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USA Business Watch – Insightful News on Economy, Finance, Politics & Industry
Home » Trump administration takes first steps toward offering new offshore oil drilling leases in California – Energy News, Top Headlines, Commentary, Features, Events
Energy & Resources

Trump administration takes first steps toward offering new offshore oil drilling leases in California – Energy News, Top Headlines, Commentary, Features, Events

Bussiness InsightsBy Bussiness InsightsJanuary 28, 2026No Comments2 Mins Read
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Santa Ynez Offshore Oil Project 1200x810

(Reuters) – The Trump administration has called on the oil and gas industry to nominate potential locations for offshore oil and gas lease sales in southern and central California as early as next year.

Why is it important?

The move is part of a push by President Donald Trump’s Interior Department to expand offshore drilling. It faces strong opposition in California, a state known for its ambitious climate policies, strong environmental regulations and iconic coastline.

important quotes

“We are taking the first steps toward a stronger and more secure American energy future,” Matt Giacona, acting director of the Interior Department’s Bureau of Ocean Energy Management, said in a statement.

context

The move is consistent with President Trump’s energy dominance policy, which aims to expand U.S. fossil fuel production. The United States hasn’t auctioned off drilling rights in the Pacific since 1984, and California’s coastline has been largely protected from new energy development since the 1969 Santa Barbara oil spill that triggered major environmental protections.

shocker edge
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California Gov. Gavin Newsom and environmental groups have condemned the plan, which could be replaced by a more moderate rental plan by the Biden administration. They argue it threatens California’s coastal economy and ecosystem.

Look at the numbers

Federal waters accounted for 14% of U.S. oil production in 2024, while Pacific leases accounted for just 0.1% of that production, according to government data.

reply

“President Trump has taken another alarming step toward opening the California coast to dangerous new offshore drilling,” said Kristen Monsell, ocean legal director for the Center for Biological Diversity, an environmental group. She warned of risks to communities, wildlife and California’s famous coastline, calling it a “reckless attempt to sell coastline to oil companies.”

what’s next

The oil and gas industry and the public have 30 days to submit comments to BOEM. The first lease sales in Southern and Central California are tentatively scheduled for 2027.

Report by Nicola Groom in Los Angeles. Editing: Bill Berkrot

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