Interior Secretary Doug Burgum has taken bold and immediate action to ramp up oil and gas production in the newly renamed Gulf of America, following the direction of President Donald Trump’s energy-first policy. In a sweeping regulatory rollback, Burgum removed financial and technical barriers that had been holding back American producers, setting the stage for a dramatic increase in domestic energy output. These moves are expected to boost oil production in the Gulf by more than 100,000 barrels per day, while also cutting costs and increasing energy independence.
Trump’s Executive Orders Set the Foundation
When President Trump returned to office in January 2025, one of his first moves was to reverse several of President Biden’s environmental restrictions on offshore drilling. He signed an executive order on his first day in office to rescind a drilling moratorium that had blocked new energy development across much of the East Coast, the Pacific Coast, parts of Alaska, and the eastern Gulf of Mexico.
In his official statement, Trump said, “Climate extremism has exploded inflation and overburdened businesses with regulation.” He declared a national energy emergency to begin stripping away what he described as burdensome regulations that hindered America’s ability to produce its own energy.
“We’re going to make a lot of money from energy. We have more than anybody else,” Trump said from Air Force One as he signed the order while flying over the Gulf. He also formally renamed the Gulf of Mexico to the “Gulf of America” as part of a symbolic shift toward national pride and energy independence.
Burgum’s Rule Revision Cuts $6.9 Billion in Costs
Building on Trump’s orders, Secretary Burgum on May 2 announced a sweeping change to a Biden-era financial assurance rule that had significantly raised the cost of doing business for offshore oil producers. Under the previous rule, energy companies were required to post an additional $6.9 billion in financial assurances to cover the risk of default on offshore oil leases. That figure translated into an estimated $665 million in added insurance premiums for energy firms.
Industry leaders said those requirements forced companies to spend money on insurance and compliance rather than drilling and expansion.
Burgum said the revised rule would allow producers to reinvest that money into growing energy output instead of wasting it on unnecessary paperwork and fees.
“This rule revision will enable our nation’s energy producers to redirect their capital toward future leasing, exploration, and production all while financially protecting the American taxpayer,” Burgum told Fox News Digital.
“Cutting red tape will level the playing field and allow American companies to make investments that strengthen domestic energy security and benefit Gulf of America states and their communities,” he added.
The Department of the Interior clarified that the Bureau of Ocean Energy Management (BOEM) will still require financial assurances from offshore operators, but the approach will now be more balanced and less punitive.
Unlocking Oil with Downhole Commingling
In addition to the financial rule changes, Burgum also approved a technical shift known as “downhole commingling.” This allows offshore oil companies to extract oil from multiple reservoirs in the same well simultaneously, rather than sequentially. The policy change significantly increases efficiency and production output.
Previously, companies were restricted to a pressure differential of just 200 psi between reservoirs, limiting how much oil could be safely extracted at once. Under the new rule, the pressure limit has been raised to 1500 psi, based on new technical data that supports safe and effective commingling at higher pressures.
The change came after collaboration between the Interior Department and offshore industry leaders, as well as a comprehensive study from the University of Texas. According to the study, commingling can result in 61 percent more oil recovery over a 30-year period compared to traditional methods. Over a 50-year period, it yields 21 percent more production.
“This is a monumental milestone in achieving American energy dominance,” Burgum said in a press statement. “We’re delivering more American energy, more efficiently, and with fewer regulatory roadblocks. That means lower costs, more jobs, and greater security for American families and businesses as President Trump promised.”
A Projected Surge in Output and National Impact
The Department of the Interior estimates that these changes will result in a production boost of at least 100,000 barrels of oil per day in the Gulf of America. The Gulf already produces about 1.8 million barrels of oil daily and 2 billion cubic feet of natural gas. The new commingling policy could increase production by roughly 10 percent without requiring any new leases or infrastructure.
Kenneth Stevens, Principal Deputy Director of the Bureau of Safety and Environmental Enforcement, called the change “a major win for domestic energy.”
“Thanks to the tireless work of our technical experts and our industry partners, this advancement enables increased recovery from existing wells, reducing the cost per barrel and strengthening our nation’s energy independence,” Stevens said.
Less Waste, More Energy
The commingling policy also improves conservation by maximizing extraction from each reservoir. Under the new policy, oil operators must meet modern safety and performance standards, including pressure monitoring and fluid compatibility testing, to ensure responsible resource management.
The updated strategy allows the country to get more value from every well, lowering production costs and helping to stabilize energy prices for American consumers. Burgum emphasized that the rule not only increases energy output, but also avoids unnecessary waste.
“This policy will not only increase production but also enhance resource conservation by expediting development from each reservoir,” the Interior Department said in its official statement.
Burgum Visits the Gulf to Show Support
On May 1, just one day before the rule was finalized, Burgum visited a liquefied natural gas (LNG) export facility along the Gulf Coast to speak directly with energy workers. He said the department under his leadership is committed to being a true partner to American energy producers.
“I wanted to be here on the ground to let these workers know we support what they do,” Burgum said. “These people power America. Our job is to make sure Washington gets out of their way.”
With Burgum leading the Department of the Interior and Trump doubling down on energy dominance, the United States is poised to significantly increase oil production while lowering costs for consumers. The Gulf of America has become the center of this renewed energy strategy, where smart deregulation and updated technology are creating new opportunities for growth.
Through these actions, Trump and Burgum are showing that American energy can be powerful, affordable, and reliable when government chooses to support, rather than stifle, innovation and production.
