The Trump administration has repealed Biden’s offshore oil rig cleanup regulations through a March 2025 Congressional Review Act resolution. This rollback eliminates stricter financial requirements for oil companies handling decommissioning costs. Supporters claim the change will create jobs and boost energy independence across 625 million offshore acres. Critics warn of environmental risks and shifted cleanup responsibilities. The Department of Interior plans to finalize new, less restrictive regulations later this year.
President Trump has rolled back key offshore oil drilling regulations put in place during the Biden administration. In March 2025, Trump signed a Congressional Review Act joint resolution that repealed stricter rules created by the Bureau of Ocean Energy Management. The repealed regulations had set tougher standards for decommissioning and financial bonding requirements for offshore oil rigs.
The Department of the Interior will finalize revised regulations in 2025, which will be open for public comment. This action makes it harder to reinstate the Biden-era restrictions in the future. The move is part of a larger shift toward expanding offshore oil and gas production instead of focusing on regulatory oversight. The previous rule imposed substantial financial burdens of $6.9 billion in additional bonding and $665 million in annual premium costs on the industry.
Supporters of the rollback claim the offshore oil and gas industry creates hundreds of thousands of high-paying jobs. They believe fewer regulations will boost economic growth in energy-producing regions. Industry leaders point to benefits for local economies and supply chains. Companies will now face lower costs for compliance and decommissioning of old rigs.
Fewer regulations mean more jobs, stronger local economies, and reduced costs for America’s vital offshore energy sector.
The Trump administration frames this policy change as essential for American energy independence. The reversal removes restrictions on new leasing across 625 million acres of offshore territory. Advocates say increased domestic production reduces the need for foreign energy sources and strengthens national security. The establishment of the National Energy Dominance Council further demonstrates the administration’s commitment to expanding offshore energy production. Environmental experts warn that expanded drilling operations could lead to more habitat destruction and water contamination near coastal areas.
The National Ocean Industries Association has endorsed these changes as a return to pro-energy policies. Senators John Kennedy and Cindy Hyde-Smith supported the repeal, saying it removes “handcuffs” from the industry. Representative Mike Ezell led a House resolution highlighting benefits for Mississippi and the nation’s energy sector.
The Biden regulations had required companies to prove they could cover the costs of dismantling offshore rigs. Critics called these rules “burdensome” and expensive. The reversal may increase financial risk for federal and state governments if companies default on their cleanup obligations.
The Department of the Interior will now work with industry leaders to develop new rules that balance energy production with appropriate oversight.
References
- https://gcaptain.com/trump-administration-reverses-course-on-biden-offshore-decommissioning-bonding-rule/
- https://www.kennedy.senate.gov/public/2025/3/president-trump-signs-kennedy-resolution-repealing-rule-targeting-offshore-energy-production-into-law
- https://www.velaw.com/insights/war-on-the-offshore-president-trump-restores-areas-withdrawn-by-president-biden-from-offshore-drilling/
- https://www.offshore-mag.com/special-reports/article/55273636/noia-a-new-era-for-us-offshore-energy-under-the-trump-administration
- https://www.doi.gov/pressreleases/department-interior-secretary-applauds-congressional-action-enhance-offshore-energy
