulf of America, six along Pacific coast and Interior also announced the creation of South-Central Gulf America Administrative Planning Area as a way of expanding development efforts.

Secretary of the Interior Doug Burgum announced an initiative designed to restore American energy dominance and promote long-term offshore industry strength. Under this proposal, over 85 percent of Outer Continental Shelf oil and gas resources would become available for leasing during a five-year period - this announcement marked the first of three proposals that will be developed prior to final program approval; each lease sale would undergo further environmental analyses as well as public comment opportunities before moving forward for sale.

Floating Offshore Wind Expands in Face of Market Headwinds

Despite recent market uncertainties, global floating offshore wind continues to make progress despite their challenges. 25 MW has been installed so far, led by EDF in France's PGL project; four additional projects are under full-offshore construction with expected operational times within four months; 60MW for France alone, 17MW in Japan's long-delayed Goto project, and 16MW from China are all scheduled.

RenewableUK's EnergyPulse report estimates that approximately 2.5 GW of floating offshore wind could become operational by the end of 2030 worldwide, with China contributing 45% and United Kingdom 41%. There is currently 221.5 GW either under development or already operational globally, including 9.4 GW already consented or pre-constructed and 20.8GW with planning applications submitted worldwide.

The UK's 2030 forecast leans heavily toward the latter half of this decade and depends on existing Contract for Difference-backed projects achieving milestones. Allocation Round 7 may only support 2-3 projects from 458 MW of eligible floating capacity across Scotland and England due to limited budgetary allocation.

Market Uncertainty Affects Offshore Project Investment

Offshore energy markets have come under attack by policy uncertainty and project delays. Fugro, one of the major offshore services providers, revised its annual outlook and announced further job cuts due to delays in both offshore wind and oil and gas markets - with projects delayed until 2026 and reduced scope; an impact estimated by Fugro at 100 million euro revenue impact; previously expected 20 percent revenue growth now no longer realistic due to oil and gas impacts being felt most directly.

ExxonMobil recently made an important statement regarding their continued confidence in select projects despite market uncertainties, when they made a final investment decision for the Hammerhead development offshore Guyana. ExxonMobil highlighted how collaboration between its team and Guyana's government is essential to creating an oil and gas industry which provides jobs as well as supplier opportunities.