The Gulf Of America Is Back

Authored by Erik Milito via RealClearEnergy,

After years of market swings, regulatory uncertainty, and deep staffing cuts, America’s energy workforce is overdue for a stabilizing signal. December 10th provides exactly that: the first federal Gulf of America lease sale in nearly two years, offering long-awaited certainty for the companies and workers that power America’s offshore energy engine.

In 2024, Gulf of America oil and gas activity supported approximately 428,000 jobs across all 50 states, contributed $35.9 billion in spending, and generated $7 billion in federal revenues. Few industries deliver that scale of widespread economic impact.

Mandated by President Trump’s One Big Beautiful Bill, this sale is the first of 30 over the next 15 years, with additional sales offshore Alaska. After an unprecedented 24-month leasing gap, the door to America’s offshore future, anchored by Texan expertise, is reopening.

Regular leasing is not a bureaucratic detail; it’s the foundation of long-term offshore development. Offshore oil and gas projects are multi-billion-dollar endeavors with 20–30-year timelines, and many high-skill engineering, fabrication, marine, and logistics jobs supporting are found across the Gulf coast. More than 200 job types, from subsea engineers to welders to data scientists, pay on average 29% above the national average. When leasing stalls, workers feels it first.

Production coming online today is the result of lease sales, policy choices, and investment decisions made years ago. Wood Mackenzie projects that long-planned deepwater projects will add 300,000 barrels per day in 2025 and another 250,000 in 2026, essential to replenish offshore production volumes, offset onshore declines, and strengthen long-term U.S. energy security. None of this happens overnight: consistent leasing is the lifeline for the offshore economy.

The 24-month pause forced operators, service companies, and supply-chain firms to delay projects, scale back planning, and freeze capital, contributing directly to staffing reductions across the region. Predictable leasing restores confidence, giving companies a horizon for investment and workers the stability they deserve.

The offshore ecosystem spans subsea engineering, advanced manufacturing, offshore construction, vessel operations, robotics, data analytics, and safety training, among other innovative energy fields. Regular lease sales mean steadier workloads, predictable capital cycles, and real stability for employers and workers alike.

The benefits ripple far beyond individual operating companies. Steady offshore activity supports local suppliers, fabrication yards, and service providers, sustaining thousands of additional jobs across the nation. When companies along the Gulf coast can count on long-term projects, they are better able to invest in technology, training, and infrastructure that strengthens the city’s energy cluster and keeps it globally competitive. This ripple effect ensures that the Gulf of America remains an anchor of America’s offshore energy industry, benefiting communities, families, and the local economy for decades.

Offshore development also delivers massive amounts of public revenue. In 2024, U.S. offshore activity generated $7 billion in direct federal revenue. Through updates to the Gulf of Mexico Energy Security Act (GOMESA), a growing share of that revenue flows back to Gulf states funding coastal restoration, hurricane protection, community infrastructure, and other critical investments.

The Gulf of America is one of the world’s most prolific and lowest-carbon intensity offshore basins, with Gulf barrels having 46% lower carbon intensity than the global average. Every barrel produced here displaces higher-emission imports while strengthening energy security for America and its allies.

With global threats rising and energy markets volatile, predictable investment opportunities are essential to our economic future, both locally and nationally. It signals to investors that the U.S. is committed to long-term energy development. It gives companies confidence. It gives workers stability. And it gives the Gulf of America, after years of uncertainty, a clear horizon it can finally plan around.

With the December 10th lease sale, and the 29 that follow, the Gulf of America is once again positioned to anchor America’s energy future, and our workforce has a reason to look forward with confidence.

Erik Milito is President of the National Ocean Industries Association.