The Interior Department on Thursday proposed rolling back a Biden administration rule that increased the amount of money offshore oil and gas producers must put up in bonds for the cost of decommissioning their rigs.
The rollback is intended to lower costs for offshore drillers as President Donald Trump seeks to further boost U.S. oil production, which is already at record levels. But the Biden-era rule, finalized in 2024, had divided the oil and gas industry, with some major producers throwing their support behind it.
Interior announced plans to roll back the financial assurance rule last year. Companies must put up a certain amount of money in bonds to cover the cost of cleanup after production ends in order to avoid those costs being borne by taxpayers if the company goes bankrupt.
“These updates will free up billions of dollars for exploration and development, create good-paying jobs and unlock domestic energy production so we are never forced to rely on foreign adversaries for the resources that power our economy,” Interior Secretary Doug Burgum said in a statement.
