Oil pump jack is seen in front of displayed U.S. flag in this illustration taken, October 8, 2023.
The proposal aims to support increased fossil fuel output by streamlining access to drilling and mining on federal territories. It mandates 30 lease sales in the Gulf of Mexico, now referred to as the Gulf of America, over 15 years, replacing the Interior Department’s five-year schedules. Additionally, it requires six offshore lease sales in Alaska’s Cook Inlet and four onshore sales in the Arctic National Wildlife Refuge over the next decade, with biennial sales in Alaska’s National Petroleum Reserve.
After 2035, Alaska would receive 90% of leasing revenues, sharing proceeds with the federal government until then. The plan also lowers royalty rates for drillers to 12.5% for both onshore and offshore operations. According to a May 4 committee memo, these changes could generate $15 billion in federal savings and revenue, primarily from onshore leasing adjustments.
“The House Committee on Natural Resources is answering President Trump’s call to unleash American energy dominance through commonsense, science-based, and economically sound provisions in budget reconciliation,” the committee’s Republican staff stated in a memo.
The reconciliation process enables the Republican-majority House to advance the bill without Democratic support, potentially passing it later this year. An oil industry executive expressed confidence to Reuters that the measures will remain largely intact due to strong congressional support, though some aspects may face legal challenges. Jenny Rowland-Shea, director of public lands at the Center for American Progress, noted: “The bill would upend the use of our public lands as we know it, putting President Trump’s oil and mining industry donors in the driver’s seat.”
Recent lease sales in Alaska have been limited due to low industry interest. The upcoming markup hearing is a critical step before the legislation moves to the House floor for a vote.
